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
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
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.
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
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!
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
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.
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. 😇
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?
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 RUclips. 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.
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
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.
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...
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
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.
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.
My brother may Allah bless you, I reviewed what schoolers (who really understand the trade through platform and forex ) they says Owning things not necessarily to be in your hand ,when it's in your portfolio it's done.(When buy 50 thousand barrel of oil they will not bring it your home! Or 100 kg of gold then you will be able to resale it!).Margin also isn't a real lone and they give you the chance of buying more than your account as your portfolio is a guarantee in there hand.Swap is haram according to them but I know many platform not taking swap
@Said The definition of lone is absolutely different, which crazy bank or broker will give you 499000 $ as a lone for a portfolio of 1000$. It's actually not a lone as per many schoolers. So using it, is an area of conflict between scholars. Your thousand is like guarantee. You need to know when a lone has benefit for both isn't absolutely Riba with many talks between scholars..
@Said welcome brother, when the Muslim is able to search and looks to the daleel, he should and this is what I'm doing. Regarding the leverage away from the conflict between scholars, if you can work without leverage will be great and away from conflict. Jazak Allah khair
Great point brother. Not everything we sell is in our possession. Majority of the world when selling large don't have possession of what they are selling, they make calls and re sale it. Are we going to tell them they can't do that it is haraam.
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
@@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?
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)
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.
Thank you! for more detailed information and clarification about this issue that made us more confused due to our scholars given different prospective.
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.
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.
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
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.
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.
Thank you very much for your effort to make a video about this. I asked you a couple of weeks ago a question about this subject because I never found a video as clear and as argued as this one. A lot of people will be thankful for this video just like me. Jazakkallahu khairan
Everything we do in life have risk but risk come from not knowing but once you know it.... as long its HALAL go for it... thanks for clearing my lil bit tiny doubt bout it.
I was going to start Forex ,beacuse I am suffering due to financial issues. And that's why I watched few videos on this issue whether it's Halaal or haraam ,but I wasn't satisfied due to usage of their complex words in the answers to this question/issue. I am more clear about yours because of you, you my brother! Made it clear with the help of simple words/terms. I've decided NOT to start Forex. I don't know how to thank you. Brother! Jazaka ALLAH hu Khaira. Hats off to your easy & simple logic. 👍❤
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.
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
Actually I spend more than a month looking to the fatwa of Olamaa, there misunderstanding to the reality with some but others knows well. As an example if jewellery shop buys 100 kg gold through a bank awaiting the manufacture to prepare it bcz it needs time,the receipt you got equals hand to hand according to Olama.In this case if he found a high price and he decided to resale it through the bank to get the profit ,no one says its haram.This the same as in platform but needs time for some olama to understand it better although some did.
Brother thanks for the video, it is certainly interesting. But I do have a counterpoint, your primary assumption is - "there is no value addition/creation in price speculation" - hence it is haram. This is not the case, the market for FOREX exists because there are individuals/institutions who are hedging against currency risks (+ volatility). In other words, when I predict (not speculate) that (say) Yen will increase in value against USD and take a long position, there is a counterparty who is hedging against the risk of Yen weakening against USD and takes a short position. The value that is being created here is that I am onboarding currency/volatility risk from this counterparty - for providing this service I charge a fee i.e. profit if Yen actually strengthens against USD. It will be great to hear your thoughts on this - jazakallah.
Brother, I think what he said "there is no value creation" is applied to the reality of trading with forex broker that is CFD based and you don't own anything. If you really trade currency, then risk is TRANSFERRED, and it doesn't matter whether value is created or not by that transaction because each others' definition of value may differ. However, on a forex transaction with no ownership (CFD/derivative), risk is solely CREATED, but no value is created alongside it (both parties only sees the value of making profit with other's loss, which is zero sum and not really value).
@@Vashikovich even when you trade with a forex brokerage using CFD, the brokerage is just acting as an intermediary (+providing market liquidity) and is balancing your position with an opposite position with someone else i.e. someone who is hedging his currency risk. This onboarding of risk is the value addition. Unfortunately, many scholars don't have good economic/financial background and are quick to term financial instruments as haram without fully understanding them. This causes a massive detrimental impact on the whole community.
