Forex: Halal or Haram?
Forex: Halal or Haram?
Are Islamic Forex accounts really halal?
Is speculating in currency price halal?
Is forex currency trading halal or haram?
These are the questions we talk about in today's video. We'll also talk about what forex means, why people engage in forex, and what does this mean for us as Muslims.
If you're ready to learn more whether forex is halal or haram, watch this video now.
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I'm really grateful with the internet for things like this. Thank you sir for your comprehensive explanation. May Allah bless you always!
Alhamdulillah very nice and clear explanation!
Beautiful explanation. Jazaakallah 👌
Thanks for making this video. Most of our scholars are vague on this topic and you said it well with basic teaching. Jazakallahu kheir
Alhamdulilah! I'm so glad you like it! What other topics would you like to learn?
Nice video mashallah 🎉 I was about to go into trading but now you have completely changed my mind Alhamdullilah
Sukran, I love a copy of the two page guide.
Thanks.. you speak very clearly
Mashallah Jazakallah khair 🤗
Thank you making this video and your explanation are comprehensive
Hi. Thanks for your video. It was really helpful! I would like your investment guide please!
Thank you and keep up the hard work 👏🏽👏🏽👏🏽👏🏽
Thank YOU! we do this just for you!
Thanks so much bro for so excellent guidance on this subject.may be Allah bless you.i also want a copy regarding to halal investing, jazakallah khair
Shukran akhy, jazaakallahu khayran. Can I have the guide book please
Thank you for explaining it to me in simple terms that's easy to understand. I believe there is more to the halal way of forex trading. I know nothing about it. Love to know more.
Yes send me that book, Insha Allah.
AoA , Thanks brother. very impressive and logical explanation. apart from forex, gold and crude oil online trading as CFD with broker is hallal or haram. further it is also speculative, but there are many fundamentals and technical analysis involved in it for confirming direction of move of the assets. waiting for your kind replay, as it is also the next question from all those who are leaving forex after watching your this vedio
Thank you so much for this wonderful video. You kept it very simple so that the information is accessible also to people that are not necessarily finance professionals. Thank you 🙏🏽
Assalaamu alaykum brother, thank you for this info. How about Islamic forex trading accounts? Is it halal?
SALAM UPON YOU. THANK YOU VERY MUCH FOR YOUR POWERFUL LEARSON. I AM INTRESTED IN YOUR WRITE UP ABOUL HALAL INCOME
Jazakallah Khair good stuff👍
Glad you liked it! What else would you like to learn about?
@@ModernMuslimFinance salaam investments in stocks, bonds and gold for complete beginners...like myself JZK👍
Jazak Allah khair brother
Many thanks for this information brother. May allah make ease in your difficulties and make it more easy for you to deliver such good stuff. Jazakallah khair! Love from India.
Thank you so much! What else would you like to learn?
Thank for the advice, can I get the copy you said in the video.
Salaam alaikum warahmatullah wabaarakatuh jazakallah Khairan for the enlightment can you share the book please
Excellent explanation sir
But if we learn about the market then we can say that where the market will go so will it be speculation or not? Please guide.
Hi Afiq- Thank you and could you share the two pager halal investing guide
Hi Zairah! You can head to 8halalinvestments.fussfree.finance/ to get your free copy!
@@ModernMuslimFinance Thank you
Thank you , for the clear explanation Much appreciated. . How do I access the investing e-book.
Alhamdulilah, I'm so glad you found it valuable! you can download the e-book here: hib.fussfree.finance/
Nice video ,I need the ebook on halal investing
Hi sir, to clarify, Is ExpertOption syariah compliance?
Assalaamu alaikkum. I have question here regarding stocks. In the hedging method,to protect the stock price crisis in the cash market, can we hedge through futures in selling side ? . At the same time if any profits seen in the futures, can we trade in the futures before closing the cash position.? Is it halal? Two scenario here , first we hedge the position. Second is profiting in futures as well as cash maket .pls clarify.
Brother, nicely explained.. Thank you so much for creating a worthwhile content. Please share the Halal/Sharia Guide of investing.
Thank you for your explanation. I need it please send. Jazkhallahu Khair
Most welcome! here's the link to download the e-book! hib.modernmuslim.finance/
Can you please send the halal investment ideas I’m interested in it thank you 😊
Thank you for this
Thank YOU! We do it just for you!
