Is forex trading allowed in Islam? Are there Islamic Forex Brokers? This is a confusing and difficult question that makes many people think about it. We have got you covered as we will talk about this topic in detail.

If you are wondering where I can get the answer for is Forex is Islam is allowed, read on. We are the very religious Islamic believers and we are also interested in online trading and investments.

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As Islamic traders and strict followers of Islam we wanted to make sure other Muslim traders will be able to get the accurate information regarding Islamic rules. The words of Prophet Muhammad guides us that Forex trading is Halal. Everything is already being cleared by the pious words of Prophet Muhammad. If the types are different then sell however you like, so long as it is hand to hand. This golden rule relates to the allowability of Forex in Islam and yes, all the Muslims are allowed to do this.

The principles of Halal Forex Trading

We will explain this to you, read on:. Any type of contract, deal or money-making activity that involves riba elements of interest is strictly not allowed in Islamic law. Since then, the retail brokers of Forex used to practice the procedure of paying or taxing the traders the difference of two components of any type of currency or asset whose situation stays open overnight. After this, many Forex brokers have taken this procedure and responded to the market ecosystem by opening Islamic accounts, and thus becoming pure Islamic Forex brokers i.

We wish to help all Muslim traders find the best Halal brokers across the world. We review different brokers across the globe to help you find the best Halal broker.

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The question here arises that how they will make profits from it? The answer to this is simple and straightforward. The Muslim traders achieved this by levying hiked commissions in the spot Forex trades daily operations. And you will feel good to know that this has become the trademark of almost every Islamic Forex trader including Halal Trading Brokers. We always ensure you are only trading with a Halal broker and not a Haram broker or agency. This important change in the entire procedure has purely made the Forex Trading a part of Halal and not Haram.

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Many Muslim people have joined us and made profits with us that is allowed in Islam and Halal. Forex trading is no sin in Islam, Halal and we are your trusted Islamic Forex traders to help you out in Forex Trading by connecting you the best Halal brokers in the world.

Understanding The Theory and Practice of Islamic Forex Trading | Finance Magnates

We offer you superior Forex trading services at your fingertips. We will not levy you charges based on the standard interest payments. Instead, we will charge you per commission considering the in the spot of the daily Forex trades. We believe in a transparent hand-to-hand no sin exchange concept. We are here to facilitate you with the benefits of online trading in the right way.

As you are aware of the digitalization, everything is going online. There is no actual buying or selling or owning of the currency. And so, we still have to ask: Is this type of speculation permitted for those who follow Islamic law? Islam understands that everyone strives to earn more money and that every opportunity to enhance your financial standing comes with a certain level of unpredictability.

When faced with multiple opportunities, we aim to combine research with past experience to choose the path that will lead to the most favorable results. However, according to Islamic law clearly prohibits gambling. So, what makes Forex trading okay and permissible according to Shariah law? One author suggests that is the method of research used for the currency speculation that makes Forex trading either permissible or banned. On the simplest level, one could argue that using fundamental analysis is allowed but using technical chart-based analysis is not.

With technical analysis one speculates on the bets of others, relying on others to influence his or her position, which connects trading closely to gambling, a pursuit that is clearly prohibited by Islamic law. Critics of this reasoning challenge: is a trader who thinks that one currency will strengthen against another due to fundamental analysis required to place the trade immediately, and forbidden to time the trade to gain the best results?

Perhaps it can be argued that a Muslim cannot speculate on the currency markets unless he or she has strong basis upon which to expect a positive outcome. Accordingly, all trades must then involve either fundamental analysis or chart-based analysis that the trader has a strong belief in. It is easier to establish a probable technical trend, and it will probably have underlying fundamental reason than using a fundamental outlook.

Understanding The Theory and Practice of Islamic Forex Trading

In this case, Forex trading could theoretically be permissible according to Islamic law. Based on our findings, it would seem that as long as there is no question of riba, the trade is made hand to hand the exact definition of this phrase is still open to interpretation for many Muslims , and the person doing the exchange has a valid reason upon which to expect profit, currency exchange is permitted according to Islamic law.

There are many Islamic Forex brokers who ensure all of this is taken into account when a Muslim would like to open Forex account and trade. We recommend that you take a look at our list of top Islamic brokers and discuss any questions or concerns with them.

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