Forex Trading In Islam (Permissible or Not) - Page 2
Page 2 of 28 FirstFirst 12345612 ... LastLast
Results 11 to 20 of 271

Thread: Forex Trading In Islam (Permissible or Not)

  1. #1
    Registered user
    Join Date
    Nov 2013
    Posts
    66
    Promo (¢)
    285
    Thumbs Up
    Received: 13
    Given: 9

    Forex Trading In Islam (Permissible or Not)

    Hello Friends,

    I don't know if it is the right section, because the section's name is Trading from A to Z, so I am pretty sure that my thread comes in the same category. The purpose of opening that thread is: Knowledge to inform you and getting yours information in my knowledge, so I may know what you have and you may know what I am saying.

    Well, in past years when people were very concerned about FX, they went to some of the online scholars asking that whether is it okay to go ahead with marginal FX trading or not, and most of the time, there used to be an answer that No, marginal trading is not permissible. At that time, there were no swap-free accounts but now, large number of brokers offer this swap-free account including RoboForex.

    We must realize that there are many grey areas which most people (even scholars) are unable to understand. No wonders that some scholars, who are well in finance world suggests to go with it.

    Let me give you the example of Dr Zakir Naik. Dr Zakir naik is a stocks trader, and i watched his video on the internet regarding stocks and he mentioned there that: "Margin trading is halal as long as no interest is charged"

    What is annoying me is the fact about leverage in Forex which is not mentioned anywhere in the internet.

    Difference between the marginal trading (leverage) in stocks and marginal trading (leverage) in Forex:

    I hope that you are aware that, in stocks trading, you will not be able to get enough leverage from your brokers or even banks. Why? Did you ever thought about this matter? Use your brain to think about it. Its because in stocks, they are lending you REAL money instead of just contracts, so that you could buy and sell your shares, and the main point is to control the debt.

    Don't you wonder that in these days, there are brokers providing high leverage? (No problems with that), but what is the difference? If the leverages like 1:1000 can be given for currencies trading then why it cannot be given in stocks trading? where the risk is less than the risk in Forex!

    The truth is, margin trading in Forex doesn't means that someone is lending you, it seems essential that it is trading on discounts that government orders the banks to charge no more than 2% in USA for their orders, that's 1:50 leverage. So, the currencies belongs to the country and country belongs to its governor, then to whom the currency belongs indirectly? the currencies belongs to the government. So, if the owner is saying that, do not charge more than more or less than 2% for their orders (most likely, less than 2% for their orders) then what it is? A discount? or lending?

    Let me ask you a simple question. Do you think that brokerage firms are that much rich to lend you billions of dollars on every trade you make? Lets say that if the broker have a order of 1000 standard lots (1000 customers, 1 lot from each) at a time, it means that all customers have 1,000 USD and having the leverage of 1:100, then do you imagine what would be the amount of so called lending procedure? It turns to 100 Million Dollars, How the hell 100 Million Dollars could even be printed in just a day. Even banks lack such kind of funds for immediate delivery, brokers are far from that.

    I have done enough research on leverage, and with my understanding, I am at the conclusion that leverage in FX doesn't means lending, it means, discount trading in terms of Forex. Think about the customers, most of the brokers have 100,000 of customers and they order the minimum of 0.5 lots at some time which means 50,000 standard lots (just for an example), then where the amount will go? Will not it turn into billions?

    I think, what they do with the FX trading is, they just note that for example "A trader purchased 100 lots at such price, TP and SL". Its just a matter of electronic paper works. Its their system where orders take place (of-course in a bank's system). I don't mean to say that trades are not executed, trades are executed but its a rule of financial market that you can pay 1% now and remaining 99% after the delivery which in the matter of Forex, delivery of spot FX takes place in 2 days.

    Why you extend your positions by giving swap? That means, you want to keep using the discounts and do not have other 99% to pay, so you are delaying the transactions by giving interest (which is obvious Riba).

    Well, the main question remains same. If the FX trading is permissible or not. And, do you think that leverage is a discount or you still think that its lending/borrowing of funds. If you think that its lending/borrowing, please write why, and if you think I am right, then also write why!

