I passed the evaluation stage and currently in Acceleration stage (projected to be making around $10K now, the next stage is Pro stage, projected to make around $40K -$100K per month, as side income. I trade only 30 mins on weekdays - so easy for me to pass, typically 3 days). But I am not convinced that it is Halal, so I withdrew my account.
“Please be advised that we only provides services of simulated trading and educational tools for traders and never directly passes any orders to the market. We use liquidity providers to supply us with price data of individual instruments in order to simulate live financial markets. All instruments that are available in your trading platform are CFD derivatives of the futures underlying assets.”
This is what I got when I asked.
The pay-out money they claimed from CFD liquidity brokers and shared with traders is it halal? Because the CFD liquidity providers are like gambling companies that provide payments to winners and collect from losers in guessing the outcomes of matches? You can buy jerseys, sport items, sell them and profits from them but if you bet on the outcome of matches, should it be halal? This is the best similitude of the CFD brokers. They dont trade markets, they just aggregate winners and losers balance and pay the winners part of it. In my opinion, they are gambling companies attached to the financial markets. They use the data from the market to set up game for traders and profits from it. They do not buy or sell anything.
They do not create any values, they just make easy money from losers. That’s all.
You can read my back & forth with them (bottom up better).
I didnt even know that it was CFD to begin with. I saw CFD in their disclaimer only on the day I passed to Acceleration stage.
You can read my back & forth questions here.
Hi,
CFDs Liquidity providers are the counter party and they earn when you lose or they pay out when you win. This is not different as liquidity providers in FX or Indices or Futures. They charge a spread same as market makers does so in case they have to pay the winners and collect the losing positions then they earn on the spreads. The only different with CFDs are that they are all based on the prices only of all asset classes and nobody need to have the underling assets what give the LPs the options to give high leverage and this accounts are only for speculation purposes.
Assigned agent:
PREVIOUS MESSAGES:
I wrote:
Hi ,
Thank you for your patience. Well appreciated.
I will try to study more on CFDs, hopefully I am able to understand that
last part.
Thank you.
Mon, 7/8/2024, 7:01 AM UTC
Agent wrote:
Hi,
We are support team that can help you with our program rules questions or issues
but we are not here to educated if you have no knowledge what CFDs are. We can
offer you our one on one mentor program they can educate you on CFDs or anything
else you need to know about how to trade CFDs or what are CFDs:
Assigned Agent
Mon, 7/8/2024, 6:38 AM UTC
I wrote:
Hi,
Thank you for your response. Apologies for many questions. It is
clearer to me now but I don’t understand number 1.
- CFDs are only based on the price movements so nobody owns any underlying
assets.
Then, what are we buying/selling, what are we profiting on? While would the
CFDs liquidity providers pay out when there are no assets? Quite confusing
for me.
Thank you.
Mon, 7/8/2024, 6:30 AM UTC
Assigned Agent wrote:
Hi,
-
CFDs are only based on the price movements so nobody owns any underling
assets. -
CFDs are executed instantly as long the markets are open and their only
charged interest when you leaf your positions open overnight and the weekend. -
In the real money live accounts we takes all the losses and not the trader.
Assigned Agent
Mon, 7/8/2024, 5:50 AM UTC
I wrote:
Hi,
Thank you for your swift responses. Still more, and my apologies. I really
want to know clearly.
-
At the time of you placing my trades to CFDs liquidity providers, the
assets belong to me or you or jointly owned or none? Or is the ownership
at the time the providers transmit to the market? I am comparing it to
stocks, when I buy it is mine, when I close my position, not mine anymore. -
I usually trade short time (less than 1 hr). Is there longer time
between my trades and when they are transmitted, any interest incurred? -
For losing trades, do you incur losses as well as when I make profits
in the profit-sharing arrangement? I am thinking like in a partnership we
share profits and share the losses. Or you claim/place the
cumulative profit trades only?
Thank you very much for your patience to respond to my several questions.
Thank you.
Sun, 7/7/2024, 11:53 PM UTC
Assigned Agent wrote:
Hi,
We place your trades by CFDs liquidity providers and they pay-out the profits of your trades.
Assigned Agent
Sun, 7/7/2024, 2:17 PM UTC
I wrote:**
Hi, I need some more clarifications. If “all instruments that are
available in your trading platform are CFD derivatives of the futures
underlying assets”, how then do I or you make profits that is shared? At
what stage are the trades transmitted to the market?
Thank you
Sun, 7/7/2024, 2:11 PM UTC
Assigned Agent wrote:
Hi,
We only offer CFDs on stock prices.
Assigned Agent
Tue, 7/2/2024, 6:40 AM UTC
Agent wrote:
Thank you for your email. Your ticket has been assigned to one of our departments. We’ll reply as soon as we can. We’re currently experiencing high ticket traffic, so it can take between 24-48 hours before we’ll get back to you. Thank you for your patience!
Your case number is QCZUF8.
Tue, 7/2/2024, 6:35 AM UTC
I wrote:**
Message: Hi, are Stocks Allowed or you provide ONLY CFDs of the assets? Thank you.