Fatwa ID: 09137
Answered by Muftiyah Maryam Badshah
Question:
Assalamu Alaikum,
I seek guidance on participating in Maven Trading, a prop firm.
Maven confirmed in writing:
- Fully simulated — no real market execution
- No trade mirroring or copying
- Zero swap — no interest
- Fee refunded after 3rd payout
- Fixed 80/20 profit split
- Trading data not used internally
- Payouts from Maven directly (funded by challenge fees)
I frame this as Ju’alah:
— Defined task: pass the evaluation
— Defined reward: 80% profits
— Fee is a refundable deposit, not a gambling stake
— No riba, no gharar, no maysir
— Structurally similar to a skill competition with a prize pool
Questions:
- Is this permissible?
- Does the Ju’alah framing hold?
- Any remaining concerns?
JazakAllahu Khairan
Wassalamu Alaikum
In the name of Allah, the Most Gracious, the Most Merciful
Answer:
A swap-free account is an attempt to avoid or remove the riba (interest) aspect of leverage loans. However, whilst one may have a swap-free account, one should be aware that it does not automatically render all activities halal. Whilst it may seem to be a means for a Muslim to pursue riba-free investment activities, an individual still needs to ensure there are no hidden costs or limits to these swap-free accounts, as well as that the activities they wish to pursue are also halal. Keeping this in mind, Proprietary Trading is not permissible (haram) due to several factors:[1]
1) The vast majority of derivative trades are haram (impermissible) as a result of various aspects, including lack of asset possession and ambiguities in the trading details at the time of the trade.[2]
2) Payment is made for access to their services via the membership or evaluation fees. This includes resources on how to make impermissible trades of non-shari’ah compliant and riba-based assets.
3) Using the service entails teaching the firm how to make impermissible trades. This is through the platform’s “challenges”, where a trader’s data is used by the firm to learn, teach and replicate the trader’s successful trade strategies in the live market for themselves. As seen below, Maven Trading is amongst the many trading firms that use their client’s simulation data for their own trading, and this information has been mentioned both in their terms and conditions and blog. It is for their free usage of a user’s data that Maven is able to grant payments to their demo account holders. I also contacted Maven directly regarding their copying/mirroring trades. As such, making haram trades in this virtual environment will remain impermissible.[3]
“User Submissions: By providing us with your trading strategies, feedback, or any other content, you grant us a royalty-free license to use that information for the purpose of improving our platform and for risk management.” (Terms and Conditions, Maven)
“At Maven Trading, we allow traders to make frequent withdrawals. This means we always need funds in place available to pay our successful traders.
How do we ensure this? Copy trading!
We closely monitor our best day traders and their successful moves. We assess the risks and we might “copy” those trades to generate income. That way, there’s always money in place to fund withdrawals – and we’re making money, too.” (Blog, Maven)
4) Gambling on your performance with your payment for the access to their trading account/platform as forfeit. If a ‘trader’ passes a challenge they ‘win’ a payout and continued access to their account. However, if they fail to reach the challenge goals or incur ‘loss’, the account which they had paid for will be closed without a refund. The trader is essentially gambling to remain on the platform and to continue using their services.[4]
The Messenger of Allah (saw) said: “Whoever sets a good precedent in Islam, then for him is it’s reward and the reward of those who act upon it after him, without any deduction from their reward in the slightest; and whoever sets an evil precedent in Islam, upon him is it’s burden and the burden of those who act upon it after him, without any deduction from their burden in the slightest.” (Sahih Muslim) [5]
In regards to Ju’alah, this is when a person announces that they will give a specified reward to whoever achieves a specific result. Even if there was a trading firm which satisfied the requirements for this type of transaction, Ju’alah is not permissible according to the Hanafi madhab due to the excessive amount of uncertainty in the terms of the contract (gharar).[6]
To conclude, it would not be permissible to make trades on a Maven Trading simulated account, and it would also not be permissible to profit from or make use of their platform.
Only Allah ﷻ knows best.
