Selam Aleikum,
Is it allowed for me to trade with a prop firm if they provide real coins? (not a CFD)
Greetings,
Omar
As-salamu Alaykum,
I’m principle a firm giving you money for you to invest with and sharing profits is okay.
In practice, you have to do the due diligence.
If the funds given to you and your profits being derived from riba, then it’s haram.
For example:
Firm A gives you $100 from their cash or savings or assets
You invest in BTC, ETH, or another shari’ah compliant crypto (this is a point of debate)
You make $10 profit
You share (example) 20/80
This is fine
However, in another example:
Firm A gives you $100 from their profits from which they have impure stock profit, interest, or other impure income
This is haram as the money is haram
In another example:
Firm A give you $100
You invest it and receive interest is some form or invest it into a leveraged crypto, haram crypto
This is haram.
There is the islamic principle that when money changes hands it becomes purified (in a sense)
However, in this case, the funds are not being exchanged, they fund’s custody is given to you for a particular usage and not as a gift.
I would like you to seek out a more knowledgeable person in this matter as it can be complicated.
Jazakhalla khairan,
Maheen
Thankyou for the reply brother. As far i know i can trade with real coins and no leverage.
But i can’t tell you where their money comes from. I dont know if that’s something i dan ask them.
Wa Alaykum Salam,
When in doubt or unsure, I’d say leave it.
Also, personally, I wouldn’t trade in crypto due to the complexity, volatility, and shari’ah doubt.
Jazakhalla khairan,
Maheen
Selam aleikum,
Thanks for the concern. That’s for all instruments brother for stocks as wel haha.
So far crypto is my best option… i trade it consistent for years. But wanted to do prop firm as well as extra source of income… that’s why i was thinking about it.
Once again… thanks for the help 