Table of contents
Dubai is situated in the eastern part of the Arabian Peninsula, on the southeast coast of the Persian Gulf, representing one of the seven emirates that make up the United Arab Emirates (UAE).
Oil-rich Dubai is doing its best to diversify its economy and invests heavily in infrastructure, tourism, innovations, technology, business, trade, and renewable energy.
Financial trading, especially Forex and CFD (Contracts for Difference) trading, is becoming increasingly popular in Dubai. The main regulatory authority overseeing financial markets in the UAE is SCA (the Securities and Commodities Authority). Let’s delve deeper and learn more about trading in the UAE.
5$
CySEC, FCA, ASIC
30$, 50%+20%
1:1000
2009
MT4, MT5, WebTrader
$100
CySEC, CBI, FSA, FFAJ, BVI FSC, FSCA, FSRA
1:400
2006
MT4, MT5, WebTrader, AvaTradeGO
USD 5,000
FINMA, FCA, ASIC, FSA, MAS, AFM
N/A
1:30
1992
SaxoTraderGo, SaxoTraderPro
$5
SVGFSA, FCA, DFSA, FSCA, FSA
From 30% to 100%
1:1000
2010
MT4, MT5
15
CySEC
30%
1:500
2015
MT4, WebTrader
$250
FSCA
1:200
2012
MT4, WebTrader
100$
FCA
N/A
30:1
2008
Custom
$0
Australia, Canada, Japan, Singapore, UK, US, BVI
From $500 to $5,000
1:888
1996
MetaTrader 4, MetaTrader 5, fxTrade Mobile app
$10
Risk Warning: YOUR CAPITAL MIGHT BE AT RISK
N/A
1:1000
2013
Proprietary
10 USD
FCA, CySEC, FSA
N/A
1:Unlimited
2008
MT4, MT5, WebTerminal
$10
N/A
N/A
1:500
2019
MT4, custom
$10
1:500
MT4
250$
FCA, NFA
N/A
200:1
1999
MT4
$25
ASIC, CySEC, FSA, BVI
50%
1:400
2001
WebTrader, MT4, TradingView
100
FCA, CySEC, DIFC, CIMA
N/A
500:1
1977
MT4, MT5
$100 AUD
ASIC
N/A
500:1
2005
WebTrader, MT4, MT5, IRESS
AUD$200
ASIC, SCB, CMA, CySEC, FCA, BaFin and DFSA
N/A
1:400
2010
MT4, MT5, cTrader, TradingView
250 EUR
FSA (Seychelles)
None
1:200
2023
FXRoad web & mobile platforms
$50
N/A
N/A
1:500
2015
MT4
1 USD
ASIC, FCA
10 USD
1:500
2005
MT4, MT5, WebTrader
Contracts for Difference (CFDs) are financial assets that allow traders to speculate on the price movements of underlying instruments without owning them. You can find CFDs on various asset classes, including stocks, indices, commodities, currency pairs, and bonds. Trading CFDs have a couple of advantages over trading physical assets, let’s discuss those advantages in more detail:
On the other hand, it should be mentioned that CFDs have their own drawbacks compared to physical assets. CFDs are great for short and medium term market speculations due to the reasons we’ve mentioned above, but they are not for investing long term. For investing long term physical assets such as real stocks, crypto coins, or physical precious metals are preferred.
When starting out a trading journey, traders are faced with multiple challenges. First, they need to learn the trading terminology and trading basics. Quality education is key to success in financial trading. Traders need to educate themselves about various instrument types and their characteristics. Each instrument class is different, and each asset price is affected by different factors. It’s important to learn how to conduct technical and fundamental analysis, and build trading strategies.
Before opening a live account, it is important to have clearly defined goals and objectives. When traders plan to remain in the industry long term, they learn risk management strategies thoroughly and try to manage drawdown periods well. Stability and low risk taking is tremendously valued in financial markets. To investors, it’s more important to grow your account step-by-step and take low risks, than taking huge risks and bringing great returns.
Once traders learn the basics, learn how trading platforms work, and have clear and achievable goals, the next step is to find a financial broker. There are plenty of well regulated reputable brokers with a wide selection of tradable instruments and low fees, such as XM, Ava Trade, and Plus500.
Finding the most suitable broker is never easy as there are so many different companies to choose from, and they all have different offerings. First, it’s best to make a list of all the qualities that you’re looking for in a broker. It’s important to avoid opening a live account with an unregulated one, as there are many scammer companies hunting for inexperienced traders. Regulated brokers are under constant monitoring from regulatory bodies and therefore can be trusted. In addition, make sure that your broker offers all the trading instruments and access to popular trading platforms. Some of the most popular Forex trading platforms are MetaTrader 4 (MT4), and cTrader. For multi-asset trading, the most popular software is MetaTrader 5 (MT5).
