Forex — haram?

In Islamic finance, there are clear criteria for what is halal and what is haram. Forex and the stock market are evaluated differently. Let's analyze why investments in stocks can be halal, but forex is not.

Why forex is considered haram

Most Islamic scholars consider classic retail forex to be prohibited for several reasons:

1. Riba (usury) — interest. When trading on margin, the broker essentially lends money to the trader. This is a loan with interest, which is forbidden in Islam.

2. Gharar (uncertainty). Forex trading involves betting on exchange rate movements with high uncertainty, akin to gambling.

3. Maysir (gambling). Short-term margin speculations are akin to gambling — the outcome depends more on luck than analysis.

4. Lack of real asset. You do not own real currency but enter into a contract for the difference in rates.

5. Swaps (overnight fees). A fee is charged for holding a position overnight — this is a form of interest.

Why stock investments can be halal

Company stocks can comply with Sharia norms if:

1. The business is halal. The company does not engage in prohibited activities: alcohol, tobacco, gambling, weapons, pork, pornography, usury.

2. Financial metrics. According to AAOIFI standards:

• Interest-bearing debt ≤ 33% of capitalization
• Interest income ≤ 5% of revenue
• Accounts receivable ≤ 49% of capitalization
• Cash and interest-bearing securities ≤ 33% of capitalization

3. Real asset. You own a share in the company, not a contract.

4. Dividends from profit. Dividends are part of the profit, not interest on a loan.

Halal companies — examples

• Apple. Clean business, minimal debt.
• Microsoft. Windows, Office, Azure.
• Johnson & Johnson. Pharmaceuticals.
• Coca-Cola. Beverages.
• Nike. Sportswear.

Non-halal companies — examples

• Banks: JPMorgan, Bank of America — interest-based business.
• Alcohol: Diageo, AB InBev.
• Tobacco: Philip Morris.
• Casinos: Las Vegas Sands.

Income purification

Even halal companies may have minor interest income (from placing money in a deposit). According to Sharia norms, this part of the income must be donated to charity.

Halal broker in Tajikistan

«Exchange Broker» is the only licensed broker in Tajikistan with a halal brokerage account. All available securities undergo Sharia screening according to AAOIFI criteria. The app has a "Halal Account" switch, showing only permissible assets.

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💡 Try it: opening an account with a licensed broker in Tajikistan can be done in a few minutes. Top-up from 100 somoni, without visiting the office.

Advertisement. LLC «Exchange Broker», Ministry of Finance licenses of RT №007/25, №008/25, №009/25, №010/25 dated 25.06.2025. Financial instruments carry risk. Returns depend on the market value of assets. Not an individual investment recommendation. The material is for informational purposes only.