Q: Looking for information on investing in currencies (FOREX Market). As is the case these days, it has become commonplace that many people invest in the euro for profit. A broker call me always to invest in U.S. dollars and the euro. Is it permissible to trade in currencies?
A: Praise be to God,
Currency trading may be permissible on one condition that the payment should occur on the same in the contract’s council, if the currency is equal The evidence narrated by Abada Ben Al-Samit may Allah be pleased with him said: The Messenger of Allah peace be upon him: (gold for gold, silver for silver, wheat for wheat, barley for barley, dates for dates, salt for salt, like for like, hand in hand, if these types are different the sell as you like, hand in hand) Narrated by Muslim (1587).
The “Total Fataawa Ibn Baaz” (19/171- 174):
Transactions, buying and selling in currencies are permissible, but only if the exchange be hand in hand if the currencies were different, Example selling the currency of the Libyan currency exchange for the U.S. Dollars or Egypt the transaction should be done hand in hand within the council, but if the payment was delayed or differed then it’s not permissible, because that case it is considered a form of usury-based (Riba) transaction, it must be the same sitting of the Council hand in hand if the currency is different, but if they are of one type must be two conditions: symmetry and same sitting of the Council, as per the Prophet saying peace be upon him: (gold for gold , and silver with silver… Then he mentioned the Hadith).
And currencies as before if it was different then it is permissible with the differentiation and payment may be in the same sitting of the Council, and if one type such as dollars, dollars, or dinars, dinars must be in the same sitting of the Council, and uniformity, and God help you!”