Today, we live in a world where we exchange goods and services with money. This money is in the form of currency and it mostly varies from one country to another. Since the value of one currency does not match with another, there arises the scope for foreign exchange and the foreign exchange market. Currency exchange or trading platforms enable customers to swap one currency to another. Opening a multi-currency bank account is a simple way to avoid currency conversion expenses. You should decide your investment objectives before entering into any form of business.
A foreign exchange market is needed to determine the value of each foreign currency, thus making it much easier to exchange different currencies. It can also be considered as a better investment option. Dubai multi commodities centre offers forex trading and Dubai Mercantile Exchange offers commodities exchange in the Middle east.
Here comes the necessity of top forex brokers who act as a middleman between you and the market. Forex stands for foreign exchange that provides traders access to a platform for buying and selling foreign currencies. You can choose a forex broker based on your particular trading style.
About Forex Brokers in United Arab Emirates
The foreign exchange market is a 24-hour market. The clients of forex online brokers usually include retail currency traders or large financial services firms that trade on the behalf of investment banks and other customers. A forex broker is compensated either by additional charges or through the bid-ask spread of any currency pairs and generally does not charge any interest on the money they put for investments. Even interactive brokers are available.
The regulations are done by National Futures Association (NFA) and Commodity Futures Trading Commission (CFTC) for brokers in the UAE. Dubai Gold and Commodities exchange regulates the best forex broker. You should find the top broker who is authorized and has proper knowledge about trading. Liquidity providers enable brokerages to fund their trade.
Best Forex Broker in UAE
- Dukascopy:- Best For Cryptocurrency Trading
- ActivTrades:- Best For Manual Traders
- HotForex:- Best For MetaTrader Platform
- FxPro:- Best For MetaTrader & cTrader Platform Offering
- Axi:- Best For Range of Currency Offerings
- XTB:- Best For Excellent Trading Experience & Low Cost
- HYCM:- Best For Trading Forex & CFDs
- Pepperstone:- Best For Low Cost Offerings
- Swissquote:- Best For Wide Range of Financial Products
- IG:- Best For Trading Platforms Offerings
Top UAE Forex Brokers List
Headquartered in Geneva, it has its offices in various countries. It offers both online and mobile trading services that include forex trading, e-banking, and much more. Regulated by the Swiss Financial Market Supervisory Authority (FINMA), it started offering the option of trading forex in the year 1999. However, know more about the platform in detail from our honest review.
|Best For||Best For Cryptocurrency Trading|
|Tradable Assets||Forex, Crypto (virtual money), Metals, Bonds, Indexes, Stocks, ETF|
Pros and Cons of Dukascopy
|More than 10,000 traders.||No swap-free accounts.|
|Up-to-the-minute quotes are provided for every trading account holder.||Payouts in retail investor accounts and others are delayed.|
|Multiple currency accounts.||Demo account expires after 14 days.|
- Withdrawal & Deposit Fees:- No
- Inactivity Fees:- Yes
Founded in the year 2001, ActivTrades initially specialized in forex trading. Headquartered in the heart of London, it educates traders to help them trade better. It offers a demo account for forex traders and other services that help clients to know more about their account types.
|Regulated By||CSSF, FCA|
|Best For||Best For Manual Traders|
|Tradable Assets||Index, Commodity, Bonds, & More|
Pros and Cons of ActivTrades
|Highly authorised.||Does not hold banking licenses.|
|Clear fees report for future reference.||Inactivity fees for the inactivity process.|
|Good search functions are available for web trading.||No price alerts, which may not make clients aware.|
The company is transparent and has no hidden payment amount , and shares commissions start at 0.01%. You need to pay market data charges.
- Trading charges occur when you start forex trading and using other services.
- Non-trading compensation charges include withdrawal and inactivity charges.
An award-winning forex broker, HotForex provides trading services for institutional and retail clients. It offers various account types to assist forex traders online. Regulated by Dubai Financial Services Authority (DFSA), HotForex Islamic account offers an Islamic account for Muslim faith traders. Check out the preferences on a minimum requirement on their website according to the account type when you make your first deposit.
|Regulated By||DFSA, FCA, FSCA, FSA|
|Best For||Best For MetaTrader Platform|
|Tradable Assets||Forex, Metals, Shares, Stock Indices, Bonds, Commodities, Energies, DMA Stocks, ETFs|
Pros and Cons of HotForex
|Various types of trading accounts, including Islamic accounts.||High trading fees and only one trading platform.|
|9 different financial markets.||24/7 customer support or service not available.|
HotForex does not impose any commission on micro accounts and auto accounts, so it is not necessary to pay an additional price for these two account types.
