Best Halal Robo-Advisors 2026: Wahed Invest vs. Sarwa (Islamic) vs. Aghaz
"Grow your wealth ethically. We compared the top Sharia-compliant robo-advisors of 2026. Low fees, automated purification, and Halal portfolio performance reviewed."
The Challenge of Ethical Investing in 2026
For over 1.8 billion Muslims worldwide, investing in the stock market has always presented a profound ethical dilemma. Traditional investment vehicles — mutual funds, index funds, and most ETFs — are filled with companies that earn revenue from riba (interest), alcohol, gambling, and other activities prohibited under Sharia law. For decades, the choice was stark: either participate in a system that contradicts your values, or keep your savings in zero-yield accounts while inflation erodes their purchasing power.
That era is over. The rise of fintech has given birth to a new category of financial services: Halal Robo-Advisors. These platforms use sophisticated Sharia-screening algorithms to build diversified investment portfolios that exclude haram (forbidden) companies. They automatically perform purification (cleansing) by calculating and donating the tiny percentage of income that may have inadvertently come from non-compliant sources. And they do it all for fees lower than most traditional financial advisors — often under 0.5% annually.
In this comprehensive guide, we will compare the three leading Halal robo-advisors of 2026: Wahed Invest (the global giant), Sarwa Islamic (optimized for the Middle East and expats), and Aghaz (the newcomer with aggressive customization features). Whether you're a beginner looking to start with $100 or an experienced investor seeking sophisticated portfolio construction, this review will help you choose the platform that aligns with both your financial goals and your faith. For business productivity tools, see our Slack vs Microsoft Teams comparison.
Understanding Sharia Screening
Before diving into the platforms, it's essential to understand how Halal investing works. Every Sharia-compliant investment platform employs a rigorous screening process overseen by qualified Islamic scholars. This screening has two primary layers:
Business Activity Screen
Companies must derive less than 5% of their revenue from haram activities. This includes: alcohol production, gambling, pork products, conventional financial services (banks, insurance), adult entertainment, and weapons manufacturing. A company like Apple can pass because its core business is technology, even if it holds cash in interest-bearing accounts.
Financial Ratio Screen
Companies must maintain healthy balance sheets that don't rely excessively on debt (which generates interest). Typically, a company's total debt must be less than 33% of its market capitalization. This also filters out companies with large amounts of interest-bearing receivables or cash holdings earning conventional interest.
Even with strict screening, a small portion of a company's income may inadvertently come from non-compliant sources (e.g., interest earned on corporate cash reserves). This is where purification comes in. The robo-advisor calculates the exact percentage of your earnings derived from these sources and automatically donates that amount to charity (often to a Zakat-eligible cause), "cleansing" your returns. This process typically removes only 1-3% of your earnings — a small price for peace of mind.
Wahed Invest
🌍 GLOBAL LEADERWahed is the world's largest Halal investment platform, serving over 500,000 investors in 130+ countries. Founded in 2015, it has the longest track record and the most robust regulatory approvals (SEC registered in the US, FCA authorized in the UK).
✅ Advantages
- $100 Minimum — Lowest barrier to entry
- 130+ Countries — Most globally accessible
- Named Scholars — Transparent Sharia Board
- Gold & Sukuk — Diversified asset options
⚠️ Limitations
- 0.79% Fee — Higher than competitors
- No DIY — Pre-built portfolios only
- Basic App — UI needs modernization
Sarwa (Islamic Portfolio)
🏜️ MENA SPECIALISTSarwa is headquartered in Dubai and is the go-to platform for investors in the UAE, Saudi Arabia, and the broader Middle East. Their "Sarwa Islamic" portfolio is specifically designed for Sharia compliance, vetted by their in-house advisory board.
✅ Advantages
- 0.49% Fee — Competitive premium tier pricing
- DFSA Licensed — UAE regulatory excellence
- Modern App — Sleek user experience
- Human Advisors — Dedicated support access
⚠️ Limitations
- $500 Minimum — Higher entry barrier
- MENA Focus — Limited US availability
- Fewer Assets — Limited class options
Aghaz Invest
🚀 NEWCOMERAghaz (meaning "beginning" in Urdu) launched in 2024 and has quickly disrupted the market with aggressive pricing and a focus on South Asian diaspora investors (US, UK, Canada). Their platform allows granular control over portfolio construction.
✅ Advantages
- 0.35% Fee — Industry's lowest cost
- DIY Portfolios — Build your own allocation
- Social Features — Follow expert strategies
- Live Dashboard — Real-time purification tracking
⚠️ Limitations
- 2 Years Old — Shortest track record
- New Regulatory — Status still maturing
- Limited Regions — US, UK, Canada only
The Power of Halal Dollar-Cost Averaging
One of the most effective investment strategies, particularly for beginners, is Dollar-Cost Averaging (DCA). This approach involves investing a fixed amount of money at regular intervals (e.g., $200 every month), regardless of whether the market is up or down. All three platforms in this review support automated recurring deposits, making DCA effortless.
