Your guide to finding the best Forex brokers in UAE

UAE has two major financial regulators, the Securities & Commodities Authority of the UAE (SCA UAE) and the Central Bank of the United Arab Emirates (CBUAE). However, for the Forex industry, the Dubai Financial Services Authority, DFSA, plays a greater role both in the special economic zone of Dubai and in the United Arab Emirates. Since SCAUAE had an extremely restrictive policy on financial sectors, the majority of the Forex brokers in UAE went for DFSA regulations instead.

There are no taxes on Forex earnings in the United Arab Emirates, which is a huge incentive for Forex traders. Rest of the countries in the Middle East including Saudi Arabia and Palestine charge Capital Gains Tax on Forex income. However, since the primary goal of the UAE has been to encourage the growth of the currency market within the region, the government abolished all taxes on Forex earnings.

UAE’s national currency the UAE Dirham cannot be found within the tradable Forex assets on brokers’ platforms. The reason behind it is that AED is pegged to the US dollar which means that AED price will eventually follow the fluctuations of USD price making it a less attractive currency for Forex trading.

There are numerous payment methods available for Forex traders in the United Arab Emirates. The most popular payment solutions include Mastercard and Visa debit/credit card payments, bank wire transfers, and online payment methods notably PayPal.

How to choose the best FX broker in UAE

Choosing the right Forex broker is the main task for UAE residents considering starting Forex trading. The broker can really make you or break you, therefore we always recommend that the beginners give it as much time as possible to make the right choice. Your primary goal is to find a DFSA-regulated Forex broker that suits your trading goals and needs. Who are the top Forex brokers in Dubai? We have prepared the list of the top Forex brokers with authorization from the Dubai Financial Services Authority below.

XM Group

XM Forex Review

Minimum deposit

5$

Regulation

CySEC, FCA, ASIC

Bonus

30$, 50%+20%

Maximum leverage

1:1000

Year founded

2009

Trading platform

MT4, MT5, WebTrader

AvaTrade

Review of AvaTrade – Broker with over 15 years of experience

Minimum deposit

$100

Regulation

CySEC, CBI, FSA, FFAJ, BVI FSC, FSCA, FSRA

Bonus

Maximum leverage

1:400

Year founded

2006

Trading platform

MT4, MT5, WebTrader, AvaTradeGO

SAXO Bank

SAXO Bank Forex Review

Minimum deposit

USD 5,000

Regulation

FINMA, FCA, ASIC, FSA, MAS, AFM

Bonus

N/A

Maximum leverage

1:30

Year founded

1992

Trading platform

SaxoTraderGo, SaxoTraderPro

HotForex

HotForex Review – Trade 1,000+ of Symbols with this Broker

Minimum deposit

$5

Regulation

SVGFSA, FCA, DFSA, FSCA, FSA

Bonus

From 30% to 100%

Maximum leverage

1:1000

Year founded

2010

Trading platform

MT4, MT5

ForexMart

ForexMart Review – High-class trading experience

Minimum deposit

15

Regulation

CySEC

Bonus

30%

Maximum leverage

1:500

Year founded

2015

Trading platform

MT4, WebTrader

CM Trading

CM Trading FX broker review – Is it legit?

Minimum deposit

$250

Regulation

FSCA

Bonus

Maximum leverage

1:200

Year founded

2012

Trading platform

MT4, WebTrader

Plus500

Plus500 Review

Minimum deposit

100$

Regulation

FCA

Bonus

N/A

Maximum leverage

30:1

Year founded

2008

Trading platform

Custom

IQ Option

An in-depth IQ Option Review of fees, opportunities and more

Minimum deposit

$10

Regulation

Risk Warning: YOUR CAPITAL MIGHT BE AT RISK

Bonus

N/A

Maximum leverage

1:1000

Year founded

2013

Trading platform

Proprietary

Exness

Exness Broker Review – Should You Trade With It?

