Fatwa #2332425 November 2012Pakistan
Is Arab Financial Brokers Shariah Compliant?
Question
Assalamulaikum! I have been offered to do online commodities and forex trading with the company "Arab financial brokers" www.afb.com.kw They claim to be shariah compliant and offer swap free accounts for trading. The software that they provide is Metatrader version 4 by the company "metaquotes" www.metaquotes.net. I understand that there are fatwas here that say forex trading is impermissable, but what about this paticular scenerio? Is it still impermissable?
Answer
In the Name of Allah, the Most Gracious, the Most Merciful.
As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.
The information contained on the website in reference is unclear and vague.
In order for us to issue a ruling, kindly submit the following information for our review:
1. Relevant contractual documentation
2. Contractual procedures and processes
3. Will the swap free account include the trading conditions of the afb conventional forex contract?
4. Will the contract be concluded on spot or in the future?
5. What happens if the trading position is positive?
6. What is defined as “Swap Free”? Swap Free foreign exchange or swap free currency exchange?
And Allah Ta’āla Knows Best
Ismail Desai,
Student Darul Iftaa
Durban, South Africa
Checked and Approved by,
Mufti Ebrahim Desai.