As-salaam-u-alaikum
I know there are many posts relating to my queries, but my questions are very specific so I would like some clarity and assurance on my specific situation if I may.
I recently decided to enter the world of Crypto and invest in it, and ended up opening a trading account with Europa Trade Capital. Long story short, I added my own money to my online account and then a stockbroker was allocated to me and he started trading using my money. He has made a lot of money for me, and that is when I got thinking if it is even halal.
There are so many differing opinions online, but what I have realised is that often people generalise what is quite a complex topic. The minefield of halal/haram has eventually brought me here. So my questions are as follows:
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Europa Trade Capital only day trades. So they open a trade position and then close it on the same day, always. Thus there are no SWAP rates (hence no overnight interest charged). At the end of each day I can clearly see my new balance in my account. The broker has already taken his commission, so the entire balance will remain mine. Is this trading method halal? They consider what they do to be relatively low risk as they have many analysts and their main priority is to ensure their clients make money. So far I have not lost a penny, quite the opposite.
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Europa do use leverage and margin, which I now understand what it is, and I know is haram. If they agree to not use leverage and margin for me, can I continue to trade with them?
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My broker trades in Crypto, Forex, and Commodities, the latter being things like gold, silver natural gas, oil, etc. Is this all halal, if the trades are being done spot (which they are). The commodities are virtual only.
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If the trading done for me thus far is indeed haram, am I still permitted to keep the money I have made so far, since I didn’t know it was haram money?
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If I cannot lawfully keep the money, what should I do with it? Can I give it to charity? And if so, is it permissible to offer it to an Islamic charity? If so, will I be exempt of reward for this particular donation?
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Alternatively, can I use the money made to pay off some of my mortgage, which will then reduce the interest that I am unlawfully paying on that?
One thing I have noticed is that many trading websites that say they offer Islamic accounts, only really offer exemption from SWAP interest, without giving any consideration to anything else that may be haram, for example futures and derivatives. So it is advisable to be careful and do your own research, hence why I am here.
My understanding is that if the trading is being done in a halal way, and you have full transparency and agreement from the broker, then it doesn’t necessarily have to be a formal Islamic account that you hold.
Inshallah my respected Mufti brothers can answer my questions above and offer me some much-needed clarity on my specific situation.
Jazakallah.