Is CFD Trading Halal or Haram?
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- เผยแพร่เมื่อ 8 ก.พ. 2025
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#CFD #HalalTrading #HalalInvestor
Are CFDs Halal? is it permissible in Islam to write CFD contracts or to buy them? Are they a form of prohibited Maysir (gambling)? This video attempts to answer these questions.
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Let me know what you think in the comments!
Disclaimer: Anything you hear in this video is an opinion. It is not to be considered personalized financial advice. Make sure you do your own due diligence before making any investment decisions.
I will close my CFD account immediately. I thought it was halal because my broker said it was rated halal. I had a feeling it wasn't halal and you have confirmed this. JazakAllah Khair sir
You’re providing an amazing service to Muslims around the world may Allah bless you in abundance
you prolly dont give a shit but does someone know of a tool to log back into an Instagram account??
I was stupid forgot my account password. I love any tips you can give me!
i was searching in these days for CFD in Islam and fortunately i found your video that's to great and thanks a lot for explaining. just one suggestion my dear if you can avoid that music. May Allah bless you ❤
Barakalaho fik brother for the clarification, I did lost over €10000 in trading CFD's, and the worse is that i have borrowed the money and I'm married with 3 children and now because of that in a difficult financial situation.
May allah forgive me and open to me a halal door.
Listen idiot when you lost it doesn't mean that it's haram
What if you won? You will say that it's halal?
Amine
Thank you so much i used to trade for 2 years and unfortunately i used to ignore it to be haram but you explained in detail and now I understand it much better I'll stop it because its haram and i know Allah SWT will show me a halal way much much better ❤
Thanks for complete guidance.. I was planning to do this haram thing..
Thanks to ALMIGHTY ALLAH AND special thanks to you brother... you hold my hands and save me
Im a casual investor and have this video on my favorites because I find myself watching it every few months so that I do not fall into sinful trading. It is very tempting to just leverage a stock with a CFD, especially when you see great returns. But this video and Allah blessings acts as a reminder. Thank you for the constant reminder.
My pleasure … your comment means a lot to me
I agree with you completely. I was trading in last couple years in cfd account. Then I searched and read some articles in internet. After that I have decided that cfd trading is Haram. So I close the cfd account. Now I have opened the invest account and buy the shares.
Thanks for sharing Jahan. Props for changing course and sticking with investing.
happy for u mr jahan ...
may i ask where did u open the invest account ?
@@AdrenalineRusher2008 I'm from Srilanka so I was able to open an invest account through trading 212.
Assalamu alaikum,I am new to this field, Could you pls give guidance for hallal investment and also pls tell commodity trading is allowed or not. Thank you
@@jahanmohamed2346 Salam,
I'm really confused at the minute, could you please clarify the cfd issue: I just opened an etoro account with the intention to invest, it's is it permissible to do that on a cfd platform like etoro?
ALLAH bless you
Jazakallahu khayran for the explanation.
That analogy of someone makes a "contract" with another person to bet on the temperature tomorrow is easy to understand.
I'm not a muslim, but that was insightful.
Loads of love and respect for you my dear brother Rakaan from Chittagong,Bangladesh
Jazakallah khair dear brother. This Helped me getting out of cfd trading. May Allah swt strengthen our imaan and make it easy to work for an halal income.
Halalness rating is Abu Jah’l 😂, may Allah bless you and grant you goodness
Thank you so much for your detailed and logic backed explanation. I am still new to the stock market world and although its a fun and lucrative thing to learn about, unfortunately there are plenty of loopholes for us to fall into haram unknowingly.
thanks brother, i was bit confused but now i am clear, i am stopping CFD trading immediately
"This is textbook al maysir..... On a halalness rating from 1 to 10, I would give to CFDs a rating of Abu Jahal" I am dying!!! 🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣
On a serious note though, Allah y jazik bi elf kheir for all the informations you provide!
Thanks you so much
I am done with CFD
Thank you very much!
May Allah reward you and Forgive all of us!
Ameen
Thanks brother! May Allah bless all of us.
Jazak Allahu Khayran!
CFDs are a way for brokers to rip people off! By mistake I got into it very very briefly, glad I never looked back and happy with trading actual shares/underlying! Thanks again and hope you are having a blessed Ramadan!
Couldn’t agree more! You too Saif
Saif Ali if you do smartly you can gain but unfortunately it’s harm
@@multientertainers only if you are one of the 10% who do make money with CFDs.
90% of retail investors loose money with CFDs. That means the broker will make money 9/10 times!! Which is why brokers 90% of the time the brokers decide to take a position against you, cause they are damn sure you will lose.
