Question 1

What is stock gifting?

Accepted Answer

Stock gifting is a feature that allows you to gift stocks or stock credit. Instead of traditional gifts, you can offer someone the opportunity to potentially benefit from the growth of these securities over time.
How do I claim a stock gift?
1. View the details of the gift and make sure to claim your gift before the deadline. You won’t be able to claim the gift after the deadline
2. Log in or sign up to baraka
3. Once you claim your gift, the stock or stock credit will reflect on your gifting wallet balance
How can I Create a Gift?
1. Head to your dashboard
2. Click on gift icon
3. Click on “Send Gift”
4. Choose a design for the card
5. Enter the email of the recipient
6. Optional: Enter a personalized message for the recipient
7. Choose stock (optional) and enter the gift amount
8. Confirm
How to View Unclaimed Gifts
1. Head to your dashboard
2. Click on gift icon
3. A “Gift History” section will be displayed, showing any unclaimed gifts, if any
Will the gift be added to the recipient’s Baraka wallet automatically?
Recipients need to have registered accounts and actively claim their gift on baraka within 60 days of receiving it for it to be added to their account.
Can I cancel the gift order after it has been sent? Once a gift is sent, the action cannot be reversed. If the recipient does not claim the gift within 60 days, the amount will be refunded to your Baraka account.
Is there a fee to sending gifts? Yes, there’s a flat fee of 5$ per gift transaction.
Is there a minimum amount for gifting? No, there is no minimum amount.
Is there a maximum amount for gifts?
No, there is no specific maximum amount; however, gifts exceeding $1,000 must undergo approvals before they can be processed.

Question 2

What is Income Center and How Is It Useful?

Accepted Answer

Income Center is a better way to track all of your earned income, down to the hour. Track your earnings from Dividends on stocks, REITs, and Bond ETFs, all in one place. Income Center includes a detailed breakdown of your income, which enables you to track your upcoming dividends and their yields, across different time frames.
How is Income Center Useful?
In managing your investment income effectively, you can benefit from a detailed breakdown of your earnings conveniently consolidated in a single location. Additionally, staying ahead of your investment strategy becomes effortless through tracking upcoming dividends and assessing the contributions of various assets to your earnings, all tailored to your specific portfolio. Furthermore, continuous monitoring of your estimated portfolio yield and overall income over time empowers you to plan your next investment moves more strategically, bringing you closer to achieving your financial goals.
Which Features can I Expect?
Switch between Dividends and Auto-income from the all inclusive Income Center. In the dividends tab, you can see your dividends income, any upcoming dividends and your dividend investments. You can also see any dividends re-invested and discover dividend stocks from the Income Center.
How Will my Divided Income Appear?
Your upcoming dividend income will appear as total earnings occurred across different time frames: Yearly, monthly, weekly, daily, and hourly. In addition to that, your portfolio yield will appear as a percentage of income your investment portfolio generated relative to its total.
How Do I Activate Income Center?
The Income Center appears on your Portfolio page without the need to activate it. Click on the box for a more detailed view. You can also access Income Center through the Dashboard page.

Question 3

How does the Credit Rebate Program work and how can I qualify for it?

Accepted Answer

The Credit Rebate Program offers you the opportunity to earn rebates on your trades based on your trading volume. Rebates are payable only on each trade executed after reaching specific trading volume milestones.
There are three trading milestones in the program. Once the total trading volume hits $100,000, users will receive a 10% trading fee rebate for each subsequent trade. When the total trading volume reaches $500,000, the rebate increases to 15% for each subsequent trade. Finally, once the total trading volume reaches $1,000,000, the rebate climbs to 20% for each subsequent trade.
The rebate amount for each qualifying trade will be credited to your baraka account within 5 working days from the day the trade is executed. These rebates will be credited as stock credits, which can only be utilized for purchasing additional stocks on the baraka platform. It's important to note that these credits cannot be withdrawn as cash or transferred to another account.
Credit Rebate Program Terms
1. To be eligible for a rebate, you must be a registered Baraka user.
2. Rebates will only be payable on each trade executed (“Qualifying Trade”) after you reach the relevant trading volume milestone (“Trading Milestone”).
The Trading Milestones and relevant trading fee rebate percentages are as follows: When total trading volume hits $100,000, you will receive a 10% trading fee rebate for each subsequent trade.
When total trading volume hits $500,000, the rebate increases to 15% for each subsequent trade.
Once total trading volume reaches $1,000,000, the rebate climbs to 20% for each subsequent trade.
Trading volume is calculated over a 12-month period starting from the date the Credit Rebate Program goes live. This volume will reset at the end of each 12-month period.
3. The rebate will be credited to your account for each Qualifying Trade no later than 5 working days from the day the Qualifying Trade is executed.
4. Rebates are credited as stock credit, which can only be used for purchasing additional stocks on the Baraka platform. These credits cannot be withdrawn as cash or transferred to another account. By participating in the Credit Rebate Program, you acknowledge and accept this condition.
5. Baraka Financial Limited reserves the right, in its sole discretion, to vary or withdraw the Credit Rebate Program at any time, or to decline requests to participate in the Credit Rebate Program.

