More Muslims than ever want to grow their savings without interest or investments in alcohol, gambling and other haram businesses. A new wave of apps makes this much easier. This guide compares the best halal investing apps: Wahed, Zoya, Musaffa and Islamicly, explains what each one actually does and shows how to choose.
This is educational information, not financial advice. All investing carries risk, and you can lose money. Fees and features change, so check each app’s own website before you sign up.
Two Different Types of Halal Investing Apps
- Managed (robo-advisor) apps invest your money for you in a ready-made halal portfolio. You choose a risk level and they do the rest. Wahed is the best-known example.
- Screening apps do not hold your money. They tell you whether a stock or fund passes Shariah screening, so you can buy it through your own broker. Zoya, Musaffa and Islamicly work this way.
Quick Comparison
| App | Type | Best for | Cost (check current pricing) |
|---|---|---|---|
| Wahed | Managed halal portfolios | Hands-off investors who want a simple, diversified portfolio | Annual management fee, roughly 0.49%–0.79% of your balance depending on the plan |
| Zoya | Stock and fund screener | Self-directed investors checking individual US stocks quickly | Free basic tier, paid premium |
| Musaffa | Stock screener and research | Investors who want detailed data and AAOIFI-based screening, plus a stock zakat calculator | Free basic tier, paid premium |
| Islamicly | Stock screener | Investors in non-US markets such as the UK, India and Asia | Free basic tier, paid premium |
How Does Halal Stock Screening Work?
Screening apps usually follow standards such as those of AAOIFI (the Accounting and Auditing Organization for Islamic Financial Institutions) or index providers like Dow Jones and S&P. In simple terms, a company must pass two tests:
- Business activity: its main business must be permissible. Banks and insurers based on interest, alcohol, gambling, pork, adult entertainment and similar businesses are excluded.
- Financial ratios: its interest-bearing debt and interest-bearing investments must stay below set limits (commonly around 30–33% of market value or total assets), and income from haram sources must be small, typically under 5%.
Because different apps use slightly different methods, a borderline stock can pass on one app and fail on another. That is normal; pick one methodology and be consistent.
Purifying Dividends
Even a compliant company may earn a small amount of interest or other impure income. Most scholars say you should give that small percentage of your dividends to charity, without expecting reward. Several screening apps calculate this “purification” amount for you.
Halal ETFs: A Simple Starting Point
If picking individual stocks feels like too much, Shariah-compliant exchange-traded funds (ETFs) let you buy a whole basket of screened companies in one trade. Examples include the SP Funds S&P 500 Sharia Industry Exclusions ETF (SPUS) and Wahed’s HLAL and UMMA ETFs in the US, and iShares MSCI World Islamic UCITS ETF in the UK and Europe. Check fees and availability with your broker.
How to Choose the Right App
- Want it simple? A managed portfolio like Wahed means you set up a monthly deposit and leave it.
- Enjoy research? Use Zoya or Musaffa with a regular broker and build your own portfolio of halal stocks and ETFs.
- Investing outside the US? Islamicly has stronger coverage of UK, Indian and Asian markets.
- Many people use both: a managed portfolio for the core of their savings and a screener for a few individual picks.
Do Not Forget Zakat
Halal investments are still part of your wealth, so zakat applies. Musaffa and Zoya both offer tools to help estimate zakat on shares, and our guide to zakat on 401(k), pension and savings explains the main scholarly positions.
Frequently Asked Questions
Is investing in the stock market halal?
Most contemporary scholars allow buying shares in companies whose business is permissible and whose finances pass screening. Day trading with leverage, short selling and options are generally not considered permissible.
Is Wahed really halal?
Wahed has its own Shariah supervisory board and publishes how its portfolios are screened. As with any provider, read their Shariah certificate and methodology for yourself.
Can I invest from Pakistan or India using these apps?
Screening apps can be used from most countries, but buying the investments depends on which brokers and markets are available to you. Managed services are only open in certain countries.
Final Word
Halal investing is no longer complicated or expensive. Decide whether you want a managed or do-it-yourself approach, start small with regular monthly amounts, purify your dividends and pay your zakat.