Forex Trading Explained: Halal or Haram?

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Is Forex halal, and what is the Islamic perspective on trading currencies?

While currency exchange occurs in various forms, such as spot transactions for institutions or personal use when traveling, we focus on the most prevalent method today: Forex trading through contracts for difference (CFDs).

If you've seen ads by popular platforms or influencers inviting you to their "get rich quick" courses on learning how to trade Forex, this is the way they are doing it—via contracts for difference. Additionally, you might have noticed that these same platforms often offer Islamic forex trading options that supposedly avoid interest. But the question is: what really happens when you engage in forex trading on these platforms, and are you actually buying anything at all?

Tune in to understand the nuances and Shariah considerations when it comes to forex trading and whether Islamic options are any better than conventional ones.