What is the ruling on dealing with prop trading firms—such as FTMO—that require purchasing a three-month challenge to prove a trader's success, then fund them with an account using the company's capital, provided that the profit split is 20% for the company and 80% for the trader, and the company bears the full loss, with the challenge fee being refunded to the trader upon the first withdrawal, and trading is in gold, forex, and stock indices, and the company provides leverage for its account without additional commissions other than a percentage of the profit?
It is not permissible to deal with FTMO company. The condition of paying fees for the challenge falls under prohibited gambling, as whoever succeeds gets their money back, and whoever loses does not. This involves a guaranteed loss and a potential gain, which is the essence of gambling (al-maysir). Furthermore, trading through the company in gold, forex, and stock indices is not permissible due to the absence of spot exchange (taqabud) in gold, and because it involves prohibited elements such as Contracts for Difference (CFDs), options, and futures.
Summarized from the full answer at Ftawy · reviewed Sep 2, 2026
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