Indonesian people were confused about whether forex is halal or haram. Because it is clear that this digital currency is a new thing, which has never existed before and is one of the newest forms of innovation that continues to develop from technological advances.
Even though it has been around since the 90s, forex has only been booming recently and is being used by many people from all over the world, including Indonesia. Now trading has become one of the activities, which are mostly done by the people of Indonesia in generating profits.
However, the news about halal or haram forex is still confusing, making some traders feel doubtful and reluctant to continue trading. Even though if you have a good strategy in playing forex, then the profit or profit received is quite large.
Therefore, we will explain how it is legal to play forex, are there any unlawful elements that cause this type of trading to be prohibited. In order for readers to feel calmer, you should consider the following information that can help traders.
Here’s an explanation of whether Forex is Halal or Haram
According to the Islamic point of view, this forex trading can occur because of the needs of the global market in meeting the needs of various countries. Foreign exchange transactions in the cash market are indeed legal, then how about online foreign exchange transactions?
1. The Reason Forex Is Not Haram
Even though there was confusion about the truth of whether forex is halal or haram, now you don’t need to worry anymore because it has been stated by the Fatwa of the National Sharia Council, that forex is included in halal transactions and does not contain usury.
One of the reasons why many people think that foreign exchange transactions are illegal is because online forex transactions are speculative. Like guessing the price, if we are lucky we can get good stuff, and vice versa.
This speculative element can also be equated with gambling, and of course it is illegal. Therefore, many people speculate that this transaction is unlawful. But now traders don’t need to worry, because the speculative element is actually not true.
So the question of whether forex is halal or haram, the answer has been found. This is because forex trading is not actually price guessing, because foreign currency movements are regulated globally, therefore the changes cannot be rigged.
Even traders themselves know, the flow of transactions to the amount of funds and other information with certainty of nominal, time and others. In addition, the purpose of trading investment is to get profit which is used as an investment or just in case.
In addition, the form of foreign exchange is clear in its form and value, namely in the form of foreign currency and all transactions are transparent. So you don’t have to worry anymore, because all the previous confusing explanations have been explained well.
2. Detailed Forex Transaction Laws
Another thing you need to know about the truth of forex halal or haram is, the legal requirements of forex transactions are indeed more detailed, compared to ordinary foreign exchange transactions that you can do directly.
The law of the transaction is that forex trading can be declared unlawful, if the price does not match when the buyer has decided to make a transaction when the transaction is accepted by the seller or broker. This can be unlawful, because the transaction contains elements of fraud.
However, if the price remains the same, whether you decide to make a transaction when the transaction is accepted by the seller or broker, then it is legal. When playing trading, we really have to be more careful, because things that are taken for granted like this are fatal.
Do not let us make this transaction unlawful, because of a mistake in understanding or lack of knowledge of the trading market. Therefore, before playing trading, you should understand well how the forex trading laws and management are.
Riba, cheating and gambling are illegal transactions that are not allowed. Although our original goal was not to carry out the transaction, if this transaction did contain elements of fraud, then the transaction could become illegitimate.
Therefore you need to understand well, how the law of forex is halal or haram, and according to the explanation above it is clear that forex trading is legal.
Islamic forex trading
Reflecting on the MUI fatwa if forex trading is classified as halal with certain provisions or transactions.
Now there is also an interest-free sharia forex trading or so-called Muslim Forex Account.
The advantage of this Islamic forex trading is that currency exchange can be held for as long as the user wants.
Islamic forex trading also has lower business risk with regular trading.
However, there are also those who do not like the Islamic forex trading system because there are some traders who feel they are losing profits from the difference in interest whose value is different from each currency according to the rules of the country’s central bank.
However, with sharia forex you can avoid changing interest rates that are erratic and can lead to speculation where speculation is one of the transactions that is not allowed in Islam.
In other words, sharia forex trading can be your choice to still be able to invest safely and not violate sharia.
Forex law in law and CoFTRA
In addition to the fatwa originating from the MUI, forex law is also regulated in law and supervised by the Commodity Futures Trading Supervisory Agency (CoFTRA).
Forex is included in futures trading. Therefore, forex activities are regulated in Law Number 32 of 1997 which covers general matters, institutions, licensing, trading mechanisms, to the application of the law.
To clarify Law No. 32 of 1997, on November 28, 2002, the Jakarta Futures Exchange (JFX) issued Decree No. 037/DIR BBJ/11/02 which regulates forex trading with a margin system.
Forex trading with a margin system, either through the exchange or over the counter (OTC), must be registered with the BBJ and all margin must be entered into the Indonesian Futures Clearing House (KBI) in a segregated account.
So, if forex with a margin system does not enter KBI in a separate account, it is definitely an illegal product and you have to be vigilant and careful, yes.