UAE residents looking to trade online have a variety of different trading platforms to choose from. In this article we are going over the 6 best trading platforms in UAE for 2020 to make your choice easier. In our brokerage account evaluation process we are focusing on 9 different factors which we think are the most important to choose the right broker for you.
Without further ado, lets get into our broker reviews:
6 Best Online Brokers and Trading Platform in UAE for 2020
This is our list of the best online trading platforms in UAE based on several factors: traders score, commodities you can trade, trading platforms, funding methods, islamic account enabled, minimum deposit and welcome bonus:
The 6 best international trading platforms for United Arab Emirates users in 2020.
- Forex, Metals
Best Options Broker
Best Social Trading Platform
- Dublin based forex broker
Best Online Broker
Best Forex Broker
- Forex, Indices
Best International Offer
Our TOP 6 Trading Platforms in Overview:
01. IQ Option: Best For Binary Options
With almost 16 million accounts and 3,6 million trades per day IQ Options is a legit and transparent trading platform following the latest financial regulations, which enables users to trade a variety of different instruments and assets like forex, stocks, binary options, cryptocurrencies etc.
In our review we defined the trading experience is pretty smooth. Based on the high level functionality the platform is a good fit for professional traders, but it is also a good fit for beginners as it is really easy to understand and navigate.
IQ Option index brand has been recently updated to make sure the UAE clients get the same advanced tools and platforms, internationally available to other customers. They provide an improved in-house advantage platform different from the most known Metatrader 4/5 platform.
02. eToro: Best For Social Trading
eToro is an established social trading company, operating since 2007. It is an FCA regulated entity when operating in the UK, an Australian entity in Australia, and a Cypriot entity for international customers.
eToro has been awarded as the best social trading platform - social trading means you can follow other traders and copy their investment strategies.
In our review eToro is considered to be a trustworthy platform as it is regulated by an established regulator while being a well-recognized startup as well. Its main operation is based around CFDs. CFDs are complex instruments that include leverage, so they come with a higher risk. For more details about eToro UAE regulations visit our review.
03. AVA Trade: Users Choice
For a start, Avatrade boasts some pretty impressive business statistics, facilitating over two million transactions every month, with total values regularly exceeding $60 billion in value. These transactions aren’t only limited to forex trading, but extends to other financial instruments such as digital currency, bonds, different binary options and CFDs.
The huge volume of transactions Avatrade deals with are facilitated by an international team that is spread out globally in key financial centers such as Shanghai and Tokyo in Asia, Milan and Paris in Europe and Nigeria and South Africa in Africa. As a multinational broker, Avatrade offers multilingual services backed by a support team that works round the clock five days a week. You can read more about it in our review.
04. XM Trade: Best for forex trading
XM.com is part of a much larger organization called the Trading Point of Financial Instruments UK Limited. This organization created the exam group in 2009, which then founded XM.com, which is now one of the best established and well-known investment firms in the world.
With over 1.5 million clients in 196 countries, the XM global company focuses on three core principles:
Be big, Be fair, Be human.
XM is chosen by many traders because their website is available in Arabic, and include excessive market information and educational content. They provide quality customer service, that includes a Dubai-based telephone line and Arabic email support. More details in our review.
They also offer some of the most powerful trading tools and many device apps, along with MetaTrader 4.
05. Forex.com: Easiest to use
FOREX.com is a forex and CFD broker offering over 84 currency pairs and 230 CFD's across major asset classes. The brand is part of the GAIN capital holdings which operates in multiple countries holding licenses from many different regulatory hubs including UK, US, CA, Japan and Australia.
Through Forex.com and City Index, GAIN Capital has acquired customers from across the globe and currently provide their clients with continuously updated and useful market insights through their global team of market analysts. Forex.com offers industry-leading trading tools for forex, CFDs, and Bitcoin.
We would recommend this platform to active and mid active traders as they will benefit from slightly lower trading fees and spreads.
06. FXCM: Best Overall
FXCM is a UK based forex broker which offers some CFD's as well and is regulated by some top tier regulators like FCA and ASIC.
We would recommend this platform to users looking for great technical research tools.
No minimum deposit required so feel free to give it a shot - inactivity fees charged only after a year.
