This was great, thanks, I been tryin to find out about "virtual forex trading platform" for a while now, and I think this has helped. Have you heard people talk about - Harperzon Forexify Equalizer - (do a google search ) ? Ive heard some amazing things about it and my buddy got amazing results with it.
alhamdulillah i was sooo motivated about forex trading learning PDF"S and courses but something striving in my mind and think how about this issue in my deen? suddenly open this video and got your advise SUBHANNALLAH we a reach the end of time . interest (riba) become part of our life MAY ALLAH KEEP US HOLD HIS ROPE
The best explanation ever with regards to shariah compliance for forex trading. I have always had doubts about the close resemblance between gambling and forex trading, but I thought that with enough learning, it no longer becomes gambling especially that many scholars deem it permissible. Yet, you fully uncover areas that I never thought about especially with margin and perfect ownership, and it totally makes sense as I can relate to that in some Islamic finance courses that I have studied in the past. You simply prove how many scholars rush in judgements without purely understanding how transactions or trading truly work. Thank you so much and may Allah reward you in the hereafter. Ramadan Mubarak
@@practicalislamicfinance According to this video,is gold vs other currency trading halal? It would be very helpful for me if you answer my question. Thank you.
I always wondered why I always lost and kept losing even though I spent so much time, effort and money through courses in learning how to trade, and often time spend so much time analyzing and backtesting. Perhaps Allah loved me too much to let me fall into that sin.
@@vegeta2261 i physically accumulate gold and buy (trade and invest) actual stocks using my technical analysis nowadays, but have since quit forex and cfd trading. I cant be trading assets i dont own in the first place
@@msWishal can i ask what broker you use to buy these actual stocks? Like what is the best broker to use in order to keep my trading halal? Jazak allah khayr
Very detailed and well explained. I’ve waited many years to hear such a clear explanation if forex is halal or not. May Allah bless and reward you for your effort dear brother!
after more than 2 years of studying and trading forex, because I was sure that it was halal due to some fatwa, now I will stop trading forex without knowing what to do next, my God, help me to find a halal alternative and my God bless you, thanks to several videos including yours. thank you for lightning me and explaining how it work. Now I decide to stop forex once for all. I pray Almighty God to help me find an alternative job because a don´t have one.
@@practicalislamicfinance assalam alikoum warahmatoulah, thanks for your attention, id like too but stock need a decent deposit to trade with and for now i cant, plus i never trade stock in my life. i dont know, iam confused
@@middleclassinvesting7950 salam alikoum warrahmatou lah, thanks for your reply, I heard about wahed invest and I did some research, I think they use EA robot for trading plus I prefer to trade my self than give money to others to trade in my place, anyway wahed invest has good reviews from a lot of investors. and to invest for a small percentage of gain in several years its not worth it. we have bills to pay ;) unless we put a big amount of money like 50000 USD or more, then we can have a decent income every year to cover our bills
السلام عليكم ورحمة الله وبركاته I've come across many comments people are asking forex is it haram or halal? But very simple logic as our brother explained in the video it can be halal if it follows the rules and principles of finance in Islam eg no interest, no margin, ownership of currency etc and it's haram if it goes against these principles of Islamic finance (sharia) but our brother suggested that to stay away from these forex whereas majority of them are against the above mentioned points at least 95% they involve haram practices like interests or margins etc though there are some which trade in halal ways.. be smart when entering in these things and Allah knows best
Forex is halal if you are not gambling and have your end goals distinguished. Do not guess while trading because if you are guessing, then you are gambling. That is why i trade with expert Whitney, all thanks to Allah i became very wealthy trading with her assistance. Salam
Jazak Allahu Khairan brother for sharing this important knowledge, you are preventing many Muslims falling into haram practices, May Allah reward and keep you in good health. Please continue to share your knowledge...
Forex is not haram as long as there is no swap fee, this swap fee can be eliminated by opening an Islamic forex account where there is no interest fee credited, or debited. An example of a broker which allows this is IC Markets.
You have explain it in very detail. I have researching on for ex trading for a long time.I watch videos of scholars on it the have also consider it haram but do not explain in such a way. I only understand the reason of its hamramness from this video. Thank you for such detail explanation.
Superb explanation, no need to get into leveraged trading to try to benefit from small movements in forex, especially when there are so many opportunities in stocks and crypto (which you can gain proper ownership over).
Doesn’t forex let us trade crypto currencies and stocks? I’m a beginner in this, if forex doesn’t let us do all the things that the brother explained in the video, where else can we trade?
Thank you so much! This video and your video about the CFD has changed my opinion about the forex trading. Alhamdulillah, I was really getting motivated to learn trading Forex, but your points blown my mind. Let's wish our brothers that are in it to be given hidayah. 😇
I have been margin trading cryptocurrency for a few years now and it took me time to realize that it is almost identical to gambling. Ive seen the clues on it being Haram but refused to see reality at least until today i decided to know the definite truth on the matter. Thank you for putting out this video, may Allah reward you for your effort.
Point 1: You don't have complete ownership. You do have the ownership of your own capital or the pair you're trading against until you have traded the money and then you can withdraw it or you can withdraw your initial capital any time you want. So you do have ownership of the money. Second point you made was margin: I don't know of any brokers or even any crypto exchange wallets will let you use the platform for free without any benefits. So I don't see why would that be haram. Also non of the brokers mention that they are lending you margin in return you will have to give something back to them.