Saif Ali this means cfd is haram in Iq option
What do you think
i knew it was haram, thats why i checked alhamdullilah jazaak allah khair for this video and may Allah bless you with success in this world and akhira, ameen...
i think buying real stock is good, but this cfd they keep charging you an interest fee and you dont even own the stock doesnt make any sense to me. why charge and youre not even owning the stock, im happy to stick with buying real shares and selling...
i agree CFD is haram but not with your logic; even if we dont use leverage. The analysis one does to buy actual stocks is the same which he does on CFD. The main reason i think its not allowed is there is no exchange of actual asset. It is just betting on price movement and when you gain tehre is 100% someone is losing. Which is not true with buying actual asset. When you sell the actual asset you either gain or lose so there is no other party involved which has lost on your gain. But the other party now gets into a risk of losing in future or even gaining in future. So summary point is not the bet but the non existence of transfer of asset. If in CFD we introduce a settlement date by which who ever holds the position gets the actual asset then it is totally legal since one is buying the underlying asset eventually.
Thank your for this video, brother. Much appreciated.
Jazakhallahu bi khair
Mashallah, Good Information, Thanks.
Well technically, forex trading is not betting. But I didn't know this about CFDs, time to trade spot
ThankYou So Much! I Was really confused about this issue from last month. What about Crypto Spot Trading?
JazakAllah brother
I love your channel akhi..much love from London
But risk exists in every business. If i want to open a fast food, there's a risk because I don't know if it is going to work, and so there's a risk...
Still there is no chance to go to zero you can sell with a loss
Same as crypto spot and shares
Barack Allah feek and jazak Allah keyr.
Jzk this was so helpful
Thank you for clarification
you don’t hold the asset it’s pretty much like gambling even though when you have so called skills
Interest is only charged when you hold onto a position overnight. Also, there are non swap islamic accounts akhi… in regards to your theory about it being like gambling i completely disagree. Gambling is based solely off of luck.. trading cfds requires market analysis and spotting trend
i agreed that it is not gambling but still trading CFD. You do not own anything even though you pay for it thus make it haram.
@@muzammilmuhamad8077 brother that doesnt make sense
@@modmaliCrtzGang Do you know that you do not own the assets/stocks when you're trading CFD? that's why it's haram.
@@muzammilmuhamad8077 how does that make it haram?
Shariah says... possess or own good before trading it with third party.
CFD is just a calculated bet on moving prices of the asset, there is no actual trade of any asset happening in background. Therefore it violates the law of Shariah making it impermissible.
But my question is... If NO ACTUAL TRADE OF AN ASSET is happening then how are people making money? There can't be equal number of buyers and sellers every time a cfd contract is purchased, to make the game zerosome... Were CFD's traded before online trading came into existence, on convention stock exchange???
Salam alaykom, brother please make special videos on these last 10 days of ramadan. Thank you and jazak Allah khair💐
But risk of loss exist even in stocks trading as well and the interest involved in the stocks as the companies takes the loans and save the amount in the banks.
Loss can be managed through the stop loss.
that's not the point. rewatch.
@Practical Islamic Finance what is the point could you please elaborate as I am not convinced the answer
Jazak Allah khair, well explained..
Thanks Dr Mohammed
Thank you. ❤❤
Great video MashAllah thank you so much for sharing your insight with us brother! May I ask Ive been on a trading platform where you can buy or sell bitcoin with x3, x10 x100 multiplier is this also considered as a CFD?
great . thank you . gazak allah khair .
Best Video. Thank you for explaining it so beautifully :)
My pleasure glad you found it useful
Thank you for the explanation.
I thought if I don't use leverage I'll be holding the real asset therefore it is halal?
Please explain.
Sir plz make a video on
Can we use Technical analysis to buy a stock will it be halal ?
Thanks very very much
JazakAllah
The permissibility of trading CFDs on commodities within Islamic finance can be a matter of interpretation and different opinions may exist among Islamic scholars. Some scholars argue that as long as the trading is based on real market prices and does not involve any prohibited elements such as interest (riba) or excessive uncertainty (gharar), it can be permissible.
Is it true?
No
bro everything is risky in this world need just balance noting more, amd if you bought some gold or silver you can also lose your value of money, this is same fith cfd maybe you not have physical but some banks or broker who own this commodity give you a contract to make trading.
gr8 vid sir ... keep it up
may i ask about an Ecn account halal or haram ?
what system for day trading I can use and halal brother, I lost a lost of money in CFD , I did not it is haram wallah., i spent a lot of time and money learning day trading, is there a halal broker i can use?
Please let me know which are the brokers who provide Islamic account and do not have CFDS trading.
Thank you brother.
Where I can trad gold commodity without cfd
Can someone tell me an halal broker to invest in halal stocks,?
Please guide me ! I know how to work but don't know wich broker ?
