The Canadian Halal Investing Landscape
Canada has a growing but still developing Islamic finance market. There are fewer specialized Islamic financial products than in the UK, but Canadian Muslims have access to global halal ETFs and can structure their portfolios effectively through mainstream brokers.
TFSAs and RRSPs for Halal Investors
Canada's two main tax-advantaged accounts — TFSA (Tax-Free Savings Account) and RRSP (Registered Retirement Savings Plan) — are neutral containers. You can fill them with halal investments. Use your TFSA to buy SPUS, HLAL, or individual halal stocks through any Canadian discount broker.
Canadian Halal ETFs
While US-listed halal ETFs (SPUS, HLAL) are available to Canadian investors through most brokers, note the 15% US withholding tax on dividends in non-registered accounts. For TFSAs, US dividends face 15% withholding that can't be recovered.
For RRSP accounts, the US-Canada tax treaty means US dividends are not subject to withholding, making halal US ETFs in an RRSP tax-efficient.
Canadian Brokers for Halal Investing
- Questrade: Commission-free ETF purchases. Popular choice for halal ETF investors in Canada.
- Wealthsimple: Commission-free trading. Easy to buy US-listed halal ETFs.
- TD Direct Investing / RBC Direct Investing: Full-service options for investors who want more research tools.
Islamic Mortgages in Canada
Canada lags behind the UK in Islamic home finance, but options are growing. Manzil offers Sharia-compliant home financing. Some credit unions have explored musharakah-based products. The Canadian market still needs more competition in this space.
Zakat in Canada
Canadian Islamic finance organizations like the Islamic Finance Council of Canada provide zakat calculation guidance. Standard rules apply — nisab threshold, lunar year holding, market value of investments.
Bottom Line
Canadian Muslim investors can build strong halal portfolios using mainstream brokers and halal ETFs. TFSAs and RRSPs work well for tax-efficient halal investing. The Islamic mortgage market is developing but still limited compared to the UK.