Headquartered in the UK, FxPro offers a wide range of platforms like few other companies do. However, it also comes in one of the top forex brokers UK. You can complete transactions that have no dealing with desk intervention. It also assures the best possible trading conditions and execution with CFD instruments (it is considered to be one of the complex instruments), retail CFD accounts may lose money due to leverage. Therefore, avail the best CFD broker, where the CFD broker will help you with it.
|Regulated By||CySEC, FSCA, FCA, SCB|
|Best For||Best For MetaTrader & cTrader Platform Offering|
|Tradable Assets||Forex, Spot Indices, Spot Metals, Futures, Shares|
Pros and Cons of FxPro
|A completely free demo account. Demo accounts are most suitable for beginners.||The demo account lasts for only 180 days with which beginners may not be able to learn.|
|Fast execution model.||Commission charges are comparatively higher than average.|
- Inactivity fees are being charged.
- No withdrawal and deposit fees are being charged.
- Low financing rate.
Axi, (previously named as AxiTrader) an Australian regulated forex broker founded in 2007, is considered safe as it is regulated by multiple financial authorities, you can read more about it from our page also. However, Axi has a mobile app that takes care of all mobile users who use the app for trading. Headquartered in Australia, has its offices in the United Arab Emirates and the United Kingdom. It offers Islamic accounts for trading tailored to Islamic traders. Trading CFD instruments is possible, whereas retail CFD accounts may have a high risk of losing money. So, retail CFD accounts must be carefully handled. Apart from this you can also check out our page of Australian forex brokers in detail to explore.
|Best For||Best For Range of Currency Offerings|
|Tradable Assets||Forex, Trading CFDs, Crude Oil, Indices|
Pros and Cons of Axi
|Minimum deposits money is not required with the wide range of the trading platform.||Possibility of conversion charges.|
|Enables users to access a wide range of base currencies.||A limited number of forex pairs.|
- Axi’s deposits are usually risk-free. Your bank might charge an amount for a wire transfer or you might incur a conversion charge if the deposit method does not match your base currency. One must be aware of these factors.
- Overnight payments is a type of cost that every broker charges for maintaining a trade overnight.
XTB offers a personalized trading experience for beginners and experienced traders, offering a wide range of instruments. It offers negative balance protection and multiple account funding options to the clients. Although, read more about it from our page and know its services in detail.
|Best For||Best For Excellent Trading Experience & Low Cost|
|Minimum Deposit||No Minimum Deposit|
|Tradable Assets||Financial Instruments Like Forex, Indices, Stock CFDs & ETF CFDs|
Pros and Cons of XTB
|Offers protection to the client’s accounts.||No guarantee for stop-loss like other companies.|
|Multiple deposit & withdrawal methods||Inactivity charges are imposed.|
The swap charge is the cost of rolling a transaction from one day to the next. No commission is charged for standard accounts. If your withdrawal amount is below certain fixed ones, you need to pay the amounts based on factors like base currency for trading and the withdrawal method used. If there is no trading activity for over 12 months, inactivity charges need to be paid as compensation.
Being a London-based broker, Henyep Capital Markets (HYCM) offers a dedicated education section on its website. Headquartered in Hong Kong, Henyep Capital Markets got its first license number from UK regulatory bodies.
|Regulated By||FCA, DFSA, CySEC (Cyprus Securities and Exchange Commission)|
|Best For||Best For Trading Forex & CFDs|
|Maximum Leverage||30:1 (UK & Europe) and 500:1 (Global)|
|Tradable Assets||Financial Instruments Like Forex, Derivatives, Indices, Cryptocurrencies, CFDs, Stocks, EFTs|
Pros and Cons of HYCM
|Great educational content on the website.||Outdated design for trading platforms.|
|Easy and user-friendly account opening.||No customer support on weekends.|
- No withdrawal and deposit charges.
- High inactivity charges apply.
- Trading charges depend on account type.
