Zakat on forex trading and currency accounts
Foreign currency is simply cash in another denomination for Zakat — but active trading positions behave more like trade stock.
Currency you hold is cash: convert every balance to one reporting currency at the rate on your Zakat date and include it at 2.5%. Money in an active trading account, and open positions, are valued at their current worth on your date. Do not use different rates for different accounts or count transfers twice.
Balances are Zakatable.
Money you hold in any currency is Zakatable like cash. Convert each balance into a single reporting currency using one consistent rate on your Zakat date, and include the total with your other wealth. This is true whether the balance sits in a bank, a payment app, or a brokerage.
Use the same closing-rate source for every currency on your Zakat date. Mixing today's rate for some accounts and old rates for others distorts the total.
Positions and margin.
For active forex trading, the account cash and the current value of open positions are included at their worth on your Zakat date. Because trading is a for-profit activity, the working capital is Zakatable much like trade stock. Value positions at their mark-to-market figure rather than at hoped-for outcomes.
Trace each amount once.
Transfers in transit between your own accounts, and the same funds recorded in two places, are the classic forex pitfall. Trace each amount to a single line so no balance is counted twice.
Leveraged and interest-bearing forex arrangements raise permissibility questions of their own, separate from Zakat. Confirm compliance with a qualified scholar.
Questions people ask.
Is foreign currency Zakatable?+
Yes. Currency you hold is treated as cash. Convert each balance to one reporting currency at the rate on your Zakat date and include the total at 2.5%.
How do I treat an active forex trading account?+
Include the account cash and the current mark-to-market value of open positions on your Zakat date, since trading capital is Zakatable like trade stock.
Which exchange rate should I use?+
One consistent closing-rate source for every currency, taken on your Zakat date. Do not mix current and historical rates across accounts.
Use the private calculator.
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