Any idea if FreeTrade is planning to offer any Such ETF’s? There’s a big market out there looking for ethical investments and I for sure would invest heavily. Also in the the current market it seems it’s these investments that are the most stable and higher returns
How are you currently finding shariah compliant stocks out of interest. The apps that tell you on Play Store are questions at best. I’ve also struggled with this.
One app said Gregg’s is shariah complaint, how can that be?
I’m pretty sure the pork products rules Greggs out of being Shariah compliant
I’m currently using an app called Zoya. They survey American stocks currently but plan to diversify and survey European stocks as well.
In regards to what is classified as shariah compliant/non compliant there are a number of things that get taken into account which you can search online. They look at what is the nature of the business and the transactions/debt it has etc.
Generally speaking though a company which trades on that which the Islam prohibits e.g. pork or alcohol will be haram. However some jurists would accept this if this was only a minimal part of the profit of the company. How much really depends on their calculations and understanding.
I’m not here stating Greggs is a shariah compliant investment. We all have to do our own research our find someone we trust to tell us it is.
I wonder if FreeTrade could adopt the DOW Islamic index and/or have companies on their index. I would be very interested in investing more if that could be done. I know plenty more who would also feel the same
Exactly, but a shariah compliant screener app apparently says it is compliant. Hence why I don’t trust them.
The own research allows for laymen like myself to use their own judgement to purchase srocks, which, could actually be non compliant and result in disallowed income. The scholars are not taking a stance and giving a difinitive list of halal stocks, which is why these apps have appeared.
The app I’m referring to which screens UK stocks is called Islamic investor that says Gregg’s is compliant. There others out there like it, which are even worse tbh.
Zoya says Tesla is Sharia compliant, how can this be when Tesla provide finance options on the purchase of their vehicles which includes interest. Interest is disallowed, so how can the stock be compliant?
Regarding the jurists who accept a small portions that are disallowed, would they intercede for us?
I think these stock screener apps each have their own criteria. You would have to make the choice who you trust the most based or on your teacher or don’t trust any at all. Sometimes it’s better to be safe and not get involved in the grey area
I’m not claiming to have complete knowledge of what makes something shariah compliant but I do know there is an aspect of purifying wealth. E.g. a company may get a certain amount of income through usury but they give more than than in charity hence purifying the profit.
You have given some points to think about, thank you.