Is It Permissible to Work as an Agent for a Forex Trading Company?
Answered by Shaykh Muhammad Carr
Question
Is it permissible to work as a sales agent for a forex trading company, encouraging clients to place deposits?
ِAnswer
Thank you for your question.
May Allah reward you for ensuring that your income is permissible.
The Prophet (Allah bless him and give him peace) said, ‘The one who guides to goodness is like the one who does it.” [Tirmidhi]
The principle in the above narration implies that guiding to evil would carry a similar consequence. This is supported by other narrations, such as:
“Whoever initiates a good practice in Islam will have its reward and the reward of those who act upon it, without their reward decreasing in the least. And whoever initiates a bad practice in Islam will bear its burden and the burden of those who act upon it, without their burden decreasing in the least.” [Muslim]
Retail forex trading is deemed impermissible, and encouraging clients to participate is equally prohibited.
The Problem with Forex Trading
The issue with the validity of retail forex trading is that, when trading a currency pair, no ownership of the underlying currencies is established, nor does the broker facilitate any actual exchange of currencies. Opening and closing buy or sell trades on forex platforms are merely speculative, based on the relative prices of currency pairs. [1]
I pray this is of benefit and Allah guides us all.
[Shaykh] Muhammad Carr
Checked and Approved by Shaykh Muhammad Abu Bakr Badhib
[1] https://fatwa.mjc.org.za/fatwa/ruling-on-retail-forex/
Shaykh Muhammad Carr has dedicated his life to studying and transmitting our beautiful deen. His studies have taken him around the globe, where he has benefitted from many luminaries. Under the guidance of his teachers – Shaykh Taha Karan, Shaykh Yaseen Abbas, Shaykh Muadh Ali, and many others – Shaykh Muhammad has grown to appreciate the beauty and benefits of diverse scholarship. He completed his memorization of the Qur’an at Dar al-Ulum Zakariyyah in September 1997 and received an Alimiyya Degree in 2006 from DUAI (Darul Ulum al-Arabiyyah al-Islamiyyah). He is also affiliated with Masjid Auwal in Bo Kaap, Cape Town (the oldest mosque in South Africa), where he serves as a co-imam, and Dar Al-Safa, where he has taught since 2018. As a teacher, he imparts the wisdom of our heritage and tradition by opening the door for students. As an imam, he has the unique opportunity to serve his community in daily life.
In addition to his roles as a teacher and imam, Shaykh Muhammad Carr has contributed significantly to the administrative and advisory aspects of Islamic institutions. Since 2023, he has served as the Administrative Director at The Imam Kurani Institute, contributing to the institution’s growth and development. He continues to pursue traditional Islamic Sciences, possessing a keen interest in Islamic Contract Law and Finance. Shaykh Muhammad has been a Shari’ah Board Member for Islamic Asset Management & Insurance Companies since 2001, aligning financial practices with Islamic principles.
