This is the Law of Forex Trading According to Islam, Halal or Haram?

Let’s first know the law of forex trading according to Islam . Maybe all this time you want to do forex trading but are afraid of being illegal.

Know a lot better, so read to the end yes!

Know What is Forex Trading

One of the investments that can provide fantastic benefits is forex trading . What is forex trading?

Trading forex ( foreign exchange ) is a type of investment related to exchange rates or prices of international currencies (foreign exchange).

A quick overview of how to trade forex is to buy a currency when its value is low, then sell that currency back when its value is high.

The advantage of this forex trading is capital gain . Capital gain is the difference between the selling price minus the purchase price.

 

To be able to invest here, we recommend that you learn and practice first. To know more about this investment technically, you can practice through a demo account from a forex broker .

After you have matured in practice, then you can start taking steps to do real forex trading . You can start registration or open an account with a forex broker .

However, try not to be picky when choosing a broker for forex trading. Choose a trusted forex broker .

Forex Trading Is Trading

Many ordinary people immediately assume that Forex trading activities are haram because many equate it with gambling.

This is because a trader or player will put up capital in a certain type of currency. Then, the trader waits for the price to rise and fall.

You just need to sit quietly at home without having to work hard, move, or even go to the office but you can easily earn money until you become a billionaire. This is what makes people think for themselves that forex trading is illegal.

In fact, you need to know that actually the basic principle of foreign exchange or Forex is purely trading .

More specifically, forex trading is the business of exchanging foreign currencies. For example, Rupiah to Euro, Rupiah to USD, or so on.

Later, the abundant profits can be obtained from the difference in exchange, depending on market conditions. While gambling, all player decisions are taken by predicting or guessing and depending on luck or hockey.

This is clearly different from trading. Although we can do trading by sitting quietly at home, our minds still work optimally.

We really need maximum and mature decision making when trading. In addition, the decisions we take also need to consider fundamental , technical analysis , a little natural intuition, and other special strategies.

So, ordinary people or laypeople who do not have sufficient knowledge or abilities cannot trade forex before learning forex first.

You can watch the following video to better understand trading .

How is Forex Trading Legal According to Islam?

A sale and purchase transaction of any kind, including foreign exchange, is permitted if the item is not an illegal item .

In addition, there is no element of cheating, hiding defects, and does not contain gambling or speculative elements.

This speculative meaning is like guessing the price. If you are lucky you will get good stuff. However, if you are not lucky, you will get a bad item.

If you are one of the parties who think that forex trading is haram, including gambling, usury, and so on, then you are better off looking for more in-depth information.

Why is that? Because the investment has been officially proven, even the Islamic religion admits that the investment is 100% halal .

We say this with evidence of the issuance of the fatwa of the Indonesian Ulema Council (MUI) , precisely in the Fatwa of the National Syari’ah Council Number 28/DSN-MUI/III/2002 concerning the sale and purchase of currency or what is called Al-Sharf .

MUI stipulates that foreign exchange (forex) transactions are allowed because the origin of the income is very clear. The huge sums of money that traders earn are not the result of betting on an international scale, but are regulated globally.

Even traders or sellers and buyers know the flow of transactions, the amount of funds, and other information. Even if the transaction does not exist in the form of goods because it is done online , however, there is certainty regarding the nominal, time, and so on.

Forex Trading Is Legal

Thus, the sale and purchase of foreign currency is still valid, even if not directly. Of course as a trader there is no loss at all and there is no cheating. Why is that? Because everything is transparent or can be monitored directly.

The exception is if they don’t give the money from forex trading to the owner so we can say it is illegal or fraudulent. You also don’t have to worry because every player can find out all the forecasts or price movements of each type of foreign currency.

Therefore, from the statement above, it is clear about the law of halal or haram forex trading according to the Islamic religion. That way, you don’t have to worry because this transaction and short-term investment is safe.

However, for information, even though buying and selling foreign exchange in the cash market is legally permissible, for online foreign exchange transactions, the law will be more detailed. The following are the laws of online forex trading .

  • Forex trading is illegal if the price does not match the time the buyer decides to make a transaction with the time the transaction is accepted by the seller ( broker ).
  • Halal or permissible if the price when buying is the same as when the transaction is received by the seller (broker).

 

Profit from Forex Trading

After knowing about forex trading and how the law of forex trading according to Islam is, now you are more familiar with forex trading and know the law in Islam, which is halal.

That way, you don’t need to be afraid or hesitant to trade forex for fear of being haram. Now you can start trading forex and have the opportunity to make fantastic profits.

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