Are you a Muslim and want to start FX trading as an investor? If yes, then the first thing you should bother is whether it is Halal or Haram.
The most upfront answer to this question is that it can be Halal (allowed) or Haram (forbidden) under different circumstances. In other words, you can trade in FX but with some restrictions, according to Shariah.
Let’s start our thorough discussion about this topic:
How FX Trading is Haram (Prohibited)?
In general, trading is never forbidden in Islam and is encouraged, but without interest, that is prohibited, according to Shariah. And generally, FX trading contains that extra interest forbidden in Islam. This interest is said to be Riba in Arabic in Islam. So, what should a Muslim do?
FX trading is said to be Haram because it does not require any hard work. Moreover, it depends on the trader’s luck, similar to gambling. In other words, FX trading is gambling, and gambling is prohibited (Haram) in Islam.
With the fact that it is quite similar to gambling, in Islam, any trade or earning dependent on luck is Haram (Forbidden according to Shariah). That is why many Islamic scholars suggest being away from FX trading, brokering, and marketing in any way.
So, now we have the three most basic things (interest, dependence, and gambling) that are factors on which we can confidently say that FX trading is Haram. In simple words, FX trading is a market in which we trade our money and earn through copy trading by doing nothing and just guessing currencies.
It is gambling, and all thing depends on luck. If the currency we are selling rises, we can earn a profit; otherwise, lost will be waiting for you. Moreover, a trader gets profit under some circumstances, which is forbidden in Islam and is called Riba in Arabic.
How is FX Trading Halal (allowed)?
According to many Muslims, it is forbidden, but on the other hand, many Muslims are trading forex. But how and why?
Many brokers who want to target Muslim traders offer Islamic trading, according to Shariah. They are doing this because there is a big Muslim community in the world that can increase their business by a mile. But the best thing is that most of them offer real Islamic accounts in which you can trade in FX according to Sharia on your own without gambling or Riba.
One of the brokers who offer Islamic accounts for every account separately is Globex360. This works to tell the broker that you are a Muslim, and they will switch your account after you decide on your type of account.
Globex360 is a good option for Islamic trading, but before deciding anything, you must know about the minimum deposit for Globex.
So, the whole discussion concluded that FX trading is Haram in its real and original state. But various brokers offer Islamic accounts that will help you trade according to Sharia. But in the end, the choice is yours, so decide wisely.