To buy a halal ETF, you need a securities account with a bank or a broker that gives access to the exchange where the fund is listed. Nine Islamic ETFs are listed on the Swiss stock exchange, SIX, two on BX Swiss, and the others in London or Frankfurt. You look the fund up by its ISIN, place a limit order, then check the contract note: brokerage, stamp duty of 0.15% with a Swiss securities dealer, currency exchange. The account itself must stay compliant: no credit, no interest on cash, no securities lending.
Once you have chosen the fund, you still have to buy it. It sounds simple, yet this is the point where many investors give up: the fund does not appear in the app, there is no line listed in Swiss francs, or the contract note shows unexpected fees. This guide goes through the steps one at a time, with the Swiss rules that apply to each.
It does not recommend any institution. The banks and brokers named here are only examples, and their terms change: always check them against their official price lists.
Which exchange is a halal ETF listed on?
The same ETF can be listed on several exchanges, in several currencies. When you buy a halal ETF from Switzerland, the place of listing matters, because it determines the fees and whether your broker offers the fund. As at 3 November 2026, according to the SIX and BX Swiss reference data:
- On SIX: iShares MSCI World Islamic (ISWD, due to be delisted on or around 15 December 2026), Invesco Dow Jones Islamic Global Developed Markets (IGDA), Invesco MSCI ACWI Islamic M-Series (MWIM, in Swiss francs), HSBC MSCI World, USA, Europe and Emerging Markets Islamic Screened (HIWO, HIUA, HIEU, HIEM), Saturna Al-Kawthar (AMAL, in Swiss francs) and the iShares $ Sukuk ETF (SKUK).
- On BX Swiss, the Bern stock exchange: iShares MSCI USA Islamic (ISUS) and iShares MSCI EM Islamic (ISEM).
- Abroad only: the Wahed funds (London), HSBC MSCI Japan Islamic Screened, HSBC Global Sukuk and Xtrackers Salam Sukuk.
The full list, with ISINs and fees, is in our guide to halal ETFs. The ISIN (a twelve-character code such as IE00B27YCN58) is the only reliable way to find the right fund, because several products have almost identical names.
Which broker should you choose?
Cantonal bank, PostFinance, Swissquote, Saxo, Interactive Brokers, a neobank app: there is plenty of choice. Before you open an account to buy a halal ETF, check five points in the terms and conditions and in the price list:
- Access to the right exchanges. SIX is available everywhere in Switzerland. BX Swiss and foreign exchanges are not always offered, or they cost more.
- Brokerage. A fixed fee or a percentage per order, often higher on a foreign exchange.
- Custody fees. Some institutions charge every year for holding your securities account, others do not.
- Currency exchange. Most Islamic ETFs trade in dollars. Look at the margin applied when your francs are converted, which does not always appear in the brokerage price list.
- Account compliance. Interest paid on cash, securities lending switched on by default, margin account: see below.
If you live in another European country, the apps and brokers available there may offer some Islamic ETFs and not others. Type the ISIN into their search engine: if the fund does not appear, the exchange where it is listed is not offered. National tax-advantaged accounts have their own rules as well: no halal ETF is eligible for the French PEA, for example, as we explain in our guide to halal ETFs.
How much does a purchase cost?
With a Swiss securities dealer, every purchase and every sale of a security issued abroad is subject to the federal securities transfer duty: 3‰ of the amount, half of which is charged to the client, i.e. 0.15% (Articles 16 and 17 of the Federal Act on Stamp Duties). All UCITS Islamic ETFs are domiciled in Ireland or Luxembourg, so all of them are affected. A foreign broker that is not a Swiss securities dealer does not charge this duty.
An example: a purchase of 5'000 CHF through a Swiss bank costs 7.50 CHF in stamp duty, plus the bank's brokerage and, if the fund trades in dollars, the currency exchange margin. Once you hold the units, the fund's ongoing charges (0.30% a year for most Islamic ETFs, i.e. 15 CHF a year on 5'000 CHF) are deducted inside the fund and do not appear on any contract note.
Placing the order, step by step
- Look the fund up by its ISIN, not by its name.
- Choose the listing: exchange and currency. Prefer the one with the most trading, which the fund's factsheet often shows.
- Place a limit order, with a price close to the last traded price. Islamic ETFs trade less than the large global ETFs, and a market order can be executed far from the value of the fund's assets.
- Check the contract note: number of units, price, brokerage, stamp duty, currency exchange.
- Keep the annual tax statement from your bank: you will need it for your tax return and to calculate purification.
A compliant securities account
It is not enough to buy a halal ETF if the account that holds it is not compliant. Three settings need checking:
- Interest on cash. Several institutions pay interest on money that is not invested. This interest is riba: refuse it if you can, otherwise give away the whole amount (see our guide to bank interest).
- Securities lending. Some brokers lend their clients' securities in return for a fee. Switch this option off in the settings, or ask for it to be switched off in writing.
- Margin account. An account that lets you buy beyond your balance is an interest-bearing loan. Choose a cash account.
Also check exactly what you own. Some apps sell fractions of securities in the form of a claim on the institution, rather than units registered in your name: read the product sheet before buying.
Invest every month or all at once?
Both are permitted. A monthly savings plan smooths out the purchase price and suits someone who saves from their salary. If the capital is already available, a single purchase works too. Stamp duty is proportional to the amount, but a fixed brokerage fee weighs more heavily on small orders: look at the price list before deciding how often to buy.
For the order in which to build a first portfolio (reserve, pension provision, then investments), see our method to invest 10'000 CHF the halal way.
After buying: tax and purification
In Switzerland, the units count towards your taxable wealth, and the dividends, whether paid out or reinvested, count towards your income, at the amount shown in the ICTax price list; a gain made on sale is not taxed for a private investor. Depending on the fund, purification is carried out by the issuer or remains your responsibility: the details are in our guide to purifying your dividends, and our purification calculator works it out line by line.
Keep the contract notes for every purchase and sale as well. They show the date, the price and the fees of each transaction, which you will need for your tax return, for calculating zakat on your investments and if the tax authorities ever ask questions.
This content is provided for educational purposes and does not constitute a fatwa: as questions of compliance involve differences between schools of jurisprudence, it is for each person to refer to a competent religious authority for their own situation. Nor does it constitute a recommendation to buy or sell, or investment advice within the meaning of the Financial Services Act (LSFin). The institutions mentioned are cited as examples only and have no connection with ALG Club.