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Is it permissible to deal with foreign currency trading companies (Forex) under conditions that include an annual commission and a percentage of the profits, with the account holder bearing the profit and loss, and without the presence of interest, and the possibility of withdrawing the amount and profits at any time?

1 min readAlso available in العربية

It is impermissible to trade currencies in the Forex market in the described manner (margin trading) due to its inclusion of explicit usury, represented by the overnight fees (an interest conditioned on the investor). Additionally, the broker's condition that trading must be done through them leads to a combination of a loan and an exchange transaction, which falls under the ruling of combining a loan and a sale, which is prohibited. This makes the lending broker benefit from their loan, and every loan that brings a benefit is usury.

Furthermore, there are other prohibitions, such as the broker selling what they do not own, and the absence of the Sharia-compliant immediate possession of currencies.

If the reality of this market is as described, then it is impermissible to trade in it directly or through a company. It is also not permissible to authorize the company to commit what Allah has forbidden.

Summarized from the full answer at Ftawy · reviewed Sep 2, 2026

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