Back to search
The question

What is the ruling on trading currencies and metals through a financial broker using the margin system, where the broker covers part of the transaction value in exchange for a commission, noting that I bear all losses, do not receive interest, and do not own the full value of the transaction? And is it permissible to trade if I own the full amount or pay part of it?

Share this answer

Source: FtawySummarized from the full answer at Ftawy · imported Sep 2, 20261 min readAlso available in العربية
The answer

It is not permissible to enter into a transaction by borrowing from a financial intermediary who earns a benefit (commission) for the lender. It is permissible if the intermediary's role is limited to providing market access and financial analysis for a specified commission, provided the full transaction value is paid and exchange conditions are observed. It is not permissible to take interest from a bank for depositing money or to pay money to a bank as interest on a loan. However, it is permissible to pay money for its safekeeping if it is a fee for a permissible service, keeping in mind that it is not permissible to deposit money in an interest-based bank except out of necessity.

Summarized from the full answer at Ftawy · imported

Read the full answer on Ftawy
Where this answer came from
Source platform
Ftawy
Original fatwa ID
57614
Imported
Translation status
Source text, unreviewed
Read the full ruling
Read the full answer on Ftawy