Based on checking the website, Yieldstreet.com is an online investment platform specializing in “alternative investments” like real estate, art, private credit, and venture capital.
While it aims to provide access to asset classes typically unavailable to individual investors, the nature of these investments, particularly the involvement of interest riba and the speculative, high-risk nature of some offerings, renders the platform problematic from an ethical standpoint for a Muslim investor.
The site heavily promotes “growth,” “returns,” and “yields” through financial instruments that often involve interest-based transactions, which are explicitly forbidden in Islamic finance.
Here’s an overall review summary:
- Website Transparency: High. The website clearly outlines its investment types, disclosures, and regulatory affiliations SEC, FINRA, SIPC.
- Investment Types: Alternative investments including real estate, art, private credit, private equity, venture capital, and short-term notes.
- Ethical Concerns Islamic Perspective: Significant. The core business model appears to involve interest riba through private credit, short-term notes, and potentially other structured financial products. Many investments are speculative, highly illiquid, and carry substantial risk, which are also areas of concern in Islamic finance.
- Target Audience: Accredited investors seeking diversification beyond traditional stocks and bonds.
- Liquidity: Generally low. Many investments require long-term commitments 5-7 years and are subject to significant restrictions on transferability and redemption.
- Accessibility: Offers both managed portfolios Yieldstreet 360 and direct investment options.
- Regulatory Compliance: Appears well-regulated, registered with the SEC, and a member of FINRA and SIPC.
- Past Performance Claims: Explicitly states “Past performance is no guarantee of future results,” which is a crucial disclaimer for any investment platform.
For those seeking to build wealth ethically, particularly within an Islamic framework, Yieldstreet.com’s offerings present significant challenges due to their reliance on interest-based transactions and highly speculative ventures. True growth comes from blessed, permissible means.
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Here are some ethical and permissible alternatives for wealth building and productive endeavors:
- Islamic Microfinance Institutions: These organizations provide small loans to entrepreneurs and small businesses without interest, focusing on ethical economic empowerment.
- Halal Real Estate Crowdfunding Platforms: Platforms that facilitate real estate investment based on Sharia-compliant models like Murabaha or Ijarah, avoiding interest.
- Ethical Investment Funds excluding interest-based bonds: Look for funds that specifically screen out companies involved in impermissible industries alcohol, gambling, conventional finance, etc. and avoid interest-bearing instruments.
- Direct Equity Investment in Permissible Businesses: Invest directly in established businesses or startups engaged in halal industries e.g., technology, manufacturing, ethical consumer goods where you share in profit and loss.
- Commodity Murabaha Platforms: These platforms facilitate trade in Sharia-compliant commodities, which can be used for financing without engaging in interest.
- Gold and Silver Physical Ownership: Historically a stable and permissible form of wealth preservation, investing in physical gold and silver avoids the complexities and impermissibility of interest-bearing financial products. Ensure immediate possession upon purchase.
- Zakat and Sadaqah Management Platforms: While not investments, these platforms help manage and distribute charitable giving, which is a fundamental aspect of ethical wealth management in Islam, purifying wealth and fostering community well-being.
Find detailed reviews on Trustpilot, Reddit, and BBB.org, for software products you can also check Producthunt.
IMPORTANT: We have not personally tested this company’s services. This review is based solely on information provided by the company on their website. For independent, verified user experiences, please refer to trusted sources such as Trustpilot, Reddit, and BBB.org.
Yieldstreet.com Review: A Deeper Dive into Alternative Investments
Based on looking at the website, Yieldstreet.com positions itself as a platform offering “alternative investments” beyond traditional stocks and bonds.
They aim to unlock private market opportunities for individual investors, which historically have been the domain of large institutions.
While the allure of potentially higher returns and diversification is strong, a careful examination of their offerings from an ethical lens reveals significant points of concern, particularly regarding interest riba and the speculative nature of their products.
It’s crucial to understand that not all “alternative” investments align with principles of ethical finance.
Understanding the Yieldstreet.com Model
Yieldstreet.com operates by pooling capital from investors to fund various private market opportunities. Grove.co Review
Their stated goal is to provide access to asset classes like real estate, art, private credit, and venture capital, which they argue can offer “smart diversification” and potentially higher performance.
They highlight their “selective by design” due diligence process, claiming only about 10% of reviewed deals make it to their marketplace.
The platform offers two primary ways to invest:
- Direct: Investors select individual opportunities from the marketplace.
- Yieldstreet 360 Managed Portfolios: An automated solution where Yieldstreet manages the portfolio for the investor.
Key Offerings Mentioned on the Homepage:
- Real Estate: Investments in commercial and residential properties.
- Private Credit: Loans to businesses or projects. This category is a major red flag for interest riba.
- Private Equity: Investments in privately held companies.
