The world’s 1.6 billion Muslims are required to comply with Islamic law, which governs their personal, social, and economic affairs. Islamic law is derived from the Qur’an (the word of God revealed to the Prophet Muhammad), the Sunnah (the teachings, deeds, and sayings of the Prophet Muhammad), and the words and consensus of the Companions of the Prophet Muhammad.

Although most Islamic scholars insist that it is forbidden to deal with money and stock interests, interest-bearing securities — for example, stocks and bonds — can and often do exist in sophisticated and professionalized contexts within the Muslim community. For example, many high-net-worth investors have quarterly returns on their portfolios that yield more than 3 per cent annually, a rate which is nearly double that of “haram” or highly prohibited interest rates. And as some of us know from experience, capital markets provide a lucrative investment opportunity for those with higher risk tolerance as well as those with lower risk appetite.

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Now, as a Muslim (and as a trader), I find myself often commenting on the topic of whether is forex trading haram (forbidden). More specifically, I have been asked which type of stocks and commodities Muslims should trade-in. Whether you’re a Muslim who wishes to trade but doesn’t know where to begin or a trader that needs a bit of convincing that Muslims can trade successfully,

In a recent statement, the Council of the Fatwa Division under the General Presidency for Scholarly Research and Ifta’ of the Kingdom of Saudi Arabia has declared that trading is not haram (religiously prohibited) as long as there is no interest element involved in the deal.

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The Federal Government has affirmed that trading in the Nigerian capital market is not Haram (forbidden) provided that it does not involve interest elements and that trades are conducted on a “hand-to-hand” basis. The Minister of Information and Culture, Alhaji Lai Mohammed, made this known at a news conference in his office on Tuesday in Abuja.

The Malaysian National Fatwa Council recently decided that trading in cryptocurrencies is not haram (forbidden) in Islam. The decision is significant for two reasons: first, the country has the world’s third-largest Muslim population. Second, Malaysia is a global leader in Islamic finance, which allows businesses to adhere to Islamic values and comply with sharia law.

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A major Islamic research centre in Egypt has issued a fatwa that it is permissible to buy, hold and sell stocks of companies that are not involved in any activity that harms the interests of the Muslim nation. The fatwa was issued by the Islamic Research Institute for Endowments and Islamic Affairs. It said that it is permissible to buy stocks of companies that are involved in the production, construction, finance, transportation, industry or other sectors which are beneficial to the nation.

The stock market is a very useful tool for the believers of Islam to earn from it. And it is also a means for them to provide for the needy, and to establish ties of kinship with their relatives.

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‘Usury’ is prohibited in Islam. This is a very broad term that covers various types of interest-based transactions. It is forbidden to charge interest on any type of debt under any circumstance. This prohibition applies to both financial and non-financial transactions such as renting, leasing, sale and exchange of goods and services, and hiring and employment contracts. This prohibition has been extended to all kinds of interest-based transactions regardless of whether the parties involved are Muslims or non-Muslims. Check out review

Islam is the only religion in which interest (riba) is prohibited. (All) the other books allow it because it is defined very broadly. Islam has not defined interest narrowly in order to prohibit it; rather it has defined interest to include all kinds of deals and contracts where there is an element of interest, such as any kind of loan agreement, sale or purchase agreement or any kind of financial transaction.

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This is an important point for us to remember, as it is what will help us understand why interest-bearing investments are forbidden in Islam. The word “usury” is derived from the Latin word “utior”, which means “to make a profit”. This can refer to any kind of activity where one person receives something in exchange for something else, with the intention of making a profit. This can include money lending, trading, bartering or buying goods at a price



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