Brother I don’t think there is a way you can own some part of a currency, although you can look into trading stocks as you are actually owning a small part of the company
@@Ali-rc1zh I just realised that having your own hardware wallets mean you own it. Same with Coinbase etc end of the day if you wanted to buy something with that currency you’re allowed to .
@@muhammadah6850 ah ok thank you for the insight, I thought u were talking about actual currencies like USD or GBP, if you’re talking about crypto then that is halal if I’m not mistaken
Jazak Allah for explaining the concept comprehensively. May Allah enhance your understanding and faith. Many contemporary Islamic scholars tend to take compromised position on modern financial transactions but your approach to stay away from any dubious transaction is completely aligned with Quran and Sunnah.
Sir at 9:00 mark you said that the prospect of earning value if for example going long on JPY/USD pair is almost zero and that we are adding risk to already present risk while having no possesion of the currency we just purchased. So isn't it the deficiency on the part of the person trading that didn't speculate the trend of the market well enough resulting in a risk rather than value to be added instead of the fundamental reason that value will not be added. You answer is anticipated.
I like the example of islander, but it confuses me why 1000 people will be at risk. If only 1 coin is speculated there will be only 2 people involved, 1 buyer and 1 seller and risk is assigned to them.
Salam brother, great content on your channel, but it seems that most of your viewers including me aren't very learned in finance and trading, some are also very weak in English and are looking for a halal or Haram ruling on trading, which is hardly available on TH-cam. So my advice to you dear brother is that after you have made your video explanation, please say the verdict clearly whether something is halal or not, you could even write it down on the screen, from the comments of these types of videos many are still confused. Jazakallah. Wassalam.
Selling a property is not transferring risk to someone else. It's gaining risk by transforming a low risk asset (the property) to a high risk asset (American dollar)
Why is taking Rent not Haram? If bank gives you home to live then it's interest which is haram and we can own home after few decades but same thing when an individual do that is called rent. Rent is worst than interest because after paying interest we can own that property but paying rent for all of our life we can never own that property. Please make a video about Rent as well.
Well explained brother. I see cryptocurrency exchanges have exceptional use of point 1. Ownership of the currency. A trader owns his cryptocurrency and once they executive a trade the exchange of ownership happens beyond instantly in seconds, hand to hand. That should be okay as long as one isn't using margin trading! Allah knows best
Jazakumullahu khairan brother you have done justice to this topic in a very logical and Islamic way. May Allah bless you and protect us from haraam in any form where explicit or disguised.
The biggest factor influencing the foreign-exchange market is interest rate changes made by any of the eight global central banks. So as long as it deals with interest, i would say that it in not permitted in Islam
It’s haram if you don’t know what your doing you see I applied for a no interest service with my broker and have really good analysing softwares to help so it’s not gambling
@@mohamedeisarasheed6248 hey bro it’s the same as having a business if you don’t have risk management and are reckless then you are gambling my brother
Jazakallah, I have one question about margine, in India as I have got, broker do not give any money, they give margin means suppose tshirt price is 100 and I want buy 10 tshirts so broker say 10 % pay now and you will get the position, this normally happen in intraday, margine in holding in this broker actually invest there amount or give money and they charge intrest in that but for intraday as I have read margin is like book shares with some booking amount please clear this if I am wrong many people don't know about it jazakallah khair
Also futures trading involving Forex, Commodities, Stocks, cryptos etc with margin involve zero sum game in it's vilest form. In order for one to make big chunk, the counterparts must lose the big chunk of money. Three kinds are always pitted against one another in it, Large speculators, small speculators, and Commercials. There are charts/candles/pattern/ indicators/algos/fundamentals etc but none really works, one party is gonna make nett profit and the others will make the nett loss. It's simply designed as gambling with sophisticated tools to make u believe it's not plain gambling. So, dear Rakan, u r spot on here. With those two conditions which ain't in practise anywhere, it's a zero sum game, wherein buyer (long/short) hopes to make it big against the one from whom he/she is buying.
Allah May bless you, excellent view point. It’s simple and convincing and thanks for saving from sin. Please also explain commodity markets trading position about halal and haram
I been studying and trading forex for exactly 2 years and 7 months and now after listening to the facts I sadly have to leave forex. Since forex was my only path now I feel like I am in the middle of the street. If you have a suggestion on what to do with my knowledge on a halal manner I sincerely appreciate it.
Brother the example of islander coin doesn't apply in the practical forex market because the market is huge so there are many currency and many traders. All peopple will not speculate on a single currency. Also there are brokers who don't charge extra spread for margin. They charge the same spread for islamic account. The value of spread depends on the lot size or margin size though. Hope you see my comment and give me a feedback. I need your opinion here brother. Jazakallah khairan.
11:22 wait if everyone on the island loses money, would the cfd provider of that islander coin gain all the money, and hence the money is just transferred from losers to the winner?
@@practicalislamicfinance Thanks brother for your insightful video. Could you please make a video explaining about the halalness of the practice of arbitrage trading in cryptocurrency? It's a practice where one person buys a currency in a market a lower price, and then sells it in other markets at the higher price, so we actually benefits from the difference in price in two different markets. Please have a look at the platforms providing this arbitrage business on automation using Artificial Intelligence such as Mirror Trading International. Is this a justified business from Islamic practice?
Forex trading is Haram if a trader is NOT setting STOP LOSS i.e. if he/she is not doing proper risk management! Leverage is still doubtful since leverage in FX is not increasing our account size but just ADDING VALUE to position size i.e. Lot size.
