Hello
Recently, a type of company called prop firms has emerged, which are companies that hire traders after passing a test that you take (there will be fees for the test, then you will get these fees back if the test is successful). They have the tools, assistants, and trainers that the trader may need. The trading of these companies takes place in Forex, knowing that the orders that the trader gives pass them before entering the real market, so they accept some operations and reject others (to preserve their capital), but in all cases, the operations that I earn In it, I have a percentage of the profit, and the profit is in an agreed percentage between the company and the trader. When I lose, the company loses its money and the trader loses his effort.
The company also provides accounts without rollover fees for those who hold the Islamic religion only
Leverage may not be used
And if the trader proves his competence in trading, the company provides the capital that he works with
Is working with this company halal? And what is the ruling on dealing with financial leverage in that case, because the money is originally their money, and when using the leverage, the losses remain on them without any fees
I also want to point out that the currencies are real currencies
It is not CFDs. Please respond because I did not see any fatwa regarding this matter
As-salamu Alaykum Wa Rahmaa Tu’lahi Wa Brakatu,
I would reject working with this/these companies.
For the islamic side, you might be working with a halal fund or with Islamic principles but the earnings you get and which the company operates from is from riba.
From a personal side, it seems too fishy, unsafe, and uncertain. Why would they train you and charge you for the test then give it back if you’re successful.
It’s more cost effective not to hire anyone, reduce overhead, and have more money to trade with or make larger trades rather than smaller trades via individuals.
For me, it seems like it’s a company that adds a lot of sparkles and flares and technical jargon to make it seem complicated but then reassures the reader it’s not complicated thus trying to lure them in.
Many people are very easily influenced by complexities, it makes them feel special or gives them hope that it’s a great scientific thing.
In truth, the best way to make money or gain capital is by working in or with something you understand the basic and intermediate principles behind.