Q: Prof. Dr. / Ali Mohi-Din Al-Qara Dagi – may God protect him
Greetings, and after
There have been a transaction in the stock market appeared, its conclusion as follows:
Is it permissible to deal with the global stock markets by contracting with local companies featured as an Agency in the following manner:
The Principal and entrusted signing the agency contract under which the local company is entrusted to be the agent broker.
Assigned to the entrusted the sum of three thousand dollars, or the equivalent to be in the balance of the principal in case loss that occurred.
The Principal do the purchase of the euro for example, instruct the company (the Entrusted) to buy on his name, whereupon the company(Entrusted) purchased worth a hundred thousand dollars.
And pays the full amount, and when sale if there is profit the entrusted retrieves the assigned amount (one hundred thousand dollars) and take fifty dollars commission as a Forex Broker,so the value of the commission don’t change per the length or shortness of time between the purchase and sale process , and the rest of the profits are added to the balance of the Principal so that Principal can withdraw the balance in the time that he wants
In case of loss, the entrusted deducts the loss ratio from the principal’s account as per the size of the amount paid, which was one hundred thousand dollars for example and a commission fee of fifty dollars.
A: In the name of God, praise God, prayer and peace upon the Messenger of God, and after: –
This transaction includes a number of issues we need to reach the legitimacy in Sharia’a governance to explain: –
1 – dealing in the stock market, or through the stock market is okay, in principle, if dealing with them according to the controls for each contract jurisprudence.
2 – dealing with currencies (money), have special conditions of the exchange, to be required, the receipt of any two currencies in the Council, and uniformity (without any increase) when selling their own currency such as dollars of any U.S. dollar.
But when currencies are different (ie, the dollar riyal, dinar or in euro, for example) do not require uniformity, but requires the receipt of the two currencies in the Council.
As a matter of alleviating the Islamic Fiqh Academy issued a fatwa that the banking constraint (constraint arithmetic) considered as a receivable.
3 – as well as to be in this process is that there will be no interest is charged in the case of lending and borrowing at all.
If there is these three conditions, the contract is true, if not then the contract is invalid and void
A Commissioned Agency with a known and pre-decided paycommission is Permissible by Sharia’a law, And what paid by the Principal measured upon the basis of loan bases, If the loan is interest-free loan then it is permissible, otherwise it is of usury and forbidden in Islam.
This process is within the so-called buying and selling currencies in Margin, which, as I said: You need the availability of the three conditions mentioned.
to be permissible – God willing – if a fourth condition is available: –
That the amount paid by the agent “entrusted” (one hundred thousand dollars) be a matter of fact so registered on behalf of the buyer (Principal), or other words that the processes are real and not fake, and be at the level of the market, but not on the level of paper only.
And Allah knows best.
Original Tanscript (arabic): Islamonline