Forex is a derivative. you're not trading on a derivative but speculating. Only spot trading is permissible since you're gaining ownership of something
@Rengar M You don't own anything, thats not how cfd trading works. you own a contract that says what you longed/shorted for which lotsize. A contract of value. It is the same as betting om a football match
Brother I am from Somalia we 100% Muslim. There are alot of companies that are Doing forex. The Society invest those companies and they give back profits and most of the society they Don't know the reality of the forex therefore, the question is are the society earnings Halal money or Haram. N.B I was invest before watching this video with $2000 and I was earnings $800 each month. But I stopped after watching this video and I withdraw my money. Now I am unemployed I stay at home.
Sounds like you were unknowingly part of a Ponzi scheme. No legitimate investment of $2000 yields $800 a month. My advice: There’s a lot of products/services the Somalis need. Forex isn’t one of them. Try to build wealth by providing some of those products/services.
@@practicalislamicfinance Thanks for replying bro. I accept that forex is totally Haram. And i never take Haram income intentionally and I never will inshallah. I am graduate students I learnt Civil engineering. Now I am trying to establish my own construction company in my country inshallah.
Can you please guide me on the following question In the days of NABI SAW no paper money existed. Only currency was metals like gold etc. Now we have currency notes. And we are facing currency value depreciation in terms of inflation like here in Pakistan. Is it halal. I mean how will you reconcile this with forex being haram?
Is there a way for me to convert my local fiat into saudi riyal online as a way for me to invest & save up for Hajj at the same time? The value I intend to create is to benefit myself in fulfilling my obligations as well as benefit so many potentially businesses involved in enabling my future Hajj Ibadah. If there is none online, then I'd need to do offline with paper, I guess.
Been learning about forex for months and I felt good then I started to trade with my own money and felt horrible within a week of trading blew my account couldn't concentrate in my salahs and reading my Quran felt absolutely disturbed and decided to check wat is the ruling of this thing is it permissible or not only to find it is not. Alhamdulilah am now back to my schedule and doin well mentally. Its mentally exhausting
Same situation... Lost a lot in a hope to get it back. Just watched this video and i am not gonna enter it again. May Allah forgive us and create some halal income sources.
el salamo aleikom, what do you think about islamic accounts? is that haram too? I always read opposing thoughts without a point of reference. I am going to use an investment fund that invests in forex automatically (similar to a bot but is more serious) where it will be on an fp market islamic account with free swap and I would like to know what you think
i wonder if the same rules applied or not to a bank that give loan to build a house that the house must be build by their named contractors, designer and few other detail that restricted by their TnC?
Hello brother... There is halal forex broker... Its only the DMA account ( direct market) and ofc with no leverage because they take commissions so you basically trade physically in the forex market and don't use leverage because they take commission again so this way it's halal I guess 🙃 the sad part is that you must have millions of dollars to make 5 thousands 🙂
Leverage sir is not loan is power of buying The price for one lot is 100,000 units of each currency = $ 1 per pip When the leverage of 100: 1 is used, it becomes an example value 100000 ÷ 100 =(1000) And not 1000 x 100 = (100000) This means that a lot changes its value from 100,000 to 1,000 I don't take any kind of loans
@@ressayiluogal7909 Indeed, but its haram cause of speculation. You don't trade, you speculate in the forex market. The forex markets you trade are derivatives
But nowadays, everything is online. No one owns paper money and goes to the bank for the exchange to see if the price goes up or down. In present digital era, forex is the online version of the traditional method of money exchange. You can trade on any currency and also have the withdraw option in any currency in your payment method. I am using skrill, if I trade on yen I can also withdraw yen into skrill. The brokers who give you a loan are scammers definitely, we cannot consider it haram because of a few fraudulent activities done by scammers. YES, those fraudulent activities are certainly haram in Islam. But if you trade by following market research, then forex is halal as there is a proper market analysis before placing a trade and there is no gambling in it.
Thank you so much brother. I would like to say that the conditions you talked about were in the early time the time of the prophet and his companions. But in the mean time the majority of islamic scholars say that these conditions change by the change of place and time. And this is one of the things that islam is the true religion from god because it is flexible it changes by the change of time and place
@@usmanabdurrazzaq In regards to leverage. Is the action of leverage haram or do the brokers make it haram because leverage is just borrowing money with no intrest. Hallal right? But the way these islamic brokers make money is through adminstration commisions charged off from every trade you take. But thats because they dont charge swaps so they charge this fee instead. So leverage in that sense seems halal right? Some brokers say their accounts are 100% sharia complient isalmic accounts. In regards to this specifiacally its called vantage trading could you see for yourself and clarify would this be halal and how can they claim 100 percent sharia complient even if they give the option to get up to 1:500 leverage?
@@usmanabdurrazzaq i really dont know what to do ive devoted my entire life to forex literally like everything. Given up on time and just everything and i dont understand like ive put it so much hardwork and i love trading so much i just like dont see myself doing other things instead its like a gut feeling that i should be trading like its in my heart. But now that gut feeling is going i just dont no what to do. Its not 100 percent clear if trading is haram even though a lot of people raise many valid points that it is and so many people raise invalid points it isnt. I just dont no what to do should i do something else but i just dont see like i have faith in allah but ive put so much time into this it feels like if i give up this its gonna delay my journey to were i want to be a lot. Like what do you personally reccomend me doing in an islamic point of veiw and what will benifit me the most as ive read somewere before if you give up haram/desires for allah then allah will give u something better but it just isnt 100 percent clear if trading is haram so would allah want me to give it up and be giving me something better if i do? Should i make prayer multiple times then listen to my heart? And do what my heart tells me as im really unsure at this point.
