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The question

What is the ruling on dealing with the New Zealand company "Star Capital," which operates in currency trading in the Forex market, invests clients' deposited funds with a minimum of $1000, provides variable monthly returns ranging from 5.11% to 7.23%, guarantees only 97% of the deposited funds, offers commissions to referrers ranging from 5% to 10% of the referred clients' profits without diminishing their profits, allows withdrawal of funds and profits at any time, and applies compound interest to unwithdrawn profits?

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Source: FtawySummarized from the full answer at Ftawy · imported Sep 2, 20261 min readAlso available in العربية
The answer

The contractual relationship between the client and the company constitutes a corrupt Mudarabah (partnership) from several perspectives:

Firstly, the profit is not determined for both parties. The original principle is that it should be a known, common percentage, not a fixed amount or a percentage of the capital.

Secondly, the company's guarantee of 97% of the client's funds contradicts the condition of Mudarabah, which dictates that losses are borne solely by the capital. This guarantee condition is therefore void.

Thirdly, the Mudarabah is restricted to currency trading in the Forex market, which is fraught with শরিয়া (Sharia) prohibitions, such as the margin system (combining a loan and brokerage) and overnight trades (usurious loan), in addition to the lack of verification regarding the controls of currency exchange.

Therefore, it is impermissible to deal with this company or to bring clients to it, as it falls under cooperation in sin.

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Ftawy
Original fatwa ID
136076
Imported
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