Is Binary Option from an Islamic account (No riba and swap-free) halal or haram?

Question

lately I discovered the Binary Option system, with a little bit of research I found companies who offer an Islamic Account to trade.

However when I searched on the internet to find if this kind of trades is Halal or Haram, I found myself stuck between two opinions, some say that it is halal if you avoid trading in currencies, you trade just in commodities (gold, silver, oil), stocks (Facebook, Amazon, Apple) and indices, and some say that it is Haram.

The problem is that no one is talking about the Islamic account itself, whether it makes any difference or not.

Some sites that offer an Islamic account:

• 24bulls
• 24option
• bigoption

Could anyone please help me with this?

Answer 1

The problem with Binary options(also options and futures) is that you don't directly deal with the underlying item. You never become the owner of the underlying item. Instead you are betting on the way the underlying item's price moves. If you predict the movement correctly you get money and if you predict wrong you lose money. So I think it is pure gambling.

Answer 2

Binary option is not Haram essentially. I don't know how much you have studied this system, but please note that in this system 30 percent of the people will get rich and about 70 percent will lose. From any side you look at these binaries you can find out this. This kind of trading is not Halal because of what I mentioned.

In my country, Ulamas have forbidden this kind of trading.

Answer 3

Well, i think binary options IS gambling, there's a thin line between binary options and forex trading (gambling and trading) binary options are about betting and forex trading is about selling and buying currencies. Binary options : is betting wethere bulling or bearing Forex trading: is buying and selling currencies with the hope that you earn money As i mentioned above, if we talk about fundamentals about trading, there's a very thin thin difference between betting and trading. In simple and common trading (such as trading or buying food) the wholesale sellers try to take profit of the market volatility so they try to "predict" proces. But betting you know is to bet is giving money without buying something I consider binary options like betting for football .. The fundamental difference between betting and trading is almost same between business and ribah (in quran' they said ribahis business, allah said NO) Therefore i consoder binary options haram (not fatua) and to prevent doing things haram i prefer avoid dealing with subjects still in discussion until a real FINAL result or fatua is released Ua allahu aalam Assalami alaikom

Answer 4

It is interesting to note that claims of 100% are made by those who can not justify it.

It is my understanding that for a method to be gambling a stake has to be made which has risk to be lost.

In binary trading it is gain or no change ie zero gain; nothing is being lost therefore not gambling in Islam therefore halal.

Non Muslims such as HMRC, for tax purposes, classify it as gambling based on behaviour not the exact detail.

Answer 5

All those businesses which are interest-free, are absolutely permitted in Islam. We can say such businesses, Trade. Only those businesses which work under interest are strictly prohibited in Islam as Allah clearly mentioned in Quran Surah Al-Baqarah[2:275]:

Those who consume interest cannot stand [on the Day of Resurrection] except as one stand who is being beaten by Satan into insanity. That is because they say, "Trade is [just] like interest." But Allah has permitted trade and has forbidden interest. So whoever has received an admonition from his Lord and desists may have what is past, and his affair rests with Allah. But whoever returns to [dealing in interest or usury] - those are the companions of the Fire; they will abide eternally therein.

Answer 6

Al hamdu Lellah wa asalatu wasalam ala raoulelah, in my view, as for all muslims Buying and Selling is NOT haram, But Al Riba is haram (as the Quran says). So in my points here I will never Change Haram thing to halal..! nor vice versa.
I will simplify my answer in to points :

1. What you buy you should be able to touch or hold in your hand or be in your A/C
2. To Buy Stocks.. it's a tangible item... to buy Gold it's Tangible... any commodity will be tangible ! So you GOT to touch it, in order to own it.
3. Trading in commodities or Stocks are not allowed (Haram) bcz you cannot hold it, then you sell it ... it's not possible - you just don't even see it !!.
4. Trading in Currencies is Halal and allowed in islam, because you can see it coming in to your A/C and stored there, you can withdraw it anytime and touch it or hold it 100%. Because it's currency of other countries same as exchange outlets which is spread over the islamic world and halal 100%.
5. Second to point 4, the give and take or sell and buy is done on the same session (same time when the trade ends, it's in your balance instantly) and this balance BELONGS only to you, you can withdraw anytime.
6. Islamic A/C should be Free of the following : A. Interests on Trades. B. Swap interests on overnight trades (Rollover). C. Deposit Bonus (Which is added without sense) Ribah. D. No Deposit Bonus (Which is added without need to deposit usually). E. Hidden Fees you don't realize. F. Leverage (the riser of funds as loan from Banks to your A/C) If you have your a/c islamic means free of the above, Provided that you Trade ONLY in Currencies exchange, means it will be Halal to practice. Wallahu A'Alam.
   Another point: Binary options or Forex Trading are NOT Gambling, why ? Because gambling has 3 conditions: 1. Pay for something symbolic like Marks to play with (literally something without any value). 2. Get your Play or cards flip or Roulette Turn. 3. Get a Prize for your play (determined by the Casino) But in Trading ... you are Buying an item or Currency of REAL Value... Opening a position (Selling it or Buying it with a real contract) and winning sale price on the spot after sale and it's in your A/C.so it's totally different and Halal. Wallahu A'Alam.

Answer 7

There is so many stories about betting in Islam about different stuffs but not for trading and betting is gambling but in religions the messengers always has predicted about thing to happening so what is that , in my opinion when you deposit some amount to investment as a business and when you think the line will go there that you see predictly so if you profit its the way you and all the members hidden betting for so halal is the clean result so its halal a strategy is the way that you will be agree for lose or win basically its a systematic trade its not the poker or killing someone for their pocket money its a nice live trade for stocks wars and we should know that life is balanced by the wars of stocks and in this case god will thank you that if you invest some money for a reason that it balancing the stocks and the human life system going forward normally so you can trade in law binary options are allowed in professional countries you can be a millionaire and enjoy if you are Islam for the humanity. It's 100% halal!