Best Stock Brokers in UAE | Award Winners of 2022

0
Regal Wallet Banner

Are you looking for the best stock broker in UAE? There are 3 different types of stock brokers available to UAE users offering slightly different options – that said, it is important for users to understand the full spectre of their service before making a decision.

In this guide we go over the best stock brokers in UAE comparing their strengths and weaknesses. We have analysed 133 popular brokers and weighted their overall performance in 8 different categories, including pros, cons and key takeaways to make your decision easier.

5 Best Stock Brokers In UAE

If you want to speed things up, here is a quick summary of the best stock brokers in UAE:

  1. eToro – Best beginners broker
  2. TradeStation – Best stock broker for active traders
  3. Interactive Brokers – Best stock trading platform
  4. Saxo Bank – Best for professional and high volume traders
  5. Sarwa – Best full-service broker
RANKBROKERPLATFORM SCORESTOCK TRADIG FEESNr. OF STOCKMIN. DEPOSITACC. MINIMUM
#1eToro4.9/5$02800 stocks/
2800 CFDs
180 AED/
$50
$0
#2Tradestation4.8/5$05,000 stocks/
No CFDs
7,300 AED/
$2,000
$0
#3Interactive Brokers4.9/5$0.005/share16,500 stocks/
8,000 CFDs
0 AED$0
#4Saxo Bank4.9/5$1.0/share30,000 stocks/
19,000 CFDs
AED 7.300/
$2,000
$0
#5Sarwa4.8/5$04,000+ stocks/
No CFDs
AED 0,00$0

TOP 5 Stock Brokers Reviewed:

Below is a detailed break down of the top stock brokers in UAE including pros, cons and key takeaways that will help you make an informed decision.

01. eToro: Best Beginner Stock Broker (Winner in Social/Copy Trading)

eToro-UAE-features

With a combination of simple order types, access to 2800 commission free stocks and copy trading features, eToro is an interesting stock broker for beginners. Founded in 2017, eToro has gained over 25 million users worldwide, making it one of the most reputable players in the industry.

Beside having access to 2,800 real stocks, eToro users can trade with 2,850 stocks as CFDs (contracts for difference), meaning they can profit from stock price movements without actually owning the stock. 

eToro’s fee structure for stock trading is industry average. Users do not pay any commission on stock trades, but get charged in the form of:

  • Spreads – vary based on current stock market conditions and are live accessible through the Trade Markets tab
  • Overnight fees – $5
  • Currency conversion fees – 0.0050 pips (on deposits different than USD)
  • Inactivity fees – $10/month after 12 months of inactivity

Trading Fees

BrokereToroTradeStationInteractive BrokersSaxo BankSarwa
Stocks$0.00$0.00$0.00$0.01$0.00
Broker Assisted FeeN/A$0.00$30.00$50.00$0.00
Inactivity FeeYesYesNoYesNo
Funding FeesYesYesNoNoNo
Account Minimum$200.00$0.00$0.00$2,000.00$0.00

eToro’s proprietary platform (Web Trader) is highly intuitive and features multiple charting optionsorder types, an and basic risk management tools such as stop losses, take profits, and trailing stop losses. Users also have access to the award winning CopyTrader platform, that allows to copy the exact trades and portfolios of professional traders.

Apart from the demo and standard trading account, eToro offers an Islamic account option allowing users to trade Halal stocks only.

eToro is licensed by 3 tier one regulators including the SEC, FCA, CySEC, and ASIC which makes is a safe broker.

