OK, now that we know currency trading is basically acceptable, let’s look at retail forex trading, as that is what we normally mean.
That is what you should be doing in order to do forex in a Shariah compliant manner – you should BUY currency, and SELL currency, at spot.
It is like going to a betting shop and putting £10 on Liverpool to win a football match. If you win, you earn say £13, if they lose then you earn only £5.
Next, let’s talk about “halal” forex brokers.
What they mean is, if you keep a CFD position open overnight, they do not charge you interest
To me, this is irrelevant – the fact they do not charge interest.
Why is it irrelevant?
It is like someone saying to you I will lend you money to buy and consume alcohol, but I will not charge you interest.
Another point – forex trading is a misnomer. For the vast majority of retail traders, you are gambling, you are not trading. Over 70% of all traders lose money –
Genuine FX trading is fine, but forex brokers offer CFD trading – that is gambling and impermissible. Leverage is also impermissible. Halal brokers are trying to fool you.
Be careful out there, nobody tells you the truth.