What is the Sharia ruling on trading Forex with a company that does not impose overnight fees or interest on margin, deals only in foreign currencies, earns its profit from the bid-ask spread, allows immediate withdrawal of funds, and does not obligate opening trades?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
The existence of margin in forex trading is considered a usurious loan, as the company charges commissions for this margin, and the investor cannot withdraw the money, but only invests it with the company. The Islamic Fiqh Academy has clarified that margin trading involves a combination of a loan (salaf) and an exchange (mu'awadah), which is forbidden by , based on the Prophet's (peace be upon him) saying: "A loan combined with a sale is not permissible." Therefore, it is prudent for a Muslim to avoid dealing with such financial leverage and only trade with their own money in buying and selling currencies.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/170248
Where this answer came from
- Source platform
- Ftawy
- Original fatwa ID
- 170248
- 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