Question 4

What is auto-income and how can I use it?

Accepted Answer

Auto-income lets you generate passive income without having to sell your securities. You can now temporarily lend out your securities to other market participants and earn a monthly income, all while still receiving dividends and other benefits associated with your securities.
Here's how it works: You lend out your securities to a borrower, and in exchange, you receive interest. The borrower provides collateral to secure the loan, and once the lending period is over, the borrower returns the securities to you.
How to get started: Simply log in to your baraka account, enable the Auto-Income feature, and agree to the lending terms. You have the flexibility to opt-out of the program at any time, and your assets will be returned to you.

Question 5

How can I find out more about the fees associated with specific investment products on the baraka platform?

Accepted Answer

You can always refer to our fee schedule here to understand the costs associated with using our platform.

Question 6

Are there any penalties for closing my baraka account or transferring my funds to another investment platform?

Accepted Answer

There are no penalties for closing your baraka account or transferring your funds to another investment platform. However, please note that to withdraw money out, you will incur a flat $25 withdrawal fee charged by our broker.

Question 7

Does baraka charge any fees for accessing research and insights on stocks and ETFs?

Accepted Answer

All users have access to advanced Stock and ETF data that includes financial performance, company details, dividend information, Sharia Screener, Sentiment Analysis and Top ESG-Screened Stocks. Premium Subscribers also have access to  in-depth stock analysis reports powered by Refinitiv.

Learn more about the differences between our standard and premium accounts here.

Question 8

Are there any additional fees for using baraka’s automation tools, such as Auto-Invest and DRIP?

Accepted Answer

Auto-invest transactions will follow the same fee structure as our trading fees here . The DRIP feature is free to use, however, our customisable DRIP feature is available only to Premium subscribers.
With a Premium Subscription, you’ll also have access to additional features like extended trading hours with discounted fees and in-depth research tools. Learn more about the differences between our standard and premium accounts here.

Question 9

Does baraka charge any fees for buying or selling stocks or ETFs?

Accepted Answer

Baraka offers one free trade a month to all users and 3 for Premium subscribers. We charge a $1 trade fee for buying and selling stocks and ETFs thereafter.This means that you can make one trade per month without incurring any trade fee.
Read more about our fee schedule here.

Question 10

Does baraka charge any inactivity fees?

Accepted Answer

There's an administrative cost to keeping accounts open without activity so beginning September 1st, 2023, an inactivity fee of $1 per month will be imposed on accounts with less than $50 in total cash and no open positions held by the end of each month.

Question 11

Does baraka charge any custody or account maintenance fees?

Accepted Answer

We do not charge any account maintenance or custody fees. We don't think investors should have to pay for holding their assets for the long term.

Question 12

What fees does baraka charge for using its investment platform?

Accepted Answer

Our aim is to offer a  simple and transparent fee structure. We charge a min. $1 trade fee for buying or selling stocks or ETFs on the platform. We offer best execution pricing and zero spreads, no custody, maintenance and overnight fees. 
Read more about our fee schedule here.

Question 13

What is a stop order and how can I place it on baraka?

Accepted Answer

Stop Loss Orders are essentially limit sell orders for the stocks you hold in your portfolio, set at a price below the current market price. This is the price at which you would sell the security. By putting in a stop loss order, you are limiting your losses. Stop loss orders are designed to limit an investor’s loss on a position that makes an unfavourable move.
To place a stop order on, follow the steps below:
1. Select the stock or ETF you would like to place a order for
2. Click the ‘Invest’ button on the bottom right
3. Select ‘Stop Order’ from the drop-down menu on the top right corner
4. Enter the target price per share at which you’d like to buy the stock, the number of shares and its expiry date
5. Click 'Confirm' and review your order in the pop up dialogue box
Stop Sell Order:
1. Select the stock or ETF you would like to place a limit order for
2. Click the ‘invest’ button on the bottom right and select ‘sell’
3. Then on the top right corner select  ‘stop order’
4. Enter the target price per share at which you’d like to sell the stock, and the number of shares
5. Click confirm and review your limit order in the pop up dialogue box

Question 14

Will the dividend be paid to my bank account or baraka account?

