MetaTrader 5

I am considering trading XAUUSD (Gold/US Dollar) through an online platform called MetaTrader 5. This is how it works:

1. I do not take physical delivery of gold – I only trade price movements through contracts

2. The broker provides leverage, allowing me to control larger positions with smaller capital

3. I can profit from both rising (buy/long) and falling (sell/short) prices

4. There is a spread cost (difference between buy and sell price)

5. Positions can be held overnight with swap/rollover fees

6. The trade settles in cash – no actual gold changes hands

Q1) Is this type of trading permissible in Islam?

A1) No, trading on platforms such as MetaTrader 5 contain many aspects which go against the principles of Shariah inter alia gambling, interest, not taking possession of the currency, etc. It also evolves around speculation and estimation which is also not permitted in Shariah.

Q2) Does it involve Riba (interest), and if so, is there a way to trade gold without Riba?

A2) Yes, it does involve Riba (interest).

Q3) Are there specific conditions I must follow for it to be halaal?

A3) Many of these platforms offering forex trading are merely in theory. We will have to scrutinize each clause thoroughly in the blueprint/contracts before we reach a conclusion. Until then we cannot advise further.

Q4) Are there any Islamic/Swap-free accounts that make this permissible?

A4) Some brokers offer so called ‘Islamic/ Swap-free accounts’ where they waive off all interest charges. This does not make the deal Shariah compliant since the primary issues mentioned above still remain. Furthermore, the broker lends money with the condition and objective that you trade with him. This has been clearly prohibited in the Hadith mentioned below:

عَنْ أَيُّوبَ، حَدَّثَنِي عَمْرُو بْنُ شُعَيْبٍ، حَدَّثَنِي أَبِي، عَنْ أَبِيهِ، عَنْ أَبِيهِ، حَتَّى ذَكَرَ عَبْدَ اللَّهِ بْنَ عَمْرٍو قَالَ قَالَ رَسُولُ اللَّهِ صلى الله عليه وسلم ‏ “‏ لاَ يَحِلُّ سَلَفٌ وَبَيْعٌ وَلاَ شَرْطَانِ فِي بَيْعٍ وَلاَ رِبْحُ مَا لَمْ تَضْمَنْ وَلاَ بَيْعُ مَا لَيْسَ عِنْدَكَ ‏”‏(ابو داود #3504)

Abdullah bin Amr Radiallahu Anhu reported the Messenger of Allah Sallallahu Alaihi Wasallam as saying, “The condition of a loan combined with a sale is not permissible; nor two conditions relating to one transaction; nor any profit arising from something which is not in one’s charge; nor selling what is not in your possession.”

In conclusion, it will not be permissible to trade in any form of forex trading.

ولا بيع ما ليس مملوكا له وإن ملكه بعده إلا السلم (الفتاوى الهندية 3/3)

لَوْ بَاعَ الْفُلُوسَ بِالْفُلُوسِ ثُمَّ افْتَرَقَا قَبْلَ التَّقَابُضِ بَطَلَ الْبَيْعُ وَلَوْ قَبَضَ أَحَدُهُمَا وَلَمْ يَقْبِضْ الْآخَرُ أَوْ تَقَابَضَا ثُمَّ اُسْتُحِقَّ مَا فِي يَدِي أَحَدِهِمَا بَعْدَ الِافْتِرَاقِ فَالْعَقْدُ صَحِيحٌ عَلَى حَالِهِ كَذَا فِي الْحَاوِي الفتاوى الهندية (3/ 224)

لأن القمار من القمر الذي يزاد تارة وينقص أخرى وسمي القمار قمارا لأن كل واحد من القمارين ممن يجوز أن يذهب ماله إلى صاحبه ويجوز أن يستفيد مال صاحبه فيجوز الازدياد والنقصان في كل واحدة منهما فصار ذلك قمارا وهو حرام بالنص (البحر الرائق 8/554(

ALLAH TA’ALA ALONE IN HIS INFINITE KNOWLEDGE KNOWS BEST!

ANSWERED BY:

Mufti Abdul Kader Fazlani

Date: 24 Shawwaal 1447 / 13 April 2026

CHECKED AND APPROVED BY:

Mufti Yacoob Vally Saheb