Key Takeaways:

  • 0% commission stock trading
  • 2800 real stocks and 2800 stock CFDs available
  • Industry leading social trading app
  • 5000+ tradable symbols overall
  • Access to fractional shares
  • Low minimum deposit ($50)

Pros:

  • Access to over 4000+ tradable symbols
  • High “ease of use” level and fast account opening
  • Great mobile trading app and platforms
  • Industry leading social/copy trading app
  • Great cryptocurrency trading features
  • Responsive customer support

Cons:

  • Algorithmic trading is not available
  • Forex and CFD fees above industry average
  • Education and research tools are limited
  • Advanced trading features are missing

Read the full eToro UAE review


02. TradeStation: Best for Active Traders

TradeStation-UAE-features

With fast and reliable trade execution, access to over 5,000 different international stocks and no commission charges on equity trades (up to 10,000 shares/trade), it is a top choice for professional and active traders.

TradeStation users have access to a power-full desktop trading platform that allows them to design, test, optimize, monitor and automate different stock trading strategies using dynamic market-scanning tools, advanced order management, and fully customizable charts. While this features are great for advanced trader, they could be a bit overwhelming for casual investors to set up.

In terms of order execution, TradeStation guarantees fast order execution speed (0.040 seconds) and reliability by using a combination of advanced order routing technology and connectivity to dozens of stock, futures, and options market centres.

TradeStation also offers a historical database of daily stock data that goes back 50 years and intraday stock data going back 28 years, which is great if you are looking to back-test strategies.

Key Features:

  • $0 commission/stock trades (up to 15,000 shares)
  • Access to 5,000 international stocks & stock options
  • Fast and reliable order execution
  • Great trading platforms and stock trading features
  • Extensive research section for fundamental analysis

Pros:

  • Fast and reliable trade execution
  • Algorithmic trading and stock day trading supported
  • Penny stocks available
  • Great trading simulator

Cons:

  • Inactivity and funding fees

Read the full TradeStation UAE Review


03. Interactive Brokers: Best Stock Trading Platform (Winner for Day Trading)

interactive-brokers-overview

With an array of over 100,000 financial instruments including 17,500 shortable stocks, deep liquidity and a competitive fees structure, Interactive Brokers seems like a top choice for professional day traders and institutional investours.

Users can choose between two main trading platforms:

  • Trader Workstation TWS: is the advanced desktop version suitable for experienced traders and institutional investors. It offers advanced trading tools (dynamic charting, a full-fledged news widget, option chains, detailed order flow information etc) and over 100 different orders types
  • Client Portal: the web version suitable for casual traders and beginners

Both platforms have extensive research options, are intuitively designed and guarantee fast and reliable trade execution. There are various customisation options for all types of stock traders including dynamic charting, a full-fledged news widget, option chains, and detailed order flow information. To make it short, Interactive Brokers is the go to stock trading platform in the UAE.

BrokerInteractive BrokersSarwaSaxo BankTradeStationeToro
Desktop PlatformYesYesYesYesYes
Web PlatformYesYesYesYesYes
Mobile PlatformYesYesYesYesYes
Easy to UseYesYesYesYesYes
WatchlistYesYesYesYesYes
Market Depth/ Level 2YesYesYesYesNo
Advanced ChartingYesYesYesYesNo
Trading AlertsYesYesYesYesNo
Demo accountYesNoYesYesYes
TradingViewNoNoYesNoNo
Proprietary PlatformYesYesYesYesYes
Social/Copy TradingNoNoNoNoYes

Interactive Brokers offers commission free stock trading on the Lite account and a competitive fee structure ranging from $0.0005 – $0.005/share on the Pro account. There are no withdrawal, inactivity or maintenance fees, which makes Interactive Brokers rank among the lowest fees stock brokers in the industry.

Account funding is limited to bank wire transfer and credit cards in any currency. This might be a drawback if you are looking to use multiple deposit and withdrawal options including e-payments and others.

Key Features:

  • Access to 17,500 shares and 8,000 stocks as CFDs
  • Casual and advanced trading platforms and features
  • Great trade execution speed and reliability
  • Industry lowest fee structure on stocks
  • Margin loan rates on stocks of 1.3%
  • Access to fractional shares

Pros:

  • Best market coverage in the industry
  • Intuitive mobile trading app
  • Day trading, scalping, algorithmic and automated trading allowed
  • Compatible features for casual and professional traders
  • Responsive customer support

Cons:

  • Few deposit and withdrawal options

Read the full Interactive Brokers UAE review.


