The Islamic religion follows a strict set of rules, and many aspiring traders wonder if participating in Forex trading is not a violation of these principles. This is a very debatable question, as the interpretation of Islamic texts depends highly on your personal spiritual leader. This is why it is most important that you consult with them first if you want to know how they interpret the texts, and whether Forex trading is considered halal. In any case, if you decide to start investing in Forex trading it is important that you trust the ones handling your funds. Nowadays there are a number of exchanges, which are designed to suit the needs of Islamic Forex traders, so it is definitely worth it to research your options before you start investing.
What are the main arguments stating that Forex trading is not allowed by Islam?
One of the main problems with Forex trading and Islam is that according to the religious law the collection of interest, called ribba, is forbidden. This is why many specialized Forex exchanges have started emerging, which aim to provide services where no interest is collected so that Islamic traders can participate in the exchanges.
Another of the arguments against Forex trading, presented by religious leaders is that the Quran states that all exchanges of commodities of any kind should happen “Hand to Hand” between a buyer and a seller, without third parties involved. While technically Forex trading works through the Internet, and there is no physical exchange, the relationship between buyer and seller is the same as in traditional commodity exchanges. This is why many argue that Forex trading is in fact in agreement with this part of the Islamic rules.
Last but not least, Islamic rules state that any exchange of commodities should take place immediately after an agreement is reached. Of course, Forex trading does not interfere with this postulate, as all trades are executed immediately.
As you can see, Forex trading is somewhat of a grey area when it comes to the Islamic religion. There are arguments in support of both sides of the debate, however, everything is a strictly personal decision. It is completely up to you to decide how to interpret the teachings of the Quran, and come to a decision about Forex trading. There is an amazing article on the spirituality of trading, published by Forbes, where money and currency exchanges are analyzed through the prism of different religions.
Forex trading is a worldwide phenomenon, and nowadays many aspiring investors are looking to start boosting their assets through different platforms. Considering the conditions under which Forex trading can coexist with Islam there are now a number of specialized exchanges to help investors comply with the teachings of their religion. This is an amazing opportunity for a new way to start investing your assets, as long as you have cleared it with your spiritual leader and personal beliefs. There are a number of benefits of Forex trading, and the fact that there are ways to do it, and not violate any of the principles of Islam makes it a really good investment opportunity.
Join Our Telegram Channel or Follow @CaptainAltcoin
CaptainAltcoin’s writers and guest post authors may or may not have a vested interest in any of the mentioned projects and businesses. None of the content on CaptainAltcoin is investment advice nor is it a replacement for advice from a certified financial planner. The views expressed in this article are those of the author and do not necessarily reflect the official policy or position of CaptainAltcoin.com