What is the Sharia ruling on dealing in the stock market through buying and selling shares, annual profits, and free shares? Is it permissible to buy and sell online without physically possessing the commodity? Is it permissible to deal with a brokerage firm that buys and sells shares (both Islamic and non-Islamic) for a commission? Is it permissible to set daily upper and lower limits for buying and selling shares of the same company, which vary daily? And what are the companies that do not deal with usury?
Purchasing, selling, and investing in shares depends on the ruling concerning the company itself. If the company and its activities are permissible, then purchasing and investing in its shares is allowed; otherwise, it is forbidden. The purchaser of a share buys a common, undivided stake in the company's capital. There is no objection to dealing with brokerage firms if they adhere to Sharia-compliant regulations, as they act as paid agents. There is also no objection to setting an upper and lower limit for the share price, which changes according to supply and demand.
Summarized from the full answer at Ftawy · reviewed Sep 2, 2026
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