What we found best on this platform is the fast account opening options, low trading and finance fees and the high end technical research tools.
On the downside, FXCM only offers forex, CFD’s and some crypto trading options. Their platform needs and update as it is outdated and not user friendly.
OANDA excels above the other brokers reviewed here in the area of its proprietary trading technology which includes desktop and web-based platforms and integration with MetaTrader 4 on desktop and mobile.
With roots in academia and officially founded in the 1900s, OANDA is an early pioneer in forex and has built a reputation for superb technology and comprehensive product offerings. OANDA services customers throughout the United States, Canada, Australia, Singapore, and the United Kingdom.
- Only $1 to open an account
- Raw spread and broker spread models available
- Recognized and regulated by government bodies worldwide (ASIC, IIROC, CFTC, FCA, among others).
What Is a Trading Platform?
A trading platform is the intermediary software between traders and financial institutions which enables investors to place trades and monitor their accounts.
Normally trading platforms come as an all in one software bundling different features like charts, research tools, educational materials, live feed etc.
Exploring the UAE Financial Market
The UAE is a diverse landscape made up of seven uniqueemirates. Although each environment has its ownbenefits to offer, it’s safe to say that there are two financial centresof the country that lead the way for investors, Dubai and Abu Dhabi.
Before the UAE discovered oil in the 1950s, much of the country’s economy was drivenby pearl diving, fishing, nomadic farming, andeven date palm cultivation. However, since then, the economy has grown drastically. According to the 2015 Economic Report, the UAE’s GDPR was £330 billion. Today, that number has risen to 382.6 billion.
The two primary financial security exchange platforms in the UAE are the Dubai Financial Market, or the DFM, and the Abu Dhabi Securities Exchange, ADX. The two organisationsoperate under the regulation and strict rules of the Securities and Commodities Authority (SCA). Through each exchange, it’s possible to deal in a range of financial products including bonds, futures, equities, securities, commodities, metals, derivatives, stones, and more.
Located within the heart of Abu Dhabi, the ADX was initially foundedin 2000, with the aim of delivering new investment opportunities and funds to the Emirates. The DFM was also established as a public institution during the same year, but it became a Public Joint Stock company five years later in 2005, with 20% of all shares delivered into a public offering.
The DFM was a pioneering development for the UAE, because it was the first of its kind in the region, and the first market to comply with Sharia rules. The group generally deals with debt instruments, ETFs, equity instruments, and the borrowing or lending of securities. Additionally, alongside the two Emirati exchanges mentioned here, Dubai also has 7 additional exchanges where investors can explore trading opportunities, these include:
- NASDAQ Dubai
- The Dubai International Financial Centre
- The Dubai Multi Commodities Centre
- The Dubai Pearl Exchange
- The Dubai Diamond Exchange
- The Dubai Gold and Commodities Exchange
- The Dubai Mercantile Exchange
For FX traders, the dirham is the most recognisable UAE currency. Otherwise known as the “AED,”the currency has been leveraged against the dollar since 1978, with a fixed rate of 3.6725 AED to every dollar since 1997. Only minor fluctuations have ever been seen around this rate.
National property and oil prices are usually the main things moving the UAE economy. Despite a rather significant fall of approximately 25% in the Dubai stock market, and a glut within the real-estate spate for 2018, non-oil GDP remained similar to the previous year. The Abu-Dhabi stock index achieved a strong performance throughout 2018.
The financial securities market in the UAE operates underneath theregulation of the Securities and Commodities Authority (SCA). Founded during 2000, this group offers Emiratis a chance to invest funds and savings alike into commodities and securities that support the needs of the national economy. The agency also secures the integrity and accuracy of transactions that determine fair prices in the market. As a regulator, they are committed to improving investment awareness through objective studies and recommendations too.
Another regulatory group – the DFSA, or Dubai Financial Services Authority – regulates and supervises 624 entities alongside 490 authorised firms. Online brokers are generally controlled by the DFSA.
How to Trade
If you’re looking for an opportunity to trade online in the UAE, you’ll need an online broker that’s regulated, and has a strong reputation among their clients. Online brokers typically offer a wide variety of trading accounts, including:
- FX trading: This is the process of exchanging one currency for another. Because exchange rates fluctuate, it’s possible to make money off the differences in value between currency. The popularity of Forex trading has grown significantly in recent years, perhaps because the Forex market is one of the largest and most liquid in the world.
- CFD trading: Contracts for Difference or CFD trading involves making transactions in derivative financial instruments. Thisallows traders to speculate on the future of underlying assets, such as a currency pair, stock index, or stock.
- Demo accounts: Demo accounts are fundedwith virtual money rather than real finances. Usually, these accounts are used to practice trading or develop trading strategies. They can also help offeran insight into a trader’s platform.
- Islamic accounts: These accounts are specifically designedfor traders who want to use an account that conforms to the demands of Sharia law.
When it comes to stock trading, if you want to trade listed securities on the Dubai Financial Market, you will need to apply for a NIN investor number. This number will open you up to trading on the ADX and DFM exchanges. After you get your NIN number, you’ll also need to find a broker that can list stocks on either of the two exchanges. Remember that transactions for securities in the UAE are settledin AED.
Online Trading Opportunities in UAE
The UAE can offer an exciting opportunity to investors due to a range of benefits like a supportive regulatory environment, low taxrate, andpolitical stability. What’s more, many cryptocurrency exchanges have made UAE their home, thanks to the strength of the Fintech sector in the area. The UAE is one of the countries standardisinginitial coin offerings.
Regarding the practicalities of doing business, the UAE also ranks favourably among many Middle Eastern Countries, ranked at 1stand 7thon the World Bank’s list. Additionally, the UAE is the 25thbest location for starting a business, and 15thbest for finding and protecting minority investors.
Challenges of Online Trading in the UAE
Of course, while there are many opportunities available when trading in the UAE, it’s worth noting that there are challenges too. One recent development in the UAE was the implementation of a new VAT of five percent which reduces consumer spending. Lower stock values and high-interestrates have led to a change in economic prospects.
Additionally, disputes between the UAE and Qatar have had a significant impact on the economies in both areas too. With the disputecontinuing for so long, there’s a chance that this issue will continue to overwhelm trades.
What’s more, the UAE isn’t necessarily the best place to apply for credit. It’s 44thin the world at applying for credit, and 98thfor trading across borders. Thismeans that it’s not the best place for businesses starting import/export firms.
Trading in the UAE can offer a range of opportunities for people who are looking to diversify their investment portfolio through real estate, stocks, derivatives and more. However, it’s worth remembering that there are challenges to any financial market.
While some people believe that there will be a rebound in the stocks in UAE as well as a change in CFD trading and binary options trading opportunities, the real potential may lie with the cryptocurrency market. As the government continues to make the UAE more attractive for crypto exchanges, now is the time to get involved.
The mission of Business24-7 is to provide comprehensive, unbiased ratings and reviews of online brokers. User experience, the mobile experience, customer service, costs and fees, security, the quality of trade executions, the products available on their platforms are all part of our six-month evaluation of a brokers platform. The rating scale was based on thousands of data points that have been weighted into the scoring system.
Brokerages were also required to fill out a multi-point survey regarding every aspect of their platform. In-person demonstrations and evaluations were provided by the majority of the online brokers we reviewed.
Stefan Grasic, along with our team of industry experts, conducted our reviews and developed this methodology for ranking what form is used in online investing.
Business24-7 maintains high editorial standards and provides the best advice and recommendations. The products and companies that we review may compensate us when you click on the links on this website. Click below to find out more about our review process and methodology.
Disclaimer: By trading with securities you are taking a high degree of risk. You can loose all of your investment money. You should start trading only if you are aware of this risk. Business24-7 is not providing any investment advice, we only help you find the best broker based on your needs and preferences. Business24-7 is free for everyone, but earns commission from some of the brokers. We get commission with no additional cost for you.
If you liked this article than also read:
- 1 6 Best Online Brokers and Trading Platform in UAE for 2020
- 2 Our TOP 6 Trading Platforms in Overview:
- 3 01. IQ Option: Best For Binary Options
- 4 02. eToro: Best For Social Trading
- 5 03. AVA Trade: Users Choice
- 6 04. XM Trade: Best for forex trading
- 7 05. Forex.com: Easiest to use
- 8 06. FXCM: Best Overall
- 9 07. OANDA