Wahed Invest Inc. (“Wahed”) is an investment advisor that aims to provide an efficient Shari'ah compliant automated wealth advisory platform to investors across the world. Our platform will allow investors from all income brackets to invest their savings ethically and efficiently.
While you certainly could buy the securities suggested by Wahed directly through your broker/dealer, you would not be able to get them all at the same time in a cost-effective and efficient manner. Wahed also monitors and periodically rebalances your portfolio for no additional cost.
Wahed is Shari'ah compliant. Our firm, and all the securities we trade are monitored by our Ethics Review Panel, Straightway Ethical LLC. All securities chosen by Wahed undergo a rigorous screening process in which our management team and ethical scholars work together to tailor portfolios with the goal of providing attractive investment returns.
Shari’ah Compliant Investing (also known as Halal Investing) is a subset of Socially Responsible and Ethical Investing based on investments that adhere to Islamic Principles. Whereas finance traditionally has been driven solely by the effort to maximize risk adjusted returns, Islamic and Socially Responsible investors have added an additional objective for financial market activity – compatibility with the investor’s ethics and promotion of social-welfare activities.
While both are fairly easy to open and use, there are a few fundamental differences. Generally, your bank account guarantees you a fixed return over some period with no risk involved. Your Wahed account bears risk and may lose value due to market conditions, however with this increased risk, it is possible to earn higher returns than your savings account. The amount of risk you wish to take is completely up to you.
For any query or clarification regarding our services, you can reach us at our direct line +1-212-332-1817 or email us at firstname.lastname@example.org. We would be more than happy to assist you. Kindly note we only provide technical assistance over the phone, no financial advice.
Wahed provides automated portfolio management services to its clients through the use of our advanced platform, which employs financial algorithms derived from Modern Portfolio Theory to create optimal portfolios that are tailored to the needs of our investors. By opting to use our services, you will be entering into an agreement that grants us the authority to invest and manage your savings.
To open an account with Wahed, users must first complete a risk assessment questionnaire. Upon completing this questionnaire, you will be recommended an optimal portfolio based on the answers you have provided us. If you are happy with this portfolio allocation, you must then complete our online registration forms. Once the forms are complete, you must transfer funds to our trusted custodian, Apex Clearing Corporation, who will purchase the securities on your behalf.
Our client’s portfolio is managed by a combination of the recommendations made by our algorithms as well as the expertise of our Investment Committee. Our advisory team thoroughly reviews all the trade recommendations before making any changes to the client’s portfolio.
Our platform evaluates an investor's risk profile by asking them a few basic questions about their investment goals, liquidity needs, time horizon etc. Based on this information, we try to optimize the portfolio by finding the correct combination of securities that can provide the highest potential return vis-à-vis the investor’s risk appetite. We use Modern Portfolio Theory and optimize your portfolio at a fraction of cost of the conventional wealth manager.
Our main objective is to provide a low cost investment advisory service for smaller portfolios. We allocate a large portion of funds into ETF’s as they help reduce unnecessary overheads while providing efficient diversification benefits. Investing in individual assets involves multiple transactions, which can lead to higher costs.
We charge a single wrap fee for our service, which is inclusive of management, custodian and transaction fees. This fee does not include any charges on wiring, IRA, withdrawals or other fees that may be charged by the custodian.
The ETF sponsors or Mutual funds usually charge expense ratios, which are not currently included in the wrap fee. These are extra fees you will pay indirectly. We always review these fees when we implement our initial rebalancing and we might at times strategically hold certain securities where the trading fees are high relative to the actual value of the position. For more information about our Fee Structure, please refer to our Wrap Fee schedule.
We will send you monthly reports on your registered email address, which will have a summary of your portfolio holdings and performance. We have an online portal that can be accessed at any time to get a comprehensive report on your portfolio’s performance to date. Apex Clearing Corporation (custodian) also provide quarterly reports that need to be compared with the reports sent by us.
In order to display our commitment to best practices in the field of Shari'ah compliance, we have designated our Shari'ah review to Straightway Ethical Advisory LLC, the leading US-based Shari'ah financial advisory firm. The review panel will be headed by Sheikh Taha bin Hasan Abdul-Basser and will advise Wahed Invest on matters of Shari'ah compliance and Islamic financial ethics
Wahed's portfolio is designed to minimize risk and maximize return. There is no certainty in performance and Your annual return would depend on multiple factors including your risk profile, market conditions, and other . More aggressive profiles are expected to earn higher returns on the Wahed platform, but may also experience greater losses.
