Is buying stocks on Backpack Exchange halal?
Question context
CoinStudy's answer
Research opinion from the CoinStudy Sharia team. Not a fatwa.
Buying and holding stocks of halal companies on Backpack Securities in a spot-only account with Auto Lend disabled and cross-margin deactivated is Halal With Concerns, consistent with the chairman's ruling on tokenized equities. Backpack Securities has stronger DTC custody backing than xStocks through its SEC broker-dealer registration. However two features require specific attention. Auto Lend automatically deploys deposited assets into lending for interest income and must be disabled. The cross-margin design allows stocks to serve as collateral for perpetual futures positions and must not be activated. Verify the underlying company passes AAOIFI equity screening independently before buying any specific stock.
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