Back to search

Is it permissible for a trade in which a third party pays a sum of money and obtains a variable profit, while the intermediary takes a fixed percentage of the third party's profits?

1 min readAlso available in العربية

The second partner is merely a broker; he does not own the money but rather takes it from others. It is not permissible to set his fee as a percentage of the merchant's profit due to ignorance (of the exact amount) and uncertainty. If the contract is rendered invalid, the broker is only entitled to a fair market wage (ujrat al-mithl), and he has no share in the profit. As for the contract between the merchant and the capital owners, if the merchant acts as a Mudarib (investment manager) who is not liable for the capital or a specific profit, and he shares in the profit while the capital bears the loss without any negligence on his part, then this contract is permissible.

Summarized from the full answer at Ftawy · reviewed Sep 2, 2026

Read the full answer on Ftawy