Question and Answer: Ruling for Online Forex Trading
Assalamu’alaikum, ustadz (chaplain). I would like to ask about the ruling for online currency trading, usually termed as “Forex” trading? Where the so-called business basically gain it’s profit from the trading of currency, which is the real world seemingly resembles the money changer transaction. Thanks for the answer.
All praises be to Allah, peace and blessings of Allah may be upon Prophet Muhammad, his family, and his devoted companions.
In shari’a (Islamic laws), the basic ruling for currency trading is allowed, but with two conditions. The conditions serve to maintain the economic stability of the community, and to protect the currency which function as a standard measurement for other goods from the violation of the greedy.