Hi I am Ali I am asking this question because I don’t know which broker is halal I like interactive brokers but I don’t know if it’s halal or not please answer me in detail because I am searching for a good broker which is sharia compliment please help me solve the problem
Yes it’s halal. Just don’t pick a “margin” account. I think they call the halal one a “cash” account.
The majority of brokers only offer margin accounts
Where is the problem of using a margin account, if I don’t short sell.
But only to be able to use our funds before the settlement date.
Example: I have an account of 1000usd
Monday: I buy Apple shares for 1000usd that I sell before the end of the day for 1010 usd.
Tuesday: I use it’s 1010 usd to buy Coca cola shares
This operation is not possible with a cash account, but only with a margin account.
Because with a margin account it is necessary to wait for the settlement date
What it’s your opinion ?
Some (not all) scholars say that you need to wait for settlement.
Not sure if the broker charges interest to do the transaction as you describe.