Best Alternatives to Mogo.ca

Given the ethical concerns associated with Mogo.ca’s reliance on conventional, interest-based financial instruments, it is imperative for Muslims to seek out Sharia-compliant alternatives. These alternatives focus on ethical wealth management that adheres to Islamic principles, specifically avoiding riba (interest), gambling, and investments in prohibited industries (like alcohol, tobacco, conventional banking, and entertainment that conflicts with Islamic values). The best alternatives provide solutions that are not only financially sound but also ethically pure, aligning with the holistic well-being promoted by Islamic teachings.

Wealthsimple Halal Investing

Wealthsimple offers a dedicated Halal Investing portfolio, making it one of the most accessible Sharia-compliant investment options in Canada. This portfolio screens out companies involved in activities deemed impermissible in Islam, such as alcohol, tobacco, gambling, conventional finance, and weapons. It also filters for companies with acceptable levels of debt, minimizing exposure to interest. The portfolios are globally diversified and automatically rebalanced, making it a hands-off solution.

• Key Features: Automated, diversified portfolios; Sharia-compliant screening; low management fees; easy-to-use platform.
• Pros: Fully Sharia-compliant, accessible for beginners, passive investing, automated features.
• Cons: Limited customization, fees, reliance on a robo-advisor model.
• Suitability: Excellent for Muslims seeking a convenient, professionally managed Sharia-compliant investment solution.
• Wealthsimple Halal Investing

Manzil Invest

Manzil is pioneering Sharia-compliant financial solutions in Canada, offering not just investments but also halal mortgages and other banking services. Their investment offerings focus on mutual funds and ETFs that are meticulously screened for Sharia compliance, ensuring no exposure to interest-bearing activities or prohibited industries. Manzil provides a comprehensive ecosystem for Muslims to manage their finances ethically, addressing critical needs like home financing without riba.

• Key Features: Comprehensive Sharia-compliant financial services (investments, mortgages); rigorous ethical screening; Canadian-focused.
• Pros: Holistic Sharia-compliant ecosystem, addresses multiple financial needs, commitment to Islamic principles.
• Cons: Newer institution, potentially fewer diverse investment products compared to conventional platforms, geographic limitations for some services.
• Suitability: Ideal for Muslims looking for a full suite of Sharia-compliant financial products and a dedicated ethical partner.
• Manzil Invest

Questrade (Self-Directed with Ethical ETFs)

While Questrade itself is a conventional discount brokerage, it can be utilized by discerning Muslim investors to build a Sharia-compliant portfolio through self-directed investing. This requires the user to meticulously research and select Sharia-compliant Exchange Traded Funds (ETFs) or individual stocks that meet Islamic ethical criteria (e.g., no significant interest-bearing debt, no involvement in haram industries). Platforms like Questrade offer commission-free ETF purchases, which can be cost-effective for building a diversified portfolio of Sharia-screened assets.

• Key Features: Self-directed trading; commission-free ETF purchases; wide range of investment options.
• Pros: Full control over investments, competitive fees, access to global markets.
• Cons: Requires extensive individual research for Sharia compliance, no built-in screening, not a managed halal solution.
• Suitability: Best for experienced Muslim investors comfortable with extensive research and self-management of a Sharia-compliant portfolio.
• Questrade (Self-Directed Investing with Ethical ETFs)

Canadian Islamic Wealth (Personalized Halal Portfolios)

Canadian Islamic Wealth offers personalized financial planning and investment management specifically for Canadian Muslims. They work to understand individual financial goals and then construct portfolios that adhere strictly to Sharia principles. This often involves direct stock investments in ethically screened companies or Sharia-compliant funds, avoiding any exposure to riba or prohibited sectors. This service provides a more tailored and guided approach to ethical investing.

• Key Features: Personalized financial planning; custom Sharia-compliant portfolios; expert guidance.
• Pros: Tailored to individual needs, expert advice, strong emphasis on Sharia compliance.
• Cons: Potentially higher fees for personalized service, not a DIY platform.
• Suitability: Excellent for Muslims who prefer personalized advice and a custom-built, Sharia-compliant investment strategy.
• Canadian Islamic Wealth (Halal Portfolios)

Amanah Private Equity Group

Amanah Private Equity Group focuses on Sharia-compliant investments in tangible assets, primarily real estate and private equity. This approach fundamentally avoids the debt-based structures prevalent in conventional finance, aligning perfectly with Islamic principles that prioritize asset-backed investments and risk-sharing. Investments often involve direct ownership or profit-sharing arrangements in real businesses or properties, offering a distinct alternative to public market equities. My Experience with Mogo.ca

• Key Features: Sharia-compliant private equity and real estate investments; focus on tangible assets; profit-sharing models.
• Pros: Highly Sharia-compliant, direct investment in real assets, potential for strong returns based on real economic activity.
• Cons: High barrier to entry (requires substantial capital), illiquid investments, not suitable for all investors.
• Suitability: For sophisticated Muslim investors with significant capital seeking highly ethical and asset-backed investment opportunities.
• Amanah Private Equity Group

Islamic Finance Tools for Budgeting & Savings

Beyond investment platforms, a critical component of ethical finance is personal financial management. Utilizing budgeting tools, financial planners, or even simple spreadsheets tailored to Islamic principles can be highly beneficial. This involves tracking income and expenses, planning for zakat, avoiding debt, and ensuring savings are held in permissible accounts. While not an investment platform, sound personal financial discipline is the foundation of ethical wealth accumulation.

• Key Features: Budgeting, expense tracking, zakat calculation, debt avoidance strategies.
• Pros: Promotes financial discipline, aligns with Islamic principles of moderation and responsible spending, empowers individual financial control.
• Cons: Not an investment platform, requires self-discipline, no automated investment features.
• Suitability: Essential for all Muslims to manage their day-to-day finances ethically and prepare for Sharia-compliant investments.
• Islamic Finance Tools

Conventional Banks with Sharia-Compliant Product Search

While Canadian conventional banks generally do not offer fully Sharia-compliant accounts, some may have specific products or partnerships that align partially. It’s crucial to inquire directly and understand the underlying mechanisms. Alternatively, one can use conventional bank accounts purely for transactional purposes, minimizing idle balances, and immediately transferring funds to Sharia-compliant investment or savings vehicles. This is more of a strategic approach to use available conventional infrastructure while meticulously avoiding interest.

• Key Features: Access to standard banking infrastructure (chequing, savings for basic transactions).
• Pros: Widespread accessibility, convenience for daily transactions.
• Cons: Core offerings are interest-based, requires extreme diligence to avoid riba, limited Sharia-compliant products.
• Suitability: Only for transactional purposes, with minimal balance holding, while actively pursuing true Sharia-compliant savings and investment alternatives.
• Conventional Banking (for transactional purposes only) (This broad category is for general banking services, with the caveat that one must seek Sharia-compliant alternatives for savings/investments)

My Experience with Douglas.ca