Is the spreads charged by forex brokers haram

22 Feb 2023 Ref-No#: 4713

I am a forex trader currently trading under a specific broker called ‘Exness’ Many scholars consider forex trading as haram as the brokers charge interest and swap fees for holding trades which is also considered as one sort of interest. But my broker doesn’t charge any sort of swap fees or interest but to compensate the leverage they provide to execute my trade, they charge a spread which is the difference between the ask price and the bid price of the market. So my question is, does this spread make my forex trading haram or is it permissible?

Answer

Wa’alaykum as-Salām waraḥmatullāhi wa barakātuhu,

It is impermissible. Not only due to this, but due to the whole manner that the trades take place.

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