How I invest as a Muslim in Canada

by Basil Yusuf

Context

I live in Canada, and I want long-term growth without compromising Islamic principles. I avoid interest-bearing products, excessive uncertainty, and businesses built on riba. To screen businesses, I use Zoya Finance extensively.

Principles I follow for investing

  1. Avoid riba at all costs
  2. Prefer productive assets and limited-supply stores of value
  3. Keep fees low
  4. Automate contributions
  5. Document as much as possible

Core Buckets and my reasoning for each

  1. Canadian equities: TFSA, or Tax-Free Savings Accounts is an account where gains made on stocks are not taxed. I specifically choose Canadian equities for my TFSA because:
    • No currency conversion fees compared to U.S. stocks
    • Strong representation of stable sectors like financials, energy, and utilities
  2. U.S. equities: Offers superior growth potential and meaningful portfolio diversification
  3. Gold: A strategic hedge against systemic economic risks and geopolitical uncertainties
  4. Crypto: Limited-supply asset (like Bitcoin’s 21M cap) similar to gold, unlike fiat which can be printed infinitely

Platforms I use and why I chose them

Wealthsimple

WSHR Chart

IBKR

  • Lowest foreign exchange rates with minimal transaction costs
  • Exposure to other markets like UK and India

Coinbase

  • Secure and regulated platform for crypto transactions
  • Super clean UI
  • Full disclosure: never tried Kraken

Personal Portfolio Tracker

  • I built a personal tracker using SnapTrade and Plaid
  • I use it to send me emails of my financial health monthly

Personal Tracker

Account Priority Recommendation

  1. Max TFSA each year (all gains are tax-free forever—no capital gains, no tax on withdrawals)
  2. U.S. exposure in taxable/IBKR, mindful of FX and withholding
  3. Keep an emergency fund in cash before increasing risk assets

Example Allocation (not advice)

  • 40% Canadian equities (TFSA): WSHR core
  • 50% U.S. equities: SPUS at IBKR + other US stocks
  • 10% Crypto: Highly Speculative (potential for high-growth)

I size crypto and gold to my risk tolerance. I rebalance regularly.

Risks I Accept

  • U.S. growth premium is not guaranteed
  • Gold can underperform for years
  • Crypto is highly volatile and regulatory
  • FX risk CAD↔USD

Disclosures

This is my personal framework. Not financial advice. Do your own research. Speak to a qualified advisor if needed. Qualified Leaders I follow and listen to are Sh. Joe Bradford and Sh. Numan Attique.

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