Is leverage in foreign exchange trading, which does not alter the brokerage company's profit margin from the bid-ask spread and does not involve fees for overnight positions or for the leverage itself, considered among the loans that yield benefit?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
"Leverage is a loan from the brokerage firm to the client, conditioned on all transactions being conducted through the same firm. This arrangement brings benefit to the lender (the firm) due to the commission, which increases with the volume of transactions. Therefore, it is impermissible to engage in transactions using it."
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/181023
Where this answer came from
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- Ftawy
- Original fatwa ID
- 181023
- Added here
- . This is when the answer was added to El Fatwa, not the fatwa's date.
- Text
- Summary from Ftawy's records, reviewed by El Fatwa's sharia committee.
- Read the full ruling
- Read the full answer on Ftawy