@@azizmohiuddin in that sense, that's correct, there's a value in each other's point of view. But the question is, who is this "someone else"? It must be another CFD user, correct? The problem with CFD is that we don't get involved into the market itself. It's like we are doing our own transaction behind a glass window while the rest of the market happens outside the window. Theoretically, whatever we are doing with the CFD, even if we transact 1 billion, the world market doesn't "feel" this and doesn't get affected by this. Well, I myself still don't comprehend how paramount that is in deciding a sharia compliance. This is just my understanding so far about the issue. Wallahua'lam
@@Vashikovich brother, when you go to a grocery store and buy rice do you know / or enquire about the farmer who grew the rice in his field? On the flip side, does that farmer really care about who the consumer of this rice is? The brokerage has the same function as that of the grocery store i.e. connect buyers and sellers; as a buyer/seller, I don't really care about who the counterparty is - this is the job of the brokerage. The problem that I have, in general, with our scholars is that they are quick to issue fatwa of haram without fully understanding the underlying mechanics. For example, this video (watched by about 100K, people - mostly educated brothers) just concludes that Forex trading is haram. These kinds of half-baked fatwa's cause massive harm to the community and hence need to be called out. Wallahua'lam
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
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.
Bilawal bhai, ghalat jaga agye hain ap. Engineer Muhammad Ali Mirza ki video dekhain he's a muslim Scholar and he also knows about Financial Markets. Ye banda Quran aur Sunnat k hisaab sai nai bta raha.
I agree what you say but in today's time directly we are caught up in Jewish banking systems....we are giving interest or taking interest specially in western country. If you are employed you day lies 99% of the time...if you are business you are 80% overpricing products or misselling...today's time setting up profitable business is next to impossible...forex is profiting from market speculation of currency and commodity price...we use our analysis and ability to speculate. Business is all about speculating then investing....apart from leverage and swap I don't see anything wrong in this....Allah knows best....But I am in this business and I will continue Inshallah
I just opened a live trading account on Tickmill and got it changed it to a "swap free" account. I have 0 knowledge about MetaTrader5 and anything of that sort. Before taking this step, I did pray the istikhara prayer (may Allah accept it and help us out). I'm starting with 1:1 leverage. Any suggestions for me?
I always stayed away from Forex because it is very similar to loaning money and collecting interest. There are plenty other halal ways to make money on the stock market. Great video brother
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.
It means we Muslims in the West have to work as a disposable components of interest based system. We should never think of having any decent business....
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
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.
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 🧐
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.
For those asking, He basically said Forex Trading is not Halal based on the factors from 07:44
king
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
thank u gonzalo higuain
hahahaahahahahaha
Ahahahahzzhahahahhaa jsss mortttt😭😭😭😭😭😭😭😭
hahahaha!
😂🤣😂🤣😂😂🤣😂🤣😂😂🤣😂😂🤣😂🤣🤣🤣😂😂🤣😂
😂😂😂😂😂👍🏽
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.
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
Finally, a clear and logical answer. Thank you!
Glad you found it useful!
Edmond Von Stiftoe mean haram?
Masaallah I am so happy Allah has brought that channel to me as a resource! So logical and helpful
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?
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. 😇
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?
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
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 RUclips.
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
you answer all the questions I was searching for thank u. May Allah Swt keep us away from haram.
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!
Very beneficial video mate. I was into it for about 2.5 years but now leaved it. Thanks man
Great to hear!
Amazing explanation, removed all confusions. Thank you very much
my pleasure, glad you found it useful.
Wow very clearly and well explained
Thank you so much
May Allah bless you
Great bro ❤️
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.
Ur level of understanding and clearity is next level
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...
Allah bless and reward you brother
Thank you brother Mohamed!
Well explained brother..best video till now since i have been searching on forex.... Conclusion HARAM
I agree with you bro baraklaahu fiik 💖
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
Jazakallah Khair brother...Msha'Allah yoiu are doing great service.
Write Allah Capital in every word Like AlhamduLLILLAH
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.
Very simple and to the point, jazak allah khayran
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.
thank you to taking the time to pull together these informative videos
Jazakallah khaire bro, I was planning to go for Binance leverage trading, but you stopped me. Thanks 😊
What about Binance USD futures ?
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.
My brother may Allah bless you, I reviewed what schoolers (who really understand the trade through platform and forex ) they says Owning things not necessarily to be in your hand ,when it's in your portfolio it's done.(When buy 50 thousand barrel of oil they will not bring it your home! Or 100 kg of gold then you will be able to resale it!).Margin also isn't a real lone and they give you the chance of buying more than your account as your portfolio is a guarantee in there hand.Swap is haram according to them but I know many platform not taking swap
@Said The definition of lone is absolutely different, which crazy bank or broker will give you 499000 $ as a lone for a portfolio of 1000$. It's actually not a lone as per many schoolers. So using it, is an area of conflict between scholars. Your thousand is like guarantee. You need to know when a lone has benefit for both isn't absolutely Riba with many talks between scholars..
