‘Which halal stock screener should I use?’

“Which halal stock screener should I use?!”

Has this question perplexed you? You’re not alone.

Everyone can have an opinion and taste, for sure. But here are three things that make Muslim Xchange’s halal stock screener super unique:

  1. We serve a reputed Shariah advisory firm, which has been in the business of stock screening and certification for over 15 years. The firm’s clients include reputed Islamic banks. So, by serving them, we improved our own screening, alhamdulillah. Our work indirectly ends up with some of the best Islamic banks.
  2. We screen according to 5 major Shariah methodologies. Most stock screeners have just one methodology. Each Shariah methodology or standard has its own strengths and weaknesses. For example, some standards check Interest-bearing debt against Market cap, while other standards check against Assets. For online companies, which have little Assets, this may work against their favor. Likewise, market cap may not work well for companies facing an unusual setback like what the airline industry went through during the pandemic.
  3. We go beyond surface-level screening. If a company looks questionable or doubtful because of mixed revenues, we go deeper and analyze their revenues until we come to a proper conclusion on whether the company is compliant or not. For example, Amazon has earnings from non-compliant products and services like movies and music. With deeper analysis, we can come to a fairly good conclusion on what the % of these revenues are. That’s why you’ll see, as of the date of this article, it is compliant on Muslim Xchange. By the way, Amazon is also Compliant (at the time of writing) according to major Islamic indices like DJIM. So, we’re in good company.

Have you tried Muslim Xchange yet? You probably should!

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Faraz Omar, CSAA, MBA
Faraz Omar, CSAA, MBA
Founder of Muslim Xchange. MBA in Finance and AAOIFI Certified Shariah Advisor & Auditor (CSAA). Passionate about what we as Muslims can and must do for each other and the world in general.
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