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What is the ruling on investing money with a company that trades in currencies, stocks, and their indices, achieving monthly profits ranging from 10% to 15% of the capital, while the investor bears 5% of the deposited amount in case of loss?

1 min readAlso available in العربية

Investing in the aforementioned company is impermissible for two reasons: First, the capital owner's share of the profit is added to the capital, not to the profits. This is not permissible in investment, as anyone who stipulates a known amount as profit is as if they have stipulated twenty-five thousand, and this is invalid. Second, the capital owner guaranteed the entrepreneur's capital except within the limits of 5%. Guaranteeing the entrepreneur for a loss or part of it, without any transgression or negligence on their part, is impermissible. Therefore, it is not permissible to participate in this company or to engage in Mudarabah through it.

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

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