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The question

Is it permissible to trade currencies and shares of international companies (such as Microsoft, Amazon, Tesla, Nokia, and airline companies) on the eToro platform, if the account is Islamic and based on Contracts for Difference (CFD)?

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Source: FtawySummarized from the full answer at Ftawy · imported Sep 2, 20261 min readAlso available in العربية
The answer

One must avoid dealing with eToro because it combines a loan and brokerage (a loan and a commission), which is Islamically forbidden, even if the overnight fees are canceled. The platform lends to the client on condition that he trades through it, so that it can benefit from commissions. This falls under the principle of "every loan that draws a benefit is usury (riba)." The only permissible solution is to trade with your own money only. As for stocks, it is permissible to trade only in pure stocks, which are shares of companies with permissible activities that do not engage in usury, whether by depositing or borrowing. It is forbidden to trade in mixed stocks that deal with usury.

Summarized from the full answer at Ftawy · imported

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Source platform
Ftawy
Original fatwa ID
16784
Imported
Translation status
Source text, unreviewed
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