Is Forex Trading Halal? The Shocking Truth
45sThe video starts with a highly searched religious question about Forex, immediately grabbing attention of Muslim traders seeking clear guidance.
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This video addresses the Islamic permissibility of trading in various financial markets, including Forex, digital currencies, binary options, and stocks. The speaker provides a personal and religious perspective, emphasizing the conditions under which trading is considered halal or haram.
Chapters
[00:00]
Introduction to Trading Markets
The video begins by introducing the four key markets: Forex, digital currencies, binary options, and stocks. The speaker notes that most trading occurs in these markets.
[00:15]
Forex Market Conditions
Forex trading is permissible only if done with an Islamic (interest-free) account. However, the speaker personally dislikes Forex and does not recommend it, describing it as akin to gambling.
[01:08]
Forbidden Applications and Leverage
The speaker mentions popular trading apps like IQ Option, Expert Option, and Olympe Trade, and states that using financial leverage is forbidden as it inflates capital.
[01:40]
Halal and Haram in Stocks
Buying shares in companies involved in haram activities (e.g., liquor or usury) is forbidden. Conversely, investing in halal companies like dairy firms is permissible.
[02:10]
Consulting Legal Bodies
The speaker advises consulting official legal bodies in one's country to determine which companies are halal, avoiding the need to research each company individually.
[02:25]
Digital Currencies and Futures
The market is divided into futures and spot markets. For digital currencies, it is crucial to check if the specific currency is halal, with websites available to assist.
[02:55]
Scholarly Opinions on Digital Currencies
Many scholars consider digital currencies forbidden due to mandatory benefits and other concerns, so the speaker recommends staying away from them entirely.
[03:09]
Conclusion and Advice
The speaker concludes by sharing personal diligence in research and advises viewers to like and subscribe for more content.
The video provides a clear religious stance on trading, urging viewers to avoid Forex, leverage, and digital currencies, while allowing stock trading in halal companies with guidance from legal bodies.
Mentioned in this Video
Study Flashcards (6)
What is the condition for Forex trading to be permissible?
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What is the condition for Forex trading to be permissible?
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It must be done with an Islamic (interest-free) account.
00:15
Which trading apps are mentioned as forbidden?
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Which trading apps are mentioned as forbidden?
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IQ Option, Expert Option, and Olympe Trade.
01:08
Why is financial leverage forbidden?
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Why is financial leverage forbidden?
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It inflates your capital, e.g., $100 becomes $1000 or $2000.
01:25
What type of stock trading is permissible?
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What type of stock trading is permissible?
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Buying shares in halal companies, such as dairy companies.
01:54
How can one determine if a company is halal?
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How can one determine if a company is halal?
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By consulting the legal body in your country.
02:10
What is the scholarly opinion on digital currencies?
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What is the scholarly opinion on digital currencies?
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Many scholars say they are forbidden due to mandatory benefits.
02:55
💡 Key Takeaways
⚖️
Forex Permissibility Condition
Clarifies that Forex is only halal with an Islamic account, a key nuance for Muslim traders.
00:15
📊
Leverage is Forbidden
Explicitly states that financial leverage is haram, a common practice in trading.
01:08
🔧
Halal Stock Example
Provides a concrete example of permissible investment (dairy companies), making the rule actionable.
01:54
💡
Digital Currency Consensus
Highlights the general scholarly consensus against digital currencies, a timely topic.
02:55Full Transcript
[00:00] In this video, we will answer a very important question that many people ask: To understand and know the answer to this question, you must be aware that most of the trading work happens in four key markets: the Forex market, the digital currency or
[00:15] The first market we are dealing with is the Forex market which is the foreign currency market. In the Forex market, gains and losses depend on the entry and exit prices of the currency. The Forex market is permissible on one condition only, which is that you are trading with an
[00:29] It's often futile to trade in some currencies as they already carry interest. A lot of rumors suggest that even if you trade with an interest-free Islamic account, it To be honest, personally, I don't like the Forex market and I don't operate in it, nor do I recommend it.
[00:49] Without getting into details, if you try it, and I don't advise you to try it, you will realize that it is all about bets and gambling. You don't even need to try it because I'm telling you, it's forbidden and there are several applications for it.
[01:08] I am sure you have seen an advertisement for some of these applications or have seen a content creator talking about it. Some of the applications include IQ Option, Expert Option, and Olympe Trade, which are very common. I would like to tell you that any use of financial leverage is forbidden, financial leverage is what inflates your capital.
[01:25] For example, if your capital is one hundred dollars, it gives you one thousand dollars or two thousand dollars. It is forbidden; you should not use it. video and subscribe to the channel so that the video can reach the maximum number of people, and everyone benefits from it.
[01:40] The halal and haram rules are apparent because it's like any trade that you may have heard of in your life. For example, if you bought shares or became a partner in a liquor company or a usurious company, it is definitely forbidden.
[01:54] There's no need for you to go and buy shares in a usurious company or a company that sells alcohol. Naturally, your trading here is forbidden, but if you trade or buy shares in a dairy company like Gohaina or Almarai or a dairy company in your resident country, it is permissible.
[02:10] I also wanted to tell you that the legal bodies present in your country will explain which companies are halal. You can buy shares and invest in these companies without hassling yourself by searching for every company in which you want to invest. All you need to do is check with the legal body in your country if the company you are ooking at is permissible or not.
[02:25] You can then see what the authority tells you are halal companies. The market is divided into two parts, the first one is the futures market, and the second
[02:39] It's crucial that you know whether the currency project is halal or haram. There are many websites that will tell you whether the currency you want to invest in To reach these websites, all you have to do is perform a small search on Google.
[02:55] You can use these words in your search while searching on Google to reach these websites. Many scholars say that they are forbidden because they have mandatory benefits and they So, it is better to completely stay away from it.
[03:09] result of my personal diligence in research, recycling, and transportation. I hope you succeed with the grace of God. And don't forget to like the video and subscribe to the channel, so you can watch the already
[03:24] Goodbye.
