Contents
Forex trading provides one of the best opportunities to make a good profit. This is why it is becoming more and more popular in many countries. In developed countries, investors look at the Forex trading as a good opportunity to make additional money and become wealthy over time. For not so well-developed countries trading is sometimes the main source of income, since the big part of the population is lacking the career opportunities they would like to have, or simply trading is an additional source of money. Thus FX trading is popular in different countries for various reasons depending on the job opportunities country is providing, the average income for employed people and many more factors.
As for the United Arab Emirates, where the majority of the population has a high income and s relatively reach, Forex trading has become sort of a hobby and of course, the way to get even wealthier. It is not surprising that the popularity of Forex trading has reached Islamic countries as well but it was faced with some difficulties as most of the middle east countries have a very conservative approach on the business and generally on the financial sector. In addition to that Middle Eastern countries have specific laws including the religious rules when it comes to making the profit. However, Things are different for The United Arab Emirates. The country has a dominant role in the Islamic world and its economy, over time UAE has also become the Forex trading center in the middle east. The country is more open for the business making possibilities, especially its capital city Dubai which provides many opportunities to the global companies and entrepreneurs to set their base in Dubai. To create an attractive environment for businesses from around the world, including Forex broker companies Dubai has a relatively tax-free environment. With all the possibilities and attractive business environment, the city has become the base of top Forex trading companies in Dubai.
Usually, well-developed countries also have a well developed legal framework for financial regulations that covers the Forex trading industry as well. The same is for UAE, while the country and especially Dubai is trying to provide the best conditions for the global financial companies including the brokerage firms, the government also tries to do its best to make people’s investments safe and protected. However, as every country has problems with unregulated companies or frauds, UAE is not an exception as well, despite the tight regulations there still are unreliable brokers. Therefore, If you are thinking to start trading with UAE Forex trading brokers we strongly suggest you choose the regulated brokers, although when making the decision there are several factors to consider besides the regulations. In this article, you will find all necessary information you need to know about trading in UAE, such as who is the regulator, what kind of regulations country has and most importantly how to choose the right broker for your successful trading career. In addition to that, you can check the best Forex brokers in the United Arab Emirates bellow.
$100
CySEC, CBI, ASIC, FSCA, FSA, BVI FSC, ADGM
1:400
2006
MT4, MT5, WebTrader, AvaTradeGo
5$
CySEC, FCA
30$, 50%+20%
1:888
2009
MT4, WebTrader
$10
IFSC
1:2000
2009
MT4, MT5, R WebTrader, R MobileTrader, R Trader
$10
FCA, CySEC, FSA, FSCA
1:Unlimited
2008
MT4, MT5, WebTerminal
$10
CySEC
N/A
1:30
2013
WebTrader
10 USD
N/A
Affiliate Program
1:500
2019
MT4/WebTrader
250$
FCA, NFA
N/A
1:200
1999
MT4
0.01 BTC
N/A
N/A
1:1000
2018
Web trader, Android, and iOS apps
1 USD
ASIC, FCA
10 USD
1:500
2005
MT4, MT5, WebTrader
250 USD
FSCA
N/A
1:200
2012
MT4, WebTrader, Copykat
15
CySEC
30%
1:500
2015
MT4
250 EUR
FSA, Seychelles
None
1:200
Unknown
Custom
The FX brokers in UAE should be regulatedChoosing the right broker is the most important and perhaps the most difficult task for the beginners and even for the experienced traders that are seeking the new broker. Every trader with experience knows that it is always a must to choose the broker that is regulated by the financial authorities. When you trade with the broker that is not regulated there is a very high chance that it is fraud or scam and your investments are under the risk. If you will have any problem regarding such broker and the money you invested with them, unfortunately, there will be no possibility to get your money back as the broker does not have a regulator. When the broker is regulated, in case of any problem you can approach its regulatory body. Thus t does not matter how good are the offerings for the broker that is not regulated, you should always remember that if something looks too good to be true, it is most likely so. It is the best to start trading with DFSA regulated Forex brokers in UAE or the ones that are regulated by the CBUAE. As not many countries have several regulators you might be confused between these two, but we will talk about these two regulators and the difference between them.
Top Forex broker UAE should have a good reviewIt is not only about the brokers from UAE but generally all the brokerage firms that are operating in the market. When searching for the brokers many of the traders are turning to the broker reviews. Once you enter the trading industry you will find out that there are a lot of brokers that are competing with each other to get your account. The offers and promotions the brokers are offering to their customers and potential customers can make one dizzy. Especially in UAE, where there are one of the richest investors in the world presumably the competition between the brokers is higher.
This is why there are a lot of UAE Forex broker reviews. From these reviews, you can get all the needed information about the broker. Is the broker regulated by the DFSA, CBUAE or not regulated at all? What kind of broker is it, are they using the best online trading platform in UAE or not, what their commissions and spreads are, how to withdraw the money you made with the trading, and many more. However, when reading the broker review you should always look at it critically since some of the reviews can be biased.
