Is Binary Options trading halal or haram? – 6 best Islamic brokers

If you are a Muslim and trust Islamic rules, you may have doubts regarding binary options trading. Many Muslims ask whether binary options trading lies under Sharia law or not, which Islam lovers always maintain. 

However, there are some hoaxes regarding binary options in Islamic trading, such that binary options are haram. So, here in this write-up, you’ll see whether they are haram or halal. Firstly, 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.

See the best halal binary trading accounts:

See the list of the 6 best halal binary options brokers, that are halal here:

1. Pocket Option – Best Islamic broker for binary trading with highest return
2. Quotex – Trusted by thousands of Muslim traders around the world
3. IQ Option – Flexible trading platform
4. Expert Option – Practice trading risk-free with one click using a demo account
5. Deriv – Sharia-compliant offers and assets available
6. Exnova – Modern platform with great user experience

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 the relevant laws regarding trading are given in Sharia Law. Here are the statements of Sharia law regarding trading.

1. Sharia law never allows gambling.
2. Sharia law strictly prohibits being greedy.
3. Sharia Law never allows earning through riba or interest.

Have you found out about the problem now? The problem is those who have a wrong concept about trading are blaming this on 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 part of gambling, making someone greedy, or a way of earning through riba?

Is Binary trading halal? – Our explanation

As there are mainly three points that can clarify binary trading options, let’s try to figure these out thanks to a proper explanation.

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, plenty 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 understood human minds easily. 

They knew the hopeful minds 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.

However, a good strategic plan is required here. If you invest your brain and Invest in the right stocks, you can easily earn money. Plenty of brokers like Quotex, IQ Option, and Pocket Option are there. Numerous 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 the 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 binary brokers. However, first, let’s have a look at what they are offering.

List of the 6 best binary options brokers that are halal

Here, we present the 6 best binary options brokers that are halal. They all adhere to Islamic principles, ensuring that their trading platforms and practices align with the requirements of Sharia law. These brokers prioritize responsible risk management, transparency, and fairness in their transactions, offering an ethical trading environment for Muslim traders. These brokers have successfully created halal trading platforms that allow you to invest with confidence and peace of mind.

1. Pocket Option – Best Islamic broker for binary trading with highest return

Pocket Option is a the best binary brokerage firm for Islamic traders; however, it is not open to US traders. The company has its headquarters in Saint Lucia and is available for Muslim traders.

• 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. Quotex – Trusted by thousands of Muslim traders around the world

Quotex is another bigger platform for brokerage firms. The headquarters 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 follows 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 offer 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.

3. IQ Option – Flexible trading platform

The headquarters of this organization is in Stant Vincent. The IQ Option LLC. Is popular when it comes to binary trading options. Early closure is available on this proprietary trading platform. 

• This platform follows the laws and regulations. The brokerage firm has an official business license. So, you can be 100% assured about the security.
• A 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 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 and Classic options are all being traded by them under full responsibility. So, you must give IQ Options a try.

4. Expert Option – Practice trading risk-free with one click using a demo account

Expert Option provides an early closure feature, enhancing trading flexibility. With a valid business license, this platform complies with laws and regulations, offering secure trading. Multiple payment options are available, including wire transfer, credit card, debit card, Perfect Money, and many more. Expert Option enables trades starting from $1 up to $5000, discouraging excessive trading and greed. The platform offers a wide range of assets, including currencies, commodities, stocks, and more, all compliant with Islamic principles.

• Advanced analytical tools for informed decision-making.
• User-friendly interface for all experience levels.
• Responsive customer support for prompt assistance.
• Robust security measures to protect user information.
• Mobile app for convenient on-the-go trading.
• Competitive spreads for cost-effective trading.

5. Deriv – Sharia-compliant offers and assets available

Deriv offers an FMRRC license, ensuring adherence to Islamic Sharia law. The platform provides numerous payment options, such as TrueUSD, Ripple, USD Coin, Litecoins, Stellar Lumen, Perfect Money, and Fasapay. With a minimum trading limit of $1 and a maximum of $5000, Deriv promotes responsible trading practices. The platform allows trading in commodities, currencies, stocks, indexes, and cryptocurrencies, including Bitcoins and EOS, all while maintaining a halal trading environment.

• Customizable trading charts for personalized experiences.
• Trading bots for automated strategies and efficiency.
• Educational resources and webinars for continuous learning.
• Diverse asset selection for varied trading opportunities.
• Multiple account types for different trading styles.
• Platform available in multiple languages for global accessibility.

6. Exnova – Modern platform with a great user experience

Exnova is another Sharia-compliant trading platform offering early closure options for added flexibility. This platform is fully licensed, ensuring a secure trading experience. With a wide range of payment options, Exnova caters to traders worldwide. The platform allows for trades starting at $1 with an upper limit of $5000, promoting responsible trading behavior. Exnova offers numerous trading assets, including currencies, commodities, stocks, and more, all while upholding Islamic guidelines.

• Social trading features to follow and copy successful traders.
• Dedicated Islamic accounts for Sharia law compliance.
• Regular market updates and news for informed trading.
• Seamless integration with popular trading tools and platforms.
• Competitive commission rates for profitable trading.
• Risk management tools for responsible trading practices.

Binary options and greed explained

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 on strategy, and you must maintain your limits. So, every day fix a limit and invest with a minimum balance.

Trading and riba

In Islam, earning riba (interest) is strictly prohibited. However, when trading, one invests with the expectation of gaining a valuable return on their investment. This concept is different from riba, as traders are not earning interest but seeking profit from their financial transactions.

While engaging in trading activities, it is crucial to differentiate between riba and legitimate profit-seeking endeavors. When purchasing goods or services, one expects value in return, which is a natural aspect of commerce. Similarly, in trading, investors seek valuable returns on their investments, aligning with Islamic principles as long as they avoid interest-based transactions.

In conclusion, trading binary options can be considered halal if traders maintain a disciplined approach, control their emotions, and adhere to Islamic guidelines, avoiding riba and other prohibited practices.

Conclusion: Binary Options are halal and available to trade for Islamic traders

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.

Binary Options trading is halal and popular in Arabic countries. Plenty of binary brokers offer Islamic account options. Be a true Muslim, be a binary option pro-trader with your beliefs. Success is waiting for you.

These are the 6 best Islamic binary options brokers, in the correct order:

1. Pocket Option – Best Islamic broker for binary trading with highest return
2. Quotex – Trusted by thousands of Muslim traders around the world
3. IQ Option – Flexible trading platform
4. Expert Option – Practice trading risk-free with one click using a demo account
5. Deriv – Sharia-compliant offers and assets available
6. Exnova – Modern platform with a great user experience

Most asked questions (FAQs) about Islamic Binary Options brokers: