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    Forex Funded Accounts

    Posted by Afzal Khan on August 9, 2025 at 1:15 pm

    Assalamu Alaikum sorry my question is too long bcz i explained very pls answer afger reading full

    In forex trading, what actually happens is that when you press the buy or sell button for gold or any currency — for example, if you buy 10 lots of gold — in reality, you haven’t actually purchased anything. You don’t receive the gold in your hand, nor does the broker, nor is it in anyone’s possession. It’s just a number displayed on a computer screen saying that you’ve bought it. It’s only an online contract, like something written on a paper that says you bought 10 lots.

    If the price goes up, you profit, and that profit comes from the loss of the person who sold at that time. That’s why scholars say this is haram (forbidden), because when there is no ownership, no possession, and money is made purely based on price fluctuations, it becomes gambling (qimār).

    —

    The method we want to trade with is different:

    There are some companies (Prop Firms) that you pay a fee to — for example, $100.

    Then those companies give you a demo account, which has virtual (fake) money in it that you can use to trade in forex.

    This money is not real — it only appears on the screen.

    But the trades you make with that money follow real market prices — meaning the simulated environment behaves like the real market.

    When you trade well and make profits, the company says that you have “passed.”

    Then, based on the profit you made using the demo account, the company pays you real money — sent to your bank.

    This is different from the kind of forex trading mentioned earlier.

    The market is the same, but in this model:

    You’re not risking your own money,

    There is no real buying or selling from your side,

    There’s no actual profit or loss involved.

    You’re simply giving a test, and you get paid based on your skills and knowledge.

    Meaning you receive compensation for your performance.

    This is very different from traditional forex, where you trade using real money — and it becomes gambling because:

    You don’t actually possess anything,

    You don’t receive gold, dollars, or any actual asset.

    —

    Now, a question arises:

    If you’re not trading with real money, then where does the company pay you from?

    The answer is: The company charges a fee before the test.

    That fee gets collected by the company.

    Since trading is not easy and not everyone can pass,

    Only 5 out of 100 people succeed, the rest don’t.

    So, the company earns from the fees of the 95 people who failed,

    And uses that money to pay the 5 successful traders.

    —

    So we have explained both models to you:

    1. First: Traditional forex where you trade with real money without possession — which is haram.

    2. Second: The Prop Firm Model, where you trade using a demo account, and the company pays you for your performance.

    Now we’ve also explained the company’s business model.

    My deal with them is:

    If I trade well in the demo (fake) account,

    And I make profit there,

    Then they pay me that profit in real money.

    Where do they get that money from?

    That’s their concern — it’s not my responsibility.

    What I get is a reward for my effort, skill, and trading performance.

    So now tell me:

    Is this method permissible (halal)?

    Or are both methods (traditional forex and this one) haram?

    —

    Afzal Khan replied 12 hours, 38 minutes ago 1 Member · 1 Reply
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