Written by Muftiyah Maryam Badshah
Checked and approved by Mufti Mohammed Tosir Miah
Darul Ifta Birmingham
References:
[1]
وَأَمَّا شَرَائِطُ الصِّحَّةِ فَعَامَّةٌ وَخَاصَّةٌ فَالْعَامَّةُ لِكُلِّ بَيْعٍ مَا هُوَ شَرْطُ الِانْعِقَادِ؛ لِأَنَّ مَا لَا يَنْعَقِدُ لَمْ يَصِحَّ وَلَا يَنْعَكِسُ، فَإِنَّ الْفَاسِدَ عِنْدَنَا مُنْعَقِدٌ نَافِذٌ إذَا اتَّصَلَ بِهِ الْقَبْضُ، وَمِنْهَا أَنْ لَا يَكُونَ مُؤَقَّتًا، فَإِنْ أَقَّتَهُ لَمْ يَصِحَّ بِخِلَافِ الْإِجَارَةِ، فَإِنَّ التَّأْقِيتَ شَرْطُهَا، وَمِنْهَا أَنْ يَكُونَ الْمَبِيعُ مَعْلُومًا وَالثَّمَنُ مَعْلُومًا عِلْمًا يَمْنَعُ مِنْ الْمُنَازَعَةِ فَالْمَجْهُولُ جَهَالَةً مُفْضِيَةً إلَيْهَا غَيْرُ صَحِيحٍ كَشَاةٍ مِنْ هَذَا الْقَطِيعِ وَبَيْعُ الشَّيْءِ بِقِيمَتِهِ وَبِحُكْمِ فُلَانٍ، وَمِنْهَا خُلُوُّهُ عَنْ شَرْطٍ مُفْسِدٍ وَهُوَ أَنْوَاعٌ شُرِطَ فِي وُجُودِهِ غَرَرٌ كَاشْتِرَاطِ حَمْلِ الْبَهِيمَةِ…
Al-Bahr Al-Rāiq (Vol.5, pg.281, Dār Al-Kitab Al-Islami)
(قَوْلُهُ وَيَصِحُّ فِيمَا أَمْكَنَ ضَبْطُ صِفَتِهِ) لِأَنَّهُ دَيْنٌ وَهُوَ لَا يُعْرَفُ إلَّا بِالْوَصْفِ فَإِذَا لَمْ يُمْكِنْ ضَبْطُهُ بِهِ يَكُونُ مَجْهُولًا جَهَالَةً تُفْضِي إلَى الْمُنَازَعَةِ، فَلَا يَجُوزُ كَسَائِرِ الدُّيُونِ نَهْرٌ…
Raddul Muhtār (Vol.5, pg.209, Dār Al-Fiqr)
(وَمِنْهَا) أَنْ يَكُونَ مَقْبُوضًا فِي مَجْلِسِ السَّلَمِ لِأَنَّ الْمُسْلَمَ فِيهِ دَيْنٌ، وَالِافْتِرَاقُ لَا عَنْ قَبْضِ رَأْسِ الْمَالِ يَكُونُ افْتِرَاقًا عَنْ دَيْنٍ بِدَيْنٍ وَإِنَّهُ مَنْهِيٌّ عَنْهُ لِمَا رُوِيَ أَنْ رَسُولَ اللَّهِ ﷺ «نَهَى عَنْ بَيْعِ الْكَالِئِ بِالْكَالِئِ» أَيْ النَّسِيئَةِ بِالنَّسِيئَةِ، وَلِأَنَّ مَأْخَذَ هَذَا الْعَقْدِ دَلِيلٌ عَلَى هَذَا الشَّرْط…
Badā’i’ Al-Ṣanā’i’ (Vol.5, pg.202, Dār Al-Kutub Al-’Ilmiyyah)
وَإِذَا عَرَفْت الْمَبِيعَ وَالثَّمَنَ فَنَقُولُ مِنْ حُكْمِ الْمَبِيعِ إذَا كَانَ مَنْقُولًا أَنْ لَا يَجُوزَ بَيْعُهُ قَبْلَ الْقَبْضِ… وَمَا لَا يَجُوزُ بَيْعُهُ قَبْلَ الْقَبْضِ لَا يَجُوزُ إجَازَتُهُ
Al-Fatāwa al-Hindiyyah (Vol.3, pg.13, Dār Al-Fiqr)
[2]
