What is the ruling on dealing with an online investment company that acts as a broker in global currency trading (FOREX) and offers account management services to investors in exchange for a variable weekly interest ranging from 8% to 12%?

"Extreme caution should be exercised when dealing with foreign companies online, especially concerning investments, as one may be exposed to fraud or illicit transactions.

Currency trading is permissible, provided that possession (qabd) occurs in the same session of the contract. Hand-to-hand exchange of currencies is a fundamental condition for its validity. Contemporary scholars have permitted online currency trading, provided there is something that stands in place of physical possession, such as direct transfer from the seller's account to the buyer's account, or the buyer's agent receiving certified bank checks. The Islamic Fiqh Academy has affirmed that the banking entry of the amount into the customer's account is considered constructive possession (qabd hukmi).

However, scholars of financial transactions have indicated that currency trading via the internet often lacks the condition of actual possession, which renders it impermissible.

There are two reasons for the prohibition of the aforementioned transaction: 1. The absence of immediate possession in online currency trading. 2. The invalidity of the Mudarabah (profit-sharing) contract which specifies a percentage of profits from the capital (8-12% weekly), whereas the profits should be a percentage of the actual gain.

Furthermore, borrowing under the "margin" system is prohibited because it is an interest-bearing loan (riba), and it does not involve lawful possession, and it entails significant risk, making it akin to gambling. Therefore, it is advised to avoid these prohibited dealings and risking a Muslim's wealth."