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ANSWERS · 127 QUESTIONS

Every question, answered short.

The full reasoning is one click away.

Real questions about crypto, trading, staking and zakat, answered by the ShariaQuant team.

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Latest answers from the team

All community questions

Are derivatives halal?

No, not the conventional kind. Futures, perpetuals, options, CFDs and leveraged tokens all fail, and they fail on the same few rules rather than on one technicality. You never own the asset. A derivative is an agreement…

ShariaQuant answer·14d ago

Is memecoins trading Halal

Trading memecoins on spot can be halal, and a memecoin doesn't need practical utility to be halal. It does need a supply nobody can change on you, and some memecoin trading sits very close to gambling even when every…

ShariaQuant answer·14d ago·3 answers

How to start halal trading

Start with the rules, not the chart. Most people do it backwards: they buy something, panic, and only then start reading. Here's the order we teach. 1. Learn the three prohibitions first: riba (interest), gharar (not…

ShariaQuant answer·14d ago

Crypto basics

There is no single answer for all of crypto, because crypto is not one thing. Each coin is a different project with different tokenomics, and the ruling follows the project. Bitcoin and Ethereum pass our screen, while a lending protocol that pays interest does not, so the honest answer is that you screen the asset rather than the asset class.

Every coin we screened →

Yes on our screen. Bitcoin has no interest mechanism, no issuer who owes you anything, and no gambling built into it, so the three usual prohibitions do not attach. The scholarly disagreement about Bitcoin is almost never about riba, it is about whether a digital asset counts as wealth at all.

Our Bitcoin verdict, with the evidence →

This is the question underneath every other crypto ruling. Mufti Taqi Usmani ruled crypto impermissible mainly on the grounds that it is not mal, since it has no physical existence and no intrinsic use. The counter position, adopted in Malaysia and elsewhere, is that mal is established by what a society treats as valuable property, and crypto now clears that bar.

Is crypto mal? →

Not by itself, but plenty of what people do with it is. Maysir is about the structure of the contract, not how nervous the trade makes you feel. If your gain requires someone else to lose, and the whole thing is decided by an event you have no stake in, that is a wager, and buying and holding an asset you own is not.

Maysir: investing or gambling →

Riba is a guaranteed increase on a loan of money, and crypto puts it in at least nine places that do not use the word interest. Lending products, borrow markets, funding rates on perpetuals, and most things labelled Earn are the common ones. The tell is simple, if you were promised a return for parting with your coins and getting them back later, you are looking at a loan with an increase.

Riba in plain language →

Gharar is excessive uncertainty about what you are actually buying or what you will actually get. Across the assets we have screened it disqualifies more projects than riba does, usually because the tokenomics are undisclosed, the supply can be changed at will, or the thing the token entitles you to was never defined.

Gharar explained →

Maysir is gambling, and the fiqh definition is precise. You need a zero sum transfer that depends on an uncertain event, where each side can only win what the other loses, and neither side is producing anything. Prediction markets and binary options hit that definition even when they market themselves as information tools.

Maysir: investing or gambling →

Maysir is the word the Qur'an uses (Al-Ma'idah 5:90), named after a pre-Islamic game in which men drew arrows for shares of a slaughtered camel. Qimar is the term the jurists use for a contract in which each side stakes something and the winner takes the loser's stake. Many scholars use the two words interchangeably, and those who separate them treat qimar as the clearest form of maysir, so the ruling is the same either way.

Where investing ends and gambling begins →

Volatility on its own does not make something haram. Gold, property and equities all swing in price and none of them are prohibited for that reason. What fiqh prohibits is uncertainty inside the contract, not movement in the market price after you own the thing.

Gharar explained →

One failure is enough. The coin fails if its core business is prohibited, such as lending at interest or running a casino, if its tokenomics contain a guaranteed return that functions as riba, or if what you are buying is too undefined to be a valid sale. Most rejected projects fail on tokenomics rather than on the headline business.

Every haram coin and what breaks it →

Trading rulings

Trading where you own what you buy, the trade settles on the spot, no borrowed money is involved, and the asset itself passes screening. That covers buying and selling on spot whether you hold for minutes, weeks or years, because the length of the hold was never what decided it. Futures, options, CFDs, margin and short selling each fail at least one of those conditions.