04. Saxo Bank: Best For Professionals

saxo-bank-UAE-mutual-funds

With 30,000 stocks and 19,000 stocks as CFDs across core and emerging markets, Saxo Bank offers the biggest selection of shares in the UAE and is an interesting choice for professional traders looking for variety of assets. Users have additionaly access to 40,000 securities including crypto ETFs and ETNs.

BrokerInteractive BrokersSarwaSaxo BankTradeStationeToro
Stocks87000300022000150002000
Penny StocksYesNoNoYesNo
Fractional StocksYesYesNoNoNo

Both Saxo Bank proprietary platforms (SaxoTraderGO & SaxoTraderPRO) offer access to fast and reliable trade execution, extensive educational materials and advanced stock trading features. Those include TradingView integration, automated trading availability through APIs, access to trading room and early-access to IPOs. Trading execution is fast and reliable and the liquidity levels are high.

With commission charges on stocks starting at $1/share, Saxo Banks trading fees are competitive. Trading fees even can decrease when the trading volume increases. The broker doesn’t charge any management or custody fees, but charges high inactivity fees ($100/180days).

Account opening for UAE residents starts at $2,000. Muslim traders can choose an Islamic swap-free account option, but are limited to buy and sell stocks of Halal companies only.

Key Features:

  • Access to 30.000 shares and 19,000 stock CFDs
  • Competitive fees from $0.001/share for active traders
  • Advanced order type and account protection features
  • Fast and reliable trade execution
  • “Best in class” for: education and research

Pros:

  • Industry leading market coverage
  • Fully customisable trading features on SaxoTraderGo
  • Advanced order type and account protection features
  • Intuitive and easy to use mobile trading app
  • Day trading, scalping, algorithmic and automated trading allowed

Cons:

  • $2,000 minimum deposit for UAE users
  • Time intense for set up

Read the full Saxo Bank UAE review.


05. Sarwa: Best Full Service Stock Broker

Sarwa-uae-features

Sarwa is a UAE based full-service broker that combines automated investingself-directed trading and financial advisory services. This gives users access to a variety of different services from the same dashboard, all at very reasonable fees.

Sarwa’s trading platform (Sarwa Trade) allows users to trade on 4,000+ international stocks and ETFs, which can be bought in bulk or in smaller fractions (as fractional shares). The platform in intuitively designed and features simple buy/sell options, watch lists and order types (Market & Limit orders).

Sarwa charges no commissions on stocks and also does not charge conversion, withdrawal or inactivity fees. This makes Sarwa a low cost stock broker and an interesting choice for traders looking for low fees.

There is no minimum deposit required to open an account and UAE citizens can make deposits directly in AED (no conversion fees apply). The only downside to this is that Sarwa only offers traditional bank wire transfers to fund your account.

Key Features:

  • $0 commission on stock trades
  • No minimum deposit required
  • 4000+ stocks & fractional shares
  • Easy to use trading platform
  • DFSA and FSRA regulated

Pros:

  • Local offices in Dubai and Abu Dhabi
  • Great for beginners and long term investors
  • Self directed and automated trading allowed
  • Access to free financial advisory services
  • Deposits in AED allowed (no conversion fees)

Cons:

  • Research and educational tools are bellow average
  • Penny stocks are not available
  • Algorithmic trading is not support

Read the full Sarwa review


How Did We Select The Best Brokers For Stock Trading in UAE?

how-we-test-methodology

To get our list of the top stock brokers in UAE, we have analysed and compared 133 online broker in 8 major categories including: fees, platforms, assets, deposits & withdrawals, education & research, regulation and customer support. Make use of the below criteria and comparison to make an informed decision.

Choose a stock broker with a competitive fee structure and without inactivity fees or overnight fees. Most of the brokers on our list offer commission free stocks.