لِمَا رَوَى أَبُو حَنِيفَةَ عَنْ عَمْرِو بْنِ شُعَيْبٍ عَنْ أَبِيهِ عَنْ جَدِّهِ أَنَّ رَسُولَ اللَّهِ ﷺ «نَهَى عَنْ بَيْعٍ وَشَرْطٍ» وَالنَّهْيُ يَقْتَضِي فَسَادَ الْمَنْهِيِّ فَيَدُلُّ عَلَى فَسَادِ كُلِّ بَيْعٍ وَشَرْطٍ إلَّا مَا خُصَّ عَنْ عُمُومِ النَّصِّ؛ وَلِأَنَّ هَذِهِ الشُّرُوطَ بَعْضُهَا فِيهِ مَنْفَعَةٌ زَائِدَةٌ تَرْجِعُ إلَى الْعَاقِدَيْنِ، أَوْ إلَى غَيْرِهِمَا، وَزِيَادَةُ مَنْفَعَةٍ مَشْرُوطَةٍ فِي عَقْدِ الْبَيْعِ تَكُونُ رِبًا وَالرِّبَا حَرَامٌ، وَالْبَيْعُ الَّذِي فِيهِ رِبًا فَاسِدٌ وَبَعْضُهَا فِيهِ غَرَرٌ «، وَنَهَى رَسُولُ اللَّهِ ﷺ عَنْ بَيْعٍ فِيهِ غَرَرٌ» وَالْمَنْهِيُّ عَنْهُ فَاسِدٌ، وَبَعْضُهَا شَرْطُ التَّلَهِّي وَأَنَّهُ مَحْظُورٌ، وَبَعْضُهَا يُغَيِّرُ مُقْتَضَى الْعَقْدِ وَهُوَ مَعْنَى الْفَسَادِ، إذْ الْفَسَادُ هُوَ التَّغْيِيرُ وَاَللَّهُ ﷾ أَعْلَمُ.
Badā’i’ Al-Ṣanā’i’ (Vol.5, pg.175-6, Dār Al-Kutub Al-’Ilmiyyah)
وَذَكَرَ فِي الدُّرَرِ أَنَّ النَّهْيَ عَنْ إلْقَاءِ الْحَجَرِ أُلْحِقَ بِالْأَوَّلَيْنِ دَلَالَةً (قَوْلُهُ لِوُجُودِ الْقِمَارِ) أَيْ بِسَبَبِ تَعْلِيقِ التَّمْلِيكِ بِأَحَدِ هَذِهِ الْأَفْعَالِ.
Raddul Muhtār (Vol.5, pg.65-6, Dār Al-Fiqr)
(وَ) فَسَدَ (بَيْعُ سَمَكٍ لَمْ يُصَدْ) لَوْ بِالْعَرْضِ وَإِلَّا فَبَاطِلٌ لِعَدَمِ الْمِلْكِ صَدْرُ الشَّرِيعَةِ (أَوْ) (صِيدَ ثُمَّ أُلْقِيَ فِي مَكَان لَا يُؤْخَذُ مِنْهُ إلَّا بِحِيلَةٍ) لِلْعَجْزِ عَنْ التَّسْلِيمِ (وَإِنْ أُخِذَ بِدُونِهَا صَحَّ) وَلَهُ خِيَارُ الرُّؤْيَةِ (إلَّا إذَا دَخَلَ بِنَفْسِهِ وَلَمْ يَسُدَّ مَدْخَلَهُ) فَلَوْ سَدَّهُ مَلَكَهُ.
Raddul Muhtār (Vol.5, pg.60, Dār Al-Fiqr)
[2]
وَأَمَّا التِّبْرُ فَهَلْ يَصْلُحُ رَأْسَ مَالِ الشَّرِكَةِ؟ ذُكِرَ فِي كِتَابِ الشَّرِكَةِ وَجَعَلَهُ كَالْعُرُوضِ وَفِي كِتَابِ الصَّرْفِ جَعَلَهُ كَالْأَثْمَانِ الْمُطْلَقَةِ؛ لِأَنَّهُ قَالَ فِيهِ: إذَا اشْتَرَى بِهِ فَهَلَكَ لَا يَنْفَسِخُ الْعَقْدُ، وَالْأَمْرُ فِيهِ مَوْكُولٌ إلَى تَعَامُلِ النَّاسِ، فَإِنْ كَانُوا يَتَعَامَلُونَ بِهِ فَحُكْمُهُ حُكْمُ الْأَثْمَانِ الْمُطْلَقَةِ، فَتَجُوزُ الشَّرِكَةُ بِهَا وَإِنْ كَانُوا لَا يَتَعَامَلُونَ بِهَا فَحُكْمُهَا حُكْمُ الْعُرُوضِ، وَلَا تَجُوزُ فِيهَا الشَّرِكَةُ.
