INTRODUCTION The Forex trade on individually through electronic platforms increasingly popular and it became a source of additional income

for many parties.This phenomenon is fuelled by technological advancement and Internet access around the world. Generally, Muslim community in Malaysia also involved in trading Forex online.

However, many Muslim people still having doubt and suspicious about the validity of the activity from the point of Islamic law becausea number of factors, including the rate of losses suffered by the trader was very high, uncertainty about the actual operations of the Forex and there are provisions the law prohibits the involvement of Malaysians in a Forex transaction traders except through authorized dealers (authorised dealers) or financial institutions that are authorised or selected non-merchants bank only.

DEFINITION OF FOREX Forex stands for foreign exchange which is defined as a transaction of exchange value one particular currency with one other currency, between the two sides, at agreed exchange rate, as well as submitted on a date. Forex rate is the value or price of a country's currency compared toforeign currencies which are specific to a particular number of units of the currency of the country to be paid for the purchase of one unit of the currency of a country to another. Forex rates for most countries today marked by the level system of flotation, which is determined by market conditions, which is based on the request and currency supply. Examples of brokers registered with the coordinating authority are:

i. FXCM (www.fxcm.com) ii. FXSolutions (www.fxsolutions.com)

However, in the context of Malaysia, as of today, BNM as Body GuardsRegulated financial system does not recognize the Forex trade by any broker via the Internet platform except through traders authorized (authorized dealers) or financial institutions authorized or non-bank traders selected only. Hence, there is no bodywhich is responsible for regulating and monitoring activities carried out by the platforms.

ISSUES ON FOREX ONLINE TRADING

DISCUSSION

1) LEVERAGE ISSUE

Forex online cannot be separated from elements of leverage. There would be no small trader will engaged in Forex online platforms if the broker does not provide the leverage. Leverage is the financial gain provided by the broker so that individuals can trade Forex beyond the actual capital. For example, if a broker gives leverage of 100: 1, with a deposit of USD100, a trader can do trading worth USD10, 000. From the point of Feqah, the closest aqad with leverage is loans called Qard. This is where broker lend to the trader a sum of money to be traded.

So what's the problem with leverage?

When leverage is a form of loan, here are the element requires the sell and purchase aqad with loans. Or in other words, brokers will provide the loan but in the same time the trader need to do Forex trading along with brokers. In the issue of leverage, broker not only requires doing trading with the loan, but a loan aqad and currency trading aqad happen at the same time just by pressing one button only. This two aqad were combines and not separated and the leverage will only appear on the platform when a trader opens a position.

In the Feqah, put the terms of the sale and purchase aqad in aqad borrowing is not allowed. It is known for its problems Bay Wa Salaf ' which is buy and sell together with the loan. It pre-ban has been agreed by all scholars. Al-Qarafi says,

"Sale and purchase and loan are required separately, and it is illegal for both to be in the same, because it leading to riba". (Al-Furuq, 3/266)

In the context of Forex trading, it is found to fall in this general prohibition, because the broker only provides loans using leverage terms to traders who open positions in it platform only.

2) QABD ISSUES (POSSESSION) It is the exchange of one currency with another currency. From the point of Feqah, it is a form of trading Al-Sarf that in formerly such change gold with silver, or convert dinars to the dirham. Islamic law has put a condition that the sale and purchase of Al-Sarf shall occur between submission two items that being changed. In the context of Forex, the submission must occur between the two currencies in the aqad and must be considered that the delivery can take place in a real (physical) as well as hukmi (constructive). An example of physical delivery is by submitting a currency directly to the people who buy it. While the example for hukmi is through money transfers from your account to another account.

Does Qabd Happen In Forex Online? To answer this, people need to understand the question on how a Forex operation is executed. Forex trading is run by opening a position (open position) against the selected instrument. Later, ends with a closing position (closed position) of the instrument. For example, you want to open a long position on the instrument of EUR/USD, with the intention of you will buy Euros with paying dollars USD.In the Shariah, the demands of these transactions are Qabd:

i) You should submit to a broker USD currency; and ii) Broker should submit EUR currency to you.

In Forex Online, Does These Two Things? The broker will not credit the currency that you buy immediately into your account. So, you which open position in buy EUR/USD instruments will not be forever made Qabd against EUR currency that you purchased because for as long as your open positions are still in the OPEN status, you will not be able to enjoy all the advantages of currency price increase and also it is not possible that you can make the withdrawal until you CLOSE to that position, or in other words you sell back the currency that you buy. For example, you open a long position of EUR/USD at price 1.4500 as much as 10,000 units. Then, you close the position at price 1.4550. You got 50 pips profit.In this example, when you open a long position, you have been assumed buy EUR10, 000 by paying USD14, 500. Then you sell back the EUR10, 000 with USD14, 550. You profit of USD50. And here arises the issue of absence Qabd against currency purchased by you when you opening a long position mean buying instruments of EUR/USD. This is because as long as you don't close a position first, you may not be able to enjoy any real profits from the rising price of EUR against USD.So Qabd not occur because the currency purchased during open positions will not be credited to the merchant's account, until the currency is sold back to the broker when closing.

3) ISSUE OF THE SALE OF CURRENCIES WHICH NOT IN HOLD As mentioned earlier, Forex trading occurs with bonding between two transactions, namely the open position and close position of selected instruments. If we open position, traders buy EUR and sell USD (Buy EUR/USD), then when the close position, he'll sell EUR and buy USD (sell EUR/USD).

When the close position, the trader will repurchase back the EUR that he purchased before. This is where the issue of Shariah. Because when a trader makes closing, he will sell the currency that he buys from the broker but he is not yet doing Qabd against currencies that he buys earlier.

So, Forex trading online does not meet the Islamic claim because the trader that opens a position will close it back or in other words buying instruments and sell them back before the occurrence of Qabd in the currency.

CONCLUSIONS Based on some of the issues related with Shariah such leverage, rollover interest, Qabd, sell of currencies which not in hold, speculation involving gambling, it can be concluded that the operations of Forex online by individuals is not in accordance with the Islamic law. To the traders out there, Forex operations online is a form of business which is full of syubhah and dubious elements.

Detailed research about Forex online transactions should be made to ensure the income generated from this trade, based on the Islamic law. Any transactions involving currency transactions must be made careful to avoid the occurrence of riba. Resolution from Muzakarah JAKIM and results of the fatwa by the National Fatwa Council should we have it as a good luck to us as enlighten us from continuing to earn income from a source that is not clear.

REFERENCES 2012.MarjanMuhammad.Operasi Perdagangan Pertukaran Matawang Asing oleh Individu Secara Lani (Individual Spot Forex) Melalui Platfom Elektronik: Satu Sorotan dari Sudut Syariah . Retrieved from http://www.islam.gov.my/en/operasi-spot-forex-halal-atau-haram 2012. Asmadi M.N. Kefahaman Umum Terhadap Perdagangan Matawang (Forex) Dan Kedudukannya Dalam Syarak.Muzakarah AhliAhli Majlis Penasihat Syariah Institusi Kewangan Di Malaysia Kali Ke7 Pada 31 Mei 2011. Retrieved from http://www.islam.gov.my/muamalat/kertaspersidangan?keys=&field_nama_persidan gan_value=295