Compare the best Islamic stock brokers and trading platforms

Many stock brokers now offer Islamic accounts that let you invest in a way that complies with sharia law. This page compares the best ones and tells you what to look out for.
By: James Knight
James Knight
When he isn’t at work, James is an avid trader and golfer who likes to travel. He once fed,… read more.
Updated: Jul 13, 2021
Tip: our preferred broker is, eToro: visit & create account

In this beginner’s guide we compare the best halal trading platforms and explain how to pick between them. Learn about what makes a good broker and the features you should look out for when choosing one.

What are the best sharia stock trading platforms?

Use one of the top all-round trading platforms by clicking through the links in the table below. These options have been chosen by our financial experts and you can get more information on each in our reviews section. Otherwise, keep reading to learn more about how to choose between them. 

1
Min. Deposit
$50
Exclusive promotion
user-score
10
Trade/invest in stocks with just $50
Invest for dividends and get payout on stocks on Ex-Dividend day
Over 11 payment methods, including PayPal
Start Trading
Description:
eToro is a multi-asset investment platform with more than 2000 assets, including FX, stocks, ETF’s, indices and commodities. eToro users can connect with, learn from, and copy or get copied by other users. Buying stocks on eToro is free and you can invest with as little as $50.
Payment Methods
Bank Transfer, Wire Transfer
Full regulations list:
CySEC, FCA
eToro USA LLC does not offer CFDs and makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared by our partner utilizing publicly available non-entity specific information about eToro. Your capital is at risk.
2
Min. Deposit
$1
Exclusive promotion
user-score
9.3
0 Commissions and no deposit minimums
Registered with and regulated by SEC and FINRA
Loss of cash protection
Start Trading
Description:
Financial company driven by technology and offering all-in-one self-directed investment platform that provides excellent user experience.
Payment Methods
Full regulations list:

What is an Islamic stock broker?

A trading platform that complies with Islamic ethics and principles so that Muslims can invest in a way that matches up to their faith. Usually, a broker does this by offering a specifically Islamic account that doesn’t charge interest or any hidden fees alongside its regular services.

How do halal stock brokers work?

Most of the time it works just like any other broker. You need to create an account by signing up and depositing money first and then you can start investing. It offers a bid (buy) and ask (sell) price for every stock and all you have to do is choose the amount you want to trade. The shares are stored in your name through the broker account.

The key difference is in how it offers certain features, like CFD trading. Normally there’s a charge for keeping CFD positions open overnight but with Islamic accounts this service is free (at least for a certain period of time). As a rule there should be no interest payments and no hidden fees.

The best Islamic stock trading platforms for beginners and day traders

The best platform for you might depend on how exactly you want to invest and how much experience you already have. Here we’ve picked out the best broker for each different type of investor.

The top broker for beginners

As a beginner the most important thing is to find a broker that makes it as easy as possible to invest. That usually means a platform with a clean interface and ideally a lot of tutorials and learning material as well.

1
Min. Deposit
$50
Exclusive promotion
user-score
10
Trade/invest in stocks with just $50
Invest for dividends and get payout on stocks on Ex-Dividend day
Over 11 payment methods, including PayPal
Start Trading
Description:
eToro is a multi-asset investment platform with more than 2000 assets, including FX, stocks, ETF’s, indices and commodities. eToro users can connect with, learn from, and copy or get copied by other users. Buying stocks on eToro is free and you can invest with as little as $50.
Payment Methods
Bank Transfer, Wire Transfer
Full regulations list:
CySEC, FCA
eToro USA LLC does not offer CFDs and makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared by our partner utilizing publicly available non-entity specific information about eToro. Your capital is at risk.

The top platform for day-traders

Day trading is about being very active and making lots of trades in order to make money. The best broker for that approach has lots of tools available that you can use to analyse prices.