I have been researching the markets for over 10 years and trading on and off, infact I stopped for many years due to fear of allah and knowing my trading methods where infct haraam.However, Now I believe the way I trade now is Halal because : 1. I trade with no swaps (no riba) 2. I trade with no Leverage (no loaning from broker) leverage is a pointless a smart trader will only risk 2% of their capital on a trade anyway. so why do I need leverage to risk 2% of my money? 3. My broker allows me to change my base currency if i wish therefore. I can deposit £ into my account and withdraw $ if I wanted or store $ in my account or £. 4. I do not trade impulsively and 99% of the time I trade GBPUSD, because that exchange is one i personally grew up with and have followed its movements for 10years so with analysis and fundementals I am in a position to make a better judgement than someone who has never traded. 5. If I found a physical currency exchange shop that had tight commissions I would be even more happy to trade in physical paper cash. but most of these physical exchanges have wide spreads.
@Practical Islamic Finance According to this video,is gold vs other currency trading halal? It would be very helpful for me if you answer my question. Thank you.
Really helpful was looking to get into it. But I'm not risking my deen for money. May Allah bless us all with good clean wealth in abundance
Deen > Dunya my brother!!
This was great, thanks, I been tryin to find out about "virtual forex trading platform" for a while now, and I think this has helped. Have you heard people talk about - Harperzon Forexify Equalizer - (do a google search ) ? Ive heard some amazing things about it and my buddy got amazing results with it.
"
@Brennan Nash Instaportal: Halal or Haram?
Aameen
alhamdulillah i was sooo motivated about forex trading learning PDF"S and courses but something striving in my mind and think how about this issue in my deen? suddenly open this video and got your advise SUBHANNALLAH we a reach the end of time . interest (riba) become part of our life MAY ALLAH KEEP US HOLD HIS ROPE
The best explanation ever with regards to shariah compliance for forex trading. I have always had doubts about the close resemblance between gambling and forex trading, but I thought that with enough learning, it no longer becomes gambling especially that many scholars deem it permissible. Yet, you fully uncover areas that I never thought about especially with margin and perfect ownership, and it totally makes sense as I can relate to that in some Islamic finance courses that I have studied in the past. You simply prove how many scholars rush in judgements without purely understanding how transactions or trading truly work. Thank you so much and may Allah reward you in the hereafter. Ramadan Mubarak
thanks brother Talal, I'm glad you found it useful. Ramadan Mubarak to you and your family.
@@practicalislamicfinance According to this video,is gold vs other currency trading halal? It would be very helpful for me if you answer my question.
Thank you.
@@md.asifahmedsarkar799 its only ‘halal’ because it dint exist back then 🧐
For those asking, He basically said Forex Trading is not Halal based on the factors from 07:44
king
I always wondered why I always lost and kept losing even though I spent so much time, effort and money through courses in learning how to trade, and often time spend so much time analyzing and backtesting. Perhaps Allah loved me too much to let me fall into that sin.
@muhammad wishal Khan , u r not into trade anymore?
@@vegeta2261 i physically accumulate gold and buy (trade and invest) actual stocks using my technical analysis nowadays, but have since quit forex and cfd trading. I cant be trading assets i dont own in the first place
@@msWishal may ALLAH protect every believer from all kinds of Haram
@@msWishal can i ask what broker you use to buy these actual stocks? Like what is the best broker to use in order to keep my trading halal? Jazak allah khayr
You lost because you over traded and over leveraged and you probably spent 1year learning how to trade.
MashaAllah a very insightful video, I hope that we as muslim ummah start a trading platform where those conditions are met. Thank you brother
Very true
thank u gonzalo higuain
hahahaahahahahaha
Ahahahahzzhahahahhaa jsss mortttt😭😭😭😭😭😭😭😭
hahahaha!
😂🤣😂🤣😂😂🤣😂🤣😂😂🤣😂😂🤣😂🤣🤣🤣😂😂🤣😂
😂😂😂😂😂👍🏽
Very detailed and well explained. I’ve waited many years to hear such a clear explanation if forex is halal or not.
May Allah bless and reward you for your effort dear brother!
Sorry I am not expert in English you can only tell me hram or hillal plz just write
ALI BALOCH Haram
@@namirak1 thank you
@Ismail Heddad a forex trader is muslim doesn't make it halal. Haram is Haram.
@Ismail Heddad it doesnt means that forex is halal. Think this way, there are muslim who consume alcohol, but alcoholic drink is still haram
Masaallah I am so happy Allah has brought that channel to me as a resource! So logical and helpful
after more than 2 years of studying and trading forex, because I was sure that it was halal due to some fatwa, now I will stop trading forex without knowing what to do next, my God, help me to find a halal alternative and my God bless you, thanks to several videos including yours. thank you for lightning me and explaining how it work. Now I decide to stop forex once for all. I pray Almighty God to help me find an alternative job because a don´t have one.
