Is forex trading halal?

Is forex trading halal ?

Islam permits risk creation when it’s a necessary derivative of creating value. Gambling is a benchmark for activities that involve risk without trying to create value. Islam frowns upon the risk-intensive activity of gambling called Al-Maisir.

Forex trading is halal because entrepreneurs risk their investment to earn profits. Forex trading isn’t synonymous with gambling. It doesn’t involve loans with interest on repayment. Trading in Forex markets doesn’t break any religious laws of Islam.

Yet, Forex can be haram if greed is your primary motivation. An activity is haram if it generates profits from chance rather than productive action.

Trading in Forex markets is halal if you see trading as a venture where you evaluate your investment risk with reasonable expectations.

Don’t approach trading as you would gambling. Don’t trade on Forex using swap accounts. Make sure you don’t indulge in nefarious practices and break Islamic religious laws.

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