Profit from Forex, CFD Trading Raises Religious Concerns: Scholar
The statement was published by the official website of the Leader’s office in response to repeated questions about the Islamic ruling on trading based on predicting price fluctuations in assets like currencies, gold, oil, and stocks.
“While this type of activity is not intrinsically haram, the issue lies in the ownership of the profit earned through it. Such income is religiously problematic and its use is not permitted,” said Hojat-ol-Islam Rezaei.
He emphasized that, based on obligatory precaution, “one does not become the rightful owner of that money.”
Rezaei was referring specifically to contracts known as CFDs—short for Contracts for Difference—which allow traders to speculate on the rise or fall of asset prices without actually owning the asset.
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He explained that many such deals are purely speculative and resemble betting. “In practice, no real buying or selling of assets like currencies or gold takes place. Rather, it is an agreement between two parties to benefit or lose from price changes,” he said.
He likened this mechanism to predicting the outcome of a football match. “It’s similar to saying Team A will win or Team B, except here, a broker is involved, a contract is signed, and money is deposited in advance,” he added.
According to Rezaei, although the structure of the transaction does not necessarily violate Islamic principles, the revenue generated from it is not considered religiously clean and thus cannot be lawfully used.
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