I admire what you’ve done. You’ll be fine InshAllah
@@practicalislamicfinance inshalah
@@practicalislamicfinance assalam alikoum warahmatoulah, thanks for your attention, id like too but stock need a decent deposit to trade with and for now i cant, plus i never trade stock in my life. i dont know, iam confused
@@middleclassinvesting7950 salam alikoum warrahmatou lah, thanks for your reply, I heard about wahed invest and I did some research, I think they use EA robot for trading plus I prefer to trade my self than give money to others to trade in my place, anyway wahed invest has good reviews from a lot of investors. and to invest for a small percentage of gain in several years its not worth it. we have bills to pay ;) unless we put a big amount of money like 50000 USD or more, then we can have a decent income every year to cover our bills
Great news thanks brother.
Thank you so much for creating this video. I did it for 2-3 days but now leaving it. Deen is greater than Money ❤️
Bro where are you from
السلام عليكم ورحمة الله وبركاته
I've come across many comments people are asking forex is it haram or halal? But very simple logic as our brother explained in the video it can be halal if it follows the rules and principles of finance in Islam eg no interest, no margin, ownership of currency etc and it's haram if it goes against these principles of Islamic finance (sharia) but our brother suggested that to stay away from these forex whereas majority of them are against the above mentioned points at least 95% they involve haram practices like interests or margins etc though there are some which trade in halal ways.. be smart when entering in these things and Allah knows best
Tell we which one doing halal forex, so i will trade in halal ones
@Faisal Yousaf can u plz tell me which of them is trading halal?
Forex is halal if you are not gambling and have your end goals distinguished. Do not guess while trading because if you are guessing, then you are gambling. That is why i trade with expert Whitney, all thanks to Allah i became very wealthy trading with her assistance. Salam
@@ziyaadel-shahin586 Assalamu Alaykum. Please how can i get in touch with her?
@@ziyaadel-shahin586 thank you for sharing this. May Allah bless you.
Jazak Allahu Khairan brother for sharing this important knowledge, you are preventing many Muslims falling into haram practices, May Allah reward and keep you in good health. Please continue to share your knowledge...
Finally, a clear and logical answer. Thank you!
Glad you found it useful!
Edmond Von Stiftoe mean haram?
Wow very clearly and well explained
Thank you so much
May Allah bless you
Great bro ❤️
Allah bless and reward you brother
Thank you brother Mohamed!
Forex is not haram as long as there is no swap fee, this swap fee can be eliminated by opening an Islamic forex account where there is no interest fee credited, or debited. An example of a broker which allows this is IC Markets.
you answer all the questions I was searching for thank u. May Allah Swt keep us away from haram.
You have explain it in very detail. I have researching on for ex trading for a long time.I watch videos of scholars on it the have also consider it haram but do not explain in such a way. I only understand the reason of its hamramness from this video. Thank you for such detail explanation.
Superb explanation, no need to get into leveraged trading to try to benefit from small movements in forex, especially when there are so many opportunities in stocks and crypto (which you can gain proper ownership over).
Doesn’t forex let us trade crypto currencies and stocks?
I’m a beginner in this, if forex doesn’t let us do all the things that the brother explained in the video, where else can we trade?
Thank you so much! This video and your video about the CFD has changed my opinion about the forex trading. Alhamdulillah, I was really getting motivated to learn trading Forex, but your points blown my mind. Let's wish our brothers that are in it to be given hidayah. 😇
Very beneficial video mate. I was into it for about 2.5 years but now leaved it. Thanks man
Great to hear!
Assalamualaikum .... Im from Penang Island,Malaysia...
Walaykum Salam brother Walid
I was about to get into forex hard, but this has stopped me. Thanks so much. I will follow all your other videos so I know how to invest halal.
is Forex halal? I've no time to watch this whole video
Amazing explanation, removed all confusions. Thank you very much
my pleasure, glad you found it useful.
I have been margin trading cryptocurrency for a few years now and it took me time to realize that it is almost identical to gambling. Ive seen the clues on it being Haram but refused to see reality at least until today i decided to know the definite truth on the matter. Thank you for putting out this video, may Allah reward you for your effort.
You can trade spot market is halal I think?
Ur level of understanding and clearity is next level
Very simple and to the point, jazak allah khayran
Point 1: You don't have complete ownership. You do have the ownership of your own capital or the pair you're trading against until you have traded the money and then you can withdraw it or you can withdraw your initial capital any time you want. So you do have ownership of the money.
Second point you made was margin: I don't know of any brokers or even any crypto exchange wallets will let you use the platform for free without any benefits. So I don't see why would that be haram. Also non of the brokers mention that they are lending you margin in return you will have to give something back to them.
8:10 brother do you know any platforms that allow us to do this by actually owning the currencies?
Brother I don’t think there is a way you can own some part of a currency, although you can look into trading stocks as you are actually owning a small part of the company
@@Ali-rc1zh I just realised that having your own hardware wallets mean you own it. Same with Coinbase etc end of the day if you wanted to buy something with that currency you’re allowed to .
@@muhammadah6850 ah ok thank you for the insight, I thought u were talking about actual currencies like USD or GBP, if you’re talking about crypto then that is halal if I’m not mistaken
Jazak Allah for explaining the concept comprehensively. May Allah enhance your understanding and faith. Many contemporary Islamic scholars tend to take compromised position on modern financial transactions but your approach to stay away from any dubious transaction is completely aligned with Quran and Sunnah.
Sir at 9:00 mark you said that the prospect of earning value if for example going long on JPY/USD pair is almost zero and that we are adding risk to already present risk while having no possesion of the currency we just purchased. So isn't it the deficiency on the part of the person trading that didn't speculate the trend of the market well enough resulting in a risk rather than value to be added instead of the fundamental reason that value will not be added. You answer is anticipated.