1
Min. Deposit
$100
Exclusive promotion
user-score
10
Trade +2000 CFDs on Shares, Options, Commodities & more
Unlimited risk-free Demo Account
0 commissions & attractive spreads with up to 1:5 leverage
Start Trading
Description:
Plus500 is a leading provider of Contracts for Difference (CFDs), delivering Leveraged trading on +2,000 financial instruments, including Forex, Commodities, Indices, Shares and Options.
Payment Methods
Bank Transfer, Credit Card, PayPal, skrill
Full regulations list:
ASIC, CySEC, FCA, FSA, ISA, MAS
Plus500 offers CFDs on major financial instruments. 76.4% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

What should I look for in a halal trading platform?

The most important thing to look out for is obviously how well it complies with Islamic law. However there are lots of other things that you should think about when choosing a broker to make sure you get the best experience. Here are the top factors to consider.

Design and ease of use

You want to be able to find all the information you need and navigate the site as easily as possible. For a start, every broker should have its Islamic trading account rules posted somewhere that’s easy to find so that you know what you’re getting into. Platforms that have an app might be the best option if you want a convenient way to invest. 

Demo account

A demo or ‘virtual’ account is a feature that lets you trade without putting your capital at risk. It’s a great way to practice on the real stock market without the danger of losing a lot of money while you’re learning how it works. Any broker worth its salt should offer this feature and turning it on and off is usually as simple as flicking a switch in your account settings.

Low fees 

Brokers make their money by charging fees on actions that you take, be that on trades, deposits and withdrawals, simply holding money in your account, or a combination of all three. The lower the better, but be aware that Islamic accounts might be charged slightly higher fees than regular ones. 

This is because of ‘overnight fees’, which are interest payments charged on open CFD positions at the end of every trading day. Islamic accounts aren’t charged these fees so the broker often charges a bit more for other tasks to make up the difference. The important thing is to make sure there are no hidden fees and that everything you have to pay is clearly stated when you sign up.

Small spreads

Like with fees, the spread is a way for brokers to make money. The spread is the difference between the buy and sell price of an asset, the wider they are, the more of a cut the broker is taking each time. Small, or ‘tight’ spreads are best but, again, they are an area where Islamic accounts might have to pay a bit more.

You should shop around for the best value, which means looking for the smallest spreads. In general, though, the broker has to make money somewhere and so you have to decide whether you want to pay more in fees or pick a platform with wider spreads. 

Reputation and regulation

You should always pick a regulated broker, as they offer the most protection for your money in case anything goes wrong. You can also judge a platform by its reputation among its existing customers. Online user reviews are a great place to get a feel for that reputation, while our own extensive reviews can help as well.

Shares available to trade

You want to pick a platform that lets you buy or sell shares in any company that you’re interested in.  Every broker is going to offer the most popular companies, like Google or Facebook, but if you have a particular business or industry you want to invest in then check if the broker offers those shares before you start.

Remember too that there are some companies that don’t comply with Islamic investing principles themselves. Putting money in any company that makes the majority of its income through interest, or from anything that’s considered haram, such as gambling or pork for example, isn’t allowed. The ideal broker would flag up these companies to help you.

Research tools

As it’s so important for the Islamic investor to be able to judge a company’s ethics and how it makes its money, the ability to research them in more detail is crucial. A platform with its own stock screener, or one that lets you dive deeper into balance sheets can be a huge help. 

That’s because the rules aren’t completely black and white. Most scholars accept there is a bit of leeway and so a company that makes a small amount of money through unislamic practices – less than 5% from forbidden products is a good guideline – is an acceptable investment. 

Trading options

You should look for a broker that best matches up with how you plan to trade. There might be fewer options for a halal broker – future and options trading might not be permissible, for example – but Islamic investors can still use advanced features like leverage as long as it’s provided in a specific way that charges no interest.

Quick answers to key questions

Do brokers charge commissions or fees for trading sharia stocks?

Yes almost every broker charges fees of some description. The fees for sharia accounts might be a bit higher than for regular accounts with the same broker as those accounts won’t be charged any overnight interest fees. 

