Asalaamualaikum, i have had a trading 212 account for a while now, the invest and ISA. I am aware that the CfD is not allowed.
Regarding the invest account, trading 212 have a share lending policy which we can not opt out of. I am not sure exactly what they use the shares lemding for (ahorting etc.). They make a profit from this and use it to run the platform.
On other platforms, you are paid to lend your shares, on trading 212 we as investors do not benefit from this at all, that would be the key difference i can see. It does not affect out trade, it happens behind the svene and the platform benefits from it.
Would this make the invest account permissible to use?
I know this has come up in another thread before, but i could not find a clear answer.
As soon as I got to know about the lending arrangement in T212 invest, I moved over to ISA to be on the safer side.
As you mentioned it still is not the best arrangement and does not affect the shariah compliance of trading.
There are some shariah compliant stocks which are not available on ISA due to UK regulation but are available on INVEST, is it ok to limit yourself to those limited shariah compliant STOCKS in INVEST due to unavailability in ISA
or would it be considered as not sticking to one rule.
The issue with this is that most brokers will be doing something similar. It’s always best to avoid this but it might not be practically possible unless you have a Shariah compliant broker.
I just wanted to add an update regarding ‘‘Share lending’’. When you open the overview tab, you can choose DISABLE LENDING below. Not sure if this was the case years ago, sharing just in case!
