Traders Union Experts Have Explored The Best Halal Investment Options
Muslims have long looked for profitable investment opportunities, but the distinction between halal (permissible) and haram (forbidden) investments can be confusing. TU experts offer a comprehensive article to clarify these concepts and provide insights into halal and haram investments. This resource will aid readers in selecting the most suitable halal investment options for their portfolios.
Halal investing rules
According to analysts at Traders Union, halal investing follows Islamic principles by avoiding businesses involved in haram activities like alcohol, gambling, and pork. The key rule is to avoid companies with profits from haram industries, like tobacco and weapons manufacturing, and to be cautious of high debt levels. The goal of halal investing is to align investments with Islamic beliefs and values, emphasizing responsible and morally aligned choices.
Options for halal investments
When considering your financial goals, it’s essential to explore halal investment options that adhere to Islamic principles and values. TU experts provided a list of halal investments that can generate profits:
- Stocks: Invest in businesses not engaged in haram activities; avoid those involved in prohibited actions or interest-based profits.
- ETF Funds: Diversified funds following Shariah guidelines, like ETFs and index funds, can yield profitable returns.
- Forex Trading: Trade with a reputable broker offering swap-free accounts to comply with Islamic principles.
- Cryptocurrencies: Some Shariah-compliant cryptocurrencies approved by AAOIFI are permissible for investment.
- Precious Metals: Gold and silver are halal investments, but careful consideration is required per different scholarly views.
- Sukuk (Islamic Bonds): Similar to traditional bonds but without interest, making them halal instruments to invest in.
- Real Estate: Research is crucial, as interest involvement in properties should be avoided, while REITs without mortgages are halal options.
What are haram investments?
Stocks in companies engaging in activities prohibited by Islamic law are categorized as haram. This includes industries like alcohol, tourism, hotels, nightclubs, and pornography. Banks dealing with interest-based instruments and insurance companies are also considered haram.
Best Islamic (swap-free) accounts
Swap-free accounts in the Forex market allow you to hold positions overnight without paying interest. Traders Union analysts determined some Islamic swap-free accounts for trading:
- RoboForex: Offers a comprehensive range of investment opportunities, including Forex, commodities, indices, stocks, and cryptocurrencies. They provide educational resources and an automated trading platform.
- XM: Provides swap-free accounts with no interest charges, requiring a minimum deposit of $5. Leverage of 1:888 is available for trading Forex, CFDs, energies, and precious metals.
- AvaTrade: Offers a variety of learning and training materials for Forex and other assets like commodities, indices, stocks, and cryptocurrencies. Various account options, including standard, mini, and VIP accounts, are available.
TU analysts’ comprehensive article clarifies the concepts of halal and haram investments, assisting readers in making suitable choices for their portfolios. Halal investing follows Islamic principles, avoiding haram activities and interest-based profits. It promotes ethical alignment, diversification, and a long-term perspective, fostering stability and sustainability while supporting responsible businesses. Swap-free accounts in the Forex market offer additional opportunities for halal investing. By following these principles, Muslims can build wealth in accordance with their beliefs and values.