What is Riba and why is it Haram to Trade Forex with Riba

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What is Riba and why is it Haram to Trade Forex with Riba

According to Islam principles and pious Sharia Laws, making an unjustifiable amount of profit by borrowing or lending money is a sin (riba). One should avoid getting into any kind of riba in their business, trade or any kind of monetary process. Both sides that partake the action of lending and paying interest are taking part in Haram actions which are forbidden for any muslim.

If you are trading in Forex, CFDs or cryptocurrencies in an interest-centric manner, it is considered as a sin in Islam and it’s strictly prohibited. According to Islamic — Doing any business of trade that involves commissions, interests or unjustified profits is sin in Islam.

As Written in Kuran El Kudus (Sura 2 – Ayat 275):

الَّذِينَ يَأْكُلُونَ الرِّبَا لاَ يَقُومُونَ إِلاَّ كَمَا يَقُومُ الَّذِي يَتَخَبَّطُهُ الشَّيْطَانُ مِنَ الْمَسِّ ذَلِكَ بِأَنَّهُمْ قَالُواْ إِنَّمَا الْبَيْعُ مِثْلُ الرِّبَا وَأَحَلَّ اللّهُ الْبَيْعَ وَحَرَّمَ الرِّبَا فَمَن جَاءهُ مَوْعِظَةٌ مِّن رَّبِّهِ فَانتَهَىَ فَلَهُ مَا سَلَفَ وَأَمْرُهُ إِلَى اللّهِ وَمَنْ عَادَ فَأُوْلَـئِكَ أَصْحَابُ النَّارِ هُمْ فِيهَا خَالِدُونَ

Islam has permitted trading of every kind but not riba. As the world is moving towards digitalization and investment options are also changing, trading is a big concern considering riba. But you don’t need to worry, we have covered everything about riba and trading. We are a group of Islamic followers for whom abiding by Islamic and Sharia Laws are of high important. Here at Halal Trading Brokers, we make sure you only trade with riba-free Halal brokers all around the world. 

Haram Trading Brokers – Riba charging and profiting for every trade

In online trading, many brokers offer a normal account in which you need to pay interest for holding a stock’s position overnight. In this condition, for earning profits from your stock’s value, you are leveraging interest (riba). This process is strictly prohibited and considered as a sin in Islam and Sharia laws.

A Haram trading broker will charge you on every profit you made on your stock. If you are new to online trading, it becomes overwhelming to know which is a haram broker and which platform is halal. But, you don’t need to worry, we review all the brokers all around the world to suggest you only Islamic Halal brokers.

Coming back to Haram Trading Brokers, you should not open an account with them. As Islam has permitted trading but not the riba. If you trade with a haram broker, you also need to pay frequent commissions in the form of roll-over charges that will lessen your overall profits. That is the reason, you should not sign up on an unverified haram broker. We are here to connect you with a professional Halal broker all over the world, just get in touch with us using the contact form and we will get you started with forex in an Islamic and sharia-compliant way.

What is Swap-Free Islamic Forex Trading Accounts? (Riba-Free Trading)

By using a swap-free (riba-free) account, you don’t need to hold or receive any kind of interest (riba) from the broker. By using this account, the stock’s positions that are held overnight are not associated with taxes or additional broker’s interests. The swap term is used for the adjustments that are made for the interest that occurs for holding a stock overnight.

In a swap-free account, your broker won’t deduct any interest from your Islamic account. In this way, the stock’s prices will only depend on the closing rate of that day. In this way, you completely neglect the riba and trade in a sharia-compliant way to make money online. 

If you are just starting, we recommend you to not fall in the trap of joining bonus or additional discounts on various platforms. We at Halal Trading Brokers help you get started in an Islamic way with a verified and a halal broker.

Halal Forex Brokers and Halal Islamic Forex Accounts (Halal = Free from Riba)

Forex trading is the fastest growing trend for investing money smartly. But, it’s very important to make sure you are trading with the right broker. As the market is full of scammers, you need to very careful about online trading. Many brokers offer lucrative joining bonuses, but you should ignore them. They are third-party and unverified brokers those trick users.

At Halal Trading Brokers, we are on constant research for finding the best halal brokers all around the world. If you are new to these online investment options, we are here to help you out. We connect you with the best Halal broker to get you started with an Islamic swap-free forex trading account. Get in touch with us using the contact form and we will be very happy to help you get started. 

 

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