Halal Score Methodology
Every broker on the Halal Score Index is evaluated on six weighted criteria. Total: 100 points. Here is exactly what each criterion measures and why.
1. Swap-free authenticity
Does the broker actually waive overnight interest, or does it impose hidden fees that replace swap charges? Many "Islamic accounts" charge an administration fee on positions held past 24-48 hours that effectively replicates swap. The highest scores go to brokers with zero swap, zero replacement fees, and unlimited holding periods.
2. Spread parity
Does the Islamic account version offer the same spreads as the standard account? A common abuse: marking up spreads on swap-free accounts so the broker recovers the lost swap revenue. We compare same-symbol same-session spreads on standard vs Islamic accounts.
3. Fee transparency
Are all account fees, commissions, withdrawal charges, and inactivity fees documented in a single, accessible place? The lowest scores go to brokers with fees discoverable only by experimentation or hidden in PDF terms.
4. Leverage policy
High leverage amplifies gharar (excessive uncertainty) and risk-to-real-capital ratios that some scholars consider problematic. We score lower for brokers pushing 1:1000+ leverage as a marketing feature, and higher for those offering reasonable defaults (1:30-1:100) with clear leverage education.
5. Regulator quality
Tier-1 regulators (FCA, ASIC, CySEC, CFTC, NFA) get full credit. Tier-2 (FSCA, FSC Mauritius, SCB Bahamas) get partial. Unregulated entities score zero, regardless of marketing claims.
6. Documentation
Does the broker publish their swap-free contract terms, eligible account types, supported regions, and any conditions or exclusions in plain language? Bonus credit for brokers that publish their internal sharia advisory board or independent audit results.
Review cycle
Every broker is re-reviewed every 90 days. Spread checks happen weekly via automated monitoring. Documentation reviews are manual. Major changes (regulator status, swap policy) trigger immediate re-scoring.
ShaFX is not a sharia certification authority and does not issue fatwas. The Halal Score is a research-based composite signal designed to help halal-aware traders compare brokers, not a religious ruling. Always consult a scholar you trust for personal decisions.