Trading with bonus money from Forex broker

30-11-2015 | IslamWeb

Question:

Assalaamu alaykum Shaykh. A forex broker gives a 100%, 50%, and 20% bonus every time I deposit into my forex account. The percentages vary according to the promotion time. These bonuses are only given to me for trading but I cannot withdraw these bonuses that are given. Is it permissible for me to trade with this bonus money? If it is not, I could ask the broker to take the bonuses back. For your information: I am trading on a 1:1 leverage (0% leverage). The broker provides an instant access to the profits (account balance), I'm not trading on a margin. The broker has an Islamic account (swap-interest free). I'm not trading on future trading. Only profits and my deposits can be withdrawn, not the bonuses

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Answer:

All perfect praise be to Allaah, The Lord of the Worlds. I testify that there is none worthy of worship except Allaah and that Muhammad is His slave and Messenger.

In reality, these bonuses that cannot be withdrawn but which you can benefit from by trading only constitute a money leverage system because what is taken into account are the facts and meanings, not the names. Therefore, you are not entitled to accept those donations (bonuses).

As regards investing through that system while avoiding the Islamic prohibitions that it involves, then, if this is really possible, there is nothing wrong with it.

Among the requirements that should be met while using that system is to avoid borrowing money from the broker even without usurious interest and to fulfill the conditions of lawful exchange including the terms of buying and selling on the spot (hand to hand), even virtually by something that serves as and takes the ruling of receiving cash and exchanging hand to hand (like a bank draft or check).

For more benefit, please refer to fatwas 262402 and 88475.

Allaah knows best.