I've read a lot of articles, hubs, discussions about online forex trading being halal or not. And I got to 3 points/problems that if these (below) are solved, then it would be halal.
- Interest at roll over
- Physical Possession of the property
- Equal profit/loss (and not any kind of charges)
Problem 1 is easy to solve and I can answer that, just sell all your shares before closing and buy again at the opening, or program your computer that way.
Problem 2 is complicated, since physical possession is often impossible. If that's the deal then all the Muslims working on software (which is to say on the computer) are not earning halal income, because they can't have physical possession (except of their computer). If you can get me wrong and we do need to have physical possession in the end, then I have another thing: For example, if Facebook is selling it's shares and it is a software (communication based or whatever) company which only exists virtually, how can we have the possession of it physically?
Problem 3 is more complicated. I totally agree with having equal profit/loss but I just can't agree on having no charges at all. A company is providing me a platform to trade so they deserve to charge me. It's just like charging a shop rent.
I just want to know if online forex trading is halal or not. And I would be more than happy if someone can prove my points wrong.