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 is a retail brokerage offering commission-free trading of equities, options, crypto, and futures, plus a gold subscription and a credit card), 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 2026-06-14
Our Analysis
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 | 16.2% | < 30% | Pass |
| Cash + interest-bearing securities / market cap | 14.7% | < 30% | Pass |
| Impermissible income / total revenueInterest income only — verify other impermissible revenue lines in the 10-K | 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
You don't have to choose between investing and your values — screened alternatives exist for nearly every position.
Related guides
Consider Consulting an Islamic Scholar
Major whether Robinhood Markets, Inc. is halal decisions often involve nuances that vary by scholarly opinion and personal circumstance. While HalalWallet provides educational comparisons and tools, we are not scholars or financial advisors. For personal guidance on Shariah compliance, consider speaking with a qualified Islamic scholar, your local imam, or a Shariah-certified financial advisor familiar with your situation.
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Reviewed by: HalalWallet Editorial Team
Last reviewed: 2026-06-01
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