Forex trading could be much more complex for followers of the Islamic religion. There are some laws these traders must abide by. Here we resolve the dilemma” is Forex trading halal” and how to open and benefit from an Islamic trading account.
What does Islam say about online currency trading? Is Currency Trading Haram or Halal in Islam? The answer is: Yes, the currency is halal, and CFD is halal as well.
Forex trading is Halal because trading is a business where an entrepreneur risks his investment in the expectation of making money later. Currency trading is no game, and there are no loans in this business (no repayment with interest), so this business does not violate Islamic religious laws.
What is halal?
In general, according to Islamic laws, it’s everything that is allowed and compliance with God’s will. On the other hand, we have the notion of haram,, which means that something is not good and therefore forbidden, such as gambling. These rules comes from Sharia law, which is one of the most important ones in Islam
Is Forex haram or halal
According to Sharia, everyone who gathers wealth from an unproductive activity is dealing with haram. So the question arises here and how Forex trading could be productive. In many cases, it is used by international traders to hedge the risks involved in export-import business activities. From that perspective, Forex is an activity that could be defined as beneficial for society. And if it’s beneficial for business and society, it’s certainly halal.
Difference between gambling and Forex trading
Many interpreters of Sharia law tend to qualify Forex as gambling. Whilst there are no facts that prove that. It’s quite the opposite. Forex trading is a business activity like any other. Of course, it can depend on the intentions and profile of the individual trader but in principle. It’s a business. Contrary to gambling, it requires risk and money management skills and the ability to develop good trading strategies and be disciplined in sticking to them. Also, it requires a lot of knowledge about Forex and other markets such as commodities and stocks. Learning is the prerequisite to entering into the Forex market world.
Halal or Haram, Muslims who choose to do Forex Trading are constantly thinking about their religion and which part of the Quran they should follow. There are many opinions on this topic. Some Muslims believe that it is better for them to follow the words of the Prophet Mohammed.
Halal Forex
The question will always be there, but the truth about how Islamic laws are being upheld in the Forex markets can only be answered by Muslim traders, and critics can only speculate. They cannot really tell whether or not Muslim merchants are upholding islamic laws. Eventually, they might see this as a topic they should just stop talking about, as they have no way of grasping what’s going on in the minds of others.
People are finding more creative ways to trade Forex when there is a complication due to Islamic laws. More and more professional people are determined to trade Forex and make profits by finding solutions to the problems that other people see as barriers every day.
Keeping Forex Trading alive is more important than all the words that critics use right now. As long as Muslims are finding ways to trade and are comfortable with their options, there is no reason for anyone to find faut with them.
