Cash forex trading group (CFX)
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.