Category: Business Matters
Fatwa#: 40986
Asked Country: United Kingdom

Answered Date: Sep 08,2018

Title: IML (iMarkets Live)

Question

Assalamulaykum,

I have been looking into forex with a company called IML. When i asked them in regards to its permissiblilty they gave this answer: 

Now the way brokers work is you borrow funds effectively to trade with and they charge commissions / interest. Now in Islam that comes under riba. However to eliminate this you have islamic trading accounts that have a fixed administrative fee instead of a commission which therefore makes it permissible
If you are talking about trading money for money and profiting being haraam, it is stated in a Hadith that if you trade gold for gold, barley for barley or wheat for wheat then there is two conditions it has to be equal (no profit) and hand in hand ie instant. Now we don’t need to even go deep into this because we aren’t trading one dollar for 2 dollars. We are trading one currency against another so they’re not the same which makes it permissible
As for it being instant or hand in hand, technology has advanced you no longer have to be physically present for it to be hand in hand or instant, & with online brokers the transaction or “trade” is carried out instantly at the price the currency is at, at that specific time.

Please can you advise me if i can go ahead with this trading?

JazakAllah

Answer

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

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

We have browsed through the website. We didn’t find any mention of Shariah compliance. The details provided are inadequate for us to comment on the product.

You may revert to us with further details at admin@daruliftaa.net ref. Abdullah Sajid.

And Allah Ta’āla Knows Best

Abdullah Syed Sajid

Student Darul Iftaa
Houston, TX, USA 

Checked and Approved by,
Mufti Ebrahim Desai.

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