Working in brokerage firms : broker executing Riba-based orders of bonds, shares, etc.

Fatawa Question

Assalamu Alaikum : I would like to ask one of the scholars about the ruling on working for a financial institution. I am currently working as a Trader for a Discount Brokerage in Canada. I deal with clients over the phone and they call in to transact with stocks, bonds or mutual funds. I don't provide advice to clients but I provide them with information and execute clients' orders. I started in this position 4 years ago when I was only a Muslim by name. Alhumdu Lillah, over the past 3 years by Iman has grown my leaps and bounds and I can now consider myself a practicing Muslim. With my increase in Iman I've become more and more uncomfortable with Riba. This past spring, I looked into Riba and was shock to learn it is considered worse than adultery. Alhumdu Lillah, I subsequently liquidated my entire portfolio that was composed of equity and t-bill mutual funds. It occurred to me last Monday that perhaps I should leave my job because of the heavy dealing with Riba in my position. I have crunched some numbers I would estimate at least 50-60 % of the transactions I execute are Riba, either bonds, fixed-income mutual funds or equity mutual funds that have holdings in banks and other financial companies. This number is based on what is easily transparent and does not include stocks and equity mutual funds that don't meet the criteria established by Fiqh councils. The only criteria I have in making my decision is that I want to avoid Haram and I want to please Allah and put my trust in Allah. I believe that if I choose to leave Allah has made it easy for me as I've learned as much as I can from this position, I'm young, I live with parents and I'm making plans to attend a MBA program. In Sha Allah I would like to work in Islamic Banking and Finance. With that in mind, I would also like to know if it’s Halal to work in a unit of a financial institution that is not involved in Riba for example, equity research. In Sha Allah I hope you can provide me with the knowledge so I can make a decision pleasing to Allah. I apologize for length of the question. Jazak Allah Kheir, Omar Hassan Ottawa, Canada

Fatwa

Click hereto view more

Publication Date

2002-12-09

Main Subjects

Financial and Accounting Sciences
Religion
Islamic Studies

Topics

• Islamic jurisprudence
• Mediation
• Investments
• Labour
• Bonds
• Stocks
• Corporations
• Usury
• Brokerage
• Transactions

No. of Pages

2

Data Type

Fatawa

Language

English

Record ID

BIM-724865

• APA
• MLA
• AMA