The below table compares the fee structures of all brokers from our list:

BrokerAVAtradeeToroInteractive BrokersSarwaCharles SchwabSaxo BankTradeStation
Stocks$0.00$0.00$0.00$0.00$0.00$0.01$0.00
Broker Assisted FeeN/AN/A$30.00$0.00$25.00$50.00$0.00
Inactivity FeeYesYesNoNoNoYesYes
Funding FeesNoYesNoNoYesNoYes
Account Minimum$100$200.00$0.00$0.00$0.00$2,000.00$0.00

The below table compares platforms and trading tools available for each broker:

BrokereToroAvaTradeInteractive BrokersSaxo BankPepperstoneTradeStation
Desktop Platform
Web Platform
Mobile Platform
Easy to Use
Watchlist
Market Depth/Level 2
Advanced Charting
Trading Alerts
Demo Account
MT4/MT5
TradingView
Other non-Proprietary
Proprietary
Social/Copy Trading
Strategy Tester
Scalping

The brokerage account should offer access to markets and symbols you want to trade. The below table compares availability of different asset classes of all brokers from our list

BrokereToroAVAtradeInteractive BrokersSarwaCharles SchwabSaxo BankTradeStation
Stocks200012087000300070002200015000
Penny StocksNoNoYesNoYesNoYes
Fractional StocksNoNoYesYesNoNoNo

It is important to choose a broker that offers a wide range of depositing options including modern ways of depositing money like e-wallets, Paypal, Skrill and Neteller. The below table compares deposit and withdrawal methods of all brokers from our list

BrokereToroAvaTradeInteractive BrokersSaxo BankPepperstoneTradeStation
Bank Wire
Credit/Debit card
E-Wallets
Crypto
Account Minimum$200$100$0,00$2,000$0,00$0,00

The table below compares research and educational materials for all brokers from our list:

BrokereToroAVAtradeInteractive BrokersSarwaCharles SchwabSaxo BankTradeStation
Trading SignalsNoYesYesNoYesNoNo
Market reseach toolsYesYesYesNoYesYesYes
Educational ResourcesYesYesYesYesYesYesYes
WebinarsYesYesYesYesYesYesYes
Daily newsYesYesYesYesYesYesYes
In-depth Market analysisYesYesYesNoYesYesYes
Persinal Training and Trading roomNoNoNoNoYesYesNo

The below table compares regulatory bodies and licences from all broker from our list:

BrokereToroAvaTradeInteractive BrokersSaxo BankPepperstoneTradeStation
RegulationASIC, CySEC, FCA, FSCSASIC, FSA, FSCA, MiFID, BVI FSC, ADGMNYSE, FINRA, SIPCAsic, SFC, JFSA, MAS, FINRA, FCAASIC, CySEC, FCA, DFSA, BAFIN, CMA, SCBFINRA, CTFC, NFA

The table below compares customer support features from all of the brokers from our list

BrokereToroAvaTradeInteractive BrokersSaxo BankPepperstoneTradeStation
Email
Phone
Chat
24/5
24/7
Personal Account Manager
Easy Account Opening

*Islamic Accounts: All of the brokers from our list offer islamic accounts. This gives users access to trading strategies which are in compliance to the Sharia law requirements.

Tips To Get Started With Stocks Trading in UAE

There are a few things to consider before you sign up with any of the stock brokers and start trading on the UAE stock market.

Apply For a NIN Investor NumberYES or NO? 

Some of the UAE stocks are only available on one of the 3 local exchanges (DFM, ADX or Nasdaq Dubai) and require you to have a NIN investor number; therefor it is important for you to know if:

  • a) you plan to invest in UAE companies only (in specific or all of them): you need to use the services of one of the UAE exchanges and to register for a NIN number with the (DFM)
  • b) you want to invest in other international markets as well – you can use a local stock broker, a UAE bank or an online broker, but you don’t need to register for a NIN number.

