I was wondering since I’ve come across a broker that allows for forex spot trading where currencies are bought and sold and the leverage is 30x (max as real currencies are being exchanged not like the majority of CFD brokers).
Its an investment bank but you’d have to close the trades before midnight to avoid swap charges. What are your opinion on this? It definitely seems to eliminate the CFD issue regarding fx. Their name is Saxo and they offer both CFD and spot but we wouldnt trade the CFD’s
Wa alaykum salaam,
Is this deliverable FX where you are actually gaining ownership of the currency?
Correct, from what I’ve read and understood with their spot forex, you gain ownership since currencies are traded and not derivatives thus the leverage is max 1:30 on the spot forex compared to most brokers out there that only offer CFD and a leverage up to 1:500. The leverage is much smaller here with spot fx because actual currencies are being traded and not derivatives (CFD).
Does this make it halal even if there is a 1:30 leverage? They unfortuneately do not offer any islamic accounts so one would have to close any open positions before midnight to avoid any interest / rollover swaps.
Barak allah feek for the answer
how are you sure that you gain the ownership of the currency? can you withdraw your traded currency? for example, if you buy JPY with USD, can you withdraw the JPY?
From what I read from Saxo website, they automatically roll it over so it’s not designed to be withdrawn and only for trading.
anyway, I found another broker which is also non-CFD and you can also withdraw your other currencies as a result of a trade. go check Interactive Brokers. I haven’t yet invested in there because I’m also still learning about the broker. Here is what I found so far about them: Is it halal? Real spot forex and commodity on Interactive Brokers (IBKR)?
If you find anything else regarding shariah-compliance, please let me know. I also still wants others, especially muftis, to comment on this before I jump in.
@Mufti_Faraz_Adam @Mufti_Billal @Vashikovich Here is the similar post from june, hopefully they can shed some light on either InshAllah.
barak allah feekum
Has anybody answered you yet???
As Salam aleykum. I am also waiting. I have been trading for a long time in cfd but have quitted since it’s haram. If there is an halal alternative which does not fall under the purview of riba please clarify which one and why.