Islamic finance · IQ Option Malaysia
Is IQ Option Halal or Haram? What the Islamic Account Changes and What Malaysian Fatwas Say
Short answer
We can't tell you whether IQ Option is halal or haram. We report what IQ Option says and what Malaysian fatwa bodies have decided.
- IQ Option offers a free Islamic account (swap-free). With it on, you get only Digital options on 175+ OTC instruments, and no CFDs.
- IQ Option's product page calls the account "Sharia-compliant". Its terms say it does not guarantee that a swap-free account complies with any specific faith or religion. IQ Option names no Shariah board and shows no Shariah certification.
- The National Fatwa Council and several state fatwa bodies have decided that online forex trading by individuals is haram.
- Removing the swap addresses riba (interest) on overnight positions. The other objections scholars raise (gharar, maisir and qabd) are not about the swap.
How the IQ Option Islamic account works
The Islamic account is a setting, not a separate account. It is free, takes effect at once and needs no documents. It works before your first deposit, and you can switch it off again.
- Log in to your IQ Option account.
- Open the account menu next to your avatar. In the classic traderoom you can use the "☪ ON" toggle in the header instead.
- Switch the Islamic account on.
- Check that the asset list now shows Digital OTC instruments only.
On IQ Option's new platform there is no switch. Ask support: see how to contact IQ Option support.
What changes
| What | With the Islamic account on |
|---|---|
| Products | Digital options on 175+ OTC instruments only. CFDs are not available. |
| Overnight swap | None. Without CFDs there is no overnight position to charge it on. |
| Cost | Free. |
| Documents | None needed. |
What IQ Option says about it
IQ Option's Islamic account product page calls the account "Sharia-compliant" and says it is "free from alcohol and tobacco industries". That is IQ Option's own claim.
IQ Option's terms say: "Company does NOT guarantee swap-free account complies with any specific faith or religion". IQ Option names no Shariah board and shows no Shariah certification for the account.
What the Islamic account removes: swap and riba
On a normal account, a CFD position held overnight pays or receives a swap, an interest-based charge. Riba means interest and is one of the main concerns in Islamic finance.
"Swap-free" means this charge is removed. IQ Option's Islamic account does it by not offering CFDs, so no position is held overnight with a swap. That addresses interest on overnight positions only. Whether it is enough for you is a question for a scholar.
What scholars object to in online forex and options
Scholars who have written about online forex and options raise these objections. We report them and don't apply them to IQ Option ourselves.
- Gharar: excessive uncertainty in a contract.
- Maisir: gambling. Scholars point to a fixed payout that is won or lost on a price move.
- Riba: interest, such as the overnight swap.
- Qabd: possession. Scholars who raise this say that exchanging currency needs real possession at the time of the deal.
- Selangor's e-Musykil answer (2024) also points to combining a sale with a loan, and to selling what you don't own (bay' ma la yamlik).
An academic paper by Syarifati and Panorama in the journal IJOMS (July 2022) analysed binary options on IQ Option and found that they meet the criteria of maisir. The authors are Indonesian researchers, and the paper is not a Malaysian ruling.
What Malaysian fatwa bodies have decided
These are the decisions we found, in date order. We don't have the exact texts, so we paraphrase them rather than quote.
| Body | Date | Decision |
|---|---|---|
| National Fatwa Council (Muzakarah Jawatankuasa Fatwa Majlis Kebangsaan Bagi Hal Ehwal Ugama Islam Malaysia), 98th Muzakarah | 13 to 15 February 2012 | Decided that forex trading by individuals on the spot market through electronic platforms is haram and not legally valid. |
| Perlis Fatwa Committee, endorsed by the Perlis Islamic Religious and Malay Customs Council (MAIPs) | 20 to 21 December 2016; MAIPs endorsement on 6 January 2017 | Decided that online currency trading through local or foreign platforms is haram, citing qabd, riba, gharar and maisir. |
| Negeri Sembilan, Muzakarah 6/2018 | 30 August 2018 | Adopted the national decision. Licensed money changers and licensed financial institutions are an exception. |
| Federal Territories Mufti Office, Irsyad Fatwa 675 | 14 March 2022 | Decided that online forex trading is haram, even if the profit is meant for charity. |
| Selangor Mufti Department, e-Musykil | 2024 | Answered that it is haram under the 2012 national decision. It also cites section 4(1) of the Exchange Control Act 1953. |
All five decisions are about online forex or currency trading by individuals. Whether a fatwa body would apply them to a swap-free account on a particular platform is for that body to say.
Options, CFDs and shares: how they differ
We describe how they differ and don't rule on any of them.