    We're looking for the peace in both worlds. It is unfair that we dis-respect the orders from our God and just care about this temporary world? How much time we can live in this earth? for 100 years at most? Okay, 120 years at most. The avg is 60 years. Do you want the paradise for eternity OR paradise in this world for averagely 60 years and then hell-fire for eternity. The reason I am saying is that, I want you to think seriously and answer the question because it is the matter of Riba. Even I am not yet confirmed if dealing in Forex is okay or not. So, I thought that asking from you here will be a good idea.

    The main question remains same. It is just the information I thought to give you about leverage because it is the first reason your scholar will give you to say that it is impermissible. Information is given so that you could think enough about whether it is okay to go ahead or we should leave this profession.

    Again, the major reasons which scholars give when they say that it is impermissible:

    - Possession of currencies (We get ownership rights but only some scholars understand electronic rights)
    - Use of margin. (Scholars say that it must be 1:1, but even if that is the case, then what about long/short issue which gonna remain same even with 1:1, short (sell) means, we are borrowing one and purchasing other, in Forex, we don't borrow actually but if scholars insist on it, then tell them that even with full payment, the matter of borrowing will remain same. Without borrowing, no chance of business.) Remember that I don't think borrowing of funds exists. Specially when it is interest-free? Sigh. impossible.
    - Hand to hand. (It is an advanced world now and electronic systems are now our hands)

    I hope that you aren't bored with those details, also, I bear no responsibility if my thoughts are 100% correct (because after all, they are just thoughts)

    Best,
    PrinceWahaj

    Not allowed!

  2. #11
    Banned
    Join Date
    Nov 2013
    Posts
    14,851
    Promo (¢)
    0
    Thumbs Up
    Received: 106
    Given: 14
    Quote Originally Posted by sumonmollik View Post
    First you need to keep in mind that it is not a gamble business. Also when you make profit never other trader make loss due to your profit. It is a business & all legal business is Halal in Islam. So you can do it without any confusion. Just make your account swap free because swap is not Halal in Islam.
    you have a point, the gambling is what the religion might not like, and the forex can be viewed in the way that is not gambling. they have brought out the swap free trading because of the Islamic people too. i believe forex is good for them when they think it is not bad by themselves.

    Not allowed!

  3. #12
    Registered user
    Join Date
    Sep 2014
    Posts
    3,490
    Promo (¢)
    1,881
    Thumbs Up
    Received: 18
    Given: 1
    Some are allowed some offer special accounts and so when some don't its something that I don't understand and so when you trade forex some Muslims are not allowed because they are said to avoid offering the same because of some Muslim country being prone to trading forex and funding terrorism and these is not for all of them but some Muslims extremist could find there way.

    Not allowed!

  4. #13
    Banned
    Join Date
    Sep 2013
    Posts
    27,036
    Promo (¢)
    0
    Thumbs Up
    Received: 289
    Given: 50
    Quote Originally Posted by silverlady View Post
    you have a point, the gambling is what the religion might not like, and the forex can be viewed in the way that is not gambling. they have brought out the swap free trading because of the Islamic people too. i believe forex is good for them when they think it is not bad by themselves.
    Well, I do not think it is wrong to trade forex by any religion practice. It is what we believe that matters as you have said, and we should never condemned ourselves by the things of religion, we should only do the things that we believe is right for us to do. The forex market is a good market as it is an opportunity, it would help traders who can do it professionally.

    Not allowed!

  5. #14
    Banned
    Join Date
    Oct 2013
    Posts
    11,332
    Promo (¢)
    0
    Thumbs Up
    Received: 243
    Given: 193
    Quote Originally Posted by cozard007 View Post
    Well, I do not think it is wrong to trade forex by any religion practice. It is what we believe that matters as you have said, and we should never condemned ourselves by the things of religion, we should only do the things that we believe is right for us to do. The forex market is a good market as it is an opportunity, it would help traders who can do it professionally.
    this is a real business, and also there is the rule for it, some religion allow this business and include islam too, just one thing need to noted by muslim traders, they have to avoid swap account, because there is an usury elements in there, and for the others, nothing,
    and so, just take this business seriously and keep in mind that we come for business not for the others, then do not change this business into other thing such as gambling too,

    Not allowed!

