Is SCHW halal?
Charles Schwab Corporation (The
Not halal
Charles Schwab Corporation (The did not pass AAOIFI screening. The failed check is shown below.
Checked: 12 October 2026
Exchange
NYSE
Price
91.96
Day
-2.34%
Market cap
$167.23B
Industry
Capital Markets
Sector
Financial Services
What the company does
Charles Schwab is the largest US retail broker: stock/fund trading, retirement accounts and banking (it absorbed TD Ameritrade in 2020). Revenue is mostly interest on client cash balances and management fees; trades are commission-free.
What was checked
The AAOIFI standard has four steps: business activity first, then three financial ratios. Fail one and the stock is not halal.
Business activity
No prohibited activity
Interest-bearing debt / market cap
limit 30%
Interest-bearing debt $37.34B ÷ 36-month average market cap $130.21B = 28.7%
28.7%
Pass
Cash & investments / market cap
limit 30%
Cash + interest-bearing securities $107.76B ÷ 36-month average market cap $130.21B = 82.8%
82.8%
Fail
Non-compliant income / total revenue
limit 5%
Interest income $15.50B ÷ annual revenue $23.92B (2025) = 64.8%
64.8%
Fail
Figures from the company's filings (2026-06-30), USD. Market cap is a 36-month average (the S&P Shariah index approach), so a one-day price move does not flip the verdict. Today's market cap: $167.23B.
For information (AAOIFI 3/1 note): cash + receivables are 47.8% of total assets (2026-06-30). AAOIFI recommends tangible assets of at least one third — this figure does not affect the verdict, and other major screeners do not apply it either.
In the lists
- In the S&P 500
- 0.23% weight · #79 of 503
- Held by funds
- Not held by any tracked fund
Superinvestors
SEC 13F, 2026 Q3. Up to 45 days delayed.Held by 10 superinvestors · Average reported price: $92.27
- Ruane Cunniff LP$421.8M6.6%
- Francois RochonGiverny Capital$155.2M5.2%
- Yacktman Asset Management$378.5M4.7%
- Dodge & Cox Funds$7.1B3.7%
- Bill NygrenOakmark Funds$2.2B3.0%
- Viking Global Investors$981.6M2.8%
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- Halal investingBlogWhy a company's cash affects whether its stock is halalLots of cash sounds like a good sign — but halal screening checks it separately. What counts, what doesn't, and where we are stricter than AAOIFI.
- Halal investingBlogAAOIFI Shariah Standard No. 21 in plain languageThe most widely used standard for halal stock screening: the two-step test, the three ratios and how it differs from other methods.
Halal is the first question. The second: when to enter?
Our scanner watches 1454 halal stocks around the clock and fires a signal with entry, TP and SL when a technical setup completes. The full signal history — with outcomes — is public.
This is neither investment advice nor a fatwa. Screening is based on public financial statements and AAOIFI standard No. 21; data may lag. For a personal decision consult your own scholar.