Forex
Is Spot forex (EUR/USD and majors) halal?
Permissible with conditions
Read our methodology and editorial policy.
Short answer
Currency-for-currency exchange (sarf) is permissible when settlement is hand-to-hand. Spot forex via a swap-free account that does not charge per-night fees satisfies the contemporary majority view.
The reasoning
Sarf requires immediate exchange; T+2 settlement is widely accepted as meeting that condition.
The riba enters only with overnight swap interest. Remove that with a genuine swap-free account and the underlying contract is acceptable.
Conditions
- Spot only — no CFDs marketed as 'spot'.
- Genuine swap-free account with no hidden per-night fees.
- No leverage, or modest leverage you can cover in cash terms — scholars differ on this.
Red flags
- Swap-free accounts that quietly charge per-lot admin fees overnight.
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