Well explained. There are two types of Forex market. 1. Non leveraged market where financial institution and banks buy actual foreign currencies. 2. Leveraged and CFD. Meaning there is no foreign currencies , metal, or any assets exist in that market . And traders merely bet on price. Leverage itself is not an issue if the actual loan exist. But in Forex CFD trading , loan is artificial. You open position and place 1% margin , 99% is loan thats is not exist. This couse non shariah transaction. If i Borrow 100k interest free loan from my father and buy Euro in money exchange, then sell it when they price appreciate. It has no issue. Bucause money existed and actual transaction between buyer and seller took place, unlike Forex CFD .
U explain so well, thanks
Thank you so much! what other topics would you like to hear about?
@@ModernMuslimFinance Is there any topic on crypto trading halal or haram?
Thanks Coach Syed. Very informative. Thanks. Excellent sharing
Thank you so much! :D
Good example of explanation..
Jazakallah for the information brother. Agreed that it's haraam. But I have a question. I work as a software Developer, basically a technical guy inside this forecx division of a Investment Bank who is not involved in the actual business. My Job as a developer/technical analyst is to perform software upgrades, provide technical solution, remove vulnerabilities and fix technical issues that affect the business as a whole. Is my job as a technical person haraam ??
No worries about it. Forex includes high leverage with a swap fee(interest). Plus it is traded under contract which is not good at all. You can spot trading in crypto with good technical skills.
It's me Sharmaarke Mohamed Ali from Somaliland. Let me express the true nature of leverage is not a loan in anyway. Leverage is a mechanism that financial community learned from concepts of science and accepted as a means of multiplying the purchasing power of small pocket clients in order them to participate a big market and transact with multimillionaire counterparts. There is no any actual amount of money brokers giving you from their pocket nor you are obliged to pay back. What we give to brokers can only be due to their services and use of their intermediate platforms.
Yeah its give me logic
”Multiplaying the purchasing power” adi ayaaba sheegay walal in meesha wax lays amaahinayo, qaabkasta u sharax ama wajikasta haloo dhigo, hadiiba 100$ aan meesha la ibi aan wax ku iibsankaro sidii anoo 10k$ haysta lacag ayaa lagu amaahiyay lakin physical laguuma siinin, madama adi physicial in wax lagu siiyo aan qoraalkaga kusoo dartay. Waxa kale dhan iska ilow, Midda ugu daran waxa weeye diinta islaamka waa xaaraan ganacsiga aan spotka ku salaysnayn forexna markad wax buy leedahay ama sell leedahay wax aad soo iibsanayso oo kugusoo wareegaya, iyo waxaad mrkii hore haysatay oo iska iibinayso midina meesha ma yaalo😊
@@fowsi-88 wll xta hdii lagu amaahiyay saw maaha in lagaala noqdo dayntii ama aad iska gudo ileen dayn ayaya kugu ahayde marka leverage maaha lacag Ta kale forex sell markad dhahdo waa sidad u dhahday ma jirto waan khaldameh iso celiya wxygi markaa taasina wll maanay ahayn spot Ta kale waji kale markan ku eego forex dadka caadiga ahi ma sameeyan wax sarif ah ee wxy maal gashadaan dhaqaale wadan inta uu isbadalayo kolba us30 wxa weeye 30 shirkadood oo ree maraykan ah oo lala narbar dhigay lacagta dollarka markaa taaana markan trade garaynayo ma waxa lay dhahayaa waa inad adigu shirkada leedahay
Leverage is a tool. Either good or bad fot the trader, depends on knowledge.
How to make forex halal.. what step to make it... What to do.. and how to do.. forex trading halal.. everyone giving explanation. No one is giving any solution
Hi i want to ask that if we trade on some metals like gold and also do without leverage as 1:1 then what will shria say about it..?
Hello! The same rulings apply to trading Gold & Silver, as currecncies! So only if you're doing it on the spot basis!
You have to buy the underlying asset physically then it's not haram. Also, it should not be based on speculation
thank you for the simple and direct explanation and taking away the doubt. please send me a copy of the 2 page guide.
Hi! You can get the ebook here: hib.modernmuslim.finance/
Questions...how can we make it halal by just removing the riba' in the forex trading? Firstly, u are even allowed to near it or involve woth it eventhough we can cleanse it.Right?
Can we learn technical analysis and fundamental analysis using charts to trade physically with gold and commodities is this halal or haram in Islam??
You said it from your point of view. However, it is not possible to explain halal or haram in a clear way. I have been doing this for many years and I have been dealing with these a lot. Thank you, good luck to you. :) I like your information.
