So many aspects of the modern world have Muslims across the globe double check all the technicalities to ensure they are doing the rightful thing. And currency trading is definitely one of these since it can involve many procedures that may be considered Haram under certain angles. In this article we are going to briefly explore the question: is online Forex trading Halal or Haram and what does a Muslim trader have to look for in order to avoid the dangerous areas.
In order to correctly answer is online Forex trading Halal we need to start by establishing one thing: it can certainly be Halal with the right broker who offers their clients an option for an Islamic account. This is an account that limits all the options that might be considered a speculation. For example, in order to achieve that the broker allows the trader to have an account free of swaps. A swap can be described as a fee charged to an open position that transfers through the night. This can be compared to Islamic banking where no interest is involved. By having a swap-free account the Muslim trader can be sure his trading stays Halal.
Another area that needs to be covered is commissions. In Islamic accounts the commission is never charged. A Muslim trader can open and close trades without paying any additional fees, like others who use regular account types. It would be fair to say that Islamic way of trading is more straightforward compared to the common kind. This gives Muslim Forex traders an opportunity for better understanding of the matter. Along with some other technicalities, you should remember that it is also perfectly acceptable to buy early in the day and sell later on in the afternoon, just like the spice merchant would make a purchase prior to the arrival of a big camel train in order to resell the goods later.
Keep in mind, that to open an Islamic account you need to present the broker with the document confirming you praising the Faith. Additionally, every Muslim trader has to always pay close attention and plan all the trades ahead. By ensuring all of the regulations are followed, the Halal trading can be guaranteed.
And the answer to the question is online Forex trading legal in India is the same as is online Forex trading legal in Malaysia or any other country with a large Muslim population: it is as long as the broker is following the proper rules of Islamic finance.
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