Manzil has officially launched self-directed halal stock trading south of the border in what the Toronto-based Islamic FinTech startup claims marks a North American first.
Now, instead of only allowing its American clients to invest through a managed portfolio—an option the company initially rolled out last year after purchasing United States (US) peer Aghaz Investments—Manzil permits them to directly trade individual US equities that have been screened for compliance with Sharia (Islamic law) through its mobile app.
Founded in 2017, Manzil aims to help Muslim Canadians and Americans build wealth in a way that is consistent with their ethical and spiritual obligations. The company caters to a growing demographic that is largely shut out of the traditional financial system by a lack of options that satisfy their religious requirements: many Muslims refrain from investing in companies tied to alcohol, tobacco, gambling, or weapons, and using financial services involving interest.
“This is the first time a halal trading app has been launched in North America.”
Mohamad Sawwaf, Manzil
In an exclusive interview with BetaKit, Manzil founder and CEO Mohamad Sawwaf described the startup’s newly expanded platform as “like a halal version of Robinhood.”
As it transitions from managed to self-directed investing, Sawwaf said Manzil hopes to become an Islamic alternative to the popular US trading app.
“This is the first time a halal trading app has been launched in North America,” Sawwaf claimed, noting that typically, Muslim investors have leveraged trading and stock-screening apps side-by-side to ensure the equities they are considering meet their religious requirements. “Here, it’s an all-in-one solution,” he said.
Manzil, which began by offering halal mortgages in Canada, has expanded to offer a variety of financial products geared towards Muslims on both sides of the border.
Previously, Manzil launched in the US with managed accounts only, offering clients access to halal portfolios that its team built and managed on its clients’ behalf in partnership with Alpaca. Now, Sawwaf said it is ready to offer a “you trade it yourself” model that it has built, partnering with Zoya for Sharia screening.
RELATED: Manzil wants to be “the North American Islamic neobank” as it expands to US
Sawwaf said that this move, coupled with Manzil’s new international know-your-client capabilities enabling sign-ups from most countries globally, signals “the start” of the company’s global expansion as it looks to begin bringing its offerings to the broader Muslim population.
Canada is home to approximately 1.8 million Muslims, while there are an estimated 4.5 million living in the US. Together, this group is a small fraction of the nearly two billion Muslims globally.
For now, Manzil has restricted app availability to clients in the US, the United Kingdom, Bahrain, Qatar, Saudi Arabia, and the United Arab Emirates. It plans to make it available in other countries over the coming months.
Sawwaf is hopeful Manzil can eventually bring these capabilities to Muslim Canadians, and sees room to do so should partner Alpaca decide to enter the market.
Feature image courtesy Manzil.