What is the ruling on dealing with a brokerage firm that gives margin in exchange for a fixed commission on the currency difference, without interest on holding the contract overnight?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
The broker in the stock market acts as an agent for the buyer or speculator, and it is permissible for him to take a known fee for each buying and selling transaction. It is forbidden for the broker to take interest on a loan he provides to the client under the margin system. Any increase in the client's capital resulting from price differences is the property of the client, not the broker. If the brokerage firm adheres to these rulings, then there is no harm in dealing with it; otherwise, it is impermissible.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/72746
Where this answer came from
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- Ftawy
- Original fatwa ID
- 72746
- 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