Q&A: Trading in the Forex Markets

Trading in the Forex Markets

Q. Please advise on whether being a trader in forex is permissible. Are the profits gained from trading between currencies considered interest?

A. Trading on the Forex Markets is not permissible. An imperative condition for the validity in exchange of currencies is the simultaneous exchange of the two currencies being traded. Due to the absence of this vital condition the Forex Exchange of currencies is faasid (corrupt) in terms of the Shariah.

Profits from a currency deal are permissible provided that the currencies are exchanged simultaneously.