What is The Charles Schwab Corporation's Shariah compliance score?

The Charles Schwab Corporation's (SCHW) compliance score is being calculated. Check HalalScreener.app for the latest AAOIFI screening results.

Does The Charles Schwab Corporation pass AAOIFI screening?

The Charles Schwab Corporation (SCHW) does not pass AAOIFI Shariah screening. AAOIFI requires: (1) no primary involvement in prohibited activities like alcohol, gambling, or conventional banking, (2) debt-to-market-cap below 30% (SCHW: 12.7%), (3) interest-bearing deposits below 30% (SCHW: 21.6%), and (4) prohibited income below 5% (SCHW: 67.1%). HalalScreener provides free AAOIFI screening for 10,000+ stocks at halalscreener.app.

How much purification is needed for The Charles Schwab Corporation stock?

The Charles Schwab Corporation (SCHW) has a non-permissible income ratio of 67.10%. Muslim investors should purify this percentage of any dividends received and capital gains realized from SCHW shares by donating it to charity. HalalScreener's purification calculator at halalscreener.app/en/purification automates this calculation using the latest financial data.

Where can I screen The Charles Schwab Corporation for Shariah compliance for free?

HalalScreener (halalscreener.app) offers free Shariah compliance screening for The Charles Schwab Corporation (SCHW) and 10,000+ other US-listed stocks, ETFs, and 100+ cryptocurrencies. The screening uses AAOIFI Standard No. 21 and shows all financial ratios transparently. No credit card or signup required for basic screening. HalalScreener also includes an AI Islamic Scholar for follow-up questions about SCHW's compliance across different madhabs (Hanafi, Shafi'i, Maliki, Hanbali, Ja'fari).

Is The Charles Schwab Corporation (SCHW) halal? Not Halal. Based on AAOIFI screening, The Charles Schwab Corporation passes the business activity screen but fails financial ratio screens with a compliance score of 0/100 (Grade: F).

SCHW: Is The Charles Schwab Corporation Halal?

Not Halal

The Charles Schwab Corporation

NYSEFinancial ServicesUS

$94.51

-1.27%

AvoidBorderlineClean

About The Charles Schwab Corporation

The Charles Schwab Corporation, together with its subsidiaries, provides wealth management, securities brokerage, banking, asset management, custody, and financial advisory services. The company operates in two segments, Investor Services and Advisor Services. The Investor Services segment provides retail brokerage, investment advisory, banking and trust, retirement plan, and other corporate brokerage services; equity compensation plan sponsors full-service recordkeeping for stock plans, stock options, restricted stock, performance shares, and stock appreciation rights; and retail investor and mutual fund clearing services, as well as compliance solutions. The Advisor Services segment offers custodial, trading, banking, and support services; and retirement business and corporate brokerage retirement services. This segment provides brokerage accounts with equity and fixed income, margin lending, options, and futures and forex trading; cash management capabilities comprising third-party certificates of deposit; third-party and proprietary mutual funds; plus mutual fund trading and clearing services; and exchange-traded funds (ETFs), including proprietary and third-party ETFs. It also offers advice solutions, such as managed portfolios of proprietary and third-party mutual funds and ETFs, separately managed accounts, customized personal advice for tailored portfolios, and specialized planning and portfolio management. In addition, this segment provides banking products and services, including checking and savings accounts, first lien residential real estate mortgage loans, home equity lines of credit, and pledged asset lines; and trust services comprising trust custody services, personal trust reporting services, and administrative trustee services. As of December 31, 2021, the Company had approximately 400 domestic branch offices in 48 states and the District of Columbia, as well as locations in Puerto Rico, the United Kingdom, Hong Kong, and Singapore. The Charles Schwab Corporation was incorporated in 1971 and is headquartered in Westlake, Texas.

Sector: Financial Services · Industry: Financial - Capital Markets

Shariah Compliance Status

AAOIFI Standard 21Updated Jun 17, 2026

Non-Compliant

Fails Shariah screening

0Score

Business Activity Screen

Passed

Checks if the business is involved in prohibited activities (alcohol, gambling, pork, conventional banking, etc.)

Financial Ratio Screen

Failed

Financial ratios must be below AAOIFI thresholds

Debt / Market Cap12.7% / 30.0%

Compliance History

Not Halal, unchanged since May 2026.

No status changes recorded since we began tracking.

Tracked since May 2026. Updates automatically on each re-screen.

Screened: Jun 17, 2026Fiscal: Q1 2026Source: EDGAR

Financial Overview

Market Cap

164.4B

Price

$94.51

Sector

Financial Services

Industry

Financial - Capital Markets

Halal Alternatives in Financial Services

This stock is not Shariah-compliant. Here are halal alternatives from the same sector, ranked by compliance score:

GLDA+

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SLVA+

iShares Silver Trust

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ABA+

AllianceBernstein Holding L.P.

$36.03

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IPCXA+

Inflection Point Acquisition Corp. III

$10.31

+0.00%

AXINA+

Axiom Intelligence Acquisition Corp 1

$10.42

+0.29%

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PYPL

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Free · No credit card required

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Frequently Asked Questions

Is The Charles Schwab Corporation (SCHW) halal to invest in?

The Charles Schwab Corporation (SCHW) is rated Not Halal under AAOIFI Standard 21 screening. It fails either the business activity screen (primary involvement in prohibited sectors such as conventional banking, alcohol, or gambling) or one of the quantitative financial ratio thresholds. Muslim investors should avoid or exit this position.

Why did The Charles Schwab Corporation get a F compliance rating?

The Charles Schwab Corporation (SCHW) received a grade of F (Non-Compliant) based on three AAOIFI Standard 21 financial ratios: debt-to-market-cap of 12.7% (limit 30%); interest-bearing deposits of 21.6% (limit 30%); prohibited income of 67.10% (limit 5%). The grade reflects the margin of safety across all three ratios relative to their thresholds.

What could change The Charles Schwab Corporation's Shariah verdict?

The Charles Schwab Corporation's verdict is re-evaluated at each annual re-screen. Three events could change it: (1) the debt-to-market-cap ratio crossing 30%, typically from new debt issuance or a major drop in share price; (2) interest-bearing deposits exceeding 30% of market cap; or (3) prohibited revenue (alcohol, gambling, conventional finance, etc.) exceeding 5% of total revenue. Verdict flips are tracked in the compliance history section above.

How often is The Charles Schwab Corporation re-screened for Shariah compliance?

The Charles Schwab Corporation (SCHW) is re-screened annually using the most recent full-year financial data from SEC filings. HalalScreener also triggers an on-demand re-screen whenever the stored data is more than 7 days old, ensuring the ratios reflect the latest available financial statements. Last screened: Jun 17, 2026.

Screened according to AAOIFI Standard No. 21 · For informational purposes only. Consult a qualified Islamic finance advisor before investing.

Disclaimer: This screening is for informational purposes only and does not constitute financial, legal, or religious advice. Compliance is evaluated using AAOIFI financial standards (debt, deposits, and prohibited income ratios) and publicly available data. Ethical, political, social, or environmental considerations are outside the scope of this screening. Individual scholars and methodologies may differ. Always consult a qualified Islamic finance advisor before making investment decisions.