I like the example of islander, but it confuses me why 1000 people will be at risk. If only 1 coin is speculated there will be only 2 people involved, 1 buyer and 1 seller and risk is assigned to them.
Salam brother, great content on your channel, but it seems that most of your viewers including me aren't very learned in finance and trading, some are also very weak in English and are looking for a halal or Haram ruling on trading, which is hardly available on TH-cam.
So my advice to you dear brother is that after you have made your video explanation, please say the verdict clearly whether something is halal or not, you could even write it down on the screen, from the comments of these types of videos many are still confused. Jazakallah. Wassalam.
I am more than confused. He just gave the good and the bad side not really answering the question
Selling a property is not transferring risk to someone else. It's gaining risk by transforming a low risk asset (the property) to a high risk asset (American dollar)
thank you to taking the time to pull together these informative videos
I agree with you bro baraklaahu fiik 💖
Why is taking Rent not Haram? If bank gives you home to live then it's interest which is haram and we can own home after few decades but same thing when an individual do that is called rent. Rent is worst than interest because after paying interest we can own that property but paying rent for all of our life we can never own that property. Please make a video about Rent as well.
Jazaka Allah khair. You answered my question towards the end
Thank you so much brother. JazakAllahu khayran.
Thank you brother may ALLAH bless and reward you for your truthful answer and I hope that your intentions was for the sake of ALLAH.
Jazakallah Khair brother...Msha'Allah yoiu are doing great service.
Write Allah Capital in every word Like AlhamduLLILLAH
Ma Shaa ALLAH brother explained well. May ALLAH bless you. Ameen.
Many thanks
Halal or haram
@@ibrahimabdulhai4864 Haram
@@ibrahimabdulhai4864 Halal.
Well explained brother. I see cryptocurrency exchanges have exceptional use of point 1. Ownership of the currency. A trader owns his cryptocurrency and once they executive a trade the exchange of ownership happens beyond instantly in seconds, hand to hand. That should be okay as long as one isn't using margin trading! Allah knows best
what is margin trading?
@@hasan_usman that's basically borrowing funds to trade usually paid back with some extra to the lender.
Umar Sebyala but if u don’t borrow because u don’t need to since u have your own funds?
My friend deposited some amount getting 2% from that amount for 120 days ! Is it allowed to invest in forex commodity crypto
@@hasan_usman Then trade with you own funds, no need to go into temptations!
Jazakumullahu khairan brother you have done justice to this topic in a very logical and Islamic way. May Allah bless you and protect us from haraam in any form where explicit or disguised.
Salaam Alaikum, could you do similar analysis on crypto trading please
Jazakumullahu khair
Very well explained bro. Gonna quit forex trading right after watching this video. May Allah forgive all of us. JazakAllah khair
The biggest factor influencing the foreign-exchange market is interest rate changes made by any of the eight global central banks. So as long as it deals with interest, i would say that it in not permitted in Islam
جزاكم الله خيرا
You saved me from sin
From this video I understood trading is HARAM
It’s haram if you don’t know what your doing you see I applied for a no interest service with my broker and have really good analysing softwares to help so it’s not gambling
@@housseinkodsi9243 But still u don't have complete ownership of the currency so hence haram
@@mohamedeisarasheed6248 hey bro it’s the same as having a business if you don’t have risk management and are reckless then you are gambling my brother
Once you buy a currency pair you have ownership of the base pair, you are free to close your position at any time, your in control of it.
Jazakallah, I have one question about margine, in India as I have got, broker do not give any money, they give margin means suppose tshirt price is 100 and I want buy 10 tshirts so broker say 10 % pay now and you will get the position, this normally happen in intraday, margine in holding in this broker actually invest there amount or give money and they charge intrest in that but for intraday as I have read margin is like book shares with some booking amount please clear this if I am wrong many people don't know about it jazakallah khair
Masha allah! Your video is very clear and surly beneficial!
Also futures trading involving Forex, Commodities, Stocks, cryptos etc with margin involve zero sum game in it's vilest form. In order for one to make big chunk, the counterparts must lose the big chunk of money. Three kinds are always pitted against one another in it, Large speculators, small speculators, and Commercials. There are charts/candles/pattern/ indicators/algos/fundamentals etc but none really works, one party is gonna make nett profit and the others will make the nett loss. It's simply designed as gambling with sophisticated tools to make u believe it's not plain gambling.
So, dear Rakan, u r spot on here. With those two conditions which ain't in practise anywhere, it's a zero sum game, wherein buyer (long/short) hopes to make it big against the one from whom he/she is buying.
thanks Parvez, appreciate your insight.
Nice explanation bro. Made my self cleared by what you sead. Thank you
my pleasure, glad you found it useful!
Allah May bless you, excellent view point.
It’s simple and convincing and thanks for saving from sin. Please also explain commodity markets trading position about halal and haram
Add pls suggest forex forum that comply these two conditions for halal trading as you mentioned in your video
Thanks
I been studying and trading forex for exactly 2 years and 7 months and now after listening to the facts I sadly have to leave forex. Since forex was my only path now I feel like I am in the middle of the street. If you have a suggestion on what to do with my knowledge on a halal manner I sincerely appreciate it.