Find the broker that provides suitable trading fees to your strategies. If you are planning to trade actively and place multiple trades, it’s best to find a broker with the lowest spreads. Low spreads are crucial for day traders, scalpers, news traders, algorithmic traders, and High Frequency Traders (HFT). In case you plan to place orders less frequently, it’s best to find a broker with the lowest commissions. Low commissions are important for swing traders and position traders.
Make sure that your broker offers appropriate leverage and risk management tools. Leverage is often referred to as a double-edged sword, as it helps increase potential returns and risks simultaneously. However, for traders that use scalping strategies, access to high leverage is critical.
Furthermore, it’s important to find a broker with professional customer service. Most Forex and CFD brokers offer live chat, email and phone call options to their clients. Access to the live chat option is especially convenient for traders. Professional customer support helps solve problems fast and provide technical assistance to traders.
Once terriers learn about trading basics and select their financial broker, it’s time to learn how to conduct market research, risk management, and create trading strategies.
There are two main approaches to market analysis: technical analysis, and fundamental analysis. There are traders that base their strategies purely on technicals, and there are traders that only utilize fundamentals in their market predictions. And there are traders that use both methods simultaneously.
It’s difficult to say in advance whether fundamentals or technical approach to choose. It’s best for beginners to learn both approaches, try them in demo accounts, and find what works best for them.
Fundamental analysis studies fundamental factors that impact financial asset prices. These factors include political and economic events such as:
Technical analysis involves studying historical price movements on charts. This approach utilizes technical indicators, various chart types, and various time frames.
Chart patterns play a huge role in Technical analysis. Candle charts visually represent price movements and show important information in condensed space effectively. Technical analysis tries to find support and resistance levels.
Some of the most popular technical indicators that are pre-installed on most trading platform are:
Furthermore, technical analysis analyzes trading volumes, and tries to find trends. Traders that base their predictions purely on technicals, avoid opening trading orders during and before important news announcements. Political and economic news often causes radical price movements and increases volatility that makes the markets unpredictable.
Risk management plays a critical role in financial trading. Implementing effective risk management strategies help traders protect their trading capital and ensure that potential losses are controlled. The key aspects of successful risk management are:
Every trader has a different personality and skills. Success comes when a trader’s personality matches his trading strategy. For instance, individuals that can process information quickly and have fast fingers can become great intraday traders. And individuals that like to plan more and take into account many factors, can try their chances in position and swing trading. The most popular strategies are grouped in the following categories:
At first glance, financial trading seems like an activity that can bring easy money quickly. However, this is not true. All successful traders are hard workers. Producing consistent returns over a long period of time in financial markets requires hard work and dedication. Here are some tips that can improve your trading results:
To sum it all up, financial trading is legal, regulated and increasingly popular in the United Arab Emirates. Trading CFDs in particular is extremely popular due to various factors such as access to leverage, ability to trade both long and short direction and accessibility. When learning how to trade profitably, traders need to learn the basics and terminology. It’s important to understand how to manage risks and emotions, and develop a trading plan with an edge. There are two main approaches to market analysis: fundamental analysis, and technical analysis. It’s best to learn how to conduct both to find out which system makes sense to you most. There are a million ways to make money in the market, and beginners need to try different strategies before they find the one that best suits their personality. In order to successfully speculate on asset prices, these tips may aid you: keep a trading journal, start small and focus on education and long term success, work on your discipline and emotional management, stay informed about ongoing market developments, be ready financially before embarking on the trading journey, trade with clear mind, and lastly, socialize with other traders.
According to Sharia law and Islamic finance, paying and charging of interest is strictly prohibited. The interest is called “riba”. In order to enable traders of Islamic fate to participate in financial markets, brokers are offering swap-free account types. These accounts charge no interest, instead trading fees are increased in the form of spreads, commissions, and administrative fees.
Trading financial instruments can be a steady source of income only for institutional traders that get regular salaries. For retail traders, trading is similar to running a business. There can be highly profitable months, and some months may even be costly. It’s best to plan your budget in advance in case you plan to retail trade CFDs, so that you can place trading orders without additional pressure. When traders are pressured to trade, they’re more likely to overtrade and make mistakes.
Contracts for Difference (CFD) instruments are best suited for market speculators and short and medium timeframe traders. Real stocks or also known as physical shares are best for long term investing. Physical stocks pay zero overnight rollover fees, that makes them perfect for investing long term. On the other hand, stocks as CFDs can be traded using leverage, have better liquidity, and can be traded in both, long and short direction.
Subscribe to receive updates about FX bonuses
Be the first one to find out about available Forex trading bonuses that can be trusted
