What is the ruling on using financial leverage in commodity trading (such as coffee and oil) through a brokerage firm if the leverage is non-obligatory and entails no fees or interest, taking into account that the company only charges a commission for buying and selling?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
The intermediary company's condition that the client must trade through it to use leverage is considered a loan that draws benefit for the company, which is usury (riba). The fact that leverage is optional does not change the ruling on its use. However, if the client avoids leverage and ensures that the company's dealings are free from prohibitions, then there is no objection to dealing with it.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/158043
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- Ftawy
- Original fatwa ID
- 158043
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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