Thank you so much for your comment! I agree that it may be difficult to explain haram and halal, depending on the subject matter. Some things are crystal clear (for example, the prohibition on consuming pork and alcohol). For the other things, I will do my best inshaAllah to ensure my activities are done with a clear conscience, so that when I'm called back to our Creator, I can answer the questions He will ask. All the best to you, and thank you for your input! Are there any particular topics you'd like to learn about?
sir assulam alikum . I want to start halal trading please guide me. it will be a great favor by you, protecting your Muslim brother from Haram
Assalamualaikum… hi sir can I hv ur two page guide for kick start halal investment? Will be highly appreciated. TIA
Thank you for the insight
Most welcome! What other things would you like to learn about?
@@ModernMuslimFinance Can you share your views on crypto currencies please?
@@Wajahata1i sure! Upcoming videos will cover that too!
Salam Mr Afiq.Bagaimana pula jika trade gold,silver,oil etc menggunakan platform mt4?
actually haram
Good evening please share the halal Investing guide if posible
Thanks sir am interested in your halal investment
Pls share with me the halal way of investment guide.
@ModernMuslimFinance AsAk 6:50 Plz give a few references of scholarly views that profiting on currencies (medium of exchange) is prohibited ? or Give some references from Sahih Hadith. Jazak ALLAH
thank you very much.. very clear explaination and i like it.👍👍
Thank you so much! what other topics would you like to learn about?
Good explanation...
Glad you liked it! What else would you like to learn about?
If i analysis the forex chart then i do buy and sell, will it be considered as speculation? Please answer somebody.
Can i use my capital only without leverage is it well be halal
Am waiting for your reply
Asalamualaykum brother. i need a copy pls.
jajakallah
But SIr, regarding leverage in trading , no interest is paid on leverage
Does not crypto & stock includes speculation?
hi thanks for this video can u share the link of halal investing document
Hello Musharraf! you can get it here: 8halalinvestments.fussfree.finance/
Jazakhumllahu khairan Akhi….please I want a copy of the book
You can get a copy of the book here: hib.modernmuslim.finance/
I wonder if we leveraging when we buy a property too - esp an investment property?
Hello Azahar! thanks for your question! Yes, we are leveraging when taking a mortgage/home loan when we're purchasing real estate. In Islam, we're taught to avoid debt as much as possible, although its not forbidden to take on debt. But only if its necessary or unavoidable. In the case of buying a home, most of us are unable to purchase property without a loan, or we'll end up homeless. So thats definitely allowed. But in the case of an investment property, can we avoid taking on additional debt? As a finance professional, I'd even ask: Can we deploy our funds into something that performs better than real estate? (I can think of multiple asset classes that have outperformed real estate over the past 30 years)
What about the FTMO challenge is that halal because my family are going to do it but wanted to find out if it was permissible to do that or not ?
Hello Missy! Well, in my opinion, if the intention is to trade forex, then I'd advise against it. Forex Trading is deemed impermissible, and we should avoid it.
Meta trader 5 halal or not?
Clear explanation
Alhamdulilah, thank you so much! What other topics would you like to learn?
JazaakAllah Khair brother. Thank you so much for making this video. I am from India and I was very confused about online forex trading. Our local Ulema don't know much about how online forex trading works. And they were unable to give satisfying answers. I prayed to Allah and did Istekhara many times, Now after doing istekhara recently. KZhead recommended this video to me.
So what did u learn from it now??? Halal or haram???
@@veed_official it is doubtful and better to leave
@@veed_official Al-Nu’man ibn Bashir reported: The Messenger of Allah, peace and blessings be upon him, said, “The lawful is clear and the unlawful is clear, and between the two of them are *doubtful matters* about which many people do not know. Thus, he who avoids *doubtful matters* clears himself in regard to his religion and his honor, and he who falls into *doubtful matters* will fall into the unlawful as the shepherd who pastures near a sanctuary, all but grazing therein. Verily, every king has a sanctum and the sanctum of Allah is His prohibitions. Verily, in the body is a piece of flesh which, if sound, the entire body is sound, and if corrupt, the entire body is corrupt. Truly, it is the heart.” Source: Ṣaḥīḥ al-Bukhārī 52, Ṣaḥīḥ Muslim 1599 Grade: Muttafaqun Alayhi (authenticity agreed upon) according to Al-Bukhari and Muslim
@@AmirKhanIndia thank you so much about the hadiths... And what do you think about cryptocurruncies as well? I would be happy if you replied.
