Is Quotex halal or haram?
We are not scholars and do not issue rulings. What we can do is show you what published fatwas on binary options actually say, who issued them and why — so you can take the question to a scholar you trust.
Every published fatwa on binary options we could find — from Darul Iftaa Birmingham, Askimam (Mufti Ebrahim Desai, South Africa) and Fatwa-TT (Trinidad and Tobago) — rules them impermissible. The reasons are gharar (excessive uncertainty) and qimar (gambling: you either win a fixed amount or lose your stake). We found no ruling that permits them.
The rulings
| Issued by | Date | Ruling | Reasons given |
|---|---|---|---|
| Darul Iftaa Birmingham Mufti Eunus Ali; approved by Mufti Mohammed Tosir Miah | Nov 2021 | Not permissible | Qimar (gambling) and gharar; applies to "Islamic accounts" too |
| Askimam.org approved by Mufti Ebrahim Desai | Oct 2016 | Impermissible | Sale of options, gharar and riba; swap-free accounts do not fix it |
| Fatwa-TT Darul Iftaa, Jaamia Madinatul Uloom, Trinidad | Feb 2020 | Impermissible | Gharar |
| Askimam.org Darul Iftaa, Durban | May 2015 | Impermissible | Gharar; Shariah does not recognise the sale of such rights |
| All four are from the Hanafi school, the most widely followed in Pakistan, Bangladesh and India. We did not find a ruling from another school that permits binary options. | |||
Why they say no
Qimar (gambling). A binary option has two outcomes: a fixed payout or the loss of the whole stake. Darul Iftaa Birmingham describes it as "either making a profit on the amount invested or a total loss" — the structure of a bet rather than a trade, since nothing is owned or delivered.
Gharar (excessive uncertainty). The contract's result depends entirely on where a price lands seconds or minutes later. Several of the rulings cite the hadith in Sahih Muslim prohibiting sales that depend on chance.
No real asset. You never buy the currency, share or commodity on the chart. The Askimam rulings add that Shariah does not recognise selling an option right on its own.
What about the "Islamic" or swap-free account?
Some platforms offer accounts labelled Islamic, with no overnight interest. The rulings address this directly. Askimam says the mere removal of interest "does not make the product Shariah Compliant", and Darul Iftaa Birmingham applies its ruling to such accounts as well. The objection is to the contract itself, not to interest charges, so removing interest does not change the answer.
What scholars do discuss as alternatives
- Owning shares of Shariah-screened companies through a SEBI-registered broker is widely treated as permissible by scholars who rule out binaries. NSE publishes Shariah-screened indices for this purpose.
- A demo account involves no money and no contract, so the rulings above are about real-money trading. Whether practising the activity is appropriate is itself a question for your scholar.
This page summarises published rulings; it is not a fatwa. For a ruling on your own situation, ask a qualified mufti.
Halal or haram? — frequently asked
Is Quotex halal?
Every published fatwa we found on binary options rules them impermissible, citing gharar and qimar. Quotex is a binary options platform, so those rulings apply to trading on it with real money.
Is binary options trading haram according to Hanafi scholars?
Yes, according to the Hanafi rulings we found from Darul Iftaa Birmingham, Askimam (Mufti Ebrahim Desai) and Fatwa-TT, which all call it impermissible.
Does an Islamic swap-free account make binary trading halal?
No. The rulings say the problem is the contract — a fixed win or total loss with no asset owned — so removing interest does not make it Shariah compliant.
Is forex trading halal?
That is a different question from binary options, and scholars differ on spot forex depending on how it is conducted. Ask a qualified scholar about the specific product.
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Risk warning. Binary options are high-risk speculative products and the majority of retail traders lose money. A payout percentage is the return on a winning trade, not an expected return. Quotex is not authorised by SEBI and appears on the RBI Alert List; Indian residents remitting funds to unauthorised platforms may be exposed under FEMA and have no local dispute resolution. Nothing on this page is investment, legal or tax advice. Consult a SEBI-registered adviser and a chartered accountant before acting. Never trade money you cannot afford to lose entirely.