On halalness rating from 1 to 10 I would give CFD's a rating of abu-gahl 😂😂😂😂😂 thx bro for this valuable content
Follow u from Egypt ❤
My pleasure
many thanks
Thank you so much for the insight, I have a few questions here:
I currently am using a CFD broker buying/selling stocks (halal stocks ofc) based on the fact that my broker in Iraq told me that I’ve opened a halal account
The only reason why I’m not switching to a platform of buying/selling shares instead of CFDs is because there’s no platform in my country providing that service
I’m waiting until I have enough cash and will open an account abroad (to cover for the expense of traveling there annually)
Do you think it’s ok if I meanwhile carry on trading this way? As I have no options and I want to make a living through trading stocks
have you heard "Go trade" platform?
Honored brother, what allah has in store is better, have patience and find halal alternatives, haram money will never bring benefit.
as long as your trade involve CFD, it is haram. There is no such thing as halal CFD
So its game by saying buying and selling just button game?
Brother thank you for this video, I just would like to know what is the difference between M1 Finance and Etoro both deal in CFD Stocks? is Etoro Halal if use without any leverage and only buy for long-term? Actually i am confused about this CFD because all the brokers deals in CFD please clarify thank you.
Trading shares without leverage is halal. Whenever, you use leverage, then such shares are considered as CFD. Even if the broker offers no interest on the leverage taken, the moment you opt for leverage, the transaction is considered as CFD and the assets are not transferred in your name.
Hi, I was unaware of this, I invested £200 into CRSR and my balance on CFD account on Trading212 is now £700. What shall I do with the profit?? CRSR is a gaming company and I did the research beforehand to to know that the price will go up before I invested.
Now you know CFD is haram, you better stop and anything you made prior to this video is halal for to reinvent into halal stock and use as you wish. Allah is merciful.
@@mo9204 I disagree, I’ve been told if u are now aware, you should use your profits to give them to charity as this is now money made in haram ways... I recommend u ask someone with more knowledge and expertise
You can't call it maysir just because of those 2 things.
1.When you want to open a supermarket, you also create a risk, because you have to invest money and don't know, if your apples will sell or not.
2. It doesn't create any value. The customer loses 50dollars,when he buys a new chair for example, while you win 50 dollars.
You are just making profits, if it sells, like in trading. If it doesn't sell, you lose like in trading.
Your explanations are not convincing me until now. Opening a new supermarket, can't be haram right?
you make a point
Thank you brother ✨❤️
I wish i could know 100% as the brothers are not applying todays method of trading.
He need that chair to use it
More than that 50usd
Thank you
How about forex pairs trading, like eur/usd and others ? Is it also haram? How about xau/usd (gold/usd)
I found from many sources that forex pairs trading like eur/usd and others is a real trading; while xau/usd and other commodities is CFD.
Stiil confused about CFD. Please enlightent me
Isnt the price based on charts and patterns rather than pure speculation?
What if you use CFDs for hedging risk (www.contracts-for-difference.com/strategies/CFDs-hedge.html) instead of speculating on price. Just like how you can use a protective put option for hedging risk. Would it be halal then?
Is binary options trading with Crypto and Dollars halal? without Fees and without interest, without leverage and without margent.
my only qustion is what can i trade for example to be in halal condition ?
Halal stocks but not day trading . Swing trading .. better to hold longer and cannot sell until you receive.. no short selling
Quick question can we invest in fractional shares
Hi brother
Thanks for sharing such insightful content
Is there a way to talk to you personally kindly let me know
Assalam aleikoum brother I'm from France and have a question please: is stop-loss halal or haram on daily trading so that we can buy lower, thanks in advance.
Do you know if futures are considered CFDs?
Can u make a video on profitable side hustles
Cfd trading is not just a zero sum game. It’s more than that. You are not just betting.
Which is what
@@practicalislamicfinance it’s more like how you treat trading like business or gambling. The main thing one should avoid in trading is interest transactions. And treat trading like business. Trading is a skill.
Is the swap free cfd or so called Islamic cfds are halal or they are all haram?
Assalamu alaikum. i have one doubt. forex cfd underlying assest halal or haram. please reply me.
How about youtube earning in islam, i think you’re account is monetized, is that halal? Appreciate your advice, thanks
Where did you find the Qur'an translation? They're really clear!
Great video!
Try the Clear Qur'an by Mustafa Khattab or the translation by Sahih International.
Jzk khair. This would make Options trading haram as well right? Both are leveraged, creating risk and no benefit.. is that correct?
