Answered by Shaykh Faraz A. Khan
Question: I want to know about the forex trading is it permissible in islam? nowadays many houses offer interest free account so is it permissible to trade in currency pair like we buy euro for dollars and later on sell them and make profit
Answer: Assalamu alaikum wa rahmatullah,
I pray this finds you in the best of health and states.
In and of itself, currency exchange (sarf) is permissible, as long as certain conditions are met, such as the transaction be done hand-to-hand without delay. [Mawsili, Ikhtiyar]
However with respect to forex trading in particular, Mufti Taqi Usmani — leading contemporary Hanafi scholar and Islamic finance expert — believes it to be impermissible, due to various problematic elements associated with this form of trading.
And Allah knows best.