Is trade forex Halal or Haram in Islam?
According to Islamic financial laws, trading Forex is Halal because this business calculates your risk of investment with the hope of risk or reward in the future. For example, anyone can lose all of his capital in trading or get maximum profit.
Haram is a “bad act” that God and the Prophet called illegal due to its harmfulness as well as immorality. If the interest, which is called “riba” in Islam, involve in any business then it’ll Haram. Trade of currency pairs for the intent of gambling is not permissible as it is not allowed in Islamic religious laws. Traders who first learn trading then take rational decisions to buy/sell a currency by deeply analyzing the market like using stop loss, trail stop loss, discover their historical mistakes, are not gamble or guesswork.
Forex overnight interest payments are not compatible with Islamic philosophy so trade on spot as well as avoid leverage is acceptable. Today, many “Islamic Forex Brokers” in the market that are giving the facility of Muslim Forex Accounts which remove all interest challenges. Only those accounts are a good choice of trading which does not impose any overnight interest on open positions. Many new brokers are taking measures to mold new services from the Muslim point of view.