Is Robinhood Markets Stock Halal?
Robinhood Markets, Inc. · HOOD · NASDAQ
Robinhood Markets, Inc. (HOOD) does not pass Shariah screening: its core business fails the activity screen (Robinhood's 10-K disaggregates 2025 net interest revenues of $1), and impermissible income / total revenue is 33.8% against the < 5% limit (data as of 2026-03-31). It is not held by Shariah-screened ETFs SPUS or HLAL. Screened alternatives exist in the same sector — see the halal stock screeners and ETF guides below.
Financial data as of 2026-03-31 · Screening basis: AAOIFI · Last reviewed 2026-06-15
HalalWallet is not a Shariah authority and does not issue religious rulings. We compile the most complete public record of what Shariah scholars, screening authorities, and mainstream standards say — reproduced from primary sources with dates and citations — and let you decide.
Do the halal screening authorities agree?
- HalalWallet (AAOIFI)· Not halal
HalalWallet (AAOIFI) rates Robinhood Markets, Inc. not halal; no other recognized authority has a published position.
Stances are normalized from each authority's own dated public position. Disagreement usually reflects a methodology or standard difference (ratio timing, market-cap vs total-assets denominator), not an error. For the fund screens (Wahed/HLAL, SP Funds/SPUS), only a confirmed holding that passed the fund's screen counts as a pass — a non-holding is left blank because absence can reflect index scope.
Is Robinhood Markets Stock Halal?
Robinhood Markets, Inc. (HOOD) does not pass Shariah screening: its core business fails the activity screen (Robinhood's 10-K disaggregates 2025 net interest revenues of $1), and impermissible income / total revenue is 33.8% against the < 5% limit (data as of 2026-03-31). It is not held by Shariah-screened ETFs SPUS or HLAL. Screened alternatives exist in the same sector — see the halal stock screeners and ETF guides below.
- Interest-bearing debt / market cap: 16.0% (< 30%) — Pass
- Cash + interest-bearing securities / market cap: 14.5% (< 30%) — Pass
- Impermissible income / total revenue: 33.8% (< 5%) — Fail
- Financial ratios sourced from filings as of 2026-03-31.
How we read the evidence
HalalWallet's editorial synthesis of the screens, scholar positions, and sources documented on this page — not a religious ruling.
Robinhood's own revenue table makes the Shariah analysis fairly clear. In 2025, $1.51 billion of its $4.47 billion in net revenue, about a third, was net interest revenue, and the company itemizes exactly where it comes from: margin lending to customers ($573 million), interest on segregated customer cash ($319 million), the cash sweep program ($229 million), securities lending ($190 million), corporate cash ($167 million), and its credit card ($64 million). Interest is not incidental to Robinhood's model; it is one of its three reported revenue pillars and has grown every year the company has disclosed it.
The largest pillar, transaction-based revenue ($2.63 billion), carries its own issues. It is earned primarily through payment for order flow and transaction rebates, which some scholars critique separately as a transparency and fairness concern, and its biggest single component is options trading revenue ($1.12 billion), where the underlying instruments are widely considered impermissible. Crypto trading revenue ($901 million) adds the separate coin-by-coin permissibility debate.
With an interest share of revenue several times above the roughly 5% threshold common in AAOIFI-style screening, Robinhood is not a borderline case the way some payment companies are. It is absent from both SPUS (June 11, 2026 holdings) and HLAL (February 28, 2026 SEC-filed holdings). Muslim investors who like the brokerage-platform theme generally need to look at the company's revenue composition each year, but as of the 2025 10-K the interest-driven share puts HOOD clearly outside standard screens.
Business Activity Screen
Robinhood is a retail brokerage offering commission-free trading of equities, options, crypto, and futures, plus a Gold subscription and a credit card. Per its 2025 10-K, total net revenues were $4.47 billion: transaction-based revenues of $2.63 billion (59%), net interest revenues of $1.51 billion (34%), and other revenues of $331 million (7%, including $179 million of Gold subscriptions).
