What is CFD trading? Is CFD considered Halal or Haram for Muslims?

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CFD or contract for difference is among the widely used forms of financial trading. This format lets you predict the rise or fall of the global financial market prices. CFD covers commodities, international currencies, indices and more.

With CFD trading, you don’t directly deal with the fundamental asset including physical shares, currency notes but you trade on their base price. By trading, you need to predict if the stock’s price will move up or down.

CFDs come under leveraged products. It means that you only need to pay a small portion of the total trade to open a position in the market. This is different from the other trading platforms and it lets you trade on the ‘margins’. By trading in this manner, you can get faster returns. On the other hand, the losses will be magnified if the prices go down. In CFD, the profits and losses depend on the complete value of your trade.

CFD trading is popular among the investors as it lets them control their portfolio with more flexibility. When you open a CFD account, you can select a fixed amount for trading. It will rise with each point as the market moves up. In CFD, if an investor thinks that the stock price will go up, he needs to click the buy button to secure the stock.

Let’s understand this with an example — If you think that the prices of crude oil are going to rise, you could buy a trade of 5 CFDs at an example price of 5879. If the market of crude oil surge by 30 points and you close your trade’s position, you would make a profit of $150. That’s equal to 30 times the 5 CFD you bought for your trade.

Are CFD’s allowed to be traded according to Islam?

CFD trading is not Halal and its reason is quite simple. Fundamentally, in CFD, one does not own any kind of product. A trader is predicting the base price of that community if it will go up or down without actually owning the stock. This is considered as a Riba and strictly prohibited in Islam. In CFD, the traders leverage the stock value to earn profits. This too is not allowed in Islam.

But as the world is shifting towards these digital investment options, Muslim people found an accurate way of trading in CFD without breaking any pious Islamic and Sharia rule. According to Islam, taking riba is strictly not allowed and that is the reason why Muslim traders use the swap-free accounts to trade in CFDs.

By leveraging a swap-free account to trade in CFD, you are not taking or giving any kind of riba. You are not breaking any pious Islamic rule while you trade riba-free. It is strictly prohibited to trade with unverified and untrusted brokers as you don’t know if they are Halal or Haram.  We will connect you with an Islamic Broker that was verified by us.

If you trade in CFD without a swap-free account, you will fail to follow Islamic rules. We at Halal Trading Brokers keep you covered by connecting you with the best Halal Brokers across the world. Choosing the best Halal broker will help you in trading riba-free using a swap-free account. 

Don’t put pious principles on the stack by trading with an unverified broker. We are a group of people for whom religion is very important and we are helping Muslims to trade riba-free by connecting them with professional Halal brokers. CFDs are one of the best trading options available right now in the market, but you need to take care of the fact that you are using a swap-free account. 

Is the CFD trading halal? Know in Detail

CFD trading is not Halal because you are not owning any share or commodity of an organization. In CFD, you are leveraging a small portion of your trade to predict the fluctuation of price. These are derivative products that let any trader put their money on the movements of the numbers. And, according to Islam, earning money by leveraging commissions and unjustified profits is a sin and no Muslim should take riba.

But by taking care of how you trade-in CFD can actually save you from failing in any Islamic rule. You can use a swap-free account to eliminate all the commissions and roll-over charges associated with CFD. If you are not familiar with what a swap-free account, we have got you covered. Here’s is swap-free account simplified for you: 

A Swap-free account is a special Islamic trading account in which you don’t receive or pay any kind of commission. In a swap-free account, a broker doesn’t subtract any money from your Islamic account for holding an overnight position on any capital or commodity. Because of this, your trading results will only depend on the exchange rates for a specific time frame. The adjustments in cash or interest rates are made in the country where the product is trading.

Get The Best Islamic Halal CFD trading account

CFD is not Halal and it’s important to only do CFDs trading with a swap-free account to follow all Islamic rules. We help you get started with the Halal CFD trading account by connecting you with a professional Halal broker. Don’t search for online Islamic CFD brokers as many people falsely claim they are Halal brokers but they are not.  

We are followers of Islam just like you and Sharia principles comes first to us. We have done intensive research on pious rules of Islam and we want you to get started with trading following the right path. We keep searching and reviewing the best Halal CFD brokers across the world to facilitate you with the best services. 

The world is shifting towards digital investment platforms and CFDs are among the most profitable options. We are here to help Muslims to perform CFD trading without failing any Islamic rule. Get in touch with us and we will connect you with a professional Halal broker. We at Halal Trading Brokers are in constant search for best Halal brokers around the world to help Muslims with quality Halal CFD trading. 

We Connect You With Halal CFD Brokers Across The World

Get started with the most advanced and profitable trading options available in the market. If you are not sure where to start, contact Halal Trading Brokers to be on the safe side of Islamic and riba-free trading. CFD trading is not gambling with a swap-free account. 

It’s very important to trade using a Swap-Free account for CFD and it’s better to contact a Halal CFD Broker. We help you grow your portfolio without failing in Islamic rule in trading. Trading with a Halal broker using a swap-free account is allowed according to the pious rules of Islam. When you leverage a swap-free account, you are not involved in any kind of roll-over charge or commission exchange. 

Thousands of Muslims are trading in CFDs using a swap-free account without breaking any pious principle. And, we are here to help you in diversifying your investment portfolio using the fastest growing trading platforms available in the market. 

Don’t worry even if you are new to CFD trading. Halal Trading Brokers connect you with professional Halal CFD Brokers all around the world. Contact us now and get started with us.

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