Are there halal forex companies, and what are they? And does avoiding margin, rollover fees, and interest make the transaction permissible? And is it permissible to trade without capital?
Forex is prohibited if it involves leverage or margin, as it combines a loan with brokerage. Its prohibition intensifies if it includes overnight fees (rollover interest) due to the inclusion of a usurious loan. The transaction is permissible if it is free from the aforementioned elements, and a person trades only with their own money through a website, provided that the legal " قبض" (possession) is realized in the purchase of currencies, and that no trading occurs in anything prohibited, such as options contracts, futures, bonds, and mixed or prohibited stocks. It is important to note that Contracts for Difference (CFDs) are prohibited contracts; they are options and futures contracts which the Islamic Fiqh Academy has explicitly deemed impermissible according to . Furthermore, an Islamic Forex account that includes leverage is also prohibited.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
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- Summary from Ftawy's records, reviewed by El Fatwa's sharia committee.
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