Fatwa: # 15066
Category: Financial Transactions
Country: Saudi Arabia
Date: 17th April 2007


We would like to know if online Forex trading is permissible in Islam or not?


We would like to know if online Forex trading is permissible in Islam or not? We are getting interested in this business of buying currcny and selling it. Many people are doing it and earning good amount of money. So before we start doing it we would like to get expert advice from islamic mufti.

Thank you


In the name of Allah, Most Gracious, Most Merciful

Assalaamu `alaykum waRahmatullahi Wabarakatoh

The issue of online Forex trading was discussed in the Jameeatul Muftieen meeting held last year. (The Jameeatul Mufteen is a board of 12 Darul Iftas of headed by a prominent Mufti). After analysing the details provided, Forex trading was ruled impermissible, as many of its aspects did not conform to the laws of Sahariah. 

However, if you are well acquainted with the transactions that take place in the process of Forex trading and have details on Forex trading that would prove otherwise, then you are kindly requested to forward those details to us. A further analysis can be made if the details differ to the ones available to us.

And Allah knows best


Ml. M. Jawed Iqbal,
Student Darul Iftaa

Checked and Approved by:

Mufti Ebrahim Desai
Darul Iftaa

DISCLAIMER - AskImam.org questions
AskImam.org answers issues pertaining to Shar'ah. Thereafter, these questions and answers are placed for public view on www.askimam.org for educational purposes. However, many of these answers are unique to a particular scenario and cannot be taken as a basis to establish a ruling in another situation or another environment. Askimam.org bears no responsibility with regards to these questions being used out of their intended context.
  • The Shar's ruling herein given is based specifically on the question posed and should be read in conjunction with the question.
  • AskImam.org bears no responsibility to any party who may or may not act on this answer and is being hereby exempted from loss or damage howsoever caused.
  • This answer may not be used as evidence in any Court of Law without prior written consent of AskImam.org.
  • Any or all links provided in our emails, answers and articles are restricted to the specific material being cited. Such referencing should not be taken as an endorsement of other contents of that website.
The Messenger of Allah said, "When Allah wishes good for someone, He bestows upon him the understanding of Deen."
[Al-Bukhari and Muslim]