I recently opened an online trading account on TD Ameritrade to buy and sell stocks in the New York Stock Exchange and NASDAQ. My intention is to make money for my family and save for my retirement by buying at a lower stock price and selling at a higher stock price, therefore profiting by the difference. Is this haram? Is such an activity permissible as trade or forbidden as usury? In’sha’ala I am aware of the of the intention not to amass wealth in a miserly, selfish, niggardly way, and ask Allah to guide me in the right use of wealth and that the trading of stocks might not lead to moral corruption, obsessive love of wealth, idleness, and the neglect of zakat. I work full-time as an Accountant and support my family by this labor.
wa `alaykum salam,
There is nothing basically wrong with buying and selling shares, but there are a number of things to be avoided, as follows:
1. Buying and selling shares in companies in which it is haram to have shares, because they sell things that are not halal, or they help in spreading corruption and falsehood.
2. Buying and selling shares in banks that deal in riba (usury or interest).
3. Depositing shares in riba-based banks, because that will lead to the profits being mixed with riba.
Imam Senad Agic, Ph.D.
Head Imam (IABNA)
The Islamic Association of Bosniaks in North America