Is the leverage used in Forex trading permissible (halal) or forbidden (haram) if it is provided without a broker, additional commissions, or interest?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
"Leverage is an interest-based loan (riba) because the lender (broker) stipulates that the trader's transactions must be conducted through him. Thus, the lender benefits from his loan through commissions. This combines a loan and a compensatory transaction, which is prohibited in Islamic law. Every loan that draws a benefit is usury (riba)."
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/179425
Where this answer came from
- Source platform
- Ftawy
- Original fatwa ID
- 179425
- 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