Assalmualiakum wah rah mahtullah.
I hope that you could answe this question I have. I dont want to partake in this if its Haram and its quite important I do see if its Halal or not.
There is a compnay called FTMO. Essentially, it allows you to trade Forex,metals,indicies, crypto etc. You essentially pay a deposit fee to take part in theor trial process and then if you pass the trial you are guranteed to trade for them. I know that forex is Haram due to the settlement date issue and leverage aswell as the overnight intrest charge. I have spoken to them and I am allowed an islamic account (no overnight charge/rollover ) and I can request the account be made into a 1:1 leverage. So if I dont do Fx trading but do the metals and crypto( like BTC) through this route. If I pass they would provide me with a demo account and then any profit I make is split into a 70-30 split to me. Additionally the deposit fee I payed will get refunded back to me along with the first months profit.
So my question is, would earning money like this be considered Halal or Haram.
Heres a link to the website and I can provide screenshots of them stating that I can get a 1:1 account with no overnight position.
JazakhAllah Khair for your time.
Wa aleykum salam wr wb
May Allah bless you.
Having discussed this matter with some brokers and listened to the information provided to me. I believe one should refrain from being involved with FTMO.
Although I would not say it is impermissible, but it is definitely doubtful in my opinion.
My understanding is that a person will be trading on a demo account. Profits will be paid according to their performance on the demo account. The trading entries they are making, could or could not be used by FTMO as signals for real life trades. However, the trader will not have any knowledge of this, and neither they are paid a commission based on whether the signals was successful.
I have run the above a few times in my mind, and I could within myself argue for both outcome: i.e. permissible or impermissible.
For this reason, I would say that it is better to stay away from trading on the FTMO platform.
Regarding things that cannot be determined as either halal or haram, the Messenger of Allah (peace be upon him) said : “That which is lawful is clear and that which is unlawful is clear and between the two of them are doubtful [or ambiguous] matters about which not many people are knowledgeable. Thus, he who avoids these doubtful matters certainly clears himself in regard to his religion and his honour. But he who falls into the doubtful matters falls into that which is unlawful like the shepherd who pastures around a sanctuary, all but grazing therein. Verily every king has a sanctuary and Allah’s sanctuary is His prohibition. In the body there is a morsel of flesh which, if it be sound, all the body is sound and which, if it be diseased, all the body is diseased. This part of the body is the heart”. (Bukhari)
If more information come to light in the future, or if someone believe that my understanding of the process is incorrect, then they can feel free to comment on here, and I will reassess my answer inshaAllah.
And Allah knows best!
Could you elaborate your reasons for believing its permissible / not permissible?
Thanks in advance