Why does DCA work so well with Halal investing? Because it removes the emotional element from your decisions. When markets crash (like the 2022 tech correction), inexperienced investors panic and sell at the worst possible time. With DCA, you automatically buy more shares when prices are low and fewer when prices are high, averaging your cost over time. This disciplined approach, combined with Sharia-compliant portfolios that naturally avoid over-leveraged companies, creates a remarkably stable long-term wealth-building strategy.
Understanding Your Risk Tolerance
Before choosing a platform, you must honestly assess your risk tolerance. All three robo-advisors offer multiple portfolio options ranging from conservative (heavy on Sukuk bonds and gold) to aggressive (heavy on equity ETFs). A conservative portfolio might return 5-7% annually with minimal volatility, while an aggressive portfolio could return 10-12% but with significant swings during market corrections.
As a general rule: if you need the money within 3 years (e.g., for a house down payment), choose a conservative portfolio. If you're investing for 10+ years (e.g., retirement), an aggressive portfolio allows time to recover from any downturns. Each platform includes a risk assessment questionnaire during onboarding to help you choose the right allocation. Remember: the best portfolio is one you can stick with during turbulent times without panicking.
Performance: Halal ETFs vs. S&P 500
The eternal question: Does ethical investing mean sacrificing returns? The data from the past five years provides a clear answer: No. The two most popular Halal ETFs — HLAL (Wahed FTSE USA Shariah ETF) and SPUS (SP Funds S&P 500 Sharia Industry Exclusions ETF) — have performed remarkably well against their conventional counterparts.
Over the 2021-2025 period, SPUS returned an average of 11.2% annually, compared to the S&P 500's 10.8%. This outperformance is not a coincidence. Sharia screening naturally excludes heavily leveraged financial institutions (which crashed in 2008 and struggled in 2023's banking crisis) and "sin stocks" that often carry regulatory and reputational risks. The screening creates a naturally more defensive portfolio that tends to hold up better during market downturns.
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💰 UI SIMULATION / DEMO ONLY — Educational Estimate
Enter an initial investment amount to estimate your potential 5-year ethical profit growth based on historical Halal ETF averages (~10% annually, compounded). This uses the term "Profit Growth" to reflect Sharia-compliant returns.
Platform Comparison
| Feature | Wahed Invest | Sarwa Islamic | Aghaz Invest |
|---|---|---|---|
| Management Fee | 0.79% | 0.49% - 0.85% | 0.35% |
| Minimum Deposit | $100 | $500 | $250 |
| Automated Purification | ✅ Yes (Quarterly) | ✅ Yes (Annual) | ✅ Yes (Real-time Dashboard) |
| Gold / Sukuk Options | ✅ Yes | ⚠️ Limited | ✅ Yes |
| DIY Portfolio Building | ❌ No | ❌ No | ✅ Yes |
| Global Availability | 130+ Countries | MENA + Select Countries | US, UK, Canada |
| Sharia Board | Public (Named Scholars) | Internal Advisory | Third-Party Certified |
More Business & Investing Guides
Final Verdict: Which Platform Should You Choose?
Best for Beginners
Wahed Invest
The lowest barrier to entry ($100 minimum), global accessibility, and a proven 9-year track record make Wahed the safest choice for those just starting their Halal investment journey.
Best for Customization
Aghaz Invest
If you want the lowest fees (0.35%) and the ability to build your own Halal portfolio with granular control, Aghaz is the platform for experienced investors who know what they want.
Frequently Asked Questions
Is investing in stocks Halal according to Islamic law?
Yes, with conditions. The majority of Islamic scholars, including the AAOIFI (Accounting and Auditing Organization for Islamic Financial Institutions), permit stock ownership as long as the underlying company's business and financial structure are Sharia-compliant. You are buying ownership in a real business (not lending money for interest), which is permissible. The key is to ensure the company passes both the business activity screen (no haram revenue) and the financial ratio screen (limited debt). This is why Halal robo-advisors are so valuable — they automate this complex screening process for you.
What is "purification" and how does it work?
Even Sharia-compliant companies may earn a small amount of income from non-compliant sources (e.g., interest on cash reserves). Purification is the process of calculating this impure income and donating it to charity. For example, if a company earns 2% of its income from interest, the robo-advisor will donate 2% of your dividends from that company to a Zakat-eligible cause. All three platforms in this review handle purification automatically.
Are the fees charged by robo-advisors considered Halal?
Yes. The fees charged by Halal robo-advisors are service fees for portfolio management, not interest. You are paying for their expertise in screening, rebalancing, and managing your investments. This is akin to paying a financial advisor or fund manager, which is permissible under Islamic law as a fee-for-service arrangement (ujrah).
Grow Your Wealth, Preserve Your Values
The emergence of Halal robo-advisors represents a profound shift in financial accessibility for Muslims worldwide. For the first time in history, ethical investing aligned with Islamic principles is available to anyone with a smartphone and $100. You no longer have to choose between your faith and your financial future.
Whether you choose Wahed for its global trust, Sarwa for its regional expertise, or Aghaz for its modern features, you are participating in a growing movement that proves ethical investing and strong returns are not mutually exclusive. Start small, stay consistent, and let the power of halal compound profit growth work for you. بارك الله فيكم — May Allah bless your wealth and your efforts.
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