Islamic FOREX is about buying and selling currencies online, in a Halal way, in accordance with Shariah Principles. An Islamic FOREX Account is a Broker Account where Interest (Riba) is removed, so that currencies can be traded in a Halal way. Having an Islamic FOREX Account is one of the most important step towards making FOREX Trading Halal, as Riba is what makes Trading Haram.
Islamic FOREX can be recognised through 13 defining features as follows:
- Trading with an Islamic Account to remove Interest (riba)
- Removing Gambling (maysir)
- Reducing Guessing & Uncertainty (gharar) .
- Managing Greed.
- Minimising Speculation.
- Trade Tracking with Trade Verification – this removes gambling, guessing & uncertainty!
- Risk Tracking with comprehensive Risk Management.
- Loss Tracking & Loss Management..
- Applying a Muslim Traders Psychology.
- Living a Muslim Traders Lifestyle.
- Using a Shariah Compliant Trading System – Bounce Action and the MATHS Trading System.
- Traded by qualified & experienced Traders – Bounce Action Certified Traders.
- Using an Islamic Brokerage Service – provides Halal Leverage, manages Transactions and solves issues of Possession and Ownership.
The first requirement for Islamic FOREX is to have an Islamic Account. Without an Islamic Account, there simply is no Islamic Trading as Riba is directly involved, which makes it Haram.
What is an Islamic Account?
An Islamic Account is a fundamental requirement to make FOREX or indeed, any form of Islamic Trading Halal.
This is because an Islamic Account completely removes Interest or Riba, at its source. An Islamic Account simply removes Swap or Rollover charges when trading. A Swap or Rollover charge is made when a Trade is left open overnight. The trader will either pay Interest or Receive Interest.
The creation of an Islamic Account is the best thing the Non-Muslims have done for Muslim Traders. We Muslims do not have the ability to remove interest. This is obviously because we Muslims do not own any Brokerages!
The removal of Interest in itself is a really big deal. This is because Interest makes anything Haram. Thus the removal of Interest makes Islamic Trading Halal.
However, simply removing the interest does NOT mean that FOREX is being traded in a Halal way. That is why I mentioned the 13 defining features of Halal FOREX above. Removing the Interest only met the first criteria!
What the Non-Muslim Brokerages that offer Islamic FOREX Accounts fail to understand is that to Trade FOREX in a Halal way, other Islamic Principles in Shariah also need to be adhered to, as mentioned above.
Summarising, offering an Islamic FOREX Account is definitely a step in the right direction as it completely removes Interest (Riba) and is the first criteria that needed to be met for Islamic FOREX to be Halal. However, the brokerages offering the Islamic FOREX Account can not meet the 12 other criteria needed to make FOREX Halal and thus trade FOREX Islamically.
How can I trade FOREX in a Halal way?
We at Islamic FOREX, have developed an Islamic “Trading Engine” that meets 12 out of 13 Criteria to make FOREX Halal.
After 12 years of intense and secret Research & Development, Islamic FOREX is pleased to present to the world “Bounce Action” and the MATHS Trading System.
Both Bounce Action and the MATHS Trading System are 100% Shariah Compliant. Hence Trading FOREX with Bounce Action and an Islamic FOREX Account will meet 12 criteria to make Trading Halal.
To learn more about Bounce Action and the MATHS Trading System, please see our available Courses.
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