Forex online trading business is not permissible in Shari’ah (شریعہ), because it’s procedure as per our knowledge is, that a person is not directly eligible to purchase from this market, but enters in the market by opening up his account in a company by investing some money (for e.g. 1,000 $). These companies, in addition to providing different facilities, also give guarantee of a huge amount of money to the investor. On Internet, rates of different items in this market are updated continuously (showing increase/ decreases).
A person trades using gurantee of heavy amount given by the company. Once the rate of any goods increases, he sells them out and earns profit, but if the rates of any goods decreases, it is considered as his loss.
The company gets it’s commission on completion of a trade in either case.
If a trade is not completed in stipulated (agreed upon) time, the company charges additional for it.
A persons sale/ purchase are only paper transactions. The goods purchased/ sold are neigther owned by him, nor intended to be owned, but only the profit/ loss is being credited/ debited to him.
Therefore, being kind of a gambling, this business is not permissible in Shari'ah.
Commission on the guaranteed amount by company is either Interest on Debt or Sponsorship wage and both are forbidden in Shari’ah.
Therefore, being part of forex trading and gaining profit from it is not permitted in Shari'ah, and abstaining from it is necessary.
۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔
References:
صحیح مسلم: (باب بطلان بیع المبیع قبل القبض، 13/2)
عن ابن عباس رضي اللہ عنہ قال: قال النبي صلی اللہ علیہ وسلم: من ابتاع طعامًا فلا یبعہ حتی یستوفیہ، قال ابن عباس: وأحسب کلّ شيء مثلہ۔
مجمع الانھر: (باب البیع الفاسد، 13/3، ط: کوئتہ)
لا یصح بیع المنقول قبل قبضہ، لنہیہ علیہ السلام عن بیع ما لم یقبض۔
ALLAH Almighty knows best
DARULIFTA AL-IKHLAS,Karachi