Is the leverage used in Forex trading permissible (halal) or forbidden (haram) if it is provided without a broker, additional commissions, or interest?
"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
Read the full answer on Ftawyhttps://ftawy.com/en/questions/179425