Pepperstone is an online forex and CFD trading platform providing competitive pricing to its clients. Uncomplicated access to the markets is ideally suited for traders who want a manageable range of low-cost offerings with multiple account types.
|Regulated By||FCA, ASIC, BaFin|
|Best For||Best For Low Cost Offerings|
|Minimum Deposit||No Minimum Deposit|
|Maximum Leverage||30:1 (Forex); 20:1 (Stock Index CFD)|
|Tradable Assets||Forex, Cryptos (virtual money), CFD|
Pros and Cons of Pepperstone
|Low forex charges.||No guaranteed stop loss from their companies.|
|Account opening procedure is fast and completely digital on its website.||High bank withdrawal price for clients outside Australia / EU.|
- Withdrawals of money depend on the location.
- The withdrawal price is zero, except for international wire transfer.
- No inactivity charges.
Swissquote is used by over 3,00,000 users and traders. It offers forex trading and social trading. It does not provide any negative balance protection.
|Best For||Best For Wide Range of Financial Products|
|Minimum Deposit||$1000 (Standard); $10,000 (Premium); $50,000 (Prime)|
|Tradable Assets||Shares, Options & Futures, ETF, Forex, Commodities, Bonds, Cryptocurrencies|
Pros and Cons of Swissquote
|Access to numerous products & markets, including social trading from their companies.||Certain research tools are not free of cost.|
|Credit and debit cards are available.||Charges entity payment for deposits & withdrawal.|
- Does not accept any third-party payments.
- No inactivity charges.
- Withdrawal charges of $10 are applicable.
Founded by Stuart Wheeler, the IG Group has over 1,78,000 clients across five continents and an excellent industry reputation. It offers U.S. clients leverage across 80 currency pairs and a well-organized website that discloses all the services provided. These many available currency pairs can be considered as one of its major advantages. Persons in the UAE financial market can use copy trading to automatically replicate positions managed by other individuals which are not possible. Although, to know more about the platform click here.
|Regulated By||FCA, CFTC, NFA|
|Best For||Best For Trading Platforms Offerings|
|Tradable Assets||Forex, Indices, Shares, Cryptocurrencies (virtual money)|
Pros and Cons of IG
|Emphasis on research & education.||No backtesting integration or copy trading in the trading platform.|
|Offers a wide range of asset classes to the clients, making it much more reliable.||No negative balance protection could be a risk.|
Swap charges will apply, which may be subject to currency conversion charges if you trade in a currency other than your account’s base currency. Inactivity charges apply if there is no activity in your trading account for 24 months. For wire withdrawals, $15 will be charged.
Is Forex Trading Legal in UAE?
Yes, it is authorised and legal in the United Arab Emirates to trade in forex through local brokers regulated by SCA (Securities and Commodities Authority) or any other regulatory authorities.
Various exchange platforms like Dubai diamond exchange, Dubai pearl exchange, and forex trading platforms are available in the United Arab Emirates. Open your standard account legally where the trading account can be any investment account containing securities, cash, and much more. There are various payment methods available for traders.
How Do I Trade Forex in UAE?
Since the forex trading platform went online, it is very convenient for traders to conduct their business. But, beginners should get advice from advanced traders because they are responsible for their money.
The first and foremost step to start forex trading is to find the top UAE forex brokers or best forex brokers in UAE before you start trading. Recheck whether you choose the best broker. These days, there are various brokers for forex trading available online. You will then need to create a forex trading account and can start the currency pairs of your own choice. Get investment advice from the best forex broker in the UAE before opening your forex account.
Choosing The Best Forex Brokers in UAE
It is a better opportunity for a UAE trader since there are no taxes involved and it applies to a few other countries too. The first regulatory body for the UAE forex broker is the Central Bank of the United Arab Emirates. Regulated brokers register with the financial regulatory body of their particular country. Local UAE forex brokers are supervised by the Central Bank of the United Arab Emirates and that is useful for UAE traders.
The forex market has a unique characteristic that many market makers utilize to attract traders. The brokers are in a position to buy and sell orders and execute them on the interbank market. Depending upon the dealer, you could encounter several types of commissions, including variable commissions, and much more.
As a UAE citizen, if you want to determine whether your selected broker is licensed, go to their website and read the “About Us” section or footnote – this should include the license number and the regulatory authority like UAE regulation, DFSA regulated with which it is registered.
The basic criteria for choosing a broker in the forex industry are few and simple. The number one priority should be ensuring the safety of your funds.