It is not an uncommon practice for the reviewers to direct the reader’s decision to their desired outcome. This is why some of the reviews might be positively or negatively biased over a brokerage. When you are searching the top Forex brokers in UAE make sure you have the objectively written review as the source of your information. The review you are reading must feature both sides of the broker – good and bad. It should also provide the needed information, as in some reviews you can see that there are positively described a lot of things, although there is nothing that could be actually helpful for your decision-making process.
After you have read the reviews give some time to a little research by yourself. Go to the website of some of the best Forex brokers in UAE to see if the information provided on the review matches the reality. Also, another good idea is to check the opinions of the other traders that have had the experience with the particular broker.
As you could already understand Forex trading in the United Arab Emirates is completely legal. However, they have a different regulatory system which can make the brokers and traders who want to enter the UAE forex trading industry bit confused. There are two regulatory authorities in the region that have a slightly different approach when it comes to the Forex trading and brokers.
As it is many countries the main regulator of the UAE is the Central Bank of the United Arab Emirates (CBUAE). The primary bank overwatches all the financial sector of the country and ensures the smooth operations on the financial surface. The bank is responsible for the national currency, fiscal and monetary policies. CBUAE also regulates the financial institutes of the country including banks and Forex brokers. The central bank regulations are designed according to global standards. CBUAE regulated Forex brokers in UAE
have an allowance to offer citizens of the country CFD products such as Forex, commodities and other OTCs. Although they are allowed to do so, they still have to get approval from the agency for every product they are suggesting to the customers. Also, every broker is requested to follow the various Sharia laws, since the country is following Islamic beliefs.
While you are searching for the brokers in the United Arab Emirates, you could see that there are CBUAE regulated brokers, but at the same time, you could see the list of DFSA regulated Forex brokers in UAE. It is because Dubai has its own regulator. Dubai has always been an interesting destination for the businesses that want to expand in the middle east. The city is an important point on the global financial map and represents a very profitable place for the businesses in many industries. In addition to that Forex trading has invoked huge interest in the residents of the UAE and had attracted many of the Forex brokerages. Therefore there was created a need to have a special economic zone inside the country and Dubai was a logical choice.
In 2004 the government of Dubai has created an exclusive economic zone – Dubai International Financial Center – to attract companies that work in the business and financial sectors. DFCI has its own authority – Dubai Financial Service Authority (DFSA). Since 2004 the companies can set up brokerage agencies in DFCI and have ownership of Forex brokerages without having a local representative on the company’s board. These brokers are regulated by the DFSA.
The regulator has a more liberal approach with the brokers but it does not mean that the Forex brokers in UAE cannot be trusted. DFSA imposes the rules and guidelines as per as CBUAE regulations, but it makes it easier for some of the best brokers around the world enter the UAE market.
DFSA regulations are designed according to the regulatory standards of the countries that have leading economics, for example, The United Kingdom or The United States of America. This is why the DFSA regulations have more in common with these countries regulatory framework. Also, the broker that is regulated by DFSA has an option to set up a brokerage according to the regulatory frameworks that are adopted by the financial authorities and regulators such as UK, US, and Cyprus regulators. There are several restrictions that DFSA imposes on the Forex Brokers in Dubai
For example, there are higher minimum margin requirements that are ranging from 2 percent to 5 percent, because of this the leverage is also restricted to 1:20-1:50. All the brokers need to have a standard risk disclosure statement and there are no SWAPs allowed for the Islamic traders. The retail brokers are not allowed to indulge in trading activities that might involve UAE Dirham, a local currency. Last but not least, all retail brokers should have control of one million dollars in trading assets.
Are there scam brokers in UAE?CBUAE and DFSA regulations are very tight to ensure that the traders’ investments are protected and they can trade without any fear of losing their money because of the fraud. But scam brokers can be everywhere. One opportunity Dubai offers to the broker companies is to base the brokerage in Duba’s special economic zone and offer their services to the global audience. Therefore it is possible that the broker is Dubai-based but at the same time is not regulated by the DFSA. People who trade with this kind of brokers do not have the protection that the regulator provides to the customers of the brokers they are regulating. Due to these reasons, there have been cases that some of the investors have lost their money. This is why we suggest trades to choose the brokers that are regulated by CBUAE and DFSA while searching for the best Forex brokers in UAE.
The main reason for starting Forex trading is of course to make money. Every trader is trying to be as successful as possible in their trades and well-experienced traders know that their results highly depend on the broker they are trading with. If you have chosen to trade with UAE brokers that are regulated by the local financial authorities and regulators it is only the first step of finding the best Forex broker. Other things include how the broker is executing their trades, how fast they are, how are they taking commissions and etc. Especially in the United Arab Emirates where there is big variate for the brokers since the demand on forex trading and rich traders create a very lucrative environment for the brokerages. To have the best Forex broker in UAE or in Dubai make sure to give much attention to the searching process. Read the reviews and opinions about the brokers, make sure that their regulations are valid and make your own research on the broker’s website. The time you will spend on it will pay off and once you have chosen the right broker for you can start your Forex trading career without any fear.
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