Is it permissible to become a stockbroker?

· 5 Dhuʻl-Hijjah 1423 AH1 min readFatwa 7891English
Finance and Commerce

Question

The question text was not published separately; the title stands in for it.

Is it permissible to become a stockbroker?

Answer

A broker is an agent middleman who, for a commission or fee, bargains or negotiates between his principle and a third party for the purchase or sale of goods, real estate, services, stocks and bonds, insurance and commodities without having title and usually without having possession of the property or rights involved. (Encyclopaedia Britannica vol.ii pg.291)

From the above, we can understand that a broker involves himself in many different transactions. Only those deals which are Shari?ah compliant will be permissible. the same will apply to a stockbroker more specifically. If he is only involved in those type of companies and shares that are totally in conformity to the laws of the Shari?ah, then only will it be permissible to become a stockbroker.

and Allah Ta'ala Knows Best

Mufti Ebrahim Desai

Answered by
Mufti Ebrahim Desai
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