All Wahed customers are invested into a globally diversified portfolio of securities. These securities are scrutinized and screened for ethical and Shari'ah compliance. To view your holdings, users can login to the Wahed Client Portal to see the current state of their investments.
Your expected return depends on your risk profile and asset allocation. Users with a conservative profile are expected to earn less and be exposed to less risk than users with an aggressive profile, who will be exposed to more risk in exchange for a possibility of higher returns.
Unlike FDIC insurance for banks, SIPC does not protect against loss of principal due to movements in the market value of your securities. However, your investment is insured up to $500,000 per account type for certain types of losses. Your account is insured through our trusted Broker/Custodian, Apex Clearing Corporation, a member of the Security Investor Protection Corporation. For details, please see www.sipc.org.
Your assets are held in a brokerage account in your name at Apex Clearing Corporation . Apex Clearing Corporation, a correspondent brokerage firm, is a member NYSE - FINRA - SIPC and is regulated by the US Securities and Exchange Commission and the Commodity Futures Trading Commission. They have the proven leadership experience, capital position, and technology expertise necessary to serve our clients.
Apex Clearing Corporation will send you account statements at least quarterly detailing your holdings and all account transactions. You can also view your accounts at all times through your Wahed Client Portal. Additionally, Wahed Invest will provide you with periodic electronic statements. You are urged to compare any statement Wahed sends you against your Apex Clearing Corporation’ statement.
You can see every transaction that has taken place on your account by logging into the Wahed Client Portal, or reviewing your Apex Clearing Corporation’ statement. We track the flow of every dollar for every Wahed account.
Wahed Invest service is only available with accounts opened at our brokerage partner, Apex Clearing Corporation. In order to provide our service, Wahed Invest must have the ability to electronically place trades for all of its accounts, which is not currently available at a reasonable price from any of the consumer-focused brokerage firms.
Yes, it is important to keep your information up-to-date. Keeping your information up-to-date (e.g. address, name change, employment information) ensures we are providing the most relevant and personalized financial recommendations for your current financial situation.
Yes. As your financial situation changes, it is important to keep us informed so we can determine whether to update our investment recommendations for you. Keeping your information up-to-date (e.g. address, name change, employment information) ensures we are providing the most relevant and personalized financial recommendations for your current financial situation.
Our management strives to bring efficient Shari'ah compliant investing to the masses of around the world. If you believe you can help us with this strategy please email us at email@example.com with the subject as ‘Global Expansion Proposal.'
We calculate partial sales using First In First Out method (FIFO method) This is the IRS’s (Internal Revenue Service) default accounting method. The IRS presumes you’re selling the oldest shares first, which can lead to a larger capital gain if the oldest shares have appreciated more than those acquired later. Hence it is a default method for our clients.; Eg: - Say you buy 100 shares of a stock for $50 each, and a year later buy 100 more at $60 each. By the following year, the stock is trading at $80 and you sell 50 shares. In the example above, as per FIFO method, it would mean selling your $50 shares first, resulting in a capital gain of $30 per share, or $1,500 in total.
All customers have access to our customer support team that will happily answer any questions regarding your account. We cannot consult with you over the telephone or in person regarding your investments or your recommended allocation.
Wahed’s Wrap Fee is inclusive of all management fees, custodian fees, and transaction fees, except for any wiring, IRA, withdrawal or other miscellaneous fees that are charged by the custodian. Apex Clearing Corporation allows one free withdrawal per month.
To add funds to your account we currently offer two funding methods – ACH and Wire.
Please login to your Wahed account > Click on Funding > Add Funds > Select the Transfer Method ACH & fill in the Amount you wish to deposit.
You would then need to add/link a checking or savings account with your Wahed Account
To link a checking or savings account - Select your Bank from the list > Fill-in your Bank login credentials > Select the Account (Checking/Savings) you would like to link to your Wahed account > Confirm the Transaction.
Wire- Please login to your Wahed account > Click on Funding > Add Funds > Select the Transfer Method WIRE & Fill the Amount you wish to deposit > You will be able to see the bank details with all the required information. After receiving the required information, you can transfer the funds through your bank.
Usually it takes 1-3 business days depending on the method of funding.
Wire transfers usually take between 1-2 days.
ACH transfers take between 3-4 days for the first ACH transfer to be reflected in your account.
