Is investing in the “Cash Forex Trading” group (CFX) permissible?

Published as Cash forex trading group (CFX)

· 11 Shaʻban 1443 AH1 min readEnglish

Question

Is investing in the “Cash Forex Trading” group (CFX) permissible?

Answer

We tried to access information on CFX through the internet, but were unable to get a proper explanation as to how CFX actually operates. We understand that it is a trading platform that trades in forex online. Generally, foreign currency is bought and sold online without the owner taking physical possession of the currency, whereas one is required to first take possession of the currency (that he purchased) before selling it. If this is the case with CFX, then we advise abstention (as such a transaction is not permissible). If their (CFX) method of operation is any different to what we have explained above, then you may revert to us with a detailed explanation of their operations, and we will then try to provide a Shari’ee ruling Insha’Allah.

N.B. Taking possession of the foreign currency means that, the forex must be transferred to one’s bank account, or a forex trading account, from which one is able to physically withdraw the currency at any given point in time.

Answered by
Mufti Mohammed Desai
Questions about this ruling, answered only from the archive with sources.

Where scholars differ, it’s safer to take the more cautious view.

Fatawa SA is an independent, read-only index of fatawa already published by Darul Ifta Ibn Masood. It is not a fatwa service. For your own situation, please ask a Mufti. Report an issue

For corrections or mistakes, please email us at fatawasa786@gmail.com.

People also ask

Is forex trading halaal?

“Forex trading contains many aspects which are against the principles of Shari’ah inter alia gambling, interest, not taking possession of the currency etc. Forex trading also evolves around speculation and estimation which is…”

Ibn Masood · 72 fatawa from 7 Darul Iftas on this

What the Darul Iftas say