Fatwa

Information about iwalternative

Question

Assalamualaikum i would like to get some information on iwalternative, its an online app in which lets say if you invest 300 dollars they give you 10 dollars everyday.. which is 300 dollar  a month. So i would like to know about this app if you guys enlighten us regarding this matter

Answer

In the Name of Allah, the Most Gracious, the Most Merciful.

As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.

It is difficult to issue a ruling regarding all apps without personally using the said apps and experiencing how they operate.

Nevertheless, there are certain guidelines which can work as markers to determine permissibility or impermissibility of such trading.

1. The purchase or sale of crypto/shares/currencies for cash or vice versa occurs on a cash basis and not on a credit basis.
2. There is no guaranteed return. Returns must be based purely on performance of the shares/currencies in the market.
3. The structure is not set up as a multi-level marketing scheme. Although multi-level marketing is not impermissible by default, there are a lot of issues with such structures which are unethical.

Our understanding is that this app would not be permissible as a return of 10 dollars daily is guaranteed and is therefore interest.

And Allah Ta’āla Knows Best

Mufti Bilal Pandor

Concurred by
Mufti Muhammad IV Patel

Darul Iftaa Mahmudiyyah
Lusaka, Zambia

www.daruliftaazambia.com