@Said welcome brother, when the Muslim is able to search and looks to the daleel, he should and this is what I'm doing. Regarding the leverage away from the conflict between scholars, if you can work without leverage will be great and away from conflict. Jazak Allah khair
@@dralshaer85 brother can i ask you something?
Do you think that leverage is halal or haram even in cryptos like bitcoin?
@Said Assalamu alaikum brother. You said that you are using 1:1 leverage. So how much real money has to deposit for trade.
Great point brother. Not everything we sell is in our possession. Majority of the world when selling large don't have possession of what they are selling, they make calls and re sale it. Are we going to tell them they can't do that it is haraam.
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
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.
Ma Shaa ALLAH brother explained well. May ALLAH bless you. Ameen.
Many thanks
Halal or haram
@@ibrahimabdulhai4864 Haram
@@ibrahimabdulhai4864 Halal.
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?
I am from India thank you so much brother 😊
Very well explained bro. Gonna quit forex trading right after watching this video. May Allah forgive all of us. JazakAllah khair
Nice explanation bro. Made my self cleared by what you sead. Thank you
my pleasure, glad you found it useful!
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)
Masha allah! Your video is very clear and surly beneficial!
Jazaka Allahu khairan, brother. I was looking for this kind of insight. Thank you
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.
Assalamualaikum .... Im from Penang Island,Malaysia...
Walaykum Salam brother Walid
Jazaka Allah khair. You answered my question towards the end
Alhamdulillah Got some great knowledge
Jazzakallah
Write Allah Capital in every word Like AlhamduLLILLAH
Thank you! for more detailed information and clarification about this issue that made us more confused due to our scholars given different prospective.
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.
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.
May Allah reward you. good explanation
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
Jzak Allah khair brother. Very nicely explained.
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.
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.
Thank you very much for your effort to make a video about this. I asked you a couple of weeks ago a question about this subject because I never found a video as clear and as argued as this one. A lot of people will be thankful for this video just like me. Jazakkallahu khairan
My pleasure, glad to be able to help!
Great explanation, Jazakallahukhairan
mashaallah bro i am in tanzania eastern africa i want to trade in forex
Write Allah in Capital in MashaAllah like i have written
Everything we do in life have risk but risk come from not knowing but once you know it.... as long its HALAL go for it... thanks for clearing my lil bit tiny doubt bout it.
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.
Great video Jzk for your explanation and for doing these beneficial videos.
I was going to start Forex ,beacuse I am suffering due to financial issues. And that's why I watched few videos on this issue whether it's Halaal or haraam ,but I wasn't satisfied due to usage of their complex words in the answers to this question/issue. I am more clear about yours because of you, you my brother! Made it clear with the help of simple words/terms. I've decided NOT to start Forex. I don't know how to thank you. Brother! Jazaka ALLAH hu Khaira. Hats off to your easy & simple logic. 👍❤
Thanks brother Salman ... so glad I could help!
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.
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
The prophet was addressing gold and silver not other currencies
Actually I spend more than a month looking to the fatwa of Olamaa, there misunderstanding to the reality with some but others knows well. As an example if jewellery shop buys 100 kg gold through a bank awaiting the manufacture to prepare it bcz it needs time,the receipt you got equals hand to hand according to Olama.In this case if he found a high price and he decided to resale it through the bank to get the profit ,no one says its haram.This the same as in platform but needs time for some olama to understand it better although some did.
Yeah That's exactly same what I'm thinking.
Dr Mohammed Alshaer who did your personally speak to in this
@@aspirenow6434 I couldn't understand your question brother
Thank you brother for explaining well.
You are doing great job.
It's my pleasure thanks
So as Muslims
We are only allowed to do jobs n be slaves n servants
Hmm
That's very progressive
I just stop trading.. 😊.. And now learning stock market.. Thanks
Is forex trading Haram brother?
B
@@ammarhoopz786 No
@@ammarhoopz786 yes
Thanxx I am always so grateful for this channel
Thank you so much brother for the sharing 👍🏻
Never stop brother
Brother thanks for the video, it is certainly interesting. But I do have a counterpoint, your primary assumption is - "there is no value addition/creation in price speculation" - hence it is haram. This is not the case, the market for FOREX exists because there are individuals/institutions who are hedging against currency risks (+ volatility). In other words, when I predict (not speculate) that (say) Yen will increase in value against USD and take a long position, there is a counterparty who is hedging against the risk of Yen weakening against USD and takes a short position. The value that is being created here is that I am onboarding currency/volatility risk from this counterparty - for providing this service I charge a fee i.e. profit if Yen actually strengthens against USD. It will be great to hear your thoughts on this - jazakallah.
