Category: Business Matters
Fatwa#: 39403
Asked Country: United Kingdom

Answered Date: Jan 19,2018

Title: Is investing in forex trade permissible?

Question

According to Mufties, forex trading is not permissible

but what about if you don't do this your self and you just invest and then company does the trades for you, is thi still
haraam? in this case the company guarantees the profit as they have bots and automated softwares that does all the trading for you from the money which you invested.

so you just invest a certain amount and then you just sit back, everything after that is automated, the company takes your money, put it in to work and once they start making money, they start paying you back in profit, you make all your money back but you also make profits 

So is this allowed?

Answer

In the Name of Allah, the Most Gracious, the Most Merciful.

As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.

The permissibility or prohibition of dealing in forex is not based on one personally dealing in forex. The ruling depends on the actual forex procedure. If the forex procedure is not shariah compliant, it will be prohibited even though it is conducted through by a company or an agent.

And Allah Taala Knows Best

Mehrazur Rahman

Student Darul Iftaa

Brooklyn, NY, USA

Checked and Approved by,
Mufti Ebrahim Desai.

 

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