Seek knowledge there alot of mis Information
@MucaawiyeAhmed like what for example
Great explanation, Jazakallahukhairan
7:44 Why FX Trading is Haram
mashaallah bro i am in tanzania eastern africa i want to trade in forex
Write Allah in Capital in MashaAllah like i have written
Can we do crypto trading and stock marketing?
Brother the example of islander coin doesn't apply in the practical forex market because the market is huge so there are many currency and many traders. All peopple will not speculate on a single currency. Also there are brokers who don't charge extra spread for margin. They charge the same spread for islamic account. The value of spread depends on the lot size or margin size though. Hope you see my comment and give me a feedback. I need your opinion here brother. Jazakallah khairan.
11:22 wait if everyone on the island loses money, would the cfd provider of that islander coin gain all the money, and hence the money is just transferred from losers to the winner?
Jazaka Allahu khairan, brother. I was looking for this kind of insight. Thank you
The prophet was addressing gold and silver not other currencies
Thanks my beloved brother , may ALLAH bless and reward you for your truthful answer ..
My pleasure Habib, glad you found it useful
@@practicalislamicfinance Thanks brother for your insightful video. Could you please make a video explaining about the halalness of the practice of arbitrage trading in cryptocurrency? It's a practice where one person buys a currency in a market a lower price, and then sells it in other markets at the higher price, so we actually benefits from the difference in price in two different markets. Please have a look at the platforms providing this arbitrage business on automation using Artificial Intelligence such as Mirror Trading International. Is this a justified business from Islamic practice?
Forex trading is Haram if a trader is NOT setting STOP LOSS i.e. if he/she is not doing proper risk management!
Leverage is still doubtful since leverage in FX is not increasing our account size but just ADDING VALUE to position size i.e. Lot size.
Bro so if I trade with stop loss it means it's halal?
@@kaseproductions4334 it looks so.
@@kaseproductions4334 lol no, did you even watch the video. it has nothing to do with stop loss
Forex is a derivative. you're not trading on a derivative but speculating. Only spot trading is permissible since you're gaining ownership of something
@Rengar M You don't own anything, thats not how cfd trading works. you own a contract that says what you longed/shorted for which lotsize. A contract of value. It is the same as betting om a football match
Brother I am from Somalia we 100% Muslim.
There are alot of companies that are Doing forex. The Society invest those companies and they give back profits and most of the society they Don't know the reality of the forex therefore, the question is are the society earnings Halal money or Haram.
N.B
I was invest before watching this video with $2000 and I was earnings $800 each month. But I stopped after watching this video and I withdraw my money. Now I am unemployed I stay at home.
Sounds like you were unknowingly part of a Ponzi scheme. No legitimate investment of $2000 yields $800 a month.
My advice: There’s a lot of products/services the Somalis need. Forex isn’t one of them. Try to build wealth by providing some of those products/services.
@@practicalislamicfinance
Thanks for replying bro.
I accept that forex is totally Haram. And i never take Haram income intentionally and I never will inshallah.
I am graduate students I learnt Civil engineering. Now I am trying to establish my own construction company in my country inshallah.
N.B
I was Doing forex for only one month. Then I realise that it's Haram and I leave it immediately after understanding the reality of forex
@@DhismoPrideC that's great mashAllah!
@@practicalislamicfinance
Thank you for savings the Riba.
Bro
Alhamdulillah Got some great knowledge
Jazzakallah
Write Allah Capital in every word Like AlhamduLLILLAH
Can you please guide me on the following question
In the days of NABI SAW no paper money existed. Only currency was metals like gold etc. Now we have currency notes. And we are facing currency value depreciation in terms of inflation like here in Pakistan. Is it halal. I mean how will you reconcile this with forex being haram?
Is there a way for me to convert my local fiat into saudi riyal online as a way for me to invest & save up for Hajj at the same time? The value I intend to create is to benefit myself in fulfilling my obligations as well as benefit so many potentially businesses involved in enabling my future Hajj Ibadah. If there is none online, then I'd need to do offline with paper, I guess.
JazakAllah khayran❤️
Brother MashAllah you are doing great job... Plzzz make video on Binance leverage
Jazakallah khaire bro, I was planning to go for Binance leverage trading, but you stopped me. Thanks 😊
What about Binance USD futures ?
So in conclusion its haram but what if you trade in islamic accounts that some brokers offer, would that make ot halal??
May Allah bless you. You are 100% right. It is haram. 98% of them are losers. 2% of Big Bulls are taking the poor peoples money.
Can you take stock physically form exchange.
If can't take stock from exchange you haven't completely ownership.
Been learning about forex for months and I felt good then I started to trade with my own money and felt horrible within a week of trading blew my account couldn't concentrate in my salahs and reading my Quran felt absolutely disturbed and decided to check wat is the ruling of this thing is it permissible or not only to find it is not. Alhamdulilah am now back to my schedule and doin well mentally. Its mentally exhausting
Same situation... Lost a lot in a hope to get it back. Just watched this video and i am not gonna enter it again. May Allah forgive us and create some halal income sources.
@@ammararshad6700 Ameen
Thank you very much for the clarification, may god bless you
May Allah reward you. good explanation
Jzak Allah khair brother. Very nicely explained.
ZajakAllahu Khairan
el salamo aleikom, what do you think about islamic accounts? is that haram too? I always read opposing thoughts without a point of reference. I am going to use an investment fund that invests in forex automatically (similar to a bot but is more serious) where it will be on an fp market islamic account with free swap and I would like to know what you think
Millions of scholars says its halal millions of other says its haram
not one scholar said that forex is halal
Can you give us an alternative ways to trade or invest our money?
spot trading crypto, stocks, gold, etc. just make sure its a spot trade
What if I am from the 5% and I am making my profit from it ? And I am investing my own money on it,not connected with any kind of riba (interest) ?