Every product, one by one →

Spot trading is, when four things hold: you own what you buy, the trade settles on the spot, no borrowed money is involved, and the coin itself passes screening. How long you hold was never what decided it. Futures, perpetuals, margin, options and short selling each fail at least one of those.

Why hold time does not decide it →

No, and not for one reason. You never take ownership of the asset, both sides of the exchange are deferred when fiqh requires at least one to be immediate, the funding rate on perpetuals is riba, and the position is zero sum so someone has to lose for you to win. Any one of those would be enough on its own.

The four things that break it →

No. Margin is a loan, you pay interest on it by the hour, and that is riba in its clearest form. Even the versions advertised as interest free fail, because the lender still keeps the right to liquidate your position on their terms, which is not a loan any Islamic contract recognises.

The loan nobody calls a loan →

No, because leverage is borrowed money and in every mainstream venue it carries a financing cost. Even at 2x you are trading with funds you do not own, on terms set by a lender who can close you out. Spot only means the amount you can lose is the amount you actually put in.

Spot-only risk rules →

It can be, and holding period is not what decides it. Three conditions do the work, you must genuinely own the asset, settlement must be immediate rather than deferred, and there must be no borrowed money involved. Buying and selling spot Bitcoin twice in one afternoon breaks none of those.

Ownership, settlement, speed →

No. Short selling requires you to sell something you do not own, and the Prophet, peace be upon him, prohibited selling what you do not have. It also normally runs on a borrowed asset with a fee attached, which adds riba on top of the original problem.

How to be bearish without shorting →

Yes, provided you are holding spot positions in screened assets with no borrowed funds. Swing trading just means holding for days or weeks instead of minutes, and the length of the hold was never the deciding factor. Ownership, settlement and no debt are what you check.

Investing or trading, which one →

On a spot venue with no leverage, the contract itself is valid, because you are buying and selling assets you own with immediate settlement. The practical problem is different, scalping loses money for most people who attempt it, and fee drag turns a break even strategy into a losing one. Permissible is not the same as wise.

Ownership, settlement, speed →

It is halal, and the doubt is worth taking seriously rather than waving away. Fortune telling claims knowledge of the unseen, which is a grave matter in Islam. Reading a chart is reading a record of what buyers and sellers have already done, which is closer to a farmer reading the sky, so long as you never speak about the future with certainty.

The fortune-telling doubt →

Islamic law has handled this for centuries under wakala, the law of agency. An agent acts within the authority you granted, and you carry responsibility for what you authorised. So the agent is permissible if the trades it is allowed to make are permissible, and giving a bot open ended permission to trade anything is where people get into trouble.

Who answers for the bot →

Only if the trader you copy is doing halal things, and most of the leaderboard is not. Copy trading executes their decisions in your account, so if they open a leveraged perpetual, you opened a leveraged perpetual. You inherit the ruling along with the position.

The conditions that decide it →

Exchanging one currency for another is permissible when both sides settle on the spot, which is why the bureau de change at the airport is fine. Retail forex is a different product, built on leverage, overnight financing and contracts that never deliver the currency. That version fails.

Swap-free is not halal →

No. An option sells you a right rather than an asset, and fiqh does not recognise a bare right as something that can be bought and sold. Add the deferred settlement and the zero sum payoff and it fails on several counts at once.

The four things that break it →

No. Writing a covered call means selling an option, and an option sells a bare right to buy at a fixed price rather than an asset, which is not something Islamic law lets you sell. Owning the shares or coins underneath does not change what the premium pays for. The International Islamic Fiqh Academy and AAOIFI both rule the options contract itself impermissible, so the ruling reaches the person writing it as much as the person buying it.

Every ruling on options, with sources →

No. A contract for difference never gives you the asset: you and the broker agree to settle the change in price between opening and closing, and no currency, gold or coin ever moves to you. With no ownership there is no sale, and what remains is a contract that pays out on an outcome, where your gain is someone else's loss. A swap-free account removes the overnight interest and leaves that first problem exactly where it was.

