Forex Trading is a growing industry and it interests more and more people around the world. Depending on the country you are living in, your career opportunities and income, you might be interested in Forex trading for various reasons. Some people turn to Forex trading to get an additional income and reach the desired level of financial stability and security, for some people from not-developed countries trading is the mean of the primary income as they are lacking the needed job opportunities in their countries.
Although, the case is different for the citizens of the United Arab Emirates, while the majority of the population is relatively rich and has the high income they are starting Forex trading out of the interests and for it’s best opportunities. Because of possibilities to make a good profit, it is not surprising that Forex trading became very popular even in the Islamic part of the world. Since the United Arab Emirates has a dominant role in the Islamic world it has also become a center of the Forex Trading industry. While the vast majority of Middle Eastern countries are known with their conservative approach to the financial and business sector, UAE took a different path. The country, especially its capital City Dubai is very straightforward and lenient in its approach to the financial sector by providing many opportunities for the entrepreneurs and global companies to set their base in Dubai, where they can find themselves in a relatively tax-free environment. Given these circumstances, Dubai has become the base for the best Forex brokers in the United Arab Emirates.
As UAE and particularly Dubai is seeking to provide one of the best conditions for the financial companies including brokerage firms, it also tries to provide with the safe environment for the citizens of the country to protect them and their investments. Despite it, as in every country, there are some of the unreliable brokers presented. Therefore, if you consider entering the Forex Exchanges market and think to start trading with UAE Forex trading brokers make sure to read the article as we will let you know all you need to know about trading in UAE – what is the regulatory body of the country, what are the regulations, how you can start trading in the United Arab Emirates and most importantly how to choose the right broker as it is one of the most important tasks for the traders. Although, if you are more interested in finding trustworthy brokers who can provide you with the excellent service and are fully regulated by the regulatory body, check the list of Forex brokers in UAE bellow.
CySEC, FCA, ASIC
MT4, MT5, WebTrader
100 GBP/EUR,150 USD
MT4, MT5, WebTrader
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Is FX trading in UAE legal? or is FX trading in Dubai legal? these are the most commonly asked questions when it comes to the topic of Forex trading in the United Arab Emirates. The short answer to this question is – yes it is legal, but the brokers and traders who want to enroll in the country’s Forex industry might find themselves being confused about the regulations since there are several different regulatory authorities in the region, But worry not as we will simply explain the main regulatory bodies and their regulations.
The main regulatory body in the United Arab Emirates is The central bank of the country (CBUAE). It is a primary bank which oversees the financial market of the country and ensures the smooth operation of the financial landscape. It is responsible for the national currency, monetary and fiscal policies, regulation of the financial institutes including banks and Forex brokers. CBUAE is an organization which is highly respected and which is working according to the well-defined framework that regulates financial entities and is designed according to the global standards. It regulates Forex trading brokers in UAE, brokers that are regulated have the allowance to offer citizens of the counties CFD products such as Forex, commodities and other OTCs. Although these products must get approval from the agency before they will be provided to the citizens. In addition to that since UAE follows Islamic beliefs the broker there are required to follow various Sharia laws.
While you were searching for the brokers to trade within the UAE you might have seen the lists of the Best Forex brokers in Dubai as well as the list of the best Forex brokers in UAE. That might confuse you since Dubai is the capital city of UAE, so what is the difference between these two? let me explain. Dubai is an important city in the global financial map, the city represents a financial and business hub for the middle east countries and has always been an interesting and profitable destination for global companies. At the same time, Forex trading has invoked huge interest among investors from Dubai as it has some of the richest retail traders in the entire world.
This is why in 2004 the government of Dubai created exclusive economic zones for attracting companies that work in financial sector. DFCI – Dubai International Financial Center has its own authority DFSA – Dubai Financial Services Authority. Companies can set up external brokerage agencies under the DIFC, they can have complete ownership of Forex brokerages without having any local representative on the company’s board. Although DFSA has more liberal regulations for the brokerages, it does not mean that DFSA regulated Forex brokers in UAE cannot be trusted as the rules and guidelines the regulatory body imposes to the brokerages is still implemented by the CBUAE.
