Fatwa ID: 07737
Answered by Alimah Shireen Mangera-Badat
Question:
I have a job offer from a Trading exchange company which deals in CFD (contract for difference), Options and Forex. I know CFD and Options are haram and Forex is halal/haram based on conditions.
My job will be in the IT department (security side) which is responsible for maintaining the ‘reliability’ of the softwares and services so that softwares are up and running always. I will NOT be developing the main software which provides features/services to deal with CFD, Options or Forex, but I’ll be responsible for reviewing the software design, their setup and configurations of these softwares.
The company’s main source of earnings is the commission, forex-spread, brokerage fees to users using trading CFD, Options and Forex.
My question is regarding my role in the IT department. Will it be fine to work for such an organization when we are ‘indirectly’ involved in making such softwares available to users, but do not have any control over the user’s actions?
Note: CFD and Options can be considered as financial Betting, Gambling and Speculation which are not allowed in Islam.
In the name of Allah, the Most Gracious, the Most Merciful
Answer:
CFDs are often considered impermissible (haram) in Islamic finance, as they involve elements of:
- Gharar (Excessive Uncertainty): Due to the speculative nature of trading.
- Riba (Interest): Leverage in CFDs may involve interest-bearing transactions.
- Maysir (Gambling): Because of the speculative and high-risk nature.
In Islamic jurisprudence, particularly within the Hanafi school, it is essential to avoid both direct and indirect involvement in activities considered impermissible (haram). This principle is rooted in the Quranic verse: “And cooperate in righteousness and piety, but do not cooperate in sin and aggression.” — Surah Al-Ma’idah (5:2)
Your role in the IT department, focusing on software reliability and security, indirectly supports the company’s primary activities, which involve CFDs, options, and certain forex dealings/transactions generally deemed impermissible in Islamic finance. By ensuring the operational integrity of systems facilitating these activities, you may be indirectly contributing to them. This would mean that it’s a business that mixes the two, your skills of keeping the company stable and the company profiting off your skill.
Given that the company’s primary income is derived from activities considered haram, and your role supports these operations, it would be prudent to seek employment where your responsibilities do not involve direct or indirect facilitation of such activities.
I hope that this answers the question.
Only Allah knows best.
Written by Alimah Shireen Mangera-Badat
Checked and approved by Mufti Mohammed Tosir Miah
Darul Ifta Birmingham
١٥٠٢٤ – قلنا: العقد صحيح، لكنه لم يتم عندهم، فالوصف لا يستقيم، والمعنى في الحنطة: أنها من غير الأثمان، أو أن إطلاق الشرى بها لا يصح
ص3048 – كتاب التجريد للقدوري – مسالة حكم الشركة إذا اشتركا في المال ولم يخلطاه – المكتبة الشاملة