You must pick a safe and reputable broker so that your broker will take care of the finances in a way that there are no avoidable losses.
Support United Arab Emirates Dirham
The United Arab Emirates Dirham is the national currency for UAE residents. The phrase “AED” is the official abbreviation for the Dirham. A rich local population and good business environment have contributed to a powerful trading market. The United Arab Emirates economy is the second-largest in the Arabic world.
The broker you select will typically earn money through bid-ask spread cost, commission, roll overcharges. Other trading charges are:
- Trading volume charges
- Inactivity price
- Third-party tools
They are computer programs used to manage and execute market trades. Traders and investors should evaluate both the costs and the features provided when choosing between trading platforms. Two financial free zones, the Dubai International Financial Centre (DIFC) and the Abu Dhabi Global Market (ADGM) in Abu Dhabi, both provide forex trading services.
The indicators you need to be aware of while choosing a platform are:-
- Preferable commission
- Authorized platform
- Trading style – advanced options can be considered
Good Customer Support
Customer support and service are essential for new traders as well as many professional traders. They should resolve all the technical problems related to products and services. You can speak with the broker’s customer support representatives to know more about their charges.
Pros and Cons of Forex Trading
It usually has a very low cost of commission. It is possible to afford trading with the help of forex regulation.
More market participants are available than other financial markets and that adds an advantage to it and along with more liquidity. Also, the use of leverage allows you to control large positions with small margin deposits.
Various options are available in the market for businesses. The investor can even enter into the spot trade or future agreement contracts.
There are nearly 28 available currency pairs, including eight major currencies from the forex website. A trader who can manage volatility can switch to others easily without losing much.
Without more capital investment, it is difficult to trade in other markets, but you can manage in the forex market. A higher leverage factor on margin trading could be one with more benefit but it may carry its own significant risk. You need to fix the minimum capital amount, where minimum capital denotes how much you can afford to trade with.
Central banks usually just interfere in rare cases. Orders are directly placed with the brokers who then continue the process.
The involvement of brokerages may sometimes lead to a lack of transparency and more commission charges. One more important point is to find the best forex and CFDs brokers before you enter into a platform.
Some premium features in certain platforms need a VIP account, but a VIP account needs a higher amount.
At times, there are high-risk factors involved due to high leverage, and uncertainty in the price and rate of currency may lead to a higher profit or greater loss.
The price may go up or decrease due to market volatility that leads to high risk. Do a thorough market analysis and get advice before entering into the trading.
Investors need to be very careful about scammers who are ready to loot money from them. One must check whether the brokers are registered and conduct fair trading.
Conclusion on Forex Brokers in UAE
Since forex trading is very popular, there is a lot of information available on it. One more advantage is that you can easily start forex trading by downloading free platforms and getting in and out of your position quickly. The platform rewards you when you take a long position or short position in a currency pair. Additionally, the best broker makes use of advanced risk management tools to ensure maximum security.
Yet, one must be careful about choosing the best trading platforms and brokers suitable for them. Start trading after getting investment advice from experts to reduce the avoidable risk factors. UAE citizens can approach any Dubai Financial Services Authority (DFSA) regulated broker or the best forex brokers UAE or conduct thorough research about the brokers and ensure that they are not fake but reliable.
Which Forex Broker Is Legal in the UAE?
The legal UAE forex brokers are Pepperstone, HF Markets, XTB, Admiral Markets, and AvaTrade. You can also leverage your positions up to 400:1 in AvaTrade and MT5 that have technical tools, and much more. There are various best forex brokers in UAE country. All regulated brokers should meet the criteria given by the regulatory bodies and you can search for the regulated forex brokers in UAE easily.
Can I Trade Forex in the UAE?
Yes, UAE forex trading is possible through local brokers that have been regulated by SCA (Securities and Commodities Authority), central banks, and other such regulatory authorities. A proper license is required for the brokers. There are several best forex brokers UAE are available to choose from.
Is Forex Trading Allowed in the United Arab Emirates?
Yes, forex trading is allowed in the United Arab emirates. But, the trading platform must have a legal license to do so.
Do Forex Traders Pay Tax in the UAE?
No income tax could be one of the reasons to attract more forex traders for forex trading. The United Arab Emirates is one of the countries that do not charge any taxes for trading forex.