Is borrowing an amount to buy from a brokerage firm considered "a loan that draws a benefit" if the company profits from the difference in buying and selling prices as a commission?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
Brokerage firms do not lend to clients except on the condition that their transactions for the loan amount are exclusively through them. This leads to the combination of a loan (salaf) and an exchange (mu'awadah), which is tantamount to combining a loan and a sale, which is prohibited by Islamic law. Thus, every loan that draws a benefit is usury (riba) and forbidden.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/169386
Where this answer came from
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- Ftawy
- Original fatwa ID
- 169386
- 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