What is the ruling on financial dealings with a broker who adds an amount of money to an investor's capital, making the total 10,0 EGP in the investor's name, then buys and sells goods based on the investor's instructions, with the broker receiving a commission from the sales transactions, and the investor bearing the profit or loss, while the broker retains the right to cancel the operation if the loss exceeds the investor's original amount, knowing that the broker does not enable the investor to directly access the added amount or the goods, but rather manages the buying and selling process in the investor's name?
Source: FtawySummarized from the full answer at Ftawy · imported Sep 2, 2026
The described transaction is forbidden because it is a loan with interest. In it, the merchant lends the questioner 9000, and this loan is conditional on leaving the money with the merchant for him to trade with. This is a loan that draws benefit, and every loan that draws benefit is usury (riba). Another peril of this transaction is that the merchant cancels the sale without the owner's permission if he sees that it will lose more than the amount paid (1000).
Summarized from the full answer at Ftawy · imported
Read the full answer on Ftawyhttps://ftawy.com/en/questions/193571
Where this answer came from
- Source platform
- Ftawy
- Original fatwa ID
- 193571
- Imported
- Translation status
- Source text, unreviewed
- Read the full ruling
- Read the full answer on Ftawy