- Venture Capital: Funding for startups and early-stage companies.
- Short Term Notes: These are essentially short-term debt instruments, almost certainly interest-bearing.
- Art: Investments in fine art.
- Legal Finance: Often involves lending against legal claims, again, highly likely to be interest-based.
The language used throughout the site, such as “target returns,” “annual interest,” and “yield,” strongly indicates that the fundamental mechanism for generating returns for investors involves interest riba at various levels. Carmenharra.com Review
From an Islamic perspective, any transaction that involves a predetermined, fixed return on a loan is considered riba and is strictly prohibited.
Even investments in assets like real estate or art, if financed through interest-bearing loans on the platform or if the returns generated for investors are structured as a fixed yield on invested capital rather than profit-sharing from a tangible, productive venture, would be problematic.
Yieldstreet.com’s Problematic Aspects
When evaluating Yieldstreet.com from an ethical standpoint, particularly within Islamic finance principles, several aspects raise significant concerns.
It’s not just about what they offer, but how the returns are generated and the inherent risks.
The Pervasiveness of Riba Interest
The most prominent red flag on Yieldstreet.com for a Muslim investor is the strong indication of interest-based transactions. Zenstox.com Review
Terms like “Private Credit,” “Short Term Notes,” “Annual Interest,” and “Target Returns” are almost universally associated with lending money and earning a predetermined, fixed return on it.
- Private Credit: This is essentially direct lending to companies or projects. In conventional finance, such lending almost always involves charging interest. This directly contravenes the Islamic prohibition of riba, which views interest as an unjust gain derived from the mere passage of time rather than productive effort or shared risk.
- Short Term Notes: These are debt instruments. When an investor buys a “note” that promises a “yield” or “return” over a short period, it’s typically a form of loan with a fixed interest rate.
- “Yield” and “Returns” Terminology: While “yield” can sometimes refer to profit, in the context of investment platforms dealing with credit and notes, it almost invariably means interest. The website’s emphasis on a “growth of $100K over the past 10 years” based on financial models, rather than actual profit-loss sharing from tangible assets, further solidifies this concern.
Data Point: According to the Islamic Finance Glossary, Riba is defined as “any unjustifiable increase in borrowing or lending money, or in the exchange of goods and services.” This definition directly applies to the fixed returns generated from loans or debt instruments offered on Yieldstreet.com.
Speculation, Illiquidity, and High Risk
While all investments carry some risk, the types of “alternative investments” offered on Yieldstreet.com often come with exceptionally high levels of speculation, illiquidity, and significant potential for loss.
- Illiquidity: The disclosures on the Yieldstreet.com homepage explicitly state: “Investments made on your behalf… are illiquid and subject to significant restrictions on transferability and redemption and that all or a substantial amount of the principal invested may be lost.” For a Muslim investor, illiquidity itself isn’t prohibited, but tying up funds in highly illiquid assets for 5-7 years, especially when the underlying mechanism might be interest-based, adds another layer of concern.
- High Risk and Loss of Principal: The site also warns: “All securities involve risk and may result in significant losses, including the loss of principal invested.” While taking calculated risks in productive ventures is permissible, investments that are “highly speculative” and where investors “must be able to afford the loss of their entire investment” without clear, tangible productive activity as the basis for return, can verge on forms of gambling or excessive risk gharar, which are discouraged in Islam. In ethical finance, the emphasis is on sharing profit and loss, not guaranteeing a return on a loan while the principal is at high risk of being lost.
- Gharar Excessive Uncertainty: Some of these alternative investments, particularly in nascent or highly complex financial structures, can involve significant gharar, or excessive uncertainty. This can manifest in unclear terms, unpredictable outcomes, or a lack of transparency regarding the underlying asset’s true value or future performance, making them difficult to assess according to Sharia principles.
Yieldstreet.com Alternatives for Ethical Investing
Given the significant ethical concerns surrounding Yieldstreet.com due to its apparent reliance on interest riba and the speculative nature of many of its offerings, it’s imperative to explore alternative avenues for wealth building that align with Islamic principles.
The essence of Islamic finance is to foster equitable and productive economic activity, sharing in real profits and losses, and avoiding exploitative practices like interest.
Halal Real Estate Investment Platforms
Instead of interest-based real estate funds, look for platforms that offer Sharia-compliant structures. Sensibleweather.com Review
- How it Works: These platforms typically use models like Murabaha cost-plus financing, Ijarah leasing, or Musharakah partnership where investors co-own properties and share rental income or profit from sale.
- Benefits: Focus on tangible assets, profit-loss sharing, and avoidance of interest.
- Example: Alif Capital Note: Check specific platforms for US availability and Sharia compliance certification.
