Online Gold Trading
As historically gold was considered a currency, it is still traded on the foreign exchange (Forex) under symbols like XAUUSD, even though it is no longer considered a currency. If you strictly want to trade gold without pairing it with USD, you can always trade ETF’s like GLD and IAU. With that said, religiously you are not responsible for the international monetary system and how interest affects values or prices of currencies or commodities. For us riba has been deemed haram and it is only a consideration in loan transactions. Since trading gold is a business transaction and not a loan transaction, there is no harm in trading gold on the Forex. For details about riba, please see: Discussion 30863
Assalāmu ʿalaykum. I would like to ask one more question regarding this. Many brokers state that they do not bid or trade against the trader, and that their income is earned through spreads or commissions. However, it is also stated that the broker operates on a hybrid execution model, where on certain account types the broker may internally provide liquidity rather than routing every order to external liquidity providers. My concern is: even if the broker claims they do not intentionally bid against the trader, or even if they are doing it in secret, does this hybrid or market-maker–style execution mean that the broker effectively becomes the counterparty? If so, does this create impermissible elements such as conflict of interest, gharar, or unfair advantage from an Islamic perspective? I would appreciate your guidance on whether trading under such a model is permissible or should be avoided. JazākAllāhu khayran.
Salam @Umer25 bhai . Could you please provide an answer when you have a moment?