FatwaPerakTransactions & Finance
Pernyataan Semula Perdagangan Pertukaran Mata Wang Asing (Forex)
Is individual spot forex trading through electronic platforms permissible in Islamic law?
Short answer
The Perak State Fatwa Committee ruled that individual spot forex trading through electronic platforms conflicts with Syarak.
A reference, not a fatwa. First sentence of the summary below — read the original fatwa and consult your state authority before acting.
- Authority
- Perak State Mufti Department
- Status
- Fatwa committee decision
- Series
- Fatwa Yang Tidak Diwartakan
- Topic
- Transactions & Finance
No evidence of gazettement in the source — this is not a gazetted fatwa.
Summary
The Perak State Fatwa Committee ruled that individual spot forex trading through electronic platforms conflicts with Syarak. The reasons given are riba through rollover interest, a conditional sale attached to the granting of a loan, unclear possession at the time of exchange, selling currency not held, and speculation amounting to gambling. The fatwa also notes that it is not lawful under Malaysian law, and that forex operations are in principle subject to the conditions of Bay' al-Sarf: mutual handover, spot settlement without delay, and no option of condition.
Written in our own words from the original fatwa — check the source before acting on it.
perdagangan pertukaran mata wang asing (forex) oleh individu secara lani (individual spot forex ) melalui platform elektronik didapati bercanggah dengan Syarak
Read the full fatwa on the Perak website (new tab)
How to cite
Cite the original fatwa and its authority. Rujuk Fatwa is only where you found it.
Perak State Mufti Department. “Pernyataan Semula Perdagangan Pertukaran Mata Wang Asing (Forex)”, date not stated. https://mufti.perak.gov.my/images/Fatwa%20tidak%20warta/27%20PERNYATAAN%20SEMULA%20PERDAGANGAN%20PERTUKARAN%20MATA%20WANG%20ASING%20FOREX.pdf. Found via Rujuk Fatwa: https://rujukfatwa.com/en/fatwa/ruling-on-individual-spot-forex-trading/