@@veed_official it is doubtful as well. Bro it's better to leave these things and focus on real business like how Rasoolullah ﷺ was a good businessman and he had a buisness of clothes. I've tried the stock market but the company is either doing haraam business or even if it is doing halal business it has taken loan so we will be partners in riba. And it is a big sin. I've tried cryptocurrency and forex. I liked to read charts and do analysis. But see the whole picture. It's all virtual. If you find a halal company that is doing halal business and has not taken any loan. Or is not doing anything that is haraam go for it. Become a partner of that company. Because they have physical business going on in the background. But I don't know about any such companies. And remember that this Dunya is temporary and we will return to Allah and on the day of judgement he'll ask us from where did you earn money and where did you spent it. All the wealth belongs to Allah. And he has shown us the right way and the wrong. And in the middle there are some things that are doubtful and according to that hadith that I shared earlier Muhammad ﷺ told us not to indulge in those things that are doubtful so it is better to protect yourself from these things to protect your deen and imaan. Hope this clarifies things. JazaakAllah Khair
Hello sir it could be so pleased and kind if you explore and and understand us something more about speculation. And can we avoid ourselves from speculation in forest? Very important please❤️❤️❤️
There's 2 main issues to take note of in this case: 1. Forex Trading is considered haram due to the asset class (currencies). You can trade stocks, no problem, but not currencies. Derivatives like options, warrants, futures, etc are also haram to trade. 2. Speculation occurs when people have no idea what they're doing, and are hoping that they'll make money. the only way to avoid speculation is to educate and equip yourself with the knowledge and skills that will help you determine the performance of an asset class, especially over the medium to long term. In the short term, it's difficult to predict the movements of an asset.
may i know the other ways and is it possible to leave out the leverage in forex
Hello Pinky! yes, you can leave leverage out of forex! it depends on the platform you're using and if they allow for that. I know a friend who used to do it physically, by visiting various money changers and doing it on the spot! Ultimately, when you do forex, you'll have to be mindful of the intention behind the activity! have you traded forex before?
Binomo trading flatform is halal??
Is S&P 500 futures trading halal?
Am interested in joining the halal investment
Salaam Brother, please do a video on Insurance
Wsalam! InshaAllah, We'll be doing a video on insurance soon!
Assalam walekum Can i please have copy
Could i have the guide?
In general every business are considered halal in Islam unless it is specially prohibited by the Qur’an or the Hadith... if we are not involve in interest and gambling in forex is it halal?
Hello Najath! you're right in that business is considered halal (assuming we don't deal in forbidden areas and we abide by Islamic contracts). When it comes to Forex TRADING, its deemed impermissible, regardless of whether we're exposed to interest or we gamble. We can only do foreign exchange of currencies when there is a need to use the other currency, whether for business transactions or personal use.
O thanks man ♥️
Most welcome! what else would you like to learn about?
8:15 i also trade Stocks and loss money , how is that sounds?😮
Jazakallah for the information. I'm curious to know if I am investing a certain amount of money (eg USD1000) to a team of experienced traders to do this investment ( they do trading on metal, Forex, gold) is it halal or haram? The closing trade of the day done on the same day (never brought forward), I personally don't do the speculation and I don't use leverage, the chosen team will deal all these professionally. In return, with that amount of investment USD 1000, they're giving me a certain % in a month. In my opinion, they act like a bank (except it's an organization) and they don't pay investors per annum but per month. Your opinion is very much appreciated because I don't want anything illegal.
Watch out that it is not a scam
@@TrinalData No, it's not a scam . Saw the withdrawal of usd900 into bank account within 5 days. The investment very legit Triumphx
Brother everything has a risk I brought 1 kg sugar for $1 in the morning and in the evening its worth $1.2 will it be haram for me to sell that at the evening obviuosly no way
Where is the hadith that syas that zero game is forbudden ?
Super sir 💖
I'm glad you enjoyed it! What else would you like to learn?
How to make halal or what to do to make halal forex.. help us and guide us to do halal trading in forex.. what about trading in gold and oil
@KATHIMORGAN1 is her user name for help
Salam bro Good video in general but someone who wants to say that something is halal or haram needs at least to bring evidences from Quran or sunnah. Any words about the Hadith: gold with gold, hand on hand … ?
i can accept other reason but speculation.in forex,cannot trade with speculating market,,it must be followed by technical analysist...if u say so,stock also can be speculation if no knowladge in trading stock market even it is halal in islam....
