is Forex Trading HALAL?

Nowadays, there are many brokers offering a NO SWAP account which means no interest receive or paid if position is held overnight. no interest = no riba and therefore is considered Halal according to Fatwa. Below is an explanation on forex in Islam. "Here two points are worth noting.

First, when one assumes a fixed exchange rate regime, the distinction between currencies of different countries gets diluted. The situation becomes similar to exchanging pounds with sterlings (currencies belonging to the same country) at a fixed rate. Second, when one assumes a volatile exchange rate system, then just as one can visualize lending through the foreign currency market (mechanism suggested in the above example), one can also visualize lending through any other organized market (such as, for commodities or stocks.) If one replaces dollars for stocks in the above example, it would read as: "In a given moment in time when the market price of stock X is Rs 20, if an individual purchases 50 stocks at the rate of Rs 22 (settlement of his obligation in rupees deferred to a future date), then it is highly probable that he is , in fact, borrowing Rs. 1000 now in lieu of a promise to repay Rs. 1100 on a specified later date. (Since, he can obtain Rs 1000 now, exchanging the 50 stocks purchased on credit at current price)" In this case too as in the earlier example, returns to the seller of stocks may be negative if stock price rises to Rs 25 on the settlement date. Hence, just as returns in the stock market or commodity market are Islamically acceptable because of the price risk, so are returns in the currency market because of fluctuations in the prices of currencies. " by Dr Mohammed Obaidullah http://vlib.unitarklj1.edu.my/htm/islamforex.htm

More here : http://kemusykilan.islamgrid.gov.my/questions/view/30952
http://www.philadelphia.edu.jo/courses/Markets/Files/Markets/a%20(47).pdf

However, one would argue on the use of leverage for trading in forex as it is perceived as form of conditional contract to enter the market which require a huge sum of money. USD100,000.00 for 1 lot of currency pair to be exact. Leverage means using something small to control something large. in Forex, leverage is not a borrowed real money to use for investment as described in general financial instrument which is Haram,because it is a contract between trader and broker to enable retail trader to open position in currency market with low capital in which the broker will combine the small lots and transact the standard lot into the currency market. (not into the exchange as retail Forex is Off Exchange). There are a lot of opinions and supporting Hadith and Quran versus on Islamic financial method and principal, you may do your own research and decide on which fatwa you would bias to. If in doubt, it is recommended NOT to participate in Forex. Otherwise, the research by Dr Mohammad above is sufficient to put us in faith of the Halal-ness of Forex profit as our income.