Is the leverage used in Forex trading permissible (halal) or forbidden (haram) if it is provided without a broker, additional commissions, or interest?
Source: FtawySummarized from the full answer at Ftawy · imported 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)."
Summarized from the full answer at Ftawy · imported
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- Original fatwa ID
- 179425
- Imported
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