have copied it over to evernote inshallah should be able to view content
if i was to go to shariah compliant broker and ask to that i would like to open a account with no margins or leverage in this case would trading forex then be permissible ?
Assalaamu alaykum,
I have reviewed the attached document. It doesn’t accurately reflect how retail FX works. I would recommend reading more how FX actually works. You may even read this:
Thank you mufti,
what are your views on broker (vantagefx) being certified by sheikh hasan Qamra for being shariah certified.
and do you mind having a look at these terms https://www.retireyoungfx.com/islamic-account
(just need to scroll down)
salam mufti hope your well,
[email protected], spoke with advisor regarding this issue and they asked me to email their shariah board who will answer question, was hoping if you could reach out to find out more to what happens behind scenes of islamic accounts
Assalaamu alaykum,
I have contacted the Vantage FX platform before. Their reply is as follows:
In regard to Vantage FX, I had discussed this matter with them and their Shariah board a few months ago, they gave me the following reply:
"Wassalamu Alaykum
Respected Mufti Faraz Adam,
The Vantage FX products have been certified by the Shariah Board and headed by Sheikh Hasan Qamra from Kuwait. The Shariah certification and Shariah Audits/ reviews are available on Vantage FX’s website.
The Shariah structure and mechanism of Vantage FX’s Shariah product is different from general products in that the process/documentation has been amended and we have board resolutions from Vantage FX to agree to shariah principles. The administrative fees are a valid remuneration/service fee in exchange of services (Ujrah) provided by Vantage FX in managing and administrating the Shariah account.
With regards to your specific queries, we can confirm all the laws and principles of Bay al-Sarf are applied to all transactions including that of Milkiyyah and Taqabudh. This is done via actual liquidity providers through operational mechanism approved by the Shariah Board. Vantage FX serves as the agent (Wakeel) on behalf of the traders to manage the actual liquidity provided by the liquidity providers and such funds are segregated in a specific bank account. All the trades are executed in real time and have a direct effect on the real market.
You are welcome to contact us should you have any further queries.
And Allah Knows Best
Shariah Board, Vantage FX"
I believe more transparency is required on how things actually work. The processes are still obscure somewhat. As this is probably the only “Shariah compliant” retail FX platform, it requires much more transparency than other shariah compliant products. That is not due to doubt in the Shariah scholars at all, but just that the level of curiosity is very high in this structure and therefore Vantage should provide as much as transparency as possible.
In most Shariah compliant products, the certification of a Shariah advisor or board is sufficient for people to follow as those products are not “exotic” or rare.
Regards
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السلام عليكم
Sheikh @Mufti_Faraz_Adam I am currently in a similar situation and one of my friend came across this broker who seems to provide Shariah Complaint Islamic Account.
Can you please have a look and share your views on this?
https://www.icmarkets.com/sc/en/trading-accounts/islamic-account
Assalaamu alaykum,
I would discourage trading in any FX account until there is a Shariah board or a Shariah advisor and the company clearly shows how this FX is Shariah compliant in terms of its processes and structure.
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Hi.
With regards to online Forex trading, obviously a key factor in deciding the permissibility of such activities is the issue of leverage.
No doubt, there’s a prohibition in Islam of combining between a loan and a sale. However, what I understand from the word loan is a value that is lent to be paid back in the future. From what I understand and read about margin calls etc. the leverage in Forex is not paid back to the broker so can we say the client is receiving a loan? What’s the Shar’i definition of loan?
If somebody was to say that the client is not receiving a loan, then they could say the issue comes down to receiving leverage in return for paying a commission to place the trade on a STP broker and that if the commission was paid in a different currency to the currency that the leverage was given in, it wouldn’t be classed as riba.
Also, for a broker classed as a “market maker” which is commission free, couldn’t somebody argue that engaging in Forex transactions with them would be riba free? As the client receives the leverage from the broker but he is simply buying from them at the bid price and selling at the ask price. And so it could be classified more as a gift as he hasn’t directly paid them any fee in return for the leverage?
Thank you
Wa alaykum salaam,
The key factor is not the leverage. That’s a secondary issue. The primary factor is what are you trading? Real currencies are not traded or exchanged. Therefore, this is the key factor.
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Aslm which forex, cryto, commodity brokerage are sharia complaint?
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Salam Aleylum @Mufti_Faraz_Adam, If I only trade with commodities like gold, silver, oil,… no forex, do you think it’s halal ? because the forex is not sure there is lot of different opinions, but the gold…etc is it halal money ?
Thank you
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Asalaamu Alayku Shiekh…
Jazaakallahu Khayran for all the efforts and leght you have gone to study this subject. I have been trading forex since last year but as of yesterday I had to close my account on the account that it might be Haram. Therefore, in the meantime, is there any thing in Forex market that you think or see is Halal? If one trades without Leverage, can that count as Halal?
Wa alaykum salaam,
Most of these commodities are traded through CFDs on the markets. CFDs are not Shariah compliant.
Wa alaykum salaam,
Barakallah feekum. I have not come anything in the forex market which is Halal. I would recommend you consider trading other asset classes which have Shariah certifications or Shariah guidelines.
Allah knows best
So this vantage fx is shariah complaint broker ??
Kindly clarify
Regarding vantage fx is it shariah complaint @Mufti_Faraz_Adam
i need your views on leverage , is the problem coz i heard when broker offer loan in the form.of leverage
And there is one hadees regarding Condtional loan.
A loan should not be given with conditions & moreover a sale transactions is not allowed while giving loan
The broker offers leverage on conditions that one must trade with only with him
Kindly clarify
May allah guide us in seeking halal suntainace
VantageFx is NOT shariah compliant. I confronted them and asked them if they really execute their trades on a real market in a islamic account, and they replied that they do CFD trading only.
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Assalamualaikum Syeikh @Mufti_Faraz_Adam
Can this broker be said to be transparent in trading because the broker has a trade receipt feature that can see our trades being executed by the LP (Liquidity Provider) such as HSBC, SAXO, UBS, ect?
Probably currently the only broker that is transparent about how it conveys client transactions to LPs due to receipts for client trades.
The only drawback of the broker is that there is no Islamic account (swap free) but if we close the trade per day, no interest is charged.
Can the broker be said to be transparent in conveying our orders?
You can also ask about how the broker transacts because the CS is fast, friendly, and responsive.
Thanks Syeikh
