Mu' meneen Brothers and Sisters,

As Salaam Aleikum wa Rahmatullahi wa Barakatuh.  (May Allah's Peace, Mercy and Blessings be upon all of you)

One of our brothers/sisters has asked this question:

COULD YOU PLEASE ENLIGHTEN ME WHETHER "FOREX TRADING" (BUYING AND SELLING FOREIGN CURRENCIES I.E. UK STERLING, EURO, JAPANESE YEN AND SWISS FRANCS ON SPOT AND METALS LIKE GOLD AND SILVER (SPOT) IS HARAAM OR HALAL IN ISLAM. THANKS VERY MUCH

(There may be some grammatical and spelling errors in the above statement. The forum does not change anything from questions, comments and statements received from our readers for circulation in confidentiality.)

Answer:

Is Forex Trading halaal

In the name of Allah, We praise Him, seek His help and ask for His forgiveness. Whoever Allah guides none can misguide, and who-ever He allows to fall astray, none can guide them aright. We bear witness that there is no one (no idol, no person, no grave, no prophet, no imam, no dai, nobody!) worthy of worship but Allah Alone, and we bear witness that Muhammad (saws) is His slave-servant and the seal of His Messengers.

We apologize to have replied to your answer so late, as we had to get an expert opinion from some of the best Islamic scholars in the field of economics.

Here is their opinion in light of the guidance of the Holy Quran and the Traditions of the Messenger of Allah (saws):

Buying and selling of foreign currencies is legal and halaal in Islam, as long as the trading and exchange is done on spot payment and exchanged. Please note here that ‘margin-trading’ or any of its derivatives are not allowed in Islam.

Buying and selling of gold and silver or any other commodity is legal and halaal in Islam, as long as the trading and exchange is done on spot payment and exchanged. Here again ‘margin-trading’ or any of its derivatives are not allowed in Islam.

And Allah Alone Knows Best and He is the Only Source of Strength.

May Allah guide you and us all to the Siraat al-Mustaqeem

Whatever written of Truth and benefit is only due to Allah’s Assistance and Guidance, and whatever of error is of me. Allah Alone Knows Best and He is the Only Source of Strength.

Your brother and well wisher in Islam,

Burhan