Why a CFD is not a purchase →

No. A binary option pays a fixed amount if the price ends up on the side you picked and takes your whole stake if it does not, so nothing is bought and one side wins what the other loses. That is a wager on a price, and studying the chart first does not change the contract. Islamweb, Islam Question & Answer and Indonesia's DSN-MUI all rule it out.

Every ruling on binary options, with sources →

Not for the binary or "fixed time" trades these apps are known for. Each one is a bet on whether a price will be higher or lower after a set time, paying a fixed amount or nothing, which is the binary option the fatwas rule out. An "Islamic" or swap-free account on the same app changes nothing, because the problem is the contract rather than an interest charge, and their CFD and forex products fail for the reasons in our CFD answer.

Are binary options halal? →

Not as they are run today. The funded accounts that firms such as FTMO and FundedNext hand out trade leveraged forex, CFDs or futures, which the rulings on leverage rule out, and most of the money paid to winners comes from the fees of the many who fail the challenge. Scholars differ only on the paid challenge itself, and the one view that allows it does so under conditions most firms do not meet.

Every ruling on prop firms, with sources →

Check four things before you pay. The fee should pay for a real evaluation; the rewards should come from the firm's own money, not from failed traders' fees; the payout should be a right the firm cannot refuse once you meet the rules; and the funded account should trade only halal assets you could own outright, with no leverage, CFDs or futures. A swap-free account on its own fixes none of that.

Are prop firms halal? →

The method is not the problem. A model that decides when to buy and sell is a tool, and a tool takes the ruling of the trades it places, so a quant strategy that buys screened assets on spot with its own money is permissible. Most institutional quant strategies short sell, use leverage or trade futures and options, and those fail for exactly the reasons they would fail if a person pressed the button.

How automated trading is judged →

Earning and yield

Native proof of stake staking is halal, and we say so plainly. You keep ownership of your coins, you carry real risk through slashing, and the reward varies with the work performed, so it is a fee for a service rather than a loan with an increase. Four other products borrow the word staking and pay you interest instead.

The four products that are not →

The staking underneath is fine, and the receipt token is where the questions start. You are handed a tradeable claim on a staked position, and the ruling depends on whether that claim is a genuine ownership share or a debt instrument dressed as one. Read the specific protocol before assuming it inherits the verdict on native staking.

The four products that are not →

Binance Earn is not one product, it is roughly a dozen, and most of them pay you interest. Flexible Savings and the fixed term products are lending, so they fail. On chain staking through the same menu is a different contract and can pass, which is why the answer has to be product by product.

What is Binance Earn, and is it halal? →

It depends where the yield comes from, and most farms will not tell you plainly. If the return is your share of trading fees earned by a pool you own part of, that can be valid. If it is interest paid by borrowers in a lending market, it is riba with extra steps.

Is crypto lending and borrowing halal? →

Supplying two assets you own to a pool and taking a share of the trading fees is closer to a partnership than a loan, and the fee income itself is earned for a service. The problems are impermissible loss, which is a real risk you are accepting, and the fact that many pools pair a clean asset with a coin that fails screening.

Gharar explained →

An airdrop is a gift, hibah, and receiving a gift is permissible. The catch is what you were given, because a free token from a lending protocol is still a stake in a lending protocol. Screen the project before you claim, and screen it again before you sell.

What you did to qualify →

Yes for a clean network. Mining is work, you spend real electricity and real hardware to secure a network and you are paid for the output, which is a recognised form of earning. The ruling follows the network you are mining, so mining a coin that fails our screen does not become permissible because you mined it yourself.

Our screening method →

Most cloud mining contracts fail, and the reason is gharar rather than riba. You are paying today for an undefined amount of future output from equipment you cannot inspect, operated by a company with no obligation to show you it exists. When the thing being sold cannot be identified, the sale is not valid.

Gharar explained →

Paying today for a token that does not exist yet is a sale of something absent, and Islamic law has a specific framework for that. It turns on three questions, whether the thing is precisely defined, whether the delivery date is fixed, and whether the price is paid in full up front. Most presales fail the first two.

