Is Trading 212 Halal? (2025 Guide)
Dom Farnell
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An investor and blogger with a focus on financial markets and wealth management. He’s dedicated to helping others make informed investment choices through straightforward and engaging content.
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Last Updated 05/03/2025
Quick Answer: Is Trading 212 Halal or Haram?
Trading 212 is not fully halal due to CFDs, leverage, and riba-based transactions. However, if you disable the cash-on-interest feature, only invest in halal stocks and manually screen them; then, investors can use it in a Sharia-compliant way.
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Is Trading 212 Halal?
As someone who actively invests while ensuring my financial decisions align with Islamic principles, I’ve explored many trading platforms, including Trading 212. It is one of the most accessible and popular commission-free trading platforms out there, but as a Muslim investor, my biggest question was: Is Trading 212 halal?
In 2025, more and more Muslims are looking for ways to invest ethically, ensuring their money grows in a Sharia-compliant manner. But not all platforms make it easy to stay halal.
In this guide, I’ll walk you through what I’ve learned from my experience using Trading 212, covering the key principles of halal investing, potential concerns, and alternative platforms that might be a better fit.
What Determines a Halal Trading Platform?
Before I get into Trading 212 specifically, let’s first understand what makes a trading platform halal. I’ve spent years researching this because many platforms include haram elements without making it obvious.
Key Shariah Principles for Halal Investing
Here’s what I always look for when deciding if a platform is permissible:
- No Riba (Interest): If a platform profits from or charges interest, that’s a major red flag. Riba is strictly forbidden in Islam.
- No Gharar (Excessive Uncertainty): Transparency is key. Any platform that allows extreme speculation, gambling-like behavior, or unclear terms is risky.
- Avoidance of Haram Industries: I avoid stocks linked to alcohol, gambling, pork, adult entertainment, and interest-based banking.
- No Leverage or Derivatives: Borrowing money to trade, using CFDs (Contracts for Difference), or margin trading all involve elements of interest and speculation, making them haram.
| Shariah Principle | Description | Trading 212 Compliance? |
|---|---|---|
| Riba (Interest) | Interest-based earnings are prohibited | Mixed - Depends on account type |
| Gharar (Uncertainty) | Excessive speculation is haram | Some features may be questionable |
| Haram Industries | Investments in prohibited sectors are not allowed | Stocks must be screened |
| Leverage & CFDs | Borrowing money to trade is haram | CFDs involve leverage, making them impermissible |
Now that we’ve established these principles, let me share how Trading 212 stacks up based on my experience
Does Trading 212 Offer a Halal Account? (2025)
When signing up for Trading 212, I checked whether they offer an Islamic (swap-free) account, as many platforms do. Recently, I checked agai,n and I have found that they do not provide a dedicated halal option, which raises concerns for Muslim investors because:
- CFD Trading Involves Interest (Riba) – CFD positions incur overnight interest, which is prohibited in Islam. Without a swap-free account, CFD trading on Trading 212 is not Sharia-compliant.
- No Official Shariah Certification – Unlike some brokers that work with Islamic finance scholars, Trading 212 has no halal certification.
- Manual Stock Screening Required – The platform doesn’t offer pre-screened halal stocks or ETFs, so users must research their investments individually.
Can You Invest in Halal Stocks on Trading 212?
Yes, you can invest in halal stocks on Trading 212, but it requires extra effort. Unlike some platforms that provide pre-screened halal investments, Trading 212 does not categorise stocks based on Shariah compliance. This means investors must manually verify each stock before investing.
In this example, we can see that this investor has curated a profile comprised of only Halal companies, and due to Trading 212’s copier feature, you can replicate their portfolio.
Where Can I Find Halal Stock?
- Avoid Haram Industries – My first step is checking the industry in which a company operates. Any business linked to alcohol, gambling, pork, tobacco, interest-based financial services, or unethical activities is immediately ruled out.
- Analyse Financial Ratios – Even if a company appears halal, I dig deeper. A key metric I check is whether its interest-bearing debt is less than 33% of its total assets, a standard guideline used by Islamic finance scholars. Similarly, I assess revenue sources to ensure minimal reliance on haram income.
- Use Halal Stock Screeners – To simplify my research, I turn to platforms focusing on this aspect. They assess stocks based on Sharia-compliant criteria. These tools help validate my findings and save time.
