What is the ruling of the Shari'ah regarding dealing in the stock market and trading in silver and foreign currencies? And what is the ruling concerning profits distributed as follows: 65% for the investor, 15% for the speculator, 15% as company fees, and 20% for reserves, knowing that the principal amount is not guaranteed?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
"It is forbidden to deal with international stock exchanges because they involve interest-based lending, the inability to deliver upon demand, and delayed قبض (physical possession or settlement). However, it is permissible to deal with them if it is possible to do so according to regulations. There is no objection to deducting a portion of the profits to cover potential losses (e.g., 20%) if this condition was stipulated from the beginning of the contract or mutually agreed upon, and this does not fall under the guarantee of capital which invalidates (profit-sharing partnership)."
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/90047
Where this answer came from
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- Ftawy
- Original fatwa ID
- 90047
- 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