Accepted Answer

Dividends will be credited to your baraka account. You can also choose to reinvest your dividends through our Dividend Reinvestment Plans (DRIPs) product.

Question 15

Why are there missing stocks?

Accepted Answer

You can request a stock directly from the app or by reaching out to support. Please head over to this page to find out more.

Question 16

Why didn’t my order get executed?

Accepted Answer

You may have pending market orders on your account for some stocks. As you placed these orders outside of the market hours, these will not be executed until the market opens.
Regular trading hours for the US stock market, including both the New York Stock Exchange and the Nasdaq Stock Market, are from 6:30 PM to 1:00 AM (GST), from Monday to Friday.

Question 17

How many time a week is the limit to buy and sell in your platform?

Accepted Answer

There are no limits to buying and selling on baraka. However, PDT designation rules do apply. In order to protect your investments, the FINRA has limited same day buy and sell transactions of the same stock to 4 trades per 5 working days. In order to bypass this, you will need to top up your account with a minimum of $25,000 in equity. Please head over to our PDT article to understand more.

Question 18

How long does buy order take?

Accepted Answer

If it is a market order, it will execute at the price when the market is open, even if its much higher.
The prices are live and will fluctuate. It's important to ensure you have enough funds to cover the price of a stock, as it can go up when purchasing and if the funds are not available then the order will not execute. As long as you make sure to have enough funds, then the orders will be successful upon the market opening.
If it is a limit or stop order, it would only execute at the price that you input.
As for How long it takes, if you're asking about the time funds take to settle , then trades take 2-3 working days to settle. Our brokers apply the T+2 rule (trade date plus two days).

Question 19

Does baraka provide access to local stock market?

Accepted Answer

We are constantly looking to add more products, and hopefully providing access to local markets.

Question 20

What is stock request? How can I request for new stock?

Accepted Answer

You can request a stock directly from the app or by reaching out to support.
1. Open the baraka app
2. Head over to the Settings page
3. Click 'Request Security'.
We will try our best to make the security available to you.

Question 21

How do I check if stocks are sharia compliant?

Accepted Answer

You can enable the Sharia filter in your profile:
1. Head to 'Settings' and at the bottom, you can turn on the Sharia filter.
2. On each stock page, if the flower icon is showing, then it is Sharia-compliant.
3. If the icon has a line on it, it means it is not compliant.
4. You can also filter the Sharia-compliant stocks or ETFs in every theme and sector in the 'Discover' page. To do so, kindly click on any of the lists, and click the flower icon again to filter them as Sharia-compliant.

Question 22

How do I know which stock provide dividends?

Accepted Answer

There are three ways that you can check if the stock you've invested in pays dividends:
1. On your 'Portfolio' page, under the charts, if you are investing in a stock that pays dividends, you will see it next to 'Annual Div.'
2. On the stock page itself, you will find a dividend chart
3. In your 'Transaction History,' dividend payments will be visible and tagged as ‘Dividends'.
For more information, you can head to our content page to learn more about dividends.

Question 23

What are Market Hours? Can i trade in extended hours?

Accepted Answer

Regular trading hours for the US stock market, including both the New York Stock Exchange and the Nasdaq Stock Market, are from 6:30 PM to 01:00 AM (GST). We've also extended our trading hours so you can trade the stocks you love whenever it’s convenient for you. Follow these steps to set it up:
1. Choose a stock or ETF from the 6,000 securities we offer 💹
2. Click 'Invest' and change your order type to ‘Limit Order’ 📈
3. Enter the amount you want to invest 💰
4. Choose ‘Extended Hours’ for the expiry option and confirm your order 🕰️
The fees related to Extended Trading:
1. For Non-Premium Users:
During extended trading hours, if a stock price is valued at $5 or more, the fee is $2 per trade. During extended trading hours, if a stock price is less than $5, the fee is $2 per trade plus an additional $0.0035 per share. For OTC or ADR securities, the fee will be $2 per trade (if the stock price is valued at less than $5, an additional $0.003 fee per share applies.)
2. For Premium Users:
Trading fees for premium users depend on whether the stock price is valued at $5 or more or is valued under $5 and if the stock is an OTC or ADRs security. Given the stock is not an ADR or OTC security, if the stock price is valued at $5 or more, the fee is $1 per trade. If a stock price is less than $5, the fee is $1 per trade plus an additional $0.003 per share. For OTC or ADR securities, the fee will be $2 per trade (if the stock price is valued at less than $5, an additional $0.003 fee per share applies.)

