I have a question regarding trading forex with prop firms that fund retail traders, as I already understand that using your own capital is not permissible due to interest being used in the transaction and also the idea of leverage.
The one I’m interested in is FTMO who is a prop firm that provides traders who pass a test, with funded accounts with up to 200,000$ to trade with. There are no fees or interest involved with these accounts, they are their own broker so there are no swap fees or commission on each trade and they only benefit by taking a 30% cut from the earnings of the trader, also the only money you spend is the fee when you take the test which is different for each account size and they take care of all the losses (there’s a limit of 10% loss on the account and your account gets shut down if you exceed this, but you don’t have to pay any of it back to the company, you just lose your account) I just wanted to know if it is permissible to trade with them since it basically ticks all the boxes for halal forex trading but I just wanted the scholars opinion before getting in too deep with this company.
You can read more about them on their website www.ftmo.com
Thank you for the reply, so I will be trading normal currencies such as the pound, dollar and yen. The contract states that the trader receives 70% of the profits at each pay day and the firm receives 30% of the profits. The firm also covers all losses so you can never be in debt to them. However, if you lose more than 10% of the account then they shut it down and you have to re do the test in order to get funded again. Also, they are their own broker and they don’t deal with any third party broker and they also don’t have any swap or interest charges. The only charge is basically the 30% they take out at each pay day. What is your opinion on this?
Assalamu Alaikum, I am also interested in finding out whether this is permissible or not as I am trading with them at the moment but I am also having doubts.
Salaam, may you please answer this question. This is something I have been making a career out of for the last 3 years and I would like to know whether or not I am committing sin through this. Thank you always.
Hi bro i also am not sure but if all the haram is not being used then i just dont understand why it can be haram plz have you found any extra knowldege on this Topic?
May I ask you my friend how do they provide spot forex ? because when Ive asked them they told me they only offer cfds. are you talking about FTMO or other prop firms ? please let me know
May I ask you my friend how do they provide spot forex ? because when Ive asked them they told me they only offer cfds. are you talking about FTMO or other prop firms ? please let me know