Is it permissible to participate in a Forex competition that uses a demo account and leverage, knowing that the prize is real money, and that the participant does not use leverage in his real account?

Dealing with the Forex system involves several Sharia prohibitions, including: usury (riba), combining a loan with brokerage, and the absence of immediate قبض (qabd - taking possession). For these reasons, the Islamic Fiqh Academy has issued a ruling prohibiting it.

It is permissible to deal with it if these prohibitions can be avoided, by avoiding leverage and trading with the person's owned money with immediate قبض.

However, participating in a Forex competition is not permissible, because it involves the use of leverage, and it entails an endorsement of a usurious system. Moreover, most forms of trading with this system are not free from impermissible contracts. Participation in the competition is considered promotion for this system and encouragement of it, which is spreading evil and assisting in it. Allah Almighty has prohibited cooperation in sin and aggression.