DFSA regulations are designed based on the global regulatory standards that are adopted by the leading economies in the world, such as US and UK. In addition to that broker that is regulated by DFSA have the option to set up a brokerage firm by following the regulatory guidelines that are adopted and implemented by the financial regulators and authorities such as Cyprus, UK, and US regulators. DFSA has several restrictions for trading, one example is higher minimum margin requirements that are ranging from 2 percent to 5 percent, which results in lowering the leverage to 1:20 – 1:50. Also, there are no SWAPs allowed for Islamic traders. All brokers need to offer standard risk disclosure statement to its customers. All retail brokers should control at least one million dollars in trading assets and should not indulge in trading activities that might involve the local currency, the UAE Dirham.
Both CBUAE and DFSA regulations seem very tight and ensuring that a trader dealing with the brokerage that is in the list of Forex companies in Dubai can have a calm sleep knowing that his investments are safe from scam and fraud. However, there is still a chance to get yourself in a scam. Dubai offers the opportunity to the investors to set up a business in special economic zones and hence provide their service to a global audience. Therefore it is possible for a broker to be based in Dubai but do not be regulated by DFSA. In this case, investors are not protected by the regulatory laws that are available for DFSA regulated ones. Therefore we strongly suggest investors choose only those brokers that are not just Dubai-based but are also regulated by DFSA and CBUAE as they are the best Forex brokers in UAE.
As mentioned above, choosing the right Forex broker is the main task for anyone who considers starting Forex trading. The broker can really make you or break you, therefore we always advise the beginners to give it as much time as possible to make the right choice. We have talked about the need to choose the broker that is regulated by the local authority but it does not mean that the regulation is the only thing to be considered when making the choice of the broker. Who are the top Forex brokers in UAE? Only by searching it you will find a lot of listings and information but unfortunately, the most majority of them will be not useful for you if you do not know what are the things that differentiate one regulated broker from another one, in this case, it is better to see the broker reviews.
Forex broker reviews are a great source for the people who want to start trading or who are searching for the new broker. As there are a lot of brokers in the Forex industry they are all competing with each other for the attention of the customers. Therefore when you enter an industry you might get overwhelmed by the number of brokers, their offerings and promotions. Therefore there are broker reviews that put all necessary information together to make the decision-making process easier for the trader. To find the best broker for your successful trading career you should start with reading UAE Forex brokers reviews. Ideally, the review should overview the broker company, their regulations, their trading platform, commissions, offerings, withdrawal system and etc. All that one needs to know about the broker before they start trading with them. However many of the reviews are biased positively and negatively or are linked to the broker itself. Therefore it is important to understand if the review is objective or not.
Differentiating the biased review from an objective one is not difficult and is rather based on common sense more than knowledge. The first sign of the biased review is being overly positive and negative. If the review you are reading is only talking positively about the broker it might be the sign that the author of the review is trying to direct you to work with this particular broker, at the same time if it is completely negative, it might mean that review is negatively biased. Naturally, the review has one purpose – to make it easier for the reader to decide if they should choose this broker or not if you see that review does not necessarily provide this kind of information and instead of it is filled with unnecessary information, it is also a good sign not to use it as an informational source. In any way, while reading the broker reviews you need to check the information that is given there with the broker website as well. Another good way to ensure your choice is to read the reviews from other customers who have personally experienced the service of a broker.
Does not matter what is the reason for the starting trading, the main purpose always is the same – every trader wants to have a successful trade and gain profit. Of course, there are several things needed to be the profitable in Forex industry, such as the general knowledge and understanding of the market, strategies, and devotion. But this all can go in vain if one does not choose the broker carefully. The success of the trading highly depends on the broker, how are they executing the trades, how much time does it take, how are they getting their commission and etc. As the United Arab Emirates has a high number of the richest traders the place is also very attractive for the brokers. Therefore there is a big choice of the brokers. The first and most important factor is to choose the broker that is not only Dubai-based but also regulated by the DFSA or/and CBUAE. In this case, you can be sure that the broker you are choosing is not the scam and even if there will be any kind of problem with the brokerage you know that your rights are protected by the regulatory bodies, which is not the case when you go with unregulated brokers. To find the best Forex broker in UAE you need to spend some time on finding and reading the unbiased broker reviews that offer the objective information and makes it easier for you to decide and last but not least have a look on what other traders have to say about the broker. This way you can be sure that you have really chosen the best broker and have made a huge step forward to successful trading career.
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