Trading in foreign exchange.

Q. Is it halal for muslims to trade on the FOREX markets?

A. Trading in foreign exchange (currencies) will be permissible when it occurs at the same time without delay on one side. The exchange on both sides (that is, selling/ buying and receiving its exchange) must be done simultaneously. It is not permissible to have a delay in the exchange. Currencies should be exchanged at the normal rate that it is acceptable in the market without any interest. The Shariah requirement for trading in currencies is that trading and taking possession must be done in one gathering/on the spot, without being deferred to the future.

And Allah knows best.

Mufti Waseem Khan