A comprehensive practical guide: How to start investing in Sharia-compliant US stocks with guaranteed religious compliance

Thousands of Arab and Muslim investors annually seek safe and reliable investment products that align with their religious principles. The common question they ask is simple: Can I achieve real financial profits without violating Islamic law? The answer is yes, and more easily than you might imagine.

Why are Muslims attracted to Sharia-compliant US stocks?

Over the past decade, we’ve seen a real explosion in interest in Islamic investment products. The reasons are clear: major American companies provide strong financial performance, and US markets offer high liquidity and strict regulation. The only problem? Not every American stock is compliant with Islamic law.

This is where documented Islamic investing comes into play. Instead of avoiding US stocks altogether, precise mechanisms have emerged to examine and evaluate them according to clear Islamic standards. This means you don’t have to sacrifice financial opportunities for religious compliance—you can combine both.

Basic principles that determine whether a stock is “halal” or not

Before buying any stock, you need to understand the basic rules. Islamic law does not prohibit investment and trading by nature, but it imposes strict controls around:

❌ What to avoid:

Activities directly prohibited (alcohol, gambling, tobacco, weapons, immoral content), usury loans and financing, deposits in accounts with forbidden interest, indirect involvement in forbidden activities (such as providing technical services to a casino).

✅ What can be accepted:

A basic, legitimate, and clear commercial activity, low riba debt ratio (less than 30% of market value), forbidden income not exceeding 5% of total income, full transparency in financial reports.

How to manually screen stocks (for applicants)

If you prefer to examine stocks yourself, here are the steps:

Step 1: Verify the company’s core activity

Start by researching the nature of the company’s work. Is it truly operating in a permissible sector? Browse annual reports and business summaries on the company’s website. Immediately exclude any company directly or indirectly involved in forbidden industries.

Step 2: Check financial ratios

Using quarterly financial data:

• Calculate the riba debt ratio divided by current market value (must be less than 30%)
• Check deposits and interest earned (must not exceed 30%)
• Study sources of additional income (non-permissible income should not exceed 5%)

Step 3: Continuous monitoring

Companies change. What was halal six months ago might not be anymore due to a merger deal or a new loan. Regularly follow financial reports.

Best digital tools for automated screening

Don’t want to get into complex calculations? No problem. There are specialized platforms that do this for you.

Zoya: The beginner’s first choice

A specialized US app offering:

• Instant updates on Sharia compliance
• Clear classifications: halal, mixed (needs purification), non-halal
• Automatic purification calculation tool
• User-friendly interface

Who is it suitable for? Investors seeking quick and easy monitoring without hassle.

Islamicly: For serious analysts

Provides in-depth reports and quarterly updates, linked to global Sharia indices like FTSE Shariah and Dow Jones Islamic Market Index.

Who is it suitable for? Those wanting detailed analysis before every investment decision.

AAOIFI and Musaffa: Strict standards

Both rely on rigorous international criteria for Sharia screening, offering stock comparisons and comprehensive evaluations.

Who is it suitable for? Investors seeking 100% compliance with global Islamic standards.

Practical steps for actual investing

First step: Choose your investment style

Direct long-term investment (: Buy and own the stock physically, benefit from its growth and dividends. Suitable for those seeking security and full Sharia compliance.

CFDs )short-term: Trade on price movements without actual ownership of the stock. Suitable for experienced traders looking for flexibility.

( Second step: Choose a trusted broker

Interactive Brokers – for direct purchase:

• Since 1977
• Access to 150+ markets
• Professional analysis tools
• Low margin fees

Mitrade – for CFDs:

• Founded in 2011
• Over 300 financial instruments
• Easy interface for beginners
• Fast execution

) Third step: Start trading

1. Open an account: Quick registration and identity verification
2. Deposit funds: Cards, bank transfers, digital wallets
3. Select the stock: Enter the trading platform, find the halal stock, open your position

Recommended Sharia-compliant US stocks ###2025-2026###

Small-cap stocks at lower prices

If you’re looking for a cheaper entry point:

Common mistakes to avoid

❌ First mistake: Assuming everything labeled “Islamic” is truly halal. Verify yourself.

❌ Second mistake: Not following up regularly. Companies change, and Sharia compliance requires continuous updates.

❌ Third mistake: Assuming technology is always halal. Some tech companies have large riba loans.

❌ Fourth mistake: Ignoring consulting a Sharia or financial expert before large investments.

❌ Fifth mistake: Pursuing high returns without verifying religious adherence. Result? Investing in forbidden sectors.

An additional step: Purification of profits

If you earn profits from a stock with a non-halal income ratio, don’t worry. You can purify your earnings:

1. Calculate the percentage of non-halal income from Sharia reports
2. Multiply your total profits by this percentage
3. Donate the resulting amount to charitable organizations

Digital tools like Zoya and Musaffa automatically perform this calculation for you.

Summary

Investing in Sharia-compliant US stocks is not a fantasy or impossible. It’s a reality available to anyone who wants to:

✅ Understand the basic principles of Islamic investment ✅ Use the right tools for screening ✅ Maintain regular monitoring ✅ Purify when necessary

Start today, choose one of the mentioned tools, find your first halal stock, and set your investment plan. The result? A strong investment portfolio and peace of mind.