Does trading Forex, with the aforementioned controls including the use of leverage, and the ruling on withdrawing funds, fulfill the conditions of an Islamic account and make it permissible?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
It is not permissible to trade in Islamic Forex as long as it involves leverage, because it is a loan combined with a counter-value (compensation), and it is not permissible to combine the two. Furthermore, a condition for currency trading is that the exchange takes place at the same session (spot transaction). The recording of funds in an account without the immediate ability to withdraw them means that the legal possession (qabd) has not been achieved, which would then fall under Riba An-Nasi’ah (usury of delay).
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/16777
Where this answer came from
- Source platform
- Ftawy
- Original fatwa ID
- 16777
- 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