Is subscribing to a brokerage firm to invest money in American stock exchange shares, by paying an upfront amount as an "advance share of profits" and not a subscription fee, and given that the company handles all buying and selling operations and shares profits with the client at a certain percentage, compliant with the provisions of Islamic Sharia, especially since the company claims to invest in Sharia-compliant shares?
It is not permissible to enter into the aforementioned transaction if its condition stipulates that the company will not return the subscription amount to the investor unless a profit is made, because this ensures a guaranteed profit for the company. The scholars have unanimously agreed on the invalidity of Qirad (Mudarabah) if one or both partners stipulate a known sum of money for themselves.
Summarized from the full answer at Ftawy · reviewed Sep 2, 2026
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