What is the Sharia ruling on trading in Forex with a broker who offers an Islamic account without overnight fees, takes only a currency exchange commission, and places the full amount (with an interest-free loan) in the account upon a trade?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
Lending by the intermediary to the client without interest is permissible. However, the intermediary's condition that the borrowing client conducts all his buying and selling through him renders the transaction impermissible, based on the : "A loan combined with a sale is not permissible." Furthermore, it is not permissible to deal in the forex system except with constructive or actual possession in the contract session, knowing that the Islamic Fiqh Academy does not permit the beneficiary to dispose of the currency until actual possession is possible.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
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- Ftawy
- Original fatwa ID
- 86826
- 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.
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