Islamic scholars and bodies ruling on forex trading.
Who ruled·What they said·Where to read it
Exchanging one currency for another on the spot is permitted. Forex trading as the platforms sell it is ruled out by every body below.
Last reviewed 26 September 2026.
Rulings and positions
The Academy judges a currency trade by when the money actually changes hands. If both currencies are delivered and paid for straight away, the trade is permitted, "provided they meet the well-known currency exchange conditions."
If delivery is pushed to a later date, or the contract can be closed out without any currency changing hands at all, the trade is not permitted. That rules out forwards, futures and any position that is settled without delivery.
SourcesIIFA Resolution 63
Jordan's official fatwa body has looked closely at how retail platforms work, and its answer is no. For a currency trade to be valid, the exchange has to be immediate, the currency you buy has to reach your own bank account, and there can be no margin and no swaps.
The platforms fail those tests. A balance showing in your trading account is not possession of the currency. Leverage is a loan from the broker, and even interest-free leverage counts as riba, because the broker earns commission on every trade you make with its money. Its 2024 fatwa is plain: "it is not permissible to engage in any transaction that involves the leverage system."
That includes so-called Islamic accounts. Dropping the swap fees does not fix the missing possession or the margin, so the Department treats those accounts as impermissible too.
SourcesJordan Iftaa' Department (2024)Jordan Iftaa' Department, Fatwa 3871
The Council rejected margin trading at its 2006 session in Makkah. One of its reasons speaks directly to forex: the trades a margin account pays for include currency exchanges that are not settled hand to hand.
Foundations and principles
Currency exchange (sarf) follows the six commodities hadith: "Gold for gold, silver for silver ... like for like, hand to hand" (Sahih Muslim 1587). Every ruling above turns on that last condition. Both currencies must change hands at once.
A loan that brings its lender a benefit is riba. That is why each body above rejects leverage even when no interest is charged.
What passes
- Exchanging currencies on the spot, with both amounts delivered immediately and the currency you buy landing in your own account.
- What fails: leverage or margin of any kind, swaps and rollovers, "Islamic" accounts on leveraged platforms, and balances you cannot withdraw in the currency you bought.
Further reading
References
- International Islamic Fiqh Academy (9 to 14 May 1992). Resolution No. 63 (1/7) on Financial Markets (Shares, Options, Commodities, and Credit Cards), Jeddah. Source
- Mash-Shoqah, Dr. Hamzah (9 December 2024). Common Fiqh Issues in Forex Trading Platforms. General Iftaa' Department, Jordan. Source
- General Iftaa' Department, Jordan (5 May 2024). Fatwa No. 3871: It is Prohibited to Trade with the Financial Leverage System. Source
- Islamic Fiqh Council of the Muslim World League, 18th session, Makkah (8 to 12 April 2006). Resolution No. 18/1 on margin trading, as published by IslamOnline. Source
ShariaQuant summarises what each body ruled, quotes the wording that matters, and links to every source so you can read the full ruling yourself. This is a record of their rulings, not a fatwa of our own.