Is forex trading halaal?

“Forex trading contains many aspects which are against the principles of Shari’ah inter alia gambling, interest, not taking possession of the currency etc. Forex trading also evolves around speculation and estimation which is also not permitted in Shari’ah.”

“Online spot forex trading is not permitted. See the following explanation: Forex Trading Retail forex practised by private investors is a form of non-deliverable trading agreements, where delivery of the currencies never take place. This is the primary issue with online forex trading.”

“If by Forex exchange trading, you mean selling the currency of one country in lieu of the currencyof another country, such as when a person wishes to travel, he purchases dollars from the Bank in lieu of Rands and an actual physical exchange of the two currencies takes place, then this is permissible.”

“The issue of online Forex trading was discussed in the Jameeatul Muftieen meeting which comprises of twelve senior Muftis of South Africa. After analyzing the details provided, Forex trading was ruled impermissible, as many of its aspects did not conform to the laws of Shariah.”