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Forex Funded Accounts
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).
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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.
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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.
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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?
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6 Replies
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Forex Funded Accounts
updated 1 month ago
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Pls reply
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Neither of the methods are Haram in their absolute sense.
As far as the objection raised by the scholars on the first method is concerned, you can read our detailed response below:
As far as the second method is concerned, there does not seem anything objectionable on the face of it. However, if there is some element which appears objectionable to you, then please mention that.
ask.ghamidi.org
Permissibility Of Owning The Stock - Ask Ghamidi
Is owning the stock a compulsion for short selling to be halal? Cant we do short selling by borrowing rather than owning the stock. I'd like to know
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Questions 1 regarding regaular forex so why the other scholars say its haram bcz its cfd we don’t buy sell anything only contracts isn’t haram idk pls tell me
Questions 2 is that funded acc trading one question arises in my mind that isn’t it gambling mtlb sometime i find other scholars say bcz i don’t think its gambling pls correct i am wrong that if i pay fees to access a test and after passing a test still trade in demo i got paid for my performance but company’s who pay me thier main income source is fron the trader who didn’t passes the test and from there fees i grt funded and company’s make profit what do you think about it reply the best answers
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For Question 1: Please read the link shared above. All technical details are provided there regarding the requirement of physical possession of an asset and why we think otherwise.
For Question 2: There is nothing objectionable as per the details mentioned. People are being paid for their skills which is ethically not objectionable. This is not gambling. Gambling involves “mere chance” being played collectively by people (2 or more) where one party is bound to gain from other party’s loss. And the party gaining had no moral right over the money being earned.
In the scenario discussed, there is no game of chance and secondly demonstration of skills establishes moral right over the money being earned.
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I want to continue with method 2 so shoud i do its halal pls confirm one again pls
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Please also refer to the video below from 23:37 to 25:47
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