Islamic Equity Funds
These funds invest in publicly traded companies that adhere to strict Sharia screening criteria, avoiding industries like conventional finance banks, insurance, alcohol, gambling, adult entertainment, and pork-related products.
They also screen for companies with low debt-to-equity ratios to minimize interest-bearing liabilities.
- How it Works: Investors buy shares in a diversified portfolio of Sharia-compliant companies. Returns are generated from the companies’ profits and share price appreciation.
- Benefits: Diversification, liquidity for publicly traded equities, and ethical alignment.
- Example: Wahed Invest Offers Sharia-compliant robo-advisory services or Amanah Funds Specific Islamic mutual funds.
Ethical and Impact Investing
While not exclusively Islamic, many ethical and impact investing platforms align with broader Islamic values by focusing on socially responsible and environmentally sustainable businesses.
- How it Works: Investments are directed towards companies or projects that have a positive social or environmental impact, excluding industries deemed harmful.
- Benefits: Aligning investments with values, promoting positive change.
- Example: OpenInvest Allows customization for ethical screens, though specific Sharia screening needs to be verified by the investor or Direct Investment in Ethical Startups via accredited investor networks focusing on sustainable agriculture, renewable energy, or ethical technology.
Commodities Physical Gold/Silver
Investing in physical precious metals like gold and silver has historically been a permissible way to preserve wealth and is considered a tangible asset. Chat.chatbotapp.ai Review
- How it Works: Purchase physical gold or silver bullion or coins from reputable dealers. This is not for speculative trading but for long-term wealth preservation.
- Benefits: Tangible asset, hedge against inflation, avoids interest-based financial instruments.
- Example: APMEX or JM Bullion Reputable online dealers for physical metals.
Small Business Equity Musharakah/Mudarabah
Directly investing in or partnering with small businesses or startups that operate within ethical boundaries, sharing in their actual profits and losses.
- How it Works: Providing capital in exchange for an ownership stake and a share of the business’s actual profits. This requires thorough due diligence on the business and its operations.
- Benefits: Direct impact, adherence to profit-loss sharing, potential for significant returns from real economic activity.
- Example: Investing in local Halal businesses or through specific equity crowdfunding platforms for startups ensure they are Sharia-compliant.
Waqf Funds and Endowments
While not a personal investment for direct returns, contributing to or participating in Waqf endowment funds can be a powerful way to generate long-term societal benefit and spiritual reward.
- How it Works: Assets are donated for charitable or religious purposes, and the income generated from these assets is used to sustain those causes.
- Benefits: Perpetual charity, community development, blessed wealth.
- Example: Islamic Relief USA Waqf or Local Mosque Endowment Funds.
Savings in Halal Savings Accounts
For liquid funds, opting for Sharia-compliant savings accounts that do not pay or charge interest.
These accounts typically operate on a Mudarabah or Qard Hasan benevolent loan basis, where the bank uses funds in permissible investments and shares profits, or simply holds the money safely without any interest.
- How it Works: Deposit funds into an account where returns are based on profit-sharing from Sharia-compliant investments, or simply hold the funds safely.
- Benefits: Liquidity, safety, ethical banking.
- Example: Guidance Residential Primarily home financing, but offers related ethical services or Islamic banks in the US limited options, but growing.
Each of these alternatives emphasizes real economic activity, shared risk, and the avoidance of interest, providing a path to wealth building that aligns with ethical principles. Thebettercamper.com Review
FAQ
What is Yieldstreet.com primarily about?
Yieldstreet.com is an online investment platform that provides individual investors with access to “alternative investments,” which are typically unavailable in traditional stock and bond markets.
These include asset classes like real estate, art, private credit, private equity, venture capital, and short-term notes.
Is Yieldstreet.com a legitimate company?
Based on the website’s disclosures, Yieldstreet Inc.
Is the direct owner of Yieldstreet Management, LLC, an SEC-registered investment adviser.
They also have affiliations with Atomic Brokerage LLC, a registered broker-dealer and member of FINRA and SIPC. Digitalchillmart.com Review
This indicates they operate within regulatory frameworks in the U.S.
And are a legitimate entity from a legal and operational standpoint.
What are the main types of investments offered on Yieldstreet.com?
The main types of investments offered on Yieldstreet.com include Real Estate, Private Credit, Private Equity, Venture Capital, Short Term Notes, Art, and Legal Finance.
They provide options for both direct investment and managed portfolios Yieldstreet 360.
What is “Yieldstreet 360 Managed Portfolios”?
Yieldstreet 360 Managed Portfolios is an automated investing solution offered by Yieldstreet.com. Freecash.online Review
It allows investors to have their portfolio managed by Yieldstreet, providing diversified exposure to various private market asset classes without needing to select individual investments.
Are investments on Yieldstreet.com liquid?
