5

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.

  1. Interest at roll over
  2. Physical Possession of the property
  3. 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.

Improve this question
1
  • you don't probably need physical possession of something that is not actually physical . the important thing that you didn't point out is that you have to trade on the spot....no delay is allowed.
    – hasan mazed
    Sep 4, 2014 at 5:34

2 Answers 2

Reset to default
0

It is so tough to say buying and selling currencies is Haram! Assume I purchase Saudi Riyals for going to Omra and then for whatever reason I could not travel. Selling the same Riyals and gaining money on it is considered HARAM!!! I am sorry to say no it is not Haram. there are condition for foreign exchange if followed it is absolutely Halal. However trading in the same currency is Haram (discounting) because money by itself does not reproduce. It needs to be put into production for a value added, hence the justification of profit.

Improve this answer
0

online trading are in fact paper trading without any physical support of good or commodities. Therefore, it should be haram. If it is supported by physical good and commodity then it is halal.

So gold online trading without inventory is haram, because it is a paper trading and not a real one. This also works for any trading if it is a document matter then HARAM.

Improve this answer
0

Not the answer you're looking for? Browse other questions tagged .