Brother, I think what he said "there is no value creation" is applied to the reality of trading with forex broker that is CFD based and you don't own anything. If you really trade currency, then risk is TRANSFERRED, and it doesn't matter whether value is created or not by that transaction because each others' definition of value may differ. However, on a forex transaction with no ownership (CFD/derivative), risk is solely CREATED, but no value is created alongside it (both parties only sees the value of making profit with other's loss, which is zero sum and not really value).
@@Vashikovich what if you trade with no CFD in a ECN forex broker market ?
@@Vashikovich even when you trade with a forex brokerage using CFD, the brokerage is just acting as an intermediary (+providing market liquidity) and is balancing your position with an opposite position with someone else i.e. someone who is hedging his currency risk. This onboarding of risk is the value addition.
Unfortunately, many scholars don't have good economic/financial background and are quick to term financial instruments as haram without fully understanding them. This causes a massive detrimental impact on the whole community.
@@azizmohiuddin in that sense, that's correct, there's a value in each other's point of view.
But the question is, who is this "someone else"? It must be another CFD user, correct? The problem with CFD is that we don't get involved into the market itself. It's like we are doing our own transaction behind a glass window while the rest of the market happens outside the window. Theoretically, whatever we are doing with the CFD, even if we transact 1 billion, the world market doesn't "feel" this and doesn't get affected by this.
Well, I myself still don't comprehend how paramount that is in deciding a sharia compliance. This is just my understanding so far about the issue.
Wallahua'lam
@@Vashikovich brother, when you go to a grocery store and buy rice do you know / or enquire about the farmer who grew the rice in his field? On the flip side, does that farmer really care about who the consumer of this rice is?
The brokerage has the same function as that of the grocery store i.e. connect buyers and sellers; as a buyer/seller, I don't really care about who the counterparty is - this is the job of the brokerage.
The problem that I have, in general, with our scholars is that they are quick to issue fatwa of haram without fully understanding the underlying mechanics.
For example, this video (watched by about 100K, people - mostly educated brothers) just concludes that Forex trading is haram. These kinds of half-baked fatwa's cause massive harm to the community and hence need to be called out.
Wallahua'lam
Excellent answer.....
You can trade without margin/leverage.
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
ruclips.net/video/1uQDo8QbpeM/видео.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
You nailed it bro!
I am very proud of my religious identity.
Iam not expert in english. I dont understand what he said.
Is it halal or haram?
Pls reply😑😑
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.
Mashallah !!! A very good and meaningful explanation brother. Thank you so much for making this video.
Write Allah Capital in every word Like AlhamduLLILLAH
You explained clearly, I appreciate your help.
My pleasure
What is clear answer ,is it halal or haram ?
@@bilawalhussain6803 Halal.
Bilawal bhai, ghalat jaga agye hain ap. Engineer Muhammad Ali Mirza ki video dekhain he's a muslim Scholar and he also knows about Financial Markets. Ye banda Quran aur Sunnat k hisaab sai nai bta raha.
I agree what you say but in today's time directly we are caught up in Jewish banking systems....we are giving interest or taking interest specially in western country. If you are employed you day lies 99% of the time...if you are business you are 80% overpricing products or misselling...today's time setting up profitable business is next to impossible...forex is profiting from market speculation of currency and commodity price...we use our analysis and ability to speculate. Business is all about speculating then investing....apart from leverage and swap I don't see anything wrong in this....Allah knows best....But I am in this business and I will continue Inshallah
I just opened a live trading account on Tickmill and got it changed it to a "swap free" account.
I have 0 knowledge about MetaTrader5 and anything of that sort.
Before taking this step, I did pray the istikhara prayer (may Allah accept it and help us out).
I'm starting with 1:1 leverage.
Any suggestions for me?
I always stayed away from Forex because it is very similar to loaning money and collecting interest.
There are plenty other halal ways to make money on the stock market. Great video brother
Agreed!
@@practicalislamicfinance hye...is forex is halal without leverage?
What are other ways
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.
7:44 Why FX Trading is Haram
Brother MashAllah you are doing great job... Plzzz make video on Binance leverage
Thank you for the awesome explanation! God bless you
About ownership of currency everything is tech but margin I agree
It means we Muslims in the West have to work as a disposable components of interest based system. We should never think of having any decent business....
Jazakallah for your video.
Thanks alot Brother!
I feel cleared it’s Haram jazakhallah bro I’ll stop to tradings from today
Baraka allahu feek you helped me a lot brother
Thank you, glad to hear it!
Thank you very much for the clarification, may god bless you
Salaam Alaikum, could you do similar analysis on crypto trading please
Jazakumullahu khair
10:50 perfect example which is exactly what happened with Game stop February 2021
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.