Buying what does not exist →

Being paid for playing is permissible in principle, since it is earning for effort. Two things commonly break it, an entry fee that you only recover by beating other players, which makes it a wager, and game assets sold as speculative investments with no defined utility. Check whether you had to pay to enter before you could earn.

Maysir: investing or gambling →

Cashback on a debit style card that spends your own balance is a discount on your purchase, and discounts are fine. Cashback on a credit card is the harder case, because a benefit attached to a loan is exactly the shape riba takes, and many scholars avoid it for that reason.

Riba in plain language →

Coins and tokens

Most stablecoins pay you nothing, so Muslims assume they are safe, and the real problem is somewhere else. It is that the issuer can freeze your balance, which means what you hold is a permission rather than outright ownership. Reserve quality and freeze powers vary a lot between issuers.

Every stablecoin ranked by Shariah compliance →

Our screen rates it Halal. Holding it to move between trades is where most people use it, and the issues to weigh are the freeze function, which the report flags in red, and what sits behind the reserves. Tether's reserves include interest bearing instruments, which is a separate concern from whether you personally earn interest. We rank each stablecoin individually rather than treating them as one group.

Every stablecoin ranked by Shariah compliance →

Ethereum passes as a network and as an asset. Gas fees pay for computation, staking pays for validation work, and neither is a loan with an increase. What runs on top of Ethereum is a separate question, because the network being clean does not clean the lending protocols deployed on it.

Layer 1 blockchains ranked →

Not automatically, and this surprises people. A meme coin with fixed supply, no team allocation and no promised return contains no riba and no lending, so there is nothing in the contract to prohibit. Where they fail is usually gharar, an undisclosed supply or a team wallet that can dump on you, and the way most people buy them is closer to a wager than a purchase.

Are memecoins halal? →

An NFT is a certificate of ownership, so the ruling follows what it certifies. A token attached to genuine digital work or a usable licence can be a valid sale. It fails when the underlying content is prohibited, when the token grants nothing definable, which is gharar, or when the only reason to buy is to sell it to a greater fool.

Gharar explained →

The test is what the exchange earns and what the token entitles you to. A fee discount token on a venue whose main revenue is spot trading is a different case from a token whose value comes from a business built on leverage and lending. Look at where the revenue comes from before you look at the token.

Every haram coin and what breaks it →

Privacy is not prohibited in Islam, and keeping your finances away from strangers is normal and permissible. The concerns raised about privacy coins are mostly about how third parties use them and about regulatory status in your country, which is a legality question rather than a fiqh one.

Are privacy coins halal? →

A governance token gives you a vote over a protocol, so the ruling follows the protocol you would be governing. Voting rights over a decentralised exchange that settles spot trades is a very different thing from voting rights over a lending market that sets interest rates.

Why the label decides little →

Two tokens can track the same company with one passing and one failing, which is what makes this different from ordinary equity screening. You have to screen the company and then screen the wrapper, because some tokenized stocks give you a real claim on shares held in custody and others give you a synthetic exposure backed by a derivative.

What you actually own →

Manipulation is a sin committed by the manipulator, and it does not automatically make the asset prohibited for you. What it does change is the gharar assessment, because a token where a handful of wallets can move the price at will is a token where you cannot reasonably know what you are buying into. Supply concentration is part of our screen for exactly this reason.

Our screening method →

Zakat and purification

The gold nisab is 85 grams and the silver nisab is 595 grams, and they give very different thresholds at today's prices. Using silver sets a lower bar, which means more people owe zakat and more of it reaches the poor, and that is the position most contemporary scholars favour for cash and trade goods.

Zakat calculator →

If you bought it intending to resell it, it is trade goods and you pay 2.5% of what it is worth on your zakat date. If you hold it as a personal item with no resale intention, the majority view is that no zakat is due, the same way your car is exempt.

How to calculate zakat on crypto →

You purify the impermissible share, not the whole return. Take the percentage of the project's income that comes from prohibited sources and apply it to what you received, so a 3% impermissible share on a 100 dollar gain means 3 dollars goes out. Purification is also not a fix for an asset that fails outright.