Badā’i’ Al-Ṣanā’i’ (Vol.6, pg.56, Dār Al-Kutub Al-’Ilmiyyah)
بَابُ الصَّرْفِ عَنْوَنَهُ بِالْبَابِ لَا بِالْكِتَابِ؛ لِأَنَّهُ مِنْ أَنْوَاعِ الْبَيْعِ (هُوَ) لُغَةً الزِّيَادَةُ. وَشَرْعًا (بَيْعُ الثَّمَنِ بِالثَّمَنِ) أَيْ مَا خُلِقَ لِلثَّمَنِيَّةِ وَمِنْهُ الْمَصُوغُ (جِنْسًا بِجِنْسٍ أَوْ بِغَيْرِ جِنْسٍ) كَذَهَبٍ بِفِضَّةٍ (وَيُشْتَرَطُ) عَدَمُ التَّأْجِيلِ وَالْخِيَارِ وَ (التَّمَاثُلُ) – أَيْ التَّسَاوِي وَزْنًا (وَالتَّقَابُضُ) بِالْبَرَاجِمِ لَا بِالتَّخْلِيَةِ (قَبْلَ الِافْتِرَاقِ) وَهُوَ شَرْطُ بَقَائِهِ صَحِيحًا عَلَى الصَّحِيحِ (إنْ اتَّحَدَ جِنْسًا وَإِنْ) وَصْلِيَّةٌ (اخْتَلَفَا جَوْدَةً وَصِيَاغَةً) لِمَا مَرَّ فِي الرِّبَا (وَإِلَّا) بِأَنْ لَمْ يَتَجَانَسَا (شُرِطَ التَّقَابُضُ) لِحُرْمَةِ النَّسَاءِ (فَلَوْ بَاعَ) النَّقْدَيْنِ (أَحَدَهُمَا بِالْآخَرِ جُزَافًا أَوْ بِفَضْلٍ وَتَقَابَضَا فِيهِ) أَيْ الْمَجْلِسِ (صَحَّ، وَ) الْعِوَضَانِ (لَا يَتَعَيَّنَانِ) حَتَّى لَوْ اسْتَقْرَضَا فَأَدَّيَا قَبْلَ افْتِرَاقِهِمَا أَوْ أَمْسَكَا مَا أَشَارَ إلَيْهِ فِي الْعَقْدِ وَأَدَّيَا مِثْلَهُمَا جَازَ.
Raddul Muhtār (Vol.5, pg.257-9, Dār Al-Fiqr)
[3]
https://maventrading.com/terms-and-conditions
https://maventrading.com/blog/how-do-prop-firms-make-money
[4]
(وَمَا لَا تَصِحُّ) إضَافَتُهُ (إلَى الْمُسْتَقْبَلِ) عَشَرَةٌ (الْبَيْعُ، وَإِجَازَتُهُ، وَفَسْخُهُ، وَالْقِسْمَةُ وَالشَّرِكَةُ وَالْهِبَةُ وَالنِّكَاحُ وَالرَّجْعَةُ وَالصُّلْحُ عَنْ مَالٍ وَالْإِبْرَاءُ عَنْ الدَّيْنِ) لِأَنَّهَا تَمْلِيكَاتٌ لِلْحَالِ فَلَا تُضَافُ لِلِاسْتِقْبَالِ كَمَا لَا تُعَلَّقُ بِالشَّرْطِ لِمَا فِيهِ مِنْ الْقِمَارِ، وَبَقِيَ الْوَكَالَةُ عَلَى قَوْلِ الثَّانِي الْمُفْتَى بِهِ…
…قُلْت: وَيَظْهَرُ مِنْ هَذَا وَمِمَّا ذَكَرْنَاهُ آنِفًا عَنْ الدُّرَرِ أَنَّ الْإِضَافَةَ تَصِحُّ فِيمَا لَا يُمْكِنُ تَمْلِيكُهُ لِلْحَالِ وَفِيمَا كَانَ مِنْ الْإِطْلَاقَاتِ وَالْإِسْقَاطَاتِ وَالِالْتِزَامَاتِ وَالْوِلَايَاتِ، وَلَا تَصِحُّ فِي كُلِّ مَا أَمْكَنَ تَمْلِيكُهُ لِلْحَالِ تَأَمَّلْ (قَوْلُهُ لِمَا فِيهِ مِنْ الْقِمَارِ) هُوَ الْمُرَاهَنَةُ كَمَا فِي الْقَامُوسِ، وَفِيهِ الْمُرَاهَنَةُ، وَالرِّهَانُ الْمُخَاطَرَةُ.
