Forex Trading SMC

#1

Assalamu alaikum

I have recently been looking into forex and it’s something that I would like to get into but have heard many mixed opinions. There is a brother I follow on instagram his name is yarimi and he does forex and has started his own course teaching others how to do forex. On his instagram page he says it’s halal and has a few reasons why he thinks it is. He does smart money concept trading and is a day trader in forex. Would it be possible to have a look into and let me know as it’s something I really would like to get into but I fear that it could be impermissible. Jazakallahu Khairan here is the link for his instagram page where in the highlights he says why it is halal. Also if you could tell us why smart money concept is halal or haram

Thanks
Rafiul hoque

#2

His fatwa on his Instagram doesn’t mention CFDs at all. You can join his course then ask him about CFDs but since he is trading you should assume that he believes it is halal and that he has got some evidence.

#3

He doesn’t mention CFD. Also he mentions forex, those scholars he mentioned don’t speak about leverage, CFD’s etc. They speak about spot forex when there is actually delivery; this can be done online, as long there is not a delay. This is usually done by banks and other hedge funds

What Yarimi did and I don’t know if this is one purpose: he didn’t mention retail forex which is basically CFD AND LEVERAGE WITHOUT SPOT TRADINNG THERE IS NO POSSESSION AND ITS A DERIVATIVE CONTRACT WITH THE BROKER BASICALLY BETTING.

He should have asked this:

  1. leverage allowed?
  2. CFD allowed, so trading without delivery nor would any take possession just a derivative contract where bets are being made on pricemovements

I can tell you from here and all scholars worldwide have said that this is completely haram, it’s not trading but riba with maisir combined. And ofcourse it is? A billion dollar trade made in a CFD does not in any way or form affect the real market.

This in itself should cause you to think how in th eWorld did you think it is halal, because you are not trading. You are in a contract with the broker making bets.