Choosing where to invest your money is a big decision. If you’re looking for an app that aligns with your values, you’ve probably heard about Wahed Invest and Sarwa. Both claim to offer ethical investing options, but which one actually works better for your needs? In this detailed comparison, I’ll break down everything you need to know so you can make the right choice for your financial future.

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Key Takeaways

Quick Summary Before You Read:

• Wahed Invest focuses specifically on values-based investing with pre-built portfolios
• Sarwa offers both ethical and conventional investing with more customization options
• Fees vary significantly between the two platforms
• Geographic availability differs—one works better in the UAE, the other in the US
• Investment minimums are low for both, but Sarwa requires less upfront
• Both platforms are beginner-friendly with mobile apps and automated features
• Your location will likely determine which app you can actually use

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What Are Wahed Invest and Sarwa?

Let me start with the basics.

Wahed Invest is a digital investment platform that launched in 2015. It’s designed to help people invest according to their ethical principles. The company operates primarily in the United States and the United Kingdom.

Sarwa is a robo-advisor based in Dubai that started in 2018. It helps people in the UAE and the Middle East invest their money through automated portfolios. The platform offers both ethical investment options and conventional portfolios.

Both apps use technology to make investing simple. You don’t need to be a finance expert to get started. They build diversified portfolios for you based on your risk tolerance and goals.

How Do These Apps Work?

The process is similar for both platforms:

1. You download the app or visit the website
2. You answer questions about your financial goals
3. The platform recommends a portfolio for you
4. You fund your account
5. The app automatically manages your investments

It’s that simple. No need to pick individual stocks or worry about rebalancing.

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Why This Comparison Matters

I’ve seen too many people rush into investment apps without doing proper research. They end up disappointed or losing money because the platform doesn’t match their needs.

Here’s why choosing the right app is crucial:

Your values matter. If you want your money to grow without compromising your principles, you need a platform that screens investments properly.

Fees add up. A 1% difference in fees might not sound like much, but over 20 years, it can cost you tens of thousands of dollars.

Access is everything. Some platforms only work in certain countries. You can’t use Sarwa if you live in the US, and Wahed Invest has limited availability in the Middle East.

Features vary. One app might offer retirement accounts while another doesn’t. These details matter for your long-term planning.

I’ve researched both platforms thoroughly, and I’ll share everything you need to know to make an informed decision.

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Geographic Availability—Where Can You Use These Apps?

This is the first filter you need to apply.

Wahed Invest Availability

Wahed Invest operates in:

• United States (all 50 states)
• United Kingdom
• Malaysia

If you live in the US, Wahed is your primary option between these two. The platform is registered with the SEC and offers proper regulatory protection.

Sarwa Availability

Sarwa operates in:

• United Arab Emirates
• Other GCC countries (limited)

Sarwa is perfect if you live in Dubai, Abu Dhabi, or elsewhere in the UAE. But if you’re in the United States, Europe, or most other countries, you can’t use it.

Bottom line: Your location might make this decision for you. Check which platform serves your country before going further.

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Investment Philosophy and Portfolio Options

Now let’s talk about what really matters—how these apps invest your money.

Wahed Invest’s Approach

Wahed Invest follows a clear ethical screening process. Here’s what they do:

Screening criteria:

• No companies that make most of their revenue from alcohol
• No tobacco companies
• No gambling or casino businesses
• No conventional financial institutions that primarily deal with interest
• No weapons manufacturers
• No adult entertainment companies

The platform offers three main portfolio types:

1. Moderate Portfolio (50% stocks, 50% fixed-income alternatives)
2. Growth Portfolio (75% stocks, 25% fixed-income alternatives)
3. Aggressive Portfolio (100% stocks)

All portfolios invest in ETFs (Exchange-Traded Funds) that have been screened according to ethical guidelines.