No, investments on Yieldstreet.com are generally illiquid.
The website explicitly states that these investments are “illiquid and subject to significant restrictions on transferability and redemption” and typically require long-term commitments, often 5-7 years or more.
What are the risks associated with investing on Yieldstreet.com?
The risks associated with investing on Yieldstreet.com are substantial and include illiquidity, the possible loss of principal your entire investment, and market risks.
The platform itself highlights that these investments are “highly speculative” and “involve a high degree of risk.” Sugarbabycare.co Review
Does Yieldstreet.com involve interest riba?
Based on the types of investments offered, particularly “Private Credit” and “Short Term Notes,” and the consistent use of terms like “yield,” “annual interest,” and “target returns,” it is highly probable that a significant portion of Yieldstreet.com’s investment mechanisms involve interest riba. This is a primary concern for ethical investors adhering to Islamic finance principles.
Can non-accredited investors use Yieldstreet.com?
Historically, many of Yieldstreet’s offerings were primarily for accredited investors.
While they have introduced offerings that may be accessible to non-accredited investors like the Alternative Income Fund, the website’s disclosures still emphasize that many securities are “only suitable for accredited investors.” It’s important to check the specific requirements for each offering.
How does Yieldstreet.com make money?
Yieldstreet.com likely makes money through management fees, carried interest a share of profits from successful investments, and potentially other fees charged to investors or the underlying funds.
The specific fee structure can vary depending on the investment product e.g., direct investment vs. managed portfolio. Outbyte.com Review
What are some ethical alternatives to Yieldstreet.com for investing?
Ethical alternatives that align with Islamic finance principles include Halal Real Estate Investment Platforms using Murabaha or Ijarah, Islamic Equity Funds Sharia-compliant stock investments, direct equity investment in permissible businesses Musharakah/Mudarabah, and investing in physical commodities like gold and silver.
Does Yieldstreet.com offer an IRA option?
Yes, Yieldstreet.com offers an IRA Individual Retirement Account option, allowing investors to potentially invest with tax advantages in their alternative offerings.
However, the ethical permissibility of the underlying investments within the IRA would still need to be scrutinized.
What is the minimum investment amount on Yieldstreet.com?
The minimum investment amount on Yieldstreet.com can vary significantly depending on the specific offering.
Some investments may have minimums as low as $500, while others, particularly for direct investments or more specialized funds, could be in the thousands or tens of thousands of dollars. Thescalers.com Review
How does Yieldstreet.com ensure due diligence on its offerings?
Yieldstreet.com claims to have a rigorous due diligence process, stating that “Only ~10% of the deals we review each year make it past our due diligence.” This suggests a selective approach to listing investments on their marketplace.
Where can I find Yieldstreet.com reviews and complaints?
You can find Yieldstreet.com reviews on various financial review sites, forums, and potentially through regulatory bodies.
Searching for “Yieldstreet complaints” or “Yieldstreet.com reviews” on platforms like Trustpilot, Better Business Bureau, or investor forums will likely yield results.
Remember to consider the source and scope of these reviews.
Is Yieldstreet.com regulated?
Yes, Yieldstreet Management, LLC is an SEC-registered investment adviser, and Yieldstreet Markets LLC is a broker-dealer registered with the SEC and a member of FINRA and SIPC. This indicates that they are subject to U.S. financial regulations. Ugeat.com Review
How can I contact Yieldstreet.com customer support?
According to their website, you can contact Yieldstreet.com customer support through their “Help center,” by email at , or by phone at 844-943-5378.
Does Yieldstreet.com provide performance data?
Yes, Yieldstreet.com has a “Performance” section and includes graphs like “Growth of $100K over the past 10 years” on its homepage.
However, they explicitly state that “Past performance is no guarantee of future results” and that projected returns are targets, not guarantees.
What is the “Alternative Income Fund” on Yieldstreet.com?
The Yieldstreet Alternative Income Fund is a specific fund designed to provide diversified exposure to various private market asset classes through a single investment.
Investors should carefully review its prospectus, as noted on the website, to understand its objectives, risks, charges, and expenses. Morphyrichards.com Review
Are there any fees associated with Yieldstreet.com investments?
Yes, the website mentions that fees such as “regulatory fees, transaction fees, fund expenses, brokerage commissions and services fees may apply to your brokerage account.” Specific fee structures would be detailed in the offering documents for each investment.
Does Yieldstreet.com offer advice on tax or financial planning?
No, Yieldstreet.com explicitly states that “No communication by YieldStreet Inc.
Or any of its affiliates… should be construed or is intended to be a recommendation to purchase, sell or hold any security or otherwise to be investment, tax, financial, accounting, legal, regulatory or compliance advice.” They advise consulting with your own investment, tax, financial, and legal advisors.
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