To withdraw funds, you must login to your Wahed account > click on Funding > Withdraw Funds > Fill the amount you wish to withdraw > Select the bank linked to the Wahed account OR Add/Link the Bank you like to receive the funds in > Select the Account (Checking/Savings) you would like to transfer funds to > Confirm the transaction.
The timing of a withdrawal depends on several factors including what time of day the withdrawal request is made, and the institution receiving your funds. Most withdrawals take 7 or 8 business days before the requested funds are in your bank account.
You can withdraw all your funds at any time. However, the withdrawal process may take up to 7 days depending on your date of withdrawal and bank.
This is mainly due to a hold period of five business days for clearing and settlement of trades once your withdrawal request has been processed.
If the Market Value falls below $500 then the account status will remain Active, however if the Market Value falls below $500 due to withdrawals from the account, the status will be changed to Insufficient Funds. You will need to fund your account if your status is changed to Insufficient Funds.
If you invest less than the minimum amount i.e. $500, the account status will be “Active (insufficient funds).” There will be no trades or securities allocated until you fund at least $500 into your Wahed account.
Yes, only if you qualify as a tax resident of the USA. Kindly note: We are not Tax Advisors and do not suggest or advise on a client's legal country of residence. Please consult your tax advisor for advice in completing tax forms and determining your taxpayer status.
Our custodian provides reports related to US as well as non US residents. In general, annual statements are available for all the clients. For example, for US residents, tax form 1099 is provided, and Form 1042-S for Non-US Residents. You may login to Apex Clearing Corporation and go to Reports > Tax > Tax Forms.
IRS Form W-8 is used to certify your status as a non-U.S. taxpayer. It is used to claim reduced tax withholding on dividends and other income paid with respect to U.S. securities, thus benefiting our international clients. Without proper documentation, brokers may be required to impose exceptional withholding tax on transactions occurring in the account and/or report the account as non-compliant to tax authorities.
It is imperative you respond to the W-8 email request with appropriate documentation. If you fail to provide a Form W-8, or do not resubmit a new W-8 when prompted upon the three-year expiration, additional withholding may apply. Wahed encourages its clients to consult with their tax advisors for further guidance on how to seek relief for any tax being withheld.
A W-8BEN (Individual) completed without a US taxpayer identification number, is in effect beginning on the date signed until the last day of the third succeeding calendar year. In general it is valid for three years. If a change in circumstances causes any information on the form to be incorrect, this will render the form invalid. Towards the end of the three-year period you will receive an email request to resubmit your W-8BEN (Individual) form. Form W-8 is valid for the year in which it is signed and for the next three calendar years. For example, a Form W-8BEN signed on March 5, 2010, remains valid through December 31, 2013, and must be resubmitted to IB no later than January 30, 2014. Generally, tax is withheld at a rate of 30% on payments of US source stock dividends and substitute payments in lieu. The rate of withholding may be reduced if there is a tax treaty between your country of tax residence and the United States.
Apex Clearing Corporation reports all reportable amounts on a consolidated form 1099 which includes specific Forms 1099 for each type of income. When issued (on or before February 15 of each year) you may find your forms under Account Management > Reports > Tax > Tax Form. Often tax forms are revised after being issued. We recommend that you check your account periodically for updated forms as you prepare and finalize your tax return. Additionally, IB issues Form 2439, "Notice to Shareholders of Undistributed Long-term Capital Gains", to holders of regulated investment companies (RICs) or real estate investment trusts (REITs), when applicable. The issuance date of this form varies for each specific investment
It is not uncommon for a client to have changes which they have not informed us about, resulting in out-of- date or inaccurate records. In these situations, the quickest and most effective way to remedy the situation is to update your information via our client portal under Account Settings. Alternatively you can always email us at firstname.lastname@example.org.
As part of your Wahed Account, you may own ETF’s that have foreign holdings and these ETF’s may have foreign source dividends that may have paid foreign tax on such dividends. As federal tax laws prevent double taxation on foreign sourced income, you may be eligible to claim either a deduction or credit for foreign tax you have paid. Wahed does not provide Tax advice and is not a Tax advisor; the information provided should not be interpreted as Tax advice.
Wahed Invest Inc. is registered as an Investment Advisor with the Securities and Exchange Commission. Registration does not imply a certain level of skill or training. Custodial and brokerage services are provided by Apex Clearing Corporation, a member of the New York Stock Exchange, FINRA and SIPC.