Learn how to open a Shariah-compliant brokerage account in Switzerland or South Africa. Step-by-step guide to halal investing on Interactive Brokers, EasyEquities, and Wahed.
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Introduction: Start Investing the Halal Way
If you’ve been avoiding investing because you’re not sure how to do it Islamically, this post is for you.
Opening a halal brokerage account is the first practical step to building wealth without riba (interest), speculation, or unethical companies.
In this guide, I’ll walk you through how to open your account safely — whether you live in Switzerland or South Africa — and how to make sure every part of the process stays 100% Shariah-compliant.
What Makes a Brokerage Account Halal?
A brokerage account becomes halal not because of the platform itself, but because of how you use it.
To stay Shariah-compliant:
- No margin or leverage – only trade with cash you own.
- Avoid interest-bearing accounts – disable or withdraw any “cash interest” options.
- Invest only in halal assets – such as Shariah-compliant ETFs, sukuk, or gold.
- Avoid speculation – no day-trading derivatives, futures, or forex.
Step-by-Step: How to Open a Halal Account on Interactive Brokers (IBKR)
1. Go to interactivebrokers.com
Select your region (e.g., Switzerland or South Africa).
2. Choose “Individual Cash Account”
This is crucial — never select “Margin Account.”
A Cash Account ensures you only trade using your own funds.
3. Complete KYC and Verification
Upload your ID and proof of address. The process usually takes 1–2 days.
4. Deposit Funds
Transfer CHF or ZAR via your local bank or Wise (for lower fees).
IBKR supports conversions at very low FX rates, but avoid holding funds in interest-bearing currencies.
5. Disable Interest on Idle Cash
In your settings, go to Account Configuration → Interest Settings and uncheck the option to earn interest.
6. Buy Shariah-Compliant ETFs
Search for these examples:
- SP Funds S&P 500 Shariah ETF (SPUS)
- iShares MSCI World Islamic ETF (ISDW)
- Franklin Global Sukuk ETF (FLXS)
All can be bought directly with your deposited cash.
How to Open a Halal Account in South Africa (EasyEquities or Wahed)
Option 1: EasyEquities
This platform allows South Africans to buy ETFs with small amounts.
Choose Satrix Shariah Top 40 ETF (STXSHR) for JSE-listed halal exposure.
Steps:
- Create an EasyEquities account (free).
- Verify with your ID and proof of address.
- Deposit ZAR via EFT or card.
- Search for “Satrix Shariah Top 40 ETF” and buy using your cash balance.
No leverage
No interest
100% halal ETF
Option 2: Wahed Invest
Wahed offers fully managed halal portfolios.
If you prefer passive investing, choose a “Conservative,” “Balanced,” or “Aggressive” plan based on your risk level.
They invest in global Shariah-compliant ETFs, sukuk, and cash holdings verified by a Shariah Supervisory Board.
How to Keep Your Account Halal After Opening It
- Review quarterly: Make sure your holdings remain compliant (use tools like Zoya or Islamicly).
- Avoid dividends from non-compliant income: If you earn mixed dividends, purify them by donating the small non-halal portion to charity.
- Withdraw profits responsibly: Always use your halal funds for permissible purposes.
Common Mistakes to Avoid
Opening a margin account (involves riba)
Leaving cash idle in an interest-bearing balance
Buying ETFs that don’t specify Shariah compliance
Trading speculative products like CFDs or options
My Personal Setup
For my own halal investing:
- I use UBS (formerly Credit Suisse) for my local account in Switzerland.
- I invest smaller amounts through Trading 212 and larger allocations via IBKR.
- For South African clients, I recommend EasyEquities or Wahed, depending on their goals.
Everything stays cash-based, interest-free, and aligned with Islamic finance principles.
Final Thoughts
Opening a halal brokerage account isn’t complicated — it just requires clear intention and discipline.
Once your account is set up, you’ll finally be able to invest with confidence and peace of mind.
“Indeed, Allah is Pure and accepts only that which is pure.” — Prophet Muhammad ﷺ
Start your journey today — open your account, download my free guide, and take the first step toward halal wealth.