Minimum deposit

10 USD

Regulation

FCA, CySEC, FSA

Bonus

N/A

Maximum leverage

1:Unlimited

Year founded

2008

Trading platform

MT4, MT5, WebTerminal

OspreyFX

OspreyFX review – regulations, features and possibility of OspreyFX scam

Minimum deposit

$10

Regulation

N/A

Bonus

N/A

Maximum leverage

1:500

Year founded

2019

Trading platform

MT4, custom

EagleFX

EagleFX review – Start trading with safe and secure broker

Minimum deposit

$10

Regulation

Bonus

Maximum leverage

1:500

Year founded

Trading platform

MT4

Forex.com

Forex.com Review

Minimum deposit

250$

Regulation

FCA, NFA

Bonus

N/A

Maximum leverage

200:1

Year founded

1999

Trading platform

MT4

easyMarkets

Can You Trust easyMarkets? There Are Things You Need To Know

Minimum deposit

$25

Regulation

ASIC, CySEC, FSA, BVI

Bonus

50%

Maximum leverage

1:400

Year founded

2001

Trading platform

WebTrader, MT4, TradingView

HYCM

Can you trust HYCM Forex broker? What you need to know?

Minimum deposit

100

Regulation

FCA, CySEC, DIFC, CIMA

Bonus

N/A

Maximum leverage

500:1

Year founded

1977

Trading platform

MT4, MT5

FPMarkets

Is FPMarkets reliable broker? Is it licensed to trade?

Minimum deposit

$100 AUD

Regulation

ASIC

Bonus

N/A

Maximum leverage

500:1

Year founded

2005

Trading platform

WebTrader, MT4, MT5, IRESS

Pepperstone

Pepperstone FX Broker – Everything You Need To Know About This Broker?

Minimum deposit

AUD$200

Regulation

ASIC, SCB, CMA, CySEC, FCA, BaFin and DFSA

Bonus

N/A

Maximum leverage

1:400

Year founded

2010

Trading platform

MT4, MT5, cTrader, TradingView

FXRoad

Review of FXRoad – Broker with Superior Islamic Accounts

Minimum deposit

250 EUR

Regulation

FSA (Seychelles)

Bonus

None

Maximum leverage

1:200

Year founded

2023

Trading platform

FXRoad web & mobile platforms

IMGFX

IMGFX Broker Review – Your Best Trading Experience

Minimum deposit

$50

Regulation

N/A

Bonus

N/A

Maximum leverage

1:500

Year founded

2015

Trading platform

MT4

FXOpen

FXOpen Review – The most experienced broker

Minimum deposit

1 USD

Regulation

ASIC, FCA

Bonus

10 USD

Maximum leverage

1:500

Year founded

2005

Trading platform

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.

Who Regulates Forex brokers in UAE?

The very first regulatory body in the United Arab Emirates was the Central Bank of the United Arab Emirates (CBUAE). It is a primary bank that 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 every regulated Dubai best Forex broker. However, the more recent market regulator is the Securities and Commodities Authority of the United Arab Emirates (SCA UAE), which is in fact, known for its strict policies and regulations. For example, SCA UAE once prohibited a number of trading strategies including short-selling stocks. Therefore, not many international brokerage companies choose to be regulated by SCAUAE and instead go for a more liberal and widely renowned market regulator – the Dubai Financial Services Authority.

DFSA-regulated Forex market

best forex trader in dubai

In 2004 the government of Dubai created exclusive economic zones for attracting companies that work in the financial sector. DFCI – Dubai International Financial Center has its own regulatory authority DFSA – Dubai Financial Services Authority. Companies can set up external brokerage agencies under the DIFC. They also 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 on the brokerages are still implemented by the CBUAE and SCA UAE.

Register with DFSA-approved broker XM

How is Forex trading taxed in UAE?

Forex trading is not taxed in the United Arab Emirates. UAE has a Capital Gains Tax which is usually payable by individuals on every kind of capital gain. Forex trading is an exclusion from the law. The government and revenue authority of UAE decided to promote a liberal approach to securities and exchanges markets and therefore made Forex trading exempt from tax fees. It means that Forex traders in the United Arab Emirates get to retain all their revenues to themselves. However, the regulatory authorities still impose several financial restrictions on Forex trading that will be discussed in detail later in the article.

Are local currency pairs available?

forex brokers uaeThe United Arab Emirates dirham is one of the most stable currencies but not available for trading Forex. Despite the dirham being quite a popular and widely used currency, it has been pegged to the United States dollar for quite some time now. The pegged currencies do not make an attractive tradable Forex asset for several characteristics. Mainly, pegged currencies follow the same exact trajectory of price movement as the primary currency to which it is fixed. Therefore, the UAE dirham would be influenced by USD price movements regularly making it a highly undesirable asset in the Forex market.