- Options: you predict the direction of a price over a short time. If you are right you receive a fixed payout. If you are wrong you lose the amount you put in.
- CFDs: a contract on a price move, traded with leverage, so you trade a larger amount than you put in and both gains and losses grow. You never own the asset. A position held overnight pays or receives an interest-based swap.
- Shares: buying a share means you own part of a company. The Securities Commission Malaysia (SC) publishes a list of Shariah-compliant securities on Bursa Malaysia, a general reference for share investors.
Malaysian law: what BNM and the SC say
Bank Negara Malaysia (BNM) stated on 4 January 2010 that, under the Exchange Control Act 1953, it is an offence for a person in Malaysia to deal in foreign currency with anyone other than an authorised dealer. That is BNM's position, reported here. That Act was repealed when the Financial Services Act 2013 came into force, and BNM's foreign exchange rules now sit under the 2013 Act.
IQ Option is not licensed by the SC or BNM. Malaysians are served by Sky Ladder LLC, Antigua and Barbuda. This is information, not legal advice. See the regulation section of our review.
If you decide to use the Islamic account
- Switch it on before your first trade.
- Only Digital OTC instruments are available. Our how to trade guide explains how options work.
- The setting does not settle the religious question. That decision is yours, with a scholar's advice.
- The demo account costs nothing and uses virtual money ($10,000). You can see what the setting changes before you deposit.
- Your capital is at risk. Trading options is high risk and you can lose all the money you deposit.
Scams that use faith
Our advice, not an IQ Option statement: be wary of anyone who offers "halal trading", an "Islamic account manager" or guaranteed returns on WhatsApp, Telegram or Facebook. IQ Option is execution-only and doesn't trade for clients. Nobody can guarantee a return.
If you have been scammed, report it to the NSRC on 997.
Who to ask for a ruling
Ask your state mufti office (Jabatan Mufti Negeri) or a qualified scholar. Bring the facts above: what the account does (Digital OTC options only, no CFDs, no swap) and what it leaves unchanged. You can also bring IQ Option's own wording and its terms, quoted in this guide.
Check the settings on the free demo
See the Islamic account settings on the free demo before you decide anything.
Open a demo accountFrequently asked questions
Is IQ Option halal or haram?
We don't give a ruling. IQ Option calls its Islamic account "Sharia-compliant", but its terms say it does not guarantee that a swap-free account complies with any specific faith or religion. The National Fatwa Council and several state fatwa bodies have decided that online forex trading by individuals is haram. For a ruling on your own situation, ask your state mufti office or a qualified scholar.
Does IQ Option have an Islamic account?
Yes. It is a free setting. Switch it on in the account menu next to your avatar, or with the "☪ ON" toggle in the header of the classic traderoom. It works before your first deposit and you can switch it off again. On IQ Option's new platform there is no switch, so ask support.
Is the IQ Option Islamic account Shariah-compliant?
IQ Option's product page calls it "Sharia-compliant" and says it is "free from alcohol and tobacco industries". That is IQ Option's claim. Its terms say the company does not guarantee that a swap-free account complies with any specific faith or religion, and IQ Option names no Shariah board and shows no Shariah certification. We make no ruling either way.
What changes when I switch on the Islamic account?
Only Digital options on 175+ OTC instruments are available, and CFDs are not, so there is no overnight swap. Switching it on needs no documents and removes the swap, which relates to riba. The other objections scholars raise are not about the swap.
Is forex trading halal in Malaysia?
Several Malaysian bodies have decided it is not. The National Fatwa Council (98th Muzakarah, 13 to 15 February 2012) decided that forex trading by individuals on the spot market through electronic platforms is haram and not legally valid. Perlis, the Federal Territories Mufti Office, Negeri Sembilan and Selangor have issued decisions in the same direction. The table above has the details.
Are binary options halal?
We don't rule on this. The Malaysian fatwas above are about forex and currency trading. Scholars who object to options point to maisir: a fixed payout won or lost on a price move. An academic paper by Indonesian researchers (Syarifati and Panorama, IJOMS, July 2022) found that binary options on IQ Option meet the criteria of maisir. It is not a Malaysian ruling. Ask a qualified scholar.
Does the Islamic account cost anything?
No. IQ Option offers it free.
Can I switch it on before my first deposit?
Yes. The Islamic account works before your first deposit, needs no documents and can be switched off again.
Who should I ask for a ruling?
Your state mufti office (Jabatan Mufti Negeri) or a qualified scholar. Bring what the account does and what it leaves unchanged, as set out on this page.