Assalaamu’alaikum…
I am totally new at this. Have zero knowledge but I’m interested and willing to learn. Hoping I could find a mentor here who could help steer me in the right direction. Anyone?
Thank you
Salaam and welcome! Can you share a little more about yourself and what areas you’re looking for help in?
Thank you for your prompt response. Appreciate it.
Where do I begin? Allow me to start with this-I’m a muslimah based in Singapore.
Now, I know I need to register a CDS account. And this has to be linked to a brokerage firm, is it?
My problem is, as for the brokerage firm, in Singapore we don’t really have a shariah compliant one. And, I don’t know where I can find the one I’m looking for as above mentioned. How can I get a reliable, shariah compliant and trustworthy brokerage firm here in Singapore or anywhere that I could use from where I am. What are the criteria I should look for in order to know they’re reliable and that they are also shariah compliant? Any recommendations?
Secondly, I’m thinking of investing in the stock market in Singapore but again I do not know which are the shariah compliant ones? These are the main ones first I guess. I guess I’ll have more as I go along.
Thanking you in advance for all your help. I truly appreciate it so much.
Jazaakumullah khayr.
Excellent questions fyam.
I looked up the CDP account for Singapore. In India, It is called as the Demat account. An account where your securities are held. Here is a link I found that could be useful https://blog.seedly.sg/step-step-guide-opening-stock-trading-brokerage-cdp-account-singapore/
(1) Open CDP account and then the brokerage account as you said
(2) Now you are asking for Shariah compliant brokerage account. ask around in Singapore there is good chance of those. In the US, I am not aware of any yet. I know there is one in the process of being launched. In the absence of that, what I would do is avoid Margin accounts. Just use a CASH account so you do not have the ability to borrow funds to purchase shares. and then when you transfer funds, invest it as soon as practical so you avoid earning Riba on it.
(3) Next you want to find Shariah compliant stocks in Singapore. Zoya is not currently available for Singapore market. Maybe in future. There maybe other tools that could help. An alternative could be to invest in markets such as US / UK that are covered by Zoya. There are lot of good choices as well.
(4) You don’t mention your experience in investing and you did not ask how to find good investment. So let me state that finding Shariah compliant investment idea is a good start but you need to do more than that to make a good investment in individual stocks. Else, i would say starting with a Shariah compliant, broadly diversified index / mutual fund / ETF would be a good starting point.
Hope that helps. Wish you well.
1 Like
Two articles to help you
- on selecting a broker. and he says dont get caught up in Shariah compliant brokerage. Focus on the investment being compliant. As broker is just a platform. Yes, there is chance they pay interest on cash balances. but you can control that.
-
https://www.smartmamat.com/halal-investment-brokerages/
On selecting investments - Robo Advisors, ETFs etc.
Good luck.