Assalmualiakum wah rah mahtullah.
I hope that you could answer 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 My forex funds. Essentially, it allows you to trade Forex,metals,indicies, crypto etc. You essentially pay a deposit fee to take part in their 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. Forex is generally not Shariah compliant. Even the so-called “Islamic” accounts are not free from problematic elements. Metals / Currencies are generally traded through CFDs which are not compliant. So I can trde on FX market through this route. If I pass they would provide me with a demo account and then any profit I make is split into a 75-25 split to me. Additionally the deposit fee I payed will get refunded back to me along with the first months profit.
In this whole scenario my own money isn’t involve in future / forex market, I trade on companies capital. I sale only efforts and skills to company for trade in a live foreign exchange market with large capital.
So my question is, would earning money like this methord to be considered Halal or Haram ?
You can read more about them on their website: https://myforexfunds.com/
Account type (Evaluation).
As you are aware, trading forex is not usually permissible due to the factors mentioned in the question. The same would still apply if you are trading using the company’s capital as you are still engaging in unlawful transactions, though it is on behalf of another party. For this reason the above mentioned set-up would not be permissible.
Ifta Research Fellow
Checked & Approved by:
Mufti Abdul Rahman Mangera
Mufti Zubair Patel