Where can I Find This Information?
To verify financial data, I rely on trusted sources such as company investor relations pages. These platforms provide balance sheets, debt ratios, and revenue breakdowns, which are crucial for halal investing.
Trading 212 can still be a viable platform for investing in halal stocks if you are willing to screen stocks manually and avoid haram options. Since interest-based earnings are prohibited in the Islamic faith, I have included a step-by-step guide to disabling the “Interest on Cash” feature.
Where do I disable “Interest on Cash”?
To turn off interest on your Trading 212 account, go to the “Interest on cash” dashboard in the app and disable the feature. You can also turn it back on at any time.
Here’s a more detailed breakdown:
1. Access the “Interest on cash” dashboard:
2. Log in to your Trading 212 account and navigate to the “Interest on cash” section.
3. Disable the feature:
You’ll find an option to disable the interest on cash feature within the dashboard.
As for Share Lending, if you are a member of Trading 212 Invest, you can also disable share lending in the “Interest on shares” dashboard.
Trading 212 has explained that disabling share lending means you will no longer earn interest on your shares, but it won’t impact your ability to exchange or modify your positions.
Are CFDs and Leverage on Trading 212 Haram?
CFDs (Contracts for Difference) are one of the biggest red flags I found on Trading 212. They allow traders to speculate on price movements without actually owning the asset, and while that might sound exciting, they are not Sharia-compliant for several reasons:
- CFDs involve leverage, which means borrowing money to trade—resulting in riba.
- Their highly speculative nature puts them under gharar (excessive uncertainty), which Islam prohibits.
- Short-selling is not allowed in Islamic finance, and CFDs make it easy to engage in short-selling.
| Investment Type | Halal or Haram? | Reason |
|---|---|---|
| Stocks (Self-Screened) | Halal | Must meet Shariah compliance criteria |
| ETFs | Mixed | Some may track haram industries |
| CFDs | Haram | Involves leverage and speculation |
| Forex Trading | Haram | Often involves riba and excessive risk |
Because of these issues, I personally avoid CFDs, leveraged trading, and forex on Trading 212 altogether. If you’re serious about halal investing, I recommend sticking to halal-screened stocks only.
Final Thoughts: Is Trading 212 Halal or Haram?
After using Trading 212 myself, I can confidently say that it isn’t fully halal, but it can be used in a halal way if you’re careful. If you’re diligent about screening stocks and stay away from haram elements like CFDs and interest-based transactions, then Trading 212 might work for you.
At the end of the day, the decision is yours. It depends on how much effort you are willing to put into ensuring your investments comply with Islamic finance principles.
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FAQs
Trading 212 is not fully halal because it offers CFDs, leverage, and forex trading, which involve riba (interest) and speculation. However, if you only invest in Sharia-compliant stocks and avoid haram features, you can use it in a halal way.
No, Trading 212 does not offer an Islamic (swap-free) account. Many brokers provide these accounts to remove interest-based transactions, but Trading 212 has overnight fees (swap fees) on CFDs, which involve riba.
Yes, you can invest in halal stocks, but you need to screen them manually. The platform does not provide a built-in halal stock filter, so you’ll have to check if the company:
- Avoid haram industries (alcohol, gambling, pork, etc.).
- Has low interest-bearing debt (less than 33% of assets).
- Meets other Shariah screening criteria.
You can use third-party halal stock screeners like:
- Zoya
- Islamicly
- Wahed Invest
Alternatively, check the company’s financial reports or use sites like Yahoo Finance to analyse debt levels.
No, CFDs (Contracts for Difference) are haram because:
- They involve leverage, which includes riba (interest).
- They allow short-selling, which is not permitted in Islam.
- They are highly speculative, falling under gharar (excessive uncertainty).
If you want halal investing, you should avoid CFDs altogether.
References
- AAOIFI (Accounting and Auditing Organization for Islamic Financial Institutions) – Shariah Standards for Islamic Finance
- Trading 212 Official Website & Terms of Service – Review of Their CFD and Investment Accounts
- Financial Conduct Authority (FCA) – Regulations on CFDs and Retail Trading
- Halal Investing Guide – How to Invest Islamically
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When investing, your capital is at risk and you may get back less than invested. Past performance doesn’t guarantee future results.
