Managing a Forex account and getting paid for it
Question
Assalāmu Alaikum,
There are forex trading companies that offer funded accounts that you can manage and get a specified percentage of the profit every month. FTMO is a veery popular one. would it be permissable for us to manage a funded forex account and get paid for doing this?
Jazakumullah khair,
Imran
Answer
In the Name of Allah, the Most Gracious, the Most Merciful.
As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.
FTMO is a proprietary trading firm that allows traders to trade in forex using a funded account. The account belongs to and is fully funded by FTMO, and competent retail traders are afforded the opportunity to trade risk-free. The retail trader is granted access to several platforms and resources. The trader receives 70% of profits accrued while all losses are borne by FTMO.
It is important to note that online forex trading is impermissible, as it is a form of non-deliverable trading agreements, where delivery of the currencies never occurs. There is no actual trading and exchanging of currencies. One merely takes a position on the movement of a currency pair.
Online forex trading is tantamount to gambling, where one will be staking his wealth against the broker.
Accordingly, it is not permissible to manage a funded forex account as it will be assisting in sin, which is prohibited.[1] Allah Taala says:
Translation: "And do not help each other in sin and aggression." (Al-Maaidah: 2)
And Allah Ta’āla Knows Best
Shakib Alam
Student - Darul Iftaa
Pennsylvania, USA
Checked and Approved by,
Mufti Ebrahim Desai.
References (Arabic / Urdu sources)
وَلَا تَعَاوَنُوا عَلَى الْإِثْمِ وَالْعُدْوٰنِ (مائدة 2)
[1] رد المحتار علي الدر المختار (ج6 ص360) دار الفكر
فإذا ثبت كراهة لبسها للتختم ثبت كراهة بيعها وصيغها لما فيه من الإعانة على ما لا يجوز وكل ما أدى إلى ما لا يجوز لا يجوز وتمامه في شرح الوهبانية.
المبسوط للسرخسي (ج4 ص96)
والإعانة على المعصية معصية فقد سمى رسول الله - صلى الله عليه وسلم - المعين شريكا، ولأن الواجب عليه أن يأمره بالمعروف وينهاه عن التعرض للصيد فإذا اشتغل بالإعانة فقد أتى بضد ما هو واجب عليه فكان عاصيا فيه.
درر الحكام شرح غرر الاحكام (ج4 ص316)
وقد نقل عن الحلواني أنه ما كان شنيعا بين المسلمين وفيه هتك حرمة الله والدين فهو كبيرة وكذا الإعانة على المعاصي والفجور والحث عليها من جملة الكبائر.
- Answered by
- Shakib Alam
- Checked & approved by
- Mufti Ebrahim Desai
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