Do I have to verify my identity with a stock broker?

Any regulated broker that complies with anti-money laundering laws should ask for a form of photo ID to verify your account before you can trade. These KYC (Know Your Customer) regulations are standard practice.

Can I buy multiple stocks with a broker?

You can own as many stocks as you like, as long as they comply with Islamic law. The only limit to the number of stocks you can own is how much money you’re willing to invest.

Do I need any extra software to use an Islamic stock broker?

Most platforms let you trade through their website or mobile app. In rare cases you will have to download an extra piece of software, although it’s more common for forex trading rather than stocks and shares. The software is usually MetaTrader 4 and is fairly simple to get to grips with.

Should I use a broker to buy and sell sharia stocks?

We always recommend a broker as the best way to own shares and that’s no different for halal investing. Brokers are easy to use even for a beginner and come fairly cheap with lots of different trading options.

Still undecided?

To help you decide on a sharia broker we’ve summarised a list of the main pros and cons below. After that there are a couple more questions for you to consider before you sign up.

Pros

  • Brokers are easy to get started with and a simple way to invest
  • You can invest cheaply with as much or as little money as you like
  • Specialist Islamic accounts let you invest in a way that complies with your faith
  • Trade CFDs and use leverage without having to pay interest
  • Stock screeners are available so that you can easily find out which companies comply with sharia law

Cons

Should I buy sharia stocks now?

Generally investing in order to build your wealth over time is a good idea. Sharia investing is not only ideal for muslims, but its core tenets of putting money in companies with ethical business practices and low debt is a good starting point for investors of any faith.

As with any investment, the exact timing depends on the price of the stocks you’re interested in and the state of the market as a whole. It also depends on whether you have a long or short term view, as the shorter the timeline the less a business’s fundamentals are a concern and it’s all about analysing price patterns to take advantage of small changes.

Whichever camp you fall into, staying on top of the latest news is important. Then you can use that information to influence your buy or sell decisions. Our analysts regularly take a look at the top performing companies and you can use their work to help shape your own research.

Apple shares have weakened from their recent highs above $140, and the current price stands around $128. Apple reported better than expected second-quarter results last week, and the company increased the quarterly dividend by 7.3%. Fundamental analysis: Morgan Stanley raised its target on Apple from $158 to $161 Apple shares…
Under Armour (NYSE: UAA) shares have weakened from their recent highs despite better than expected first-quarter results. The U.S. stock market is losing some ground this Tuesday, which also negatively influences Under Armour shares. Fundamental analysis: Under Armour shares are not undervalued Under Armour is an American sports equipment…
McDonald’s shares advanced after the company reported better than expected first-quarter results and closed the week at $236,08. Fundamental analysis: UBS raised its price target from $240 to $255 Even with the COVID-19 pandemic, this company’s business is going well, and McDonald’s reported better than expected first-quarter results last week.

Where can I learn more about sharia stock market trading?

Right here on Invezz. To start investing straight away you just have to head to the table above and pick a broker. Otherwise, you can take one of our stocks courses to learn about building a long term investment strategy first, or browse through the top halal stocks as chosen by our financial experts.


Fact-checking & references

Our editors fact-check all content to ensure compliance with our strict editorial policy. The information in this article is supported by the following reliable sources.

Risk disclaimer

Invezz is a place where people can find reliable, unbiased information about finance, trading, and investing – but we do not offer financial advice and users should always carry out their own research. The assets covered on this website, including stocks, cryptocurrencies, and commodities can be highly volatile and new investors often lose money. Success in the financial markets is not guaranteed, and users should never invest more than they can afford to lose. You should consider your own personal circumstances and take the time to explore all your options before making any investment. Read our risk disclaimer >

James Knight
Financial writer
When he isn’t at work, James is an avid trader and golfer who likes to travel. He once fed, rode, and ate an ostrich all on… read more.