However, since the UAE dirham and USD have similar fluctuations, most of the UAE traders choose to trade with USD currency pairs. The most common USD Forex pairs available for UAE traders are:

  • EUR/USD
  • USD/JPY
  • USD/GBP
  • USD/CHF
  • USD/CAD
  • AUD/USD
  • NZD/USD

Trade USD currency pairs with XM

Is there a cap on leverage for the best Forex broker UAE?

The regulatory authorities in the United Arab Emirates have set high minimum margin requirements that are ranging from 2 percent to 5 percent, which results in lowering the leverage to 1:20 – 1:50. The regulation is still more flexible than the restriction in the European Union limiting the leverage up to 1:30. However, often such restrictions become the reason for the brokers to avoid the UAE regulation and instead go for licenses from more liberal authorities. The cap on leverage does not concern every broker in UAE though, as DFSA-regulated brokers do not have to comply with this requirement. You can easily find DFSA-approved brokers that offer high leverages up to 1:1000.

On the other hand, there are several other restrictions that come in force with Forex brokers UAE. Below are a few examples of the UAE regulations:

  • Swap fees are strictly prohibited for Islamic traders, therefore Islamic accounts should be available
  • All brokers need to offer standard risk disclosure statements to their customers.
  • All retail best brokers in UAE should control at least one million dollars in trading assets
  • Brokers should not indulge in trading activities that might involve local currency – UAE Dirham.

What payment systems are available in the United Arab Emirates?

The traders in the United Arab Emirates can use Visa and Mastercard credit/debit card payments, bank wire transfers, or online payment solutions like Skrill and PayPal for the deposits and withdrawals on the broker’s platform. PayPal is one of the most frequently used payment methods among the UAE Forex traders. It is an attractive option due to service simplicity, attractive interface, low charges, and fast payment processing. Despite the fact that the best Forex broker in UAE will not charge for withdrawals or deposits, the payment systems themselves might charge a small fee on the transactions. In general, the fees apply to instant payment options and they should not exceed 2-3% of the transferred amount. If the trader is willing to wait for 2-7 working days then some of the payment solution providers might offer the service free of charge.

Start trading with XM using PayPal

What should you look out for when trading Forex in UAE?

Best FX brokers in UAE

Both CBUAE and DFSA regulations impose strict audits on the authorized brokers and actively monitor the financial sectors. Therefore, a trader dealing with the brokerage that is on the list of Forex companies in Dubai does not need to worry knowing that his investments are safe from scams 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. Accordingly, we strongly suggest investors choose only those brokers that are not just Dubai-based but are also regulated by DFSA and CBUAE. This way, you will avoid scams and will be guaranteed to find the top Forex brokers in Dubai.

FAQs on the best Forex brokers United Arab Emirates

Is Forex trading legal in UAE?

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.

Which forex broker is best in UAE?

XM Forex broker is the top option for Forex traders from the United Arab Emirates. Firstly, the broker is regulated within multiple jurisdictions and therefore is one of the safest Forex brokers in the world. Secondly, the broker runs multiple promotional campaigns for the traders from the UAE including the no deposit bonus schemes in the amount of 30 US dollars. Finally, the broker allows UAE traders to start trading with just 5 US dollars as their initial deposit.

Is Forex Trading Tax-Free in Dubai?

In Dubai, Forex traders do not have to pay taxes on their earnings. In contrast to most of the countries worldwide, the United Arab Emirates offers one of the most trading-friendly environments for Forex enthusiasts. It means that all the profits that these individuals gain during their trades on currency pairs purely belong to them.

How to find best UAE Forex brokers?

Conduct a review on the broker to get the following information: background information on the broker (date of establishment, type of broker, available products), regulatory and legal framework (licenses of the broker, insurances, safety features, awards), financial instruments portfolio (trading assets, respective trading conditions), trading costs (spreads, commissions, swaps, leverages, withdrawal/deposit fees), payment options (withdrawal & deposit conditions, supported payment solutions) and trading platforms (list of supported software, available modifications of terminals)