15 Feb Binary Options and Islam- Haram or Halal?
The most commonly asked question regarding binary options trading is that whether it is Haram or Halal. This question makes it extremely difficult for every Muslim trader to become a part of the trading platform. But worry not, there is surely a solution to that as well. The introduction of Islamic trading accounts has made it possible for Muslim traders to be a part of the financial markets. Almost one-quarter of the world consists of Muslims the requests for such accounts were increasing day by day. Several questions come to almost every Muslim trader while trading with Binary Options. Hence, here are some commonly asked questions answered regarding whether Binary Options is Haram or Halal?
What is Riba according to the Shariah Law?
Shariah law is strictly against “Riba”, which is basically interest in simple words. It is considered a big blunder in Islam. Islamic society encourages selflessness and hence Riba is totally prohibited. The ultimate goal of trading is considered to be an act of personal benefit and self-interest. But the introduction of Islamic accounts has helped a lot for Muslim traders as they are interest-free.
Is it Halal to assets or shares?
Buying or trading with assets or shares is generally not considered as haram. Buying shares is just simply owning a basic portion in an entire business whereas trading with assets is simply buying and selling. However, proper research should be done about the company to make sure that it is not a part of any sort of un-Islamic activities. Dealing with companies involved with alcohol or gambling will surely be considered as Haram.
What are Binary Options Islamic trading account?
As we all know that the number of Muslim financial traders trading with Forex and Binary options, is quite high. Due to this reason, Binary Options has opened several Islamic trading accounts over the last few years. These accounts are specifically designed for Muslim traders by abiding by the Shariah law. These accounts are interest-free, as we all know charging interest or Riba is strictly prohibited in the Islamic culture. The Islamic trading account offers all the trading assets just like any other type of trading account. No interest will be charged in Islamic accounts on overnight positions. No additional charges will be levied on Muslim traders who are trading with the Islamic trading accounts.
Is Binary Options Halal or Haram?
A quarter of the world’s population beings Muslims, it is obvious that the number of Muslim traders trading with Binary Options is quite high. Binary Options trading plays an important role in every trader’s life and so does in every Muslim binary trader. Islam has never prohibited anyone from carrying out trade and commerce, but the use of unfair and unjust means of trade and commerce will surely not be accepted. Every Muslim life their life on the path of “Shariah” which simply means God’s divine law. It is expected from every Muslim that they live their life on the path of God. Shariah has never restricted anyone from doing trade but yes it has always taught us to never become blind just for the sake of money and forget humanity. Hence, new techniques of trade have been introduced by keeping the Islamic principles in mind. The trading platform should certainly meet the following criteria which have been stated below:
- Immediate settlement of the transaction costs should be done – In these trading platforms, the open trades are rolled over to another trading day. There may be an incurrence of interest charges for the rollover.
- Execution of the trades is immediate – The rule is satisfied by cutting out the delay to prompt hand to hand exchanges between two different parties.
- Zero rate of interest on trades – No interest is charged in order to avoid breaking the rules around Riba. The interest will be deemed invalid and not halal.
Different Islamic trading accounts abiding by the Sharia Law:
1. EXPERT OPTION: The average return period of this trading account is 95%. The minimum deposit amount required to open an account is $10 and the minimum trading amount is $1.
2. IQ OPTION: In the IQ option trading platform the average return period is 90%, the minimum deposit amount required to open an account is $10 and the minimum trading amount is $1.
3. BINOMO: In the Binomo trading platform, the average return period of this trading account is 85%, the minimum deposit amount is $10 and the minimum trading amount is $1.
4. RACEOPTION: The average return period of this trading account is 95%, the minimum deposit amount to open an account is $250 and the minimum trading amount is $1.
5. BINARY.COM: The average return period of this trading account is 85% and the minimum deposit amount required to open an account is $5 whereas the minimum trading amount is $5.