Is trading Forex through brokerage firms with an Islamic account, which only charges fixed fees on certain currencies, deducts amounts upon completion of buy or sell transactions, takes approximately 24 hours to process withdrawals, and calculates its profits from the difference between the buying and selling prices, considered unlawful, and what is the difference between it and the loans offered by Sharia-compliant Islamic banks?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
The financial leverage provided by brokerage firms to speculators is a forbidden loan because the brokerage firm offers the loan to the subscriber to trade with it through their platform, thus increasing their profits from commissions. The loan amount is guaranteed and cannot be lost by the company, and they stipulate that trading must occur through them. Therefore, it is a loan that brings a benefit, and this differs from financing transactions in Islamic financial institutions, such as Murabaha.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
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- Ftawy
- Original fatwa ID
- 173519
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- . 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.
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- Read the full answer on Ftawy