How about CFD on Fractional Stocks? Many people want to invest on giant companies because they can easily follow the news and trends rather than the small ones. But the problem is, the price are crazy high for every single share.... Is it any workoarund this in halal way? Please respond sir... It's very important for me
Many brokers offers fractional shares but if you buy those fractional shares with leverage then it is considered as CFD and its is haram as the broker did not transfer the shares in your name.
is it halal to trade spot cfds please tell me
We Use analysis, Not Maysir and luck, and we win most of the times,
no interrests involved on margin, so it is a clean debt, 0% interest rate,
swap free account
Yeah if I know what am doing is perfect
is trading halal if I use no margin and a 1:1 leverage and not cfd? and I trade forex so short selling is halal because when I sell usd/jpy I also go long on jpy so its going always to be long. Is this halal?
Assalam Aleikum brother, i am really intrested in stock trading i am from africa i would love to know stock so i can be able to help my family in this finacial times but in halal way.kindly please. have tried to reach out some few muslims brother who do video like you but its like no 1 wants to help. kindly consider. shukran and be blessed
I read somewhere that it is ok to use a broker that does not require any kind of interest on an account while trading CFDs.
So if i don't pay any interest on the leverage, then is trading CFD ok?
"I read somewhere" is not a good source. Avoid CFDs always.
But isn't trading stock & shares also a Zero sum game?
Not because you gain profit by Company good or bad not people
I need help!!!
Can I use my same FOREX platform to trade stocks? and why stocks on the platform like Coca-cola have a word CFD in front of it?
@Invest with Jahid thanks
CFD means Futures trading ?
How I send the money
I don’t why iq option is legal then it is complete cfd is harm
Is forex cfds halal if i avoid both interest and excessive risk taking, with i hold the asset in my trading account?
No, see my video no CFDs as well.
@@practicalislamicfinance "No" it's just your opinion, not acceptable factually as there's gonna appear more of a different logics and facts to prove in, you're not the always correct one.
Is it halal to invest in companies like square?
Sir please, make a video Amazon FBA while where we just buy the products from somewhere and ship them into amazon warehouse. Is it haram or halal. Jazakallahkhair 🙏🏻
I'm guessing you're talking about dropshipping. If so, he's already done a video on that topic previously!
@@MohammadAlawadi no bro, it's different
@@MohammadAlawadi are you a dropshipper?
@@adilsamiid6449 Nope.
@@MohammadAlawadi why not buddy
Question: what’s your opinion on the Islamic trading accounts? I have come across a number of traders that offer this, not convinced so far it only takes care of no-interest part however the ownership of underlying assets still remain questionable.
Jazakum Allahu Khairun for the video.
I had the similar confusion, however, based on my research, the ownership of an asset is mandatory. Some brokers offers zero interest on leverage, however, such trade is considered as CFD as the broker does not transfer the asset in your name until unless, you close the trade and book the profit /loss. However, if you buy the asset without leverage and trade it, then it is permissible.
Honestly, we should fear from the day on judgement when all these profits are considered nothing, but a mere dust with no value. Better to say no than to repent later. Better to stay happy what you posses.
@@mzosama you indirectly own an asset throughout think of a "Bank note" you ain't holding no gold but a token that contains a value/percentage of a gold. So do, virtual payment options, they are the tokens in terms of gold, that we use for trading stuffs like buying items trading the note, everything works like that. CFDs are just like your Bank Notes" you indirectly own an asset, you profit-you cash out, you lose a percentage, you still cash out the remaining, I don't need to see what brokers do for their algorithmic trading, I all the way know that I've deposited $100, I trade on EUR/USD by knowing that I'm exchanging/trading my money against the powerful/weak currency through buy/sell, I profit-I cash out, my tokens hold a value of the asset, indirectly, as like as "Bank Notes" and "Online payment options/banking payment options", I can withdraw! that's how the value comes in a place.. So the CFDs be one of a thing for traders to not roam around paper works to place a trade, and make the trading easy-less time consuming.. you deny it, so do the "Bank Notes" cuz hypocrisy won't be counted
How much will Gold growth in percentage rate %, in short-term 1 year time period. I want approx number of Gold rate growth.
As I'm looking to invest, in a Direct Gold Mutual Fund Bond's, for short-term 1 year time period.
So I want to know, how much exactly will Gold grow, as it has recently fallen dipped.
So will gold continue to fall, or will we see a 1920 Great Recession like FOMO & Fait currency growth.
Like explained by 'Dollar Milk Shake Theory by Brent Johnson' & Mike Maloney & Moneco64.
Please give me, an exact number's of Gold growth% for short-term 1 year time
4 - 20 %
As Salam Alykum Brother really appreciate your videos, just 1 small resquest from mine can you make video on freelancing like( Date Entry, SEO services, email scraping ) Is it haram or halal?
And I also do have some video courses which are 100% legit which I sell is it haram or halal ?
assalam brother..at malaysia we have halal way for futures market....how about at australia..do you know how to open account in halal way?
what is ? I'm from Indonesia
is using broker halal or haram
Have subtitles because I be understanding