How to purify non-compliant income →

Exchanges and wallets

You can use a mixed exchange for the halal part of what it offers, in the same way you can buy bread from a shop that also sells things you avoid. Keep to spot, and switch off the products that put you in a prohibited contract. The exchange is not the ruling, the product you press is.

Is your crypto exchange halal? →

Same principle as any large exchange. Buying and selling spot is fine, and the products to leave alone are the ones that pay you a yield on your balance or lend against your holdings. Turn off the earn features and read what your account is enrolled in by default.

Is your crypto exchange halal? →

Yes, and it is one of the cleanest ways to buy, because both sides hand over their side in the same session. Watch for two things, an escrow that holds your funds and pays a yield, and price spreads so wide they stop being a sale and start being a fee for waiting.

Halal remittances without riba →

Yes, and it is often far cheaper than the alternative, since banks can charge close to 10% on a small transfer. The fee itself is permissible, which surprises people, because charging for a service is not riba. The problems enter through the exchange rate spread and through providers who advance the money and charge for the delay.

Halal remittances without riba →

Stocks and other assets

Owning a share means owning a piece of a real business, which is permissible in principle. It fails when the business itself is prohibited, such as a bank or a brewery, or when the company carries too much interest bearing debt. That second test is what stock screening exists to measure.

Fatwas on stocks →

Three thresholds do the work. Interest bearing debt must stay under 30% of market cap, interest bearing deposits and investments under 30%, and income from prohibited activities under 5% of total income. Passing all three still leaves you with a purification duty on that small impermissible share.

Fatwas on stocks →

Yes, if the company earns any income from prohibited sources, which nearly all listed companies do through interest on cash balances. Multiply your dividend by the company's impermissible income percentage and give that portion away. Companies that publish a purification rate have done the arithmetic for you.

How to purify non-compliant income →

An ETF is a basket, so the ruling depends on what is in it and how the fund is built. A physically backed fund tracking a screened index can pass, while a synthetic ETF that gets its exposure through a swap contract rather than owning the assets fails on the wrapper alone.

What you actually own →

A plain S&P 500 fund is not. It holds every company in the index, banks and insurers included, along with companies that fail the debt and interest ratios, so you own the prohibited businesses alongside the permitted ones. A fund that tracks a Shariah version of the index, built only from companies that pass, can be held, with purification still owed on the small share of income they earn from interest.

The rules an Islamic fund must follow →

No, on two counts. The 2x or 3x comes from swap and futures contracts rather than from shares the fund owns, and Malaysia's rules for Islamic ETFs allow derivatives only to hedge risk, never to create the exposure. The multiple is also leverage, with the financing cost built into the swap instead of charged as interest on a margin account, so a clean index underneath fixes neither problem.

Fatwas on ETFs and funds →

No. When a broker lends out your shares, you hand them over, you are owed the same number back later, and you are paid a fee for the time they were gone, which is the same structure that makes lending crypto for a yield riba. Lending programmes are usually opt-in or can be switched off, and that is the fix. Any fee you have already received goes to charity in full, without counting it as sadaqah.

Lending for a return, from Aave to Nexo →

Gold is permissible to own, and the condition is that the exchange settles immediately, since gold is one of the six commodities the hadith names specifically. Physical gold and fully allocated accounts satisfy that. Gold CFDs and futures do not, because nothing is ever delivered.

Zakat calculator →

Owning a share of a property and taking a share of the rent is a partnership, and that is permissible. Read carefully though, because many platforms are structured as loans to a developer with a fixed return, which is riba wearing a property label. Fixed return is the word to look for.

Riba in plain language →

A bond is a loan and the coupon is interest, which is why bonds are out. A sukuk is meant to give you ownership of an underlying asset and a share of what that asset earns, so your return rises and falls with it. Some sukuk in the market are structured to behave like bonds, so the label alone is not enough.

Riba in plain language →

The interest it pays is riba, yes. Keeping a current account for practical reasons is a different matter and is widely permitted where no interest is paid. If your account pays interest you cannot switch off, dispose of it the way you would any prohibited income.

