Are binary options halal and compatible with Islamic traditions?

This has become an important question for potential traders in the Muslim options, as the financial industry makes online trading accounts available to everyone. Here we look at what Sharia Law means for binary options trading and whether it is ‘Halal’ or ‘Haram’. The development of online commerce in the financial sector over the past two decades has opened up new horizons for retailers of all races and creeds. Since a quarter of the world’s population is Muslim, more and more Muslim traders are forced to participate in the online Islamic binary options scene. In Islamic economic jurisdiction or sharia law, the imposition of ‘Riva’ or interest is prohibited and considered a major sin. Many brokers picked up on the idea of ‘halal’ and saw the opportunity to benefit themselves and Muslim traders.

Halal Binary Options Brokers, Africa

These brokers market specific account types that operate with halal and are compatible with Islamic traditions and sharia laws.

Brokers are filtered based on location (Africa). Refresh this page with location filtering
General warning: capital is at risk
* For successful investments, the amount is credited to your account

Is the binary option halal or haram?

Muslim life is guided by sharia law. Sharia is an old Arabic word that actually means ‘the path to follow’. Muslims must adhere to Islamic principles that cover all aspects of life, from social issues to the holy Quran to the economic problems described. In the area of banking and investments, Sharia law prohibits lending money. Instead, investment in the Islamic world is governed by the concept of “risk sharing” through principles such as Bai’al’inah (sales and repurchase agreements), Bai’bithaman ajil (delayed sales) and Bai’muajjal (credit sales). ), Bai Salam, Mudaraba (profit share), Muraba and Musawa

When sharia law applies to binary options trading, it means you are not allowed to take overnight positions or claim interest. On the financial market, trading takes place every 24 hours. All public market locations roll over to the next 24 hour cycle until 5:00 PM in New York. Then daily interest is added to the brokerage account. The fact that a binary broker debits a client’s account with the same profit as a foreign exchange broker or that an interest may be incurred or paid during a trading transaction makes the transaction ‘parallel’ to a Muslim. This situation creates a conflicting course with religious beliefs for Muslim merchants.

Islamic Trading Account

To overcome this dilemma, some innovative binary options brokers came up with the idea of an Islamic trading account or a “swap-free” account that eliminates all forms of Riba during trading. Instead of automatically transferring open market positions to pay overnight interest, open positions in Islamic trading accounts are closed and reopened immediately after 5:00 PM in New York, thus avoiding interest payable during a 24-hour cycle. you.

In order to be able to claim that a broker offers trading accounts according to Islamic principles, these accounts must at least meet the following conditions:

  • Immediate execution of the agreement
  • Immediate resolution of transaction costs
  • Do not pay interest on the transaction

We have compiled a list of the top binary brokers that offer Islamic trading accounts to help traders choose brokers to offer Islamic trading accounts. The above list is not exhaustive, but only a guide.

Other considerations

If someone has used a Halal Binary Options account, but you have little or no knowledge of how to trade or how to trade, you will be gambling with Binary Options. It is definitely Haram. Only individual traders will know if this is true.

In addition, every contract or transaction must have a ‘winner’ and a ‘loser’, which means that binary options cannot be halal, because not all parties can earn profit or extract value from the transaction. . Some brokers provide ‘Islamic’ accounts and take steps to comply with Islamic principles, but there will always be people who view the whole concept of binary options as haram.

This website (binaryoptions.net) cannot take a position on whether binary options are really halal or haram. Indeed we cannot advise on the matter as it may depend on the skills of the individual traders. Consult the references below for further explanation.