It's good then but where do u invest follow all the Islamic rules
My friend deposited 2500rs in forex crypto commodity getting 2%amount for 120 days ! Is it allowed?
@@muhaajireen5757 Allowed.
i wonder if the same rules applied or not to a bank that give loan to build a house that the house must be build by their named contractors, designer and few other detail that restricted by their TnC?
Hello brother... There is halal forex broker... Its only the DMA account ( direct market) and ofc with no leverage because they take commissions so you basically trade physically in the forex market and don't use leverage because they take commission again so this way it's halal I guess 🙃 the sad part is that you must have millions of dollars to make 5 thousands 🙂
Never stop brother
Leverage sir is not loan is power of buying
The price for one lot is 100,000 units of each currency = $ 1 per pip
When the leverage of 100: 1 is used, it becomes an example value
100000 ÷ 100 =(1000)
And not
1000 x 100 = (100000)
This means that a lot changes its value from 100,000 to 1,000
I don't take any kind of loans
th-cam.com/video/1uQDo8QbpeM/w-d-xo.html
If you understand arabic watch this
@@ressayiluogal7909 Indeed, but its haram cause of speculation. You don't trade, you speculate in the forex market. The forex markets you trade are derivatives
Well explained brother..best video till now since i have been searching on forex.... Conclusion HARAM
brother can you make a video on bitcoin perpetual future trading
What about spot commodity trading??? Please do reply
if its spot trading, then its halal.
What's the issue of the risk , in any business you never know the risk and can't justify it?
But nowadays, everything is online. No one owns paper money and goes to the bank for the exchange to see if the price goes up or down. In present digital era, forex is the online version of the traditional method of money exchange. You can trade on any currency and also have the withdraw option in any currency in your payment method. I am using skrill, if I trade on yen I can also withdraw yen into skrill. The brokers who give you a loan are scammers definitely, we cannot consider it haram because of a few fraudulent activities done by scammers. YES, those fraudulent activities are certainly haram in Islam. But if you trade by following market research, then forex is halal as there is a proper market analysis before placing a trade and there is no gambling in it.
Thank you so much brother. I would like to say that the conditions you talked about were in the early time the time of the prophet and his companions. But in the mean time the majority of islamic scholars say that these conditions change by the change of place and time. And this is one of the things that islam is the true religion from god because it is flexible it changes by the change of time and place
@@usmanabdurrazzaq what about islamic trading accounts ? Its just no clear please help me
@@usmanabdurrazzaq In regards to leverage. Is the action of leverage haram or do the brokers make it haram because leverage is just borrowing money with no intrest. Hallal right? But the way these islamic brokers make money is through adminstration commisions charged off from every trade you take. But thats because they dont charge swaps so they charge this fee instead. So leverage in that sense seems halal right? Some brokers say their accounts are 100% sharia complient isalmic accounts. In regards to this specifiacally its called vantage trading could you see for yourself and clarify would this be halal and how can they claim 100 percent sharia complient even if they give the option to get up to 1:500 leverage?
@@usmanabdurrazzaq i really dont know what to do ive devoted my entire life to forex literally like everything. Given up on time and just everything and i dont understand like ive put it so much hardwork and i love trading so much i just like dont see myself doing other things instead its like a gut feeling that i should be trading like its in my heart. But now that gut feeling is going i just dont no what to do. Its not 100 percent clear if trading is haram even though a lot of people raise many valid points that it is and so many people raise invalid points it isnt. I just dont no what to do should i do something else but i just dont see like i have faith in allah but ive put so much time into this it feels like if i give up this its gonna delay my journey to were i want to be a lot. Like what do you personally reccomend me doing in an islamic point of veiw and what will benifit me the most as ive read somewere before if you give up haram/desires for allah then allah will give u something better but it just isnt 100 percent clear if trading is haram so would allah want me to give it up and be giving me something better if i do? Should i make prayer multiple times then listen to my heart? And do what my heart tells me as im really unsure at this point.
I have been researching the markets for over 10 years and trading on and off, infact I stopped for many years due to fear of allah and knowing my trading methods where infct haraam.However, Now I believe the way I trade now is Halal because :
1. I trade with no swaps (no riba)
2. I trade with no Leverage (no loaning from broker) leverage is a pointless a smart trader will only risk 2% of their capital on a trade anyway. so why do I need leverage to risk 2% of my money?
3. My broker allows me to change my base currency if i wish therefore. I can deposit £ into my account and withdraw $ if I wanted or store $ in my account or £.
4. I do not trade impulsively and 99% of the time I trade GBPUSD, because that exchange is one i personally grew up with and have followed its movements for 10years so with analysis and fundementals I am in a position to make a better judgement than someone who has never traded.
5. If I found a physical currency exchange shop that had tight commissions I would be even more happy to trade in physical paper cash. but most of these physical exchanges have wide spreads.
Hello, what is the "physical currency exchange shop" you're talking about ? thank you
Excellent answer.....
You can trade without margin/leverage.
Thank you for the awesome explanation! God bless you
@Practical Islamic Finance According to this video,is gold vs other currency trading halal? It would be very helpful for me if you answer my question.
Thank you.