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Is the leverage used in Forex trading permissible (halal) or forbidden (haram) if it is provided without a broker, additional commissions, or interest?

1 min readAlso available in العربية

"Leverage is an interest-based loan (riba) because the lender (broker) stipulates that the trader's transactions must be conducted through him. Thus, the lender benefits from his loan through commissions. This combines a loan and a compensatory transaction, which is prohibited in Islamic law. Every loan that draws a benefit is usury (riba)."

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

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