You're right! speculation in any form is Haram, and when speculation is done in the stock market, then of course its haram too! With regard to stock investing and trading, when accompanied by fundamental and technical analysis, and the stock being analysed is screened to be shariah compliant, then its halal! but Forex trading itself is deemed haram, because it would be trading in a medium of exchange (the currency itself), so even with the right analysis, we're still doing a haram activity (trading/speculating on currencies).
@@ModernMuslimFinance ok,i agree with you for this...
@@unknownunknown_person3444 glad i could help! I'm super thankful that as muslims, we have so many opportunities to grow our money, in the halal way too! being wealthy is encouraged in Islam, as we can give more to charity when we're financially secure inshaAllah :D
@@ModernMuslimFinance this one explains details for differentiate between stock and fx trading permissible or not
salamu aalaikum,pls i need a copy
Can i have the copy please.. Jazakumullah
assalumualaikum sir i would like to join halal investment ways
It could be halal if u follow Sharia rules: *Do it on spot: choose broker which doesn't take long to open orders. *Do Technical analysis not gamble *Don't use leverage or margin bonus *Learn then leap.
Is trading in options halal ?
This is a halal or haram plz tell me
Please consider halal forex trading platform
Great Video!
Glad you enjoyed it! What other things would you like to learn about?
@@ModernMuslimFinance How abt differentiation in investing and speculation. How do I avoid speculating in the stock market? Thx in advance!
@@fairozmohamedsalleh9865 Thats fantastic! I'll do a video about it soon :) look out for it!
@@ModernMuslimFinance Thank you. Already subscribed.
Forex trading is Haram if a trader is NOT setting STOP LOSS i.e. if he/she is not doing proper risk management! Leverage is still doubtful since leverage in FX is not increasing our account size but just increasing value of position size i.e. Lot size.
Thank you for the good explaination. Forex trader can be both haram and halal in many ways. But it depends on person who enter in this career. If you don't have any knowledge about trading or system it can be a gambling. But if you have a system to follow not guessing when to enter in the market it's totally nothing wrong with it. Allah knows best. Sukran.
It's still Haram, because of the asset class: currencies. We're not allowed to trade in currencies.
@@ModernMuslimFinance hello. i dont think so that we cant trade in currencies. As theres a hadith in sahih muslim 1587. Dealing in currencies is permissible so long as the exchange takes place in the same sitting as the contract is made. It is permissible to sell euros for dollars so long as the exchange takes place in the same sitting as the contract is made. But when the deal is concerning the same type of currency, such as selling one dollar for two dollars, that is not permissible because it is a type of riba. In that case, they should be of equal amounts and the exchange must take place in the same sitting as the contract if the exchange is concerning one type of currency. The evidence for that is the report narrated by ‘Ubaadah ibn al-Saamit (may Allah be pleased with him) who said: The Messenger of Allah (peace and blessings of Allah be upon him) said: “Gold for gold, silver for silver, wheat for wheat, barley for barley, dates for dates, salt for salt, like for like, same for same, hand to hand. If the types are different then sell however you like, so long as it is hand to hand.”-(Narrated by Muslim, 1587).
@@salemmulla7763 currencies are not made to make profit but as a medium of exchanging goods.
@@salemmulla7763 "...Money is not created to earn money, and doing so, is a transgression… The two kinds of money are means to acquire other things; they are not meant for themselves.” - Ihya’ Ulūm al-Dīn, (Chapter on Patience & Gratefulness)
A contemporary scholar, Mufti Taqi Usmani, mentioned that diverting “money” from its function as a medium of exchange and making it as an object to trade (i.e. making money out of money) is one of the main root causes causing global financial crisis. He also stated the following: To make them [i.e. currencies] a tradable commodity only for earning a profit is also against the basic philosophy of Islamic economics.
My dear brother, what if I had a contract with a financing company and we used to share the profits in half(50-50)? I mean, they have the money and I am the effort
@KATHIMORGAN1 is her user name for help
So conclusion is haram?
I want to trade halal stocks but even though there is a broker with free swap they say that CFDs are haram and I'm in a mess, can alien help me which platform is % 100 halal?
Salam Brother! the issue isn't the platform itself, but rather the features that we use. CFDs, Swaps, and Options are derivatives, and we're not allowed to use these instruments. If the platform offers Leveraging and/or Financing, we can still use the platform, just turn off those features. Depending on the country you live in, you may have access to Islamic platforms, or you might not, and thats okay. As long as we avoid the haram elements, and our intentions are clear, we can invest the Halal way inshaAllah.
@@ModernMuslimFinance thank you brother