What is the Shar'i ruling on Forex trading with leverage (margin) and without overnight fees or commissions, provided that gold and metals are not traded, and given that the company does not share in profits and losses, and that the amount resulting from the leverage is not physically received?
From a perspective, leverage in Forex is considered a loan. If the broker stipulates that transactions must be conducted exclusively through them, they have drawn a benefit for themselves. This transaction is invalid and forbidden because the broker does not genuinely own the leverage funds; rather, they are figures used to profit from price differences. This means the broker has lent the client something they do not possess, and the client has sold something they do not own, in addition to the combination of a condition with a loan. All these matters are prohibited. Therefore, trading with leverage in Forex is impermissible.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
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- Summary from Ftawy's records, reviewed by El Fatwa's sharia committee.
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