Question 24

What is a stock split? and What is Reverse stock split?

Accepted Answer

A stock split is when a company increases the number of its outstanding shares to boost the stock's liquidity.
A reverse stock split, as opposed to a stock split, is a reduction in the number of a company's outstanding shares in the market.

Question 25

What are the tax implications on my dividends?

Accepted Answer

There is a 30% tax on your dividends by the U.S government. Non-residents are subject to a dividend tax rate of 30% on dividends paid out by U.S. companies.

Question 26

Does baraka offer dividends? Where can I see my dividends?

Accepted Answer

Assuming the underlying security or ETF pays dividends, any dividends earned will be credited to your baraka account which will be visible through the app.
There are three ways that you can check if the stock you've invested in pays dividends.
1. On your portfolio page, under the charts, if you are investing in a stock that pays dividends, you will see it next to "Annual Div."
2. On the stock page itself, you will find a dividend chart.
3. In your Transaction History dividend payments will be visible and tagged as ‘Dividends’.

Question 27

What happens if I get flagged as a PDT? Why is my account restricted?

Accepted Answer

In order to day trade you must have an account balance of $25,000 or above. As your account is below $25,000 you will be subject to following PDT restrictions.
Accounts will be restricted for 90 calendar days upon being flagged as a Pattern Day Trader (PDT) account, during which no new positions can be traded (liquidate positions only).
You have the following options if your account is flagged:

Deposit additional funds to bring the account’s equity up to DriveWealth’s required minimum of $25,000.
Wait for the restriction to expire in 90 days.
Request a one-time PDT account reset.*

*FINRA (Financial Industry Regulatory Authority) has provided brokerage firms the ability to remove the PDT flag from a customer’s account within 180 days. If you did not intend to day trade with your account, DriveWealth can grant a one-time PDT reset.
Please reach out to us on support@getbaraka.com, or over Whatsapp in order to request a one-time PDT account reset.

Question 28

Do you have Sharia Compliant products? Which stocks are Sharia Compliant?

Accepted Answer

baraka provides access to traditional securities and does not intend to engage a Sharia advisor or obtain a fatwa regarding Sharia screened securities listed on the app. baraka does not have an Islamic Window endorsement from the DFSA. 
Kindly be aware that Sharia screened stocks may involve additional risks and costs. There can be no assurance as to the Sharia Compliance of the securities listed by baraka Financial Limited. Please also note that views on Sharia Compliance may also differ. 
If you do not understand such risks or costs or are unsure whether the securities offered by baraka Financial Limited are in compliance with the principles of Sharia, you should consult a Sharia advisor.
baraka uses Refinitiv's and Musaffa’s Sharia screened stocks index.

Question 29

What is a limit sell order and can I place it on baraka?

Accepted Answer

Limit Orders are placed by investors keeping a target buy or sell price in mind. Investors may want to buy the stock at a lower target price than that currently in the market. Similarly, Investors may want to sell a stock they currently own when the stock reaches a target price, which is above the current market price.
To place a Limit Order on, follow the steps below:
1. Select the stock or ETF you would like to place an order for
2. Click the ‘Invest’ button on the bottom right
3. Select ‘Limit Order’ from the drop-down menu on the top right corner
4. Enter the target price per share at which you’d like to buy the stock, the number of shares and its expiry date
5. Click 'Confirm' and review your order in the pop up dialogue box
Limit Sell Order:
1. Select the stock or ETF you would like to place a limit order for
2. Click the ‘Invest’ button on the bottom right and select ‘Sell’
3. Select ‘Limit Order’ from the drop-down menu on the top right corner
4. Enter the target price per share at which you’d like to sell the stock, the number of shares and its expiry date
5. Click 'Confirm' and review your order in the pop up dialogue box

Question 30

What is a market-if- touched (MIT) order and how can I enable it?

Accepted Answer

A Market-If-Touched (MIT) Order becomes a market order when a stock trades at its specified price.
To place a Market-If-Touched order, follow the steps below:
1. Select the stock or ETF you would like to place an order for
2. Click the ‘Invest’ button on the bottom right
3. Select ‘Market-If-Touched’ from the drop-down on the top right corner
4. Enter the target price per share at which you’d like to buy the stock, the number of shares and its expiry date
5. Click 'Confirm' and review your order in the pop up dialogue box

Question 31

What is GTC and how can I enable it?