Robinhood's 10-K disaggregates 2025 net interest revenues of $1.514 billion (about 34% of total revenue): margin interest $573M, interest on segregated cash and deposits $319M, cash sweep $229M, securities lending $190M, interest on corporate cash $167M, and credit card interest $64M. This is far above the ~5% impermissible-revenue tolerance in AAOIFI-style screens. Separately, transaction-based revenues ($2.63B: options $1,123M, crypto $901M, equities $302M, other $302M) are earned largely via payment for order flow and transaction rebates, a practice some scholars critique on its own terms; options revenue also derives from instruments most scholars consider impermissible.
Financial Ratio Screen
| Screen | Value | AAOIFI limit | Result |
|---|---|---|---|
| Interest-bearing debt / market cap | 16.0% | < 30% | Pass |
| Cash + interest-bearing securities / market cap | 14.5% | < 30% | Pass |
| Impermissible income / total revenueInterest income $1.51B on $4.47B total revenue (Robinhood Markets, Inc. FY2025 (fiscal year ended 2025-12-31, Form 10-K)) = 33.8% — above AAOIFI's 5% limit. | 33.8% | < 5% | Fail |
Spot market cap at research date (consider trailing average for borderline names). Data as of 2026-03-31 · thresholds per AAOIFI Shariah standards.
This verdict uses the AAOIFI standard — the most widely used and, at a 30% debt limit, the most conservative mainstream Shariah standard. Interest-bearing debt and interest-bearing securities each stay under 30% of market cap, and impermissible income under 5% of revenue. Other standards (Dow Jones Islamic, S&P Shariah, MSCI Islamic, FTSE Yasaar) use ~33% limits or screen against total assets, so a borderline company can be rated differently by each. How we screen & why screeners disagree →
Scholars' & Screeners' Positions
Published positions, cited as stated. Screeners can reach different conclusions on the same company because of ratio timing and methodology differences — we report the disagreement rather than flatten it.
SP Funds S&P 500 Sharia ETF (SPUS)
Not held in SPUS as of 2026-06-11. Absence can reflect screen failure or index scope — verify before citing as a screen outcome.
Source →Wahed FTSE USA Shariah ETF (HLAL)
Not held in HLAL as of 2026-06-11. Absence can reflect screen failure or index scope — verify before citing as a screen outcome.
Source →
What to do instead
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The Final Step: Your Scholar Conversation
Major whether Robinhood Markets, Inc. is halal decisions involve nuances that vary by scholarly opinion and personal circumstance — which is why HalalWallet is built as the research step, not the ruling. We do the homework on comparisons, structures, and oversight; a qualified Islamic scholar, your local imam, or a Shariah-certified financial advisor covers what no comparison site can — guidance specific to your situation. Bring your shortlist to that conversation so it starts at the decision, not the basics.
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- Review the contract structure (Murabaha, Ijara, Musharakah, etc.) and any disclosed Shariah board opinions.
- Bring your shortlist to a qualified Islamic finance advisor or scholar, so the conversation is about your situation, not the basics.
Frequently Asked Questions
Sources and review process
This page is reviewed against HalalWallet editorial standards and source documentation.
Reviewed by: HalalWallet Editorial Team
Last reviewed: 2026-07-01
- HOOD latest quarterly filing (balance sheet 2026-03-31)
- AAOIFI Shariah Standards
- Robinhood 2025 10-K revenue disaggregation (SEC EDGAR XBRL)
- Robinhood Q4/FY2025 results (company IR)
- SPUS holdings (SP Funds)
- HLAL Schedule of Investments 2026-02-28 (SEC EDGAR)
- HalalWallet Methodology
- Editorial Policy
- Markdown mirror (AI systems, CC BY 4.0)
- Halal verdict corpus (JSON)
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