Sarwa’s Approach

Sarwa takes a different approach. They offer two distinct investment paths:

Path 1: Values-Based Investing

• Similar screening to Wahed
• Excludes alcohol, tobacco, gambling, interest-based finance
• Uses ETFs that focus on ethical companies

Path 2: Conventional Investing

• Standard portfolio without ethical screening
• Broader range of investment options
• May include companies from all sectors

Sarwa’s portfolios range from conservative to aggressive:

• Conservative (20% stocks, 80% bonds)
• Moderately Conservative (40% stocks, 60% bonds)
• Moderate (60% stocks, 40% bonds)
• Moderately Aggressive (80% stocks, 20% bonds)
• Aggressive (100% stocks)

Key difference: Sarwa gives you more granular control over your risk level with five options instead of three.

Read more: Halal Investing for Beginners: How to Grow Wealth Sharia-Style

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Fees and Costs Comparison

Let me be straight with you—fees matter more than most people realize.

Wahed Invest Fees

Management Fee: 0.99% per year

This is what Wahed charges to manage your portfolio. On a $10,000 investment, that’s $99 per year.

Additional costs:

• ETF expense ratios (typically 0.10% to 0.50%)
• No trading commissions
• No minimum balance fees

Total annual cost: Approximately 1.09% to 1.49%

Sarwa Fees

Management Fee: Tiered structure

• 0.85% per year for accounts under $10,000
• 0.75% per year for accounts between $10,000 and $50,000
• 0.65% per year for accounts over $50,000

Additional costs:

• ETF expense ratios (similar to Wahed)
• No trading commissions
• No withdrawal fees

Total annual cost: Approximately 0.95% to 1.35%

Which Is Cheaper?

Sarwa is generally less expensive, especially if you have more than $10,000 to invest. The tiered fee structure rewards larger accounts with lower costs.

However, the difference isn’t massive. On a $20,000 account:

• Wahed would charge approximately $198 per year (0.99%)
• Sarwa would charge approximately $150 per year (0.75%)

That’s a $48 annual difference, or $480 over 10 years (not accounting for growth).

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Minimum Investment Requirements

Getting started shouldn’t require thousands of dollars.

Wahed Invest:

• Minimum initial investment: $100
• No minimum for subsequent deposits

Sarwa:

• Minimum initial investment: $500 (AED 1,850)
• No minimum for subsequent deposits
• They occasionally run promotions with lower minimums

If you’re just starting out with limited funds, Wahed’s $100 minimum is more accessible. But $500 isn’t unreasonable if you’ve been saving for a few months.

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Account Types and Features

Wahed Invest Account Options

Available accounts:

• Individual taxable accounts
• Traditional IRA (retirement account with tax benefits)
• Roth IRA (retirement account with tax-free growth)
• SEP IRA (for self-employed individuals)

This is a major advantage. If you want to invest for retirement with tax benefits, Wahed gives you proper retirement account options.

Additional features:

• Goal-based investing (save for a house, education, etc.)
• Automatic rebalancing
• Mobile app for iOS and Android
• Educational content and resources

Sarwa Account Options

Available accounts:

• Individual investment accounts
• Joint accounts (for couples or partners)

Sarwa does NOT offer retirement accounts. This is a significant limitation if you’re planning for long-term retirement savings.

Additional features:

• Automatic rebalancing
• Mobile app for iOS and Android
• Lower fees for larger balances
• Financial planning tools

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Performance and Returns

Let me set expectations correctly: past performance doesn’t guarantee future results. That said, here’s what you should know.

Wahed Invest Performance

Based on publicly available data through 2024:

• Moderate Portfolio: Approximately 6-8% annual return (varies by year)
• Growth Portfolio: Approximately 8-10% annual return
• Aggressive Portfolio: Approximately 10-12% annual return

These returns are after fees and align with broader market performance for similar portfolios.

Sarwa Performance

Sarwa reports similar performance ranges:

• Conservative portfolios: 4-6% annual return
• Moderate portfolios: 7-9% annual return
• Aggressive portfolios: 10-12% annual return

Important note: Both platforms’ returns will vary significantly based on market conditions. In down years, you might see negative returns. In strong years, returns could exceed these ranges.

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User Experience and App Quality

I’ve used both apps, and here’s my honest take.

Wahed Invest App Experience

Pros:

• Clean, simple interface
• Easy to understand your portfolio
• Quick account setup (15-20 minutes)
• Educational content built into the app
• Responsive customer service

Cons:

• Limited customization options
• Can’t exclude specific sectors beyond the default screening
• Dashboard could show more detailed analytics

Overall rating: 4/5 stars

Sarwa App Experience

Pros:

• Sleek, modern design
• More detailed portfolio analytics
• Better visualization of your progress
• Ability to adjust risk level easily
• Financial planning calculator included

Cons:

• Slightly more complex for absolute beginners
• Some features only work well in Arabic
• Customer service can be slow during peak hours

Overall rating: 4.5/5 stars

Sarwa edges out Wahed slightly in terms of user experience, but both apps are well-designed and functional.

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Customer Support and Education

Wahed Invest Support

Available channels:

• Email support
• Live chat (during business hours)
• Phone support for account holders
• Help center with articles and guides

Response time: Usually within 24 hours for email, immediate for live chat

Educational resources:

• Blog with investment tips
• Video tutorials
• Webinars on financial planning
• Podcast with finance experts

Sarwa Support

Available channels:

• Email support
• WhatsApp support (very popular in the UAE)
• Live chat
• Phone support for larger accounts

Response time: 12-24 hours for email, quick responses on WhatsApp

Educational resources:

• Comprehensive blog
• Financial planning guides
• Market update emails
• Personalized advice for larger accounts ($100,000+)

Both platforms provide adequate support. Sarwa’s WhatsApp integration is a nice touch for Middle Eastern users who prefer that channel.

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Pro Tip Box

Insider Advice from My Experience:

Don’t just look at fees when choosing between these apps. Consider your complete financial picture. If you’re in the US and want to invest for retirement with tax advantages, Wahed’s IRA options are worth the slightly higher fee. If you’re in the UAE with a large amount to invest, Sarwa’s tiered pricing will save you money long-term.

The best investment app is the one you’ll actually use consistently. I’ve seen people switch platforms constantly and lose money on transaction costs. Pick one, commit to it, and focus on contributing regularly rather than chasing marginal differences.

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Security and Regulation

Your money’s safety is non-negotiable.

Wahed Invest Security

Regulatory oversight:

• Registered with the US Securities and Exchange Commission (SEC)
• Member of FINRA (Financial Industry Regulatory Authority)
• SIPC insurance up to $500,000 (protects against broker failure)

Security measures:

• Bank-level encryption
• Two-factor authentication
• Your money held in custody by US financial institutions
• Regular third-party security audits

Sarwa Security

Regulatory oversight:

• Regulated by the Dubai Financial Services Authority (DFSA)
• Operates under UAE financial regulations
• No SIPC equivalent (different regulatory system)

Security measures:

• 256-bit encryption
• Two-factor authentication
• Funds held in segregated accounts
• Partnership with Interactive Brokers for custody

Both platforms are properly regulated in their respective jurisdictions. US investors benefit from SIPC protection with Wahed, which is reassuring.

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Unique Features and Differentiators

What Makes Wahed Invest Stand Out

Retirement accounts: The biggest advantage is access to IRAs with tax benefits.

Longer track record: Wahed has been around since 2015, giving it more operational history.

US regulatory protection: SIPC insurance and SEC oversight provide strong investor protections.

Values-first approach: The entire platform is built around ethical investing—it’s not an afterthought.

What Makes Sarwa Stand Out

Lower fees for larger accounts: The tiered pricing structure becomes very attractive at higher balances.

More portfolio options: Five risk levels instead of three give you finer control.

Joint accounts: Useful for couples who want to invest together.

Regional focus: Specifically designed for UAE residents with features that work well in that market.

Financial planning tools: More robust planning calculators built into the app.

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Common Mistakes to Avoid

I’ve seen people make these errors repeatedly. Don’t be one of them.

Mistake #1: Not Checking Geographic Availability First

Why it’s a problem: You’ll waste time researching an app you can’t even use.

Solution: Confirm the platform operates in your country before diving deep into comparisons.

Mistake #2: Focusing Only on Fees

Why it’s a problem: A platform with slightly higher fees but better features might save you money long-term.

Solution: Look at the complete package—account types, minimums, features, and support.

Mistake #3: Investing Money You Need Soon

Why it’s a problem: Both platforms invest in the stock market, which can lose value in the short term.

Solution: Only invest money you won’t need for at least 3-5 years. Keep an emergency fund separate.

Mistake #4: Not Understanding the Screening Process

Why it’s a problem: You might assume a platform’s ethical screening matches your personal standards perfectly.

Solution: Review exactly what companies are excluded. If you have specific concerns (like no pharmaceutical companies), check if that’s addressed.

Mistake #5: Setting It and Completely Forgetting It

Why it’s a problem: While automated investing is convenient, you should still review your account quarterly.

Solution: Set a calendar reminder every 3 months to check your progress and reconfirm your goals.

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Real-World Examples and Scenarios

Let me show you how these platforms work in practice.

Example 1: Young Professional in the US

Meet Sarah:

• Age: 28
• Location: New York City
• Income: $65,000/year
• Goal: Retirement savings
• Amount to invest: $200/month

Best choice: Wahed Invest

Why: Sarah needs a Roth IRA for tax-free retirement growth. Wahed offers this account type while Sarwa doesn’t. The $100 minimum works for her initial investment, and she can set up automatic monthly contributions.

Expected outcome: By age 65 (37 years), assuming 8% average annual return, Sarah’s $200/month contributions could grow to approximately $467,000.

Example 2: Expat Working in Dubai

Meet Ahmed:

• Age: 35
• Location: Dubai, UAE
• Income: AED 300,000/year
• Goal: Build wealth for his children’s education
• Amount to invest: AED 5,000/month ($1,360)

Best choice: Sarwa

Why: Ahmed lives in the UAE where Wahed has limited presence. Sarwa is designed for his market. With larger monthly contributions, he’ll quickly reach the $50,000 threshold for Sarwa’s lowest fee tier (0.65%).

Expected outcome: By the time his children are college-age (15 years), his investments could grow to approximately $365,000, assuming 7% average annual return.

Example 3: Self-Employed Freelancer

Meet Marcus:

• Age: 40
• Location: California
• Income: $90,000/year (variable)
• Goal: Catch up on retirement savings
• Amount to invest: Starting with $5,000, then $500/month

Best choice: Wahed Invest

Why: Marcus needs a SEP IRA, which allows self-employed individuals to save more for retirement with tax benefits. Wahed offers this account type specifically designed for freelancers and business owners.

Expected outcome: With higher contribution limits in a SEP IRA, Marcus can catch up on retirement savings and potentially save $50,000+ over 10 years while reducing his current tax burden.

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Expert Tips and Best Practices

Here’s what I recommend after analyzing both platforms thoroughly.

Tip #1: Start with Your Location and Account Needs

Make a quick decision tree:

• In the US and want retirement accounts? → Wahed Invest
• In the UAE? → Sarwa
• Want joint accounts? → Sarwa (if in UAE)
• Need SEP IRA for self-employment? → Wahed Invest

This immediately narrows your choice.

Tip #2: Calculate the Real Fee Impact

Don’t just look at percentages. Calculate actual dollars:

Example: $25,000 investment

• Wahed (0.99%): $247.50/year
• Sarwa under $50k (0.75%): $187.50/year
• Difference: $60/year

Is $60/year worth it if Wahed offers better features for your situation? Maybe yes, maybe no. But know the actual cost.

Tip #3: Maximize Your Investment Timeframe

Both platforms work best with a long-term approach:

• 3-5 years: Minimum recommended timeframe
• 10+ years: Ideal for wealth building
• 20+ years: Perfect for retirement planning

Don’t expect to get rich quick. These are wealth-building tools, not lottery tickets.

Tip #4: Take Advantage of Automatic Features

Both apps offer automatic investing. Use it.

Set up:

• Automatic monthly transfers from your bank
• Automatic rebalancing (already enabled by default)
• Automatic dividend reinvestment

This removes emotion from investing and ensures consistency.

Tip #5: Review Annually, Don’t Obsess Daily

Check your account once per quarter to ensure you’re on track. Don’t check daily or panic when markets drop. I’ve seen too many people sell at the worst possible time because they watched their account too closely.

Good schedule:

• Daily: Don’t check
• Weekly: Don’t check
• Monthly: Quick glance at balance (optional)
• Quarterly: Review performance and reconfirm goals
• Annually: Adjust contribution amounts if needed

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The Final Verdict—Which Should You Choose?

After this comprehensive analysis, here’s my straightforward recommendation:

Choose Wahed Invest If:

✅ You live in the United States or UK ✅ You want retirement account options (IRA, Roth IRA, SEP IRA) ✅ You’re starting with less than $500 ✅ Tax-advantaged retirement savings are a priority ✅ You prefer a platform built entirely around ethical investing

Best for: US-based investors focused on long-term retirement planning

Choose Sarwa If:

✅ You live in the UAE or GCC region ✅ You have $10,000+ to invest (for lower fees) ✅ You want more granular control over risk levels ✅ You prefer joint account options ✅ You want the flexibility to choose between ethical and conventional portfolios

Best for: UAE residents with larger investment amounts seeking lower fees

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How to Get Started (Step-by-Step)

For Wahed Invest:

Step 1: Visit wahedinvest.com or download the app

Step 2: Click “Get Started” and create your account

• Provide email and create password
• Verify your email address

Step 3: Answer the questionnaire

• Investment goals
• Time horizon
• Risk tolerance
• Financial situation

Step 4: Choose your account type

• Individual account
• IRA (Traditional or Roth)
• SEP IRA

Step 5: Link your bank account

• Use Plaid for instant verification
• Or manually enter account details

Step 6: Make your initial deposit

• Minimum $100
• Funds typically arrive in 3-5 business days

Step 7: Your portfolio is automatically built and investments begin

Total time: 20-30 minutes

For Sarwa:

Step 1: Visit sarwa.co or download the app

Step 2: Create your account

• Provide email and phone number
• Verify with OTP code

Step 3: Complete the investment questionnaire

• Goals and objectives
• Risk preference
• Financial situation
• Employment details

Step 4: Choose your investment approach

• Values-based investing
• Conventional investing

Step 5: Select your risk level

• Conservative to Aggressive (5 options)

Step 6: Link your bank account

• UAE bank account required
• Verify account ownership

Step 7: Make your initial deposit

• Minimum AED 1,850 ($500)
• Transfers usually complete within 1 business day

Step 8: Your portfolio is built and investing begins

Total time: 25-35 minutes

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Frequently Asked Questions (FAQ)

Final Conclusion and Action Steps

Choosing between Wahed Invest and Sarwa ultimately comes down to three factors: where you live, what accounts you need, and how much you have to invest.

Here’s your action plan:

If You’re in the United States:

Step 1: Open a Wahed Invest account—it’s your only real option between these two

Step 2: Choose the right account type (Roth IRA for most people under 40, Traditional IRA for higher earners)

Step 3: Start with whatever you can afford ($100 minimum)

Step 4: Set up automatic monthly contributions

Step 5: Review your account quarterly, not daily

If You’re in the UAE:

Step 1: Open a Sarwa account

Step 2: Choose values-based investing if ethical screening matters to you

Step 3: Start with at least $500 (or more if you can—you’ll get lower fees faster)

Step 4: Select the risk level that matches your timeline and comfort

Step 5: Commit to long-term investing (5+ years minimum)

The Most Important Thing

The best investment app is the one you’ll actually use consistently. Both Wahed and Sarwa are solid choices for their respective markets. Don’t overthink this decision—pick the one that works for your location and start investing.

I’ve seen people spend months researching the “perfect” investment platform while their money sits in a savings account earning 0.5% interest. Meanwhile, invested money could be growing at 7-10% annually.

Start today. Start small if needed. But start.

Your future self will thank you for taking action now rather than waiting for perfect conditions that never come.

Remember: Time in the market beats timing the market. The sooner you begin, the more time your money has to grow.