  6. #15
    Banned
    Join Date
    Jan 2014
    Posts
    4,945
    Promo (¢)
    0
    Thumbs Up
    Received: 125
    Given: 262
    Quote Originally Posted by sumonmollik View Post
    First you need to keep in mind that it is not a gamble business. Also when you make profit never other trader make loss due to your profit. It is a business & all legal business is Halal in Islam. So you can do it without any confusion. Just make your account swap free because swap is not Halal in Islam.
    Thanks for providing such a good information, I am not related to islam but its seeming good that those people can use a swap free account for trading. But gambling is not allowed in trading from my side, because its a real and legal business where we should do trade safely. I condemn about this if broker's or people are against the islam, everybody should have a fair chance to do trade in forex and as far I know about forex its a free business and anybody can join.

    Not allowed!

  7. #16
    Banned
    Join Date
    Jan 2014
    Posts
    7,034
    Promo (¢)
    0
    Thumbs Up
    Received: 212
    Given: 392
    Quote Originally Posted by Kariuki View Post
    Some are allowed some offer special accounts and so when some don't its something that I don't understand and so when you trade forex some Muslims are not allowed because they are said to avoid offering the same because of some Muslim country being prone to trading forex and funding terrorism and these is not for all of them but some Muslims extremist could find there way.
    Forex trading is a world wide online business and door's are always open for any kind of person. A broker should don't have any problem with any muslim person or country. Broker's are in this business for brokerage and their work should be to add more and more clients in their broker. Robo forex is a good broker and they are always here to provide best service to their clients, I think terms and conditions and policies of a broker should be same for a hindu, muslim, foreigner etc.

    Not allowed!

  8. #17
    Registered user Hukam's Avatar
    Join Date
    Jan 2014
    Posts
    8,693
    Promo (¢)
    7,140
    Thumbs Up
    Received: 252
    Given: 504
    Quote Originally Posted by forexlearner View Post
    Forex trading is a world wide online business and door's are always open for any kind of person. A broker should don't have any problem with any muslim person or country. Broker's are in this business for brokerage and their work should be to add more and more clients in their broker. Robo forex is a good broker and they are always here to provide best service to their clients, I think terms and conditions and policies of a broker should be same for a hindu, muslim, foreigner etc.
    I don't think that any broker have problem with any muslim even muslim's are getting free swap free account in forex market, and they have good facilities in this business. It will be better if all broker's will provide good facilities to muslims, I don't exactly which country don't want to support muslims, we all are brother and sister's and I think a broker should give equal support to each of their client.

    Not allowed!

  9. #18
    Registered user lawners1791's Avatar
    Join Date
    Dec 2013
    Location
    Lawners Makesup
    Posts
    12,228
    Promo (¢)
    120
    Thumbs Up
    Received: 79
    Given: 19
    the one to work with the counting on calculation with the laverage used to be and still work for of below:
    retained of $100,000 for 1 full lot for 1:1 laverage
    those works with the divide of the laverage level to refer countings on retained margin for different level.
    the retained margin for 1:500 should be $100,000 divide to 500 that is $200 per 1 full lot.
    that the higher on laverage level leaves of higher discount to work of the trader with the supports of the better margin.

    Not allowed!

  10. #19
    Registered user
    Join Date
    Oct 2015
    Posts
    674
    Promo (¢)
    -10
    Thumbs Up
    Received: 8
    Given: 0
    Well trading in islam is permissible and with it prophet use to make money. But the thing is when it comes to margin trading the whole thing is different. When you want to make money with trading you must make money with a proper way of making money with a proper strategy.

    Not allowed!

  11. #20
    Banned
    Join Date
    Jul 2014
    Posts
    9,758
    Promo (¢)
    0
    Thumbs Up
    Received: 128
    Given: 104
    Quote Originally Posted by sumonmollik View Post
    First you need to keep in mind that it is not a gamble business. Also when you make profit never other trader make loss due to your profit. It is a business & all legal business is Halal in Islam. So you can do it without any confusion. Just make your account swap free because swap is not Halal in Islam.
    [lang=id]yes, this is about the understand about forex trading in mind for everyone, and if they think it as a bad thing then every business is gambling too, and you are right, muslim just need to avoid the account with swap, that is not halal in islam, and i guess we get the clear discussion about forex in islam,[/lang]

    Not allowed!

Page 2 of 28 FirstFirst 12345612 ... LastLast

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •