According to the rules of Islamic Sharia, trading in Stocks or speculating in Stocks (buying and selling Stocks) is legally permissible, provided that the contracts are following Sharia. But if it violates Sharia, such as short sale, margin sale, and deferred sale, then it is Haram and is not permissible in Islam.
Stock trading is one of the most popular investment options in recent years, which is why a clear question comes to mind whether stock trading is Halal or Haram in Islam.
Trading in currencies and Stocks under some special conditions is permissible in Islam and is considered Halal. So, if you are new to trading and are concerned about it, we are here to help. We will give you a quick summary to find out the answer to the question – is stock trading Halal or Haram in Islam?
We have done in-depth research for you and we are here to help you understand the concepts of stock trading in a better way so that you do not fail to follow the teachings of Islamic law.
When you trade stocks, you are a Stock of the company whose Stocks are being put up for trading. Since you are part of the company, you are not gambling.
According to the rules of Islamic law and in any commercial field, if you do not take Riba from the business, it is counted as Halal. Riba can be defined as any additional portion of the profit that cannot be justified. That’s why at Halal Trading Brokers we will guide you to professional and halal trading brokers to get you started in stock trading.
Is Stocks Trading Halal or Haram?
Stock trading is completely Halal, and we have done our deep research to give you the best explanation about it. When you trade Stocks, you become part of the company by buying a certain percentage of that company in the form of Stocks. It is permissible in Islam to own part of any business.
When you buy Stocks, you are not gambling but you are buying a portion of that company. But, you must understand the fact that you should only trade with a Halal broker who follows all the Islamic rules to avoid Haram transactions along the way.
You need to pay attention to the fact that you should only trade with an interest-free account. The interest-free account is a special Islamic account that allows you to trade in an interest-free manner. In the interest-free account, you do not have to pay or receive any kind of commission or rollover fee to hold the stock position overnight. In this way, you and the broker follow Islamic law and only trade according to the current Stock price.
Most people make the mistake of contacting a Haram broker and end up opening a normal trading account. We at Halal Trading Brokers are constantly searching for the best and most professional Halal stockbrokers all over the world. We will introduce you to only halal brokers who will help you open an account free of interest and swaps for stock trading.
Stock trading is Halal but there are some points you should keep in mind such as:
- The stock broker must be a professional halal broker that follows all Islamic rules.
- You must have an interest-free Islamic account to start trading in stocks.
- Ensure that you do not receive or offer any kind of commission or renewal fee. Dealing with Riba is Haram in Islam.
How do you search for Halal stocks?
Prohibited products include alcohol, drugs, gambling, and companies that operate in certain sectors such as fashion and tattoos. If you are planning to buy a Stock, make sure that the company is not involved in any of the previous activities and other things are forbidden by Islam.
Some rules determine whether a stock falls under halal or haram. The company you invest in must be socially responsible and not engage in any kind of Haram products.
Check out some Islamic Sharia rules for choosing a company to buy its Stocks:
- The Company shall not sell any prohibited products such as alcohol, drugs, pornography, and other products and services of similar categories.
- It is advisable to invest your money in socially responsible companies that engage in charitable work, provide affordable treatments to the needy, and so on.
- Even if the company is affiliated with an organization that deals with prohibited products, you should avoid investing your money in that company.
But, you don’t need to do all that research and analysis because we’ve already done it for you. With us, you will get to know the best halal stock trading brokers. Leave your contact details below and Halal trusted broker ToTradeGlobal.com will contact you soon.
Best Halal company stocks to invest in
You should only care about halal stock investment. However, you don’t have to search for it, we have already searched for you. We have carefully selected the best interest-free Halal brokers. Leave your contact details below and Halal trusted broker ToTradeGlobal.com will contact you soon
Apart from these halal stocks, you can easily invest in other stocks by checking the company from the above-mentioned criteria.
Best Halal stock brokers
Don’t worry about finding the best Halal stock brokers to start trading. We at Halal Trading Brokers connect you with the best professional brokers who practice interest-free Islamic trading.
If you are new to stock trading, you should start investing in them now. Stock trading is among the fastest-growing investments in recent years which effectively contributes to diversifying your portfolio in the right Islamic way.
We have helped hundreds of Muslim traders by finding a Halal broker that suits their needs. Stock trading is not Haram if you do it the right way. We are here to help you grow and succeed in online trading the right way.
Get the best Halal investment through the brokers we offered. Leave your contact details below and Halal trusted broker ToTradeGlobal.com will contact you soon.