Supertrade.com Review & First Look

Based on looking at the website, Supertrade.com presents itself as a modern proprietary trading firm that offers traders the opportunity to access significant capital, up to $100,000, through either a “2-Phase Challenge” or an “Instant Funding” model.

The core promise is to allow individuals to trade forex, metals, indices, and cryptocurrencies with the firm’s capital, splitting profits up to 80% with the trader.

This model is designed to attract those who have trading skills but lack substantial personal capital.

The website emphasizes ease of access, low initial fees (starting at $24 for the challenge, refunded after the first payout), and flexible trading conditions like no time limits on challenges and the ability to use any strategy.

They also highlight features such as quick withdrawals, an “Elite Education” platform (Super Academy), advanced technology for trading, and 24/7 dedicated support.

Testimonials from purportedly successful traders are prominently displayed, showcasing commission figures and positive experiences with scaling up funded accounts.

From an ethical standpoint, particularly concerning Islamic finance, the very nature of Supertrade.com’s offerings raises significant concerns. The platform operates within the speculative trading domain, dealing with leveraged instruments and focusing on profiting from price movements rather than tangible asset exchange or productive partnerships. While they position it as a “skill-assessment program” and not a financial service or broker, the underlying activities—trading forex, crypto, and other instruments with leverage—are inherently problematic due to issues of riba (interest, often implied through leverage mechanisms and loan structures), gharar (excessive uncertainty and speculation), and dealing in commodities/currencies that may not be backed by real assets. For a Muslim, engaging in such activities is generally not permissible, as it deviates from the principles of ethical wealth generation, which emphasize real trade, partnership, and avoiding interest-based transactions.

Supertrade.com Business Model

Supertrade.com operates on a proprietary trading model, where the firm provides capital to traders who demonstrate proficiency.

There are two primary avenues: the 2-Phase Challenge and Instant Funding.

• 2-Phase Challenge: This involves two evaluation stages where traders must meet specific profit targets while adhering to drawdown limits (e.g., 8% profit target in Phase 1, 10% in Phase 2. 5% max daily drawdown, 10% max overall drawdown). An access fee is required for Phase 1. If successful, the fee is refunded upon the first payout from a funded account.
• Instant Funding: This option allows traders to bypass the challenge phases and receive immediate funding, typically for a higher upfront fee. The website indicates an “Access Fee REFUND” for this, suggesting a similar model where the fee is recouped upon reaching profitability and withdrawal.
• Profit Split: Traders can keep up to 80% of the profits generated from the funded accounts. This profit-sharing structure is a key incentive.
• Instruments: The platform allows trading in Forex, metals (like gold and silver), indices, and cryptocurrencies. Leverage is offered, up to 1:100 for forex, 1:50 for metals/oil/indices, and 1:2 for crypto.

Ethical Considerations in Proprietary Trading

From an Islamic perspective, the ethical considerations surrounding proprietary trading firms like Supertrade.com are multifaceted and primarily revolve around the principles of Riba, Gharar, and the nature of the underlying assets.

• Riba (Interest): The use of leverage in trading is often likened to interest-based borrowing. While Supertrade.com states they are not a broker and don’t accept deposits, the access to larger capital for a fee, combined with the mechanism of amplified gains and losses, can resemble an interest-bearing arrangement, even if not explicitly stated as such.
• Gharar (Excessive Uncertainty/Speculation): Trading highly volatile instruments like forex and cryptocurrencies with high leverage introduces an excessive degree of uncertainty. Islamic finance encourages transactions where the outcome is reasonably predictable and tangible assets are exchanged, rather than pure speculation on price movements.
• Nature of Assets: While trading metals could be permissible if done in a spot transaction with immediate possession, the leveraged and speculative nature of trading these alongside forex and crypto in a short-term, high-frequency manner generally conflicts with Islamic guidelines.
• Profit Sharing: While profit sharing (Mudarabah or Musharakah) is a core Islamic finance concept, its application must be in legitimate, productive ventures. In proprietary trading, the “capital” is provided for speculative activities, not for investment in real economic growth, which raises concerns about the permissibility of the overall partnership.

Therefore, despite the apparent benefits and structured approach, the inherent characteristics of Supertrade.com’s offering, particularly the use of leverage and speculation on volatile assets, make it largely incompatible with Islamic financial principles.

Scentreach.com Transparency & Ethical Considerations