Accepted Answer

Good ’til canceled (GTC) is a type of order in which an investor can buy or sell a security that stays active until either the order is filled or the investor cancels it. To enable this the user must select GTC as an option when placing a limit order, stop order or market-if-touched order.
Please note that a GTC order is only valid for 90 days unless cancelled.

Question 32

Does baraka provide short selling?

Accepted Answer

We currently do not provide the option to short-sell on baraka. We are working around the clock to enable more great products to help you invest better.

Question 33

Does baraka offer derivatives, CFDs etc.?

Accepted Answer

We currently do not offer any form of derivatives, including CFDs (Contract for Differences).

Question 34

What is SEC &#038; FINRA Trading Activity Fee (TAF)?

Accepted Answer

The SEC and FINRA Trading Activity Fees (TAF) are regulatory fees charged on the sale of any security. These fees are automatically deducted from the proceeds of any sale. They only occur on the sale of a security and are calculated as follows:

The SEC charges $5.10 for every $1,000,000 (or $0.0000051 per dollar).
FINRA charges $119 for every 1,000,000 shares (or $0.000119 per share) sold up to a maximum of $5.95 per trade.

These fees will always be rounded up to the nearest cent and are charged by regulators to help offset the costs associated with regulating the equities market.

Question 35

Which broker does baraka work with and how are my deposits and investments secured?

Accepted Answer

We have partnered with DriveWealth, a SEC registered broker dealer and member of FINRA and SIPC. 
Your investments are protected by the Securities Investor Protection Corporation (SIPC) up to $500,000 (which includes $250,000 on cash deposits). More information can be found here.

Question 36

How can I change the base currency on the baraka app?

Accepted Answer

We currently support USD, AED, SAR, KWD, TRY and JOD as base currencies.
You can change the base currency on the baraka app by going to the 'Settings' tab in your Profile and clicking 'Currency'; this will allow you to update your currency from one of the options based on your preference.

Question 37

How do I make a trade?

Accepted Answer

To purchase either a stock or ETF and other assets on the platform:
1. Head to our 'Discover' page
2. Search for any asset via the search button at the top
3. Select the green 'Invest' button on bottom right
*If you own the stock, the 'Invest' button turns to 'Trade' allowing you to either buy or sell the asset.

Question 38

Do I own the stock?

Accepted Answer

All the stocks and ETFs provided on our platform are real equity, therefore you own the underlying asset purchased via our platform.

Question 39

Where can I see all my trades on baraka?

Accepted Answer

To view a comprehensive list of your trades go to your profile and click Orders & Transactions. Here you will see your trades categorized into 3 columns:
Pending –  a buy or sell order placed, which is yet to be executed
Canceled – a buy or sell order that is canceled before it executes on an exchange
Executed – a buy or sell order an order that has been successfully placed and traded

Question 40

How can I view my portfolio?

Accepted Answer

To view your portfolio on baraka, navigate to the Portfolio page by following the steps below:
1. Click on the graph icon on the bottom left hand corner of the screen
2. The Portfolio page shows you the total value of your portfolio
3. This page will show you a complete breakdown of how much money you have invested in each instrument (in each stock or ETF).

Question 41

What is Auto-Invest?

Accepted Answer

Auto-Invest allows you to automatically invest in stocks and ETFs on the baraka app regularly. It uses a method called Dollar-Cost Averaging (DCA), to steadily build your portfolio over time by investing small amounts of money regularly.
To set-up an auto-investment on baraka, follow the steps below:
&#8211; Select the stock or ETF you would like to place an order for
&#8211; Click the ‘Invest’ button on the bottom right of your screen
&#8211; Select ‘Auto-Invest’ 🤖 from the drop-down menu on the top right corner
&#8211; Enter the amount you would like to regularly invest, the time period and start date
&#8211; Click 'Confirm'
If you still need help, please provide us with your registered email address or mobile number. We will be with you shortly. 💬 Kindly note that our support hours are between 11AM and 11PM (UAE time).

Question 42

What is PDT?

Accepted Answer

The Pattern Day Trader (PDT) rule is a rule designed by the Securities and Exchange Commission (SEC) for traders who make four or more day trades in their account over a five business day period. A day trade is buying and selling the same stock on the same day. Only users who maintain a portfolio value of over $25,000, can engage in day trading, however, if it is less than $25,000, you are not allowed to day trade.
Kindly note that we count the day trades for you, and set a warning in the app before you are flagged as PDT. If you have received this warning, it means you will be able to resume trading after 5 business days since your first-day trade.
According to FINRA the minimum equity requirement for a "pattern day trader" is $25,000. Read more

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