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What is the ruling on giving a Forex company $4,0 to trade with, in exchange for a distribution of profits every four months, with the company taking a 20% share, and is the aforementioned scenario permissible? What is the ruling on the profits that have been received, and how is Zakat on the money to be calculated: is it on the profit if a year has passed over it, or on the entire amount?

1 min readAlso available in العربية

It is permissible to invest in companies that trade currencies if they adhere to Sharia controls, such as avoiding leverage, ensuring possession, and avoiding prohibited contracts. It is permissible to give money to the company in exchange for a percentage of the profit. Zakat is obligatory on the capital and its profit every year, amounting to 2.5% of the total amount upon the completion of the hawl (one lunar year). However, if the company uses leverage or deals in prohibited contracts, then investing in it is forbidden, and it is obligatory to withdraw the money and dispose of the unlawful gains.

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

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