وَحَاصِلُهُ أَنَّهُ تَمْلِيكٌ عَلَى سَبِيلِ الْمُخَاطَرَةِ. وَلَمَّا كَانَتْ هَذِهِ تَمْلِيكَاتٌ لِلْحَالِ لَمْ يَصِحَّ تَعْلِيقُهَا بِالْخَطَرِ لِوُجُودِ مَعْنَى الْقِمَارِ
Raddul Muhtār (Vol.5, pg.256-7, Dār Al-Fiqr)
[5]
حَدَّثَنِي مُحَمَّدُ بْنُ الْمُثَنَّى الْعَنَزِيُّ، أَخْبَرَنَا مُحَمَّدُ بْنُ جَعْفَرٍ، حَدَّثَنَا شُعْبَةُ، عَنْ عَوْنِ، بْنِ أَبِي جُحَيْفَةَ عَنِ الْمُنْذِرِ بْنِ جَرِيرٍ، عَنْ أَبِيهِ… فَقَالَ رَسُولُ اللَّهِ صلى الله عليه وسلم ” مَنْ سَنَّ فِي الإِسْلاَمِ سُنَّةً حَسَنَةً فَلَهُ أَجْرُهَا وَأَجْرُ مَنْ عَمِلَ بِهَا بَعْدَهُ مِنْ غَيْرِ أَنْ يَنْقُصَ مِنْ أُجُورِهِمْ شَىْءٌ وَمَنْ سَنَّ فِي الإِسْلاَمِ سُنَّةً سَيِّئَةً كَانَ عَلَيْهِ وِزْرُهَا وَوِزْرُ مَنْ عَمِلَ بِهَا مِنْ بَعْدِهِ مِنْ غَيْرِ أَنْ يَنْقُصَ مِنْ أَوْزَارِهِمْ شَىْءٌ ” .
Sahih Muslim 1017a (Bk.12, ch.20 , sunnah.com)
[6]
AAOIFI Shari’ah Standard No. (15), Ju’alah, (pg.426, aaoifi.com)
حُكْمُ الْجِعَالَةِ، وَدَلِيل شَرْعِيَّتِهَا:
٣ – عَقْدُ الْجِعَالَةِ مُبَاحٌ شَرْعًا عِنْدَ الْمَالِكِيَّةِ وَالشَّافِعِيَّةِ، وَالْحَنَابِلَةِ، إِلاَّ أَنَّ الْمَالِكِيَّةَ يَقُولُونَ: إِنَّهَا جَائِزَةٌ بِطَرِيقِ الرُّخْصَةِ، اتِّفَاقًا، وَالْقِيَاسُ عَدَمُ جَوَازِهَا بَل عَدَمُ صِحَّتِهَا لِلْغَرَرِ الَّذِي يَتَضَمَّنُهُ عَقْدُهَا، وَإِنَّمَا خَرَجَتْ عَنْ ذَلِكَ إِلَى الْجَوَازِ لِلأَْدِلَّةِ التَّالِيَةِ:
Al-Mawsoo’ah Al-Fiqhiyyah Al-Kuwaitiyyah (Vol.15, pg.208, Dār Al-Salāsil)