Riba in plain language →

Learning to trade

It is a way of reading a chart by finding the price areas where large orders previously overwhelmed the other side and caused a sharp move. Those zones tend to matter again when price returns to them. It suits spot only trading because it gives you defined places to buy without needing leverage to make the trade worthwhile.

Supply and demand trading without leverage →

Market structure is the sequence of highs and lows that tells you whether a market is trending up, trending down or going sideways. You read it on the higher timeframe first and then work down, because a buy that looks good on the 15 minute chart often looks reckless on the daily.

Trend and timeframes →

Yes, and there is nothing in fiqh that discourages it, since protecting your wealth is an obligation rather than a lack of tawakkul. A stop is just an instruction to sell your own property at a price you chose in advance, when you were calm.

Spot-only risk rules →

Position sizing and impatience, far more often than bad analysis. People risk too much on one idea, then double down to recover, then abandon a rule they set for themselves the previous week. Muslim traders carry an extra version of this, taking a haram shortcut after a run of losses and calling it necessity.

Why most Muslim traders lose money →

Signals fail the people who follow them, and the reason is structural rather than dishonest. You receive an entry without the reasoning, so you cannot judge when the idea has been invalidated, and you exit late every time. Learn to read the chart yourself, even slowly.

Why crypto signals fail →

Using ShariaQuant

We ask whether the asset is property at all, then run it through three layers covering the business activity, the tokenomics and the contract structure. One failure in any layer is enough to reject it. The whole method is published rather than kept behind a login.

Our screening method →

The reasoning follows published rulings from recognised scholars and standards bodies, and every verdict page shows which principle it turned on so you can check the working. We publish the fatwas we rely on rather than asking you to take our word for it.

Scholar fatwas →

Yes, when the project changes. A token that adds a lending market or alters its emission schedule can move from pass to fail, and that has happened. Screening a coin once and treating the answer as permanent is how people end up holding something that stopped being permissible.

The verdicts that surprised us →

The screener, the verdicts, the glossary, the zakat calculator and every article are free. Paid plans add deeper analysis, the courses and mentorship. You do not need to pay anything to find out whether a coin passes.

Screen a coin →

No. What we publish is Shariah screening and education, which tells you whether an asset is permissible, not whether it is a good buy at today's price. Those are different questions and only you can answer the second one for your situation.

Disclaimer →

Most communities give you either the fiqh or the charts, and you are left to reconcile the two yourself. We screen the asset first, then teach a spot-only method for trading what survives that screening, and the reasoning behind both is published rather than sold as a signal. If a coin fails, we say so even when it is the one everybody wants to buy.

See the courses →

Premium includes weekly live mentorship where you bring your own charts and get them reviewed, plus a private chat where you can ask our traders directly. Foundations is the same course, self-paced, without the live sessions. On the free side, the community forum is open and questions there get picked up too.

Compare the plans →

Spot ownership only, on assets that have already passed screening. No margin, no futures, no perpetuals, and no positions in meme tokens whose only source of return is the next buyer. That removes riba from the financing side and maysir from the position itself, which are the two failures that catch most retail traders.

Spot vs derivatives →

Yes, any time, from your Whop account. You keep everything until the end of the period you have already paid for, and nothing more is charged after that. A one-time purchase, like the Foundations Course paid once, has nothing to cancel.

Compare the plans →

Yes, in full, within 3 days of your first payment for a course or plan: message us on WhatsApp. Renewals aren't refunded, but you can cancel any time and keep access until the end of the period you paid for. Mastermind and one-on-one calls are refunded in full if you cancel before the first session. If you paid in crypto directly, we send back the same amount of the same coin, minus the network fee to send it.

Message us on WhatsApp →

Checkout is on Whop, which takes cards, Apple Pay, Google Pay and PayPal, and crypto on one-time purchases. If you would rather send crypto directly, message us on WhatsApp and we will arrange it. Course prices are set for your country, and you see yours before you pay.

See the courses →

Community questions

Questions members asked. The ShariaQuant team answers every one, and members can add their own answers. Every thread becomes a page other Muslims can find.

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