YES, eToro is considered as halal since the Islamic account that they offer is in accordance with the Sharia law. However, not all investments on this broker are halal, so you must choose your investments carefully and ensure that they align with Islamic finance principles.
76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
As a devout Muslim trader, the question of whether eToro is halal has been paramount in my trading journey. In this article, I'll delve deep into my personal experiences with the eToro Islamic account and provide insights into the world of halal trading.
"Halal" is an Arabic term translating to "permissible" or "lawful." While commonly associated with food, its significance extends to daily activities, behaviors, and notably, financial transactions like trading.
In finance, halal principles are pivotal. Halal trading means buying and selling assets in sync with Islamic law. This introduces the concept of the Islamic account.
An Islamic trading account ensures:
By opting for an Islamic account, Muslim traders can harmonize their trading activities with their faith.
For eToro to be deemed halal, it must resonate with Islamic finance principles:
From my extensive use of the eToro platform, I can affirm its alignment with these principles.
eToro boasts over 5,000 assets, from forex to cryptocurrencies.
However, not all of them are halal. Here's a snapshot:
|Is it Halal?
|Halal if traded without leverage and no delay in currency exchange. Trading with leverage might involve interest (riba), making it haram.
|Halal if the commodity is Shariah-compliant (e.g., gold).
|Depends on the companies in the index. If it contains haram companies (e.g., alcohol producers), it might not be permissible.
|Halal if the company's primary business is Shariah-compliant. Haram if it deals with forbidden activities like alcohol or gambling.
|The permissibility is debated among scholars. Some see it as halal, while others have reservations due to its speculative nature.
|Halal if the ETF tracks Shariah-compliant assets. Might be haram if it tracks interest-involved assets like bonds.
Remember: For precise guidance, consult Islamic scholars or Islamic finance experts.
In the vast landscape of online trading, I've found that eToro genuinely stands out by respecting religious beliefs. As a Muslim trader eager to align my financial activities with my faith, I've learned the importance of navigating the platform in a Shariah-compliant way.
Here, I'll share my key tips to ensure your investments on eToro remain true to Islamic principles:
Is eToro halal? Yes, with its Islamic accounts adhering to Shariah principles. However, it's imperative for Muslim traders to select investments wisely.
eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs.
Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Past performance is not an indication of future results. Trading history presented is less than 5 complete years and may not suffice as basis for investment decision.
Copy Trading does not amount to investment advice. The value of your investments may go up or down. Your capital is at risk.
Cryptoasset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply. Don't invest unless you're prepared to lose all the money you invest. This is a high-risk investment, and you should not expect to be protected if something goes wrong. Take 2 mins to learn more.
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