Fatwaa ID: 1485
Assalamu alaikum wr wb
Can i know if online commodity trading (in goods like petroleum, wheat etc) is permissible
In the Name of Allaah, the Most Gracious, the Most Merciful.
As-salaamu ‘alaykum wa-rahmatullaahi wa-barakaatuh.
In principle, for the permissibility and validity of a purchase and/or sales of a commodity, such as petroleum and wheat, it is necessary to obtain complete ownership and constructive possession of the underlying asset. If that is found, then the transaction and trading will be permissible. However, most commodity trading platforms do not meet this condition. They are rather based on CFD contracts. Thus, such trades will not be permissible. The profit therefrom will be haraam and must be given away in charity.
And Allaah Ta’aala knows best.
Mufti Muajul I. Chowdhury
Darul Iftaa New York
12/28/1444 AH – 07/16/2023 CE | AML1-8056
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