The three local stock exchanges are:

  1. the Dubai Financial Market, or DFM for short, 
  2. the Abu Dhabi Securities Exchange, or ADX for short, and 
  3. the NASDAQ Dubai.

Select a The Right Stock Broker

There are 3 different stock brokerage accounts available to UAE traders and investors which are all slightly different. You can choose between:

  • A local stock broker: this is only available for people living in the UAE, both natives and expats and is a great option if you don’t want to trade on your own. You can also use services of the Ras Al Khaimah Investment Authority instead, which is a UAE government agency specializing in personalized services and support to anyone who wants to invest in the UAE  stock market.
  • A UAE bank brokerage account: UAE bank accounts are available to both foreigners and nationals living in the UAE and allow users access to self directed trading and professional managed investing
  • An online stock brokers: offers limited access to UAE stock, but allows self directed trading, access to international markets, total control of your investment through the same dashboard.

Pick a Stock (fundamental analysis)

Picking stocks is a complex process and requires investors to analyse company income reports and other data. Those who are new to trading often don’t have the right knowledge to do that and might be better of starting with copying traders from experienced traders. On the other hand it is important for experienced investors to look out for brokers that offer charting and analysis features that help them to pick a profitable stock.

Consider Fractional Shares if You Are a Beginner

Stock are available and can be bought as a whole or as smaller parts (fractions). Some stocks are expensive and it is important for beginners to understand, that they can buy a fraction of that share for a lower amount. Remember that it is always a good idea to start with smaller amounts or even with virtual money and go bigger once you know what works. Read the full guide on how to buy stocks in UAE

Watch the short video recap below:

How Is Stock Trading Regulated In The UAE?  

The UAE treats stock brokers as financial companies, meaning they are are subject to the same safety requirements and standards of regulation. In order for a stock broker to be licensed in the UAE, they need to pass regulatory requirements by one or all of the 4 local financial authorities:

Legislation in UAE is split into two smaller regions, which each have their primary regulatory authorities:

1. Dubai International Financial Centre (DIFC) 

The DIFC is limited to the region of Dubai and is regulated by the DFSA, which ensures that online stock brokers follow regulations that protect both investors and the financial markets. Online brokers operating outside of the DIFC, but in Dubai, are regulated by the SEA and Central Bank of UAE.

Some of the requirements, stock brokers which are offering retail traders accounts, need to follow are:

  • Keeping risk disclosure statements from all clients
  • Keeping client capital in isolated accounts
  • Employing professionals with a valid licence

It is always a good idea to check the validity of a brokers licence, before signing up! You can do that by visiting the Dubai Financial Markets (DFM) official website and go under brokers.

2. The rest of the UAE

The other part of the UAE is regulated by the Central Bank of the UAE, which works with the SCA to ensure fair market conditions, and overall protection of traders and investors. It grants licenses to financial firms, including online stock brokers. 

Conclusion 

This analysis of 133 online brokers available in UAE and their comparison across 8 categories, should be considered a guide for you to choose the best stock broker in UAE. Any of the brokers is slightly different and before you sign up with any of them, you need to make sure you understand your needs and preferences. Remember that you can always start with a paper trading account using virtual money before you open a live trading account.

FAQ

Which stocks should a beginner buy?

We recommend beginners to buy blue-chip stocks. These represent shares in well-established companies like Amazon and Apple.

Which is the simplest way to purchase stocks?

The most common way to buy stocks is through an reputable online stock broker. After your account is approved, you are allowed to start trading.

Are online stock brokers safe?

Online stock brokers regulated by tier one financial authorities are safe. Online stock brokers in UAE need to be authorised by the SCA or DFSA.

What do I need to check before investing in a stock?

Before you invest in a stock you need to do a fundamental analysis, where you check the companies cash flow, income, balance sheets and performance sheets.

Are online brokers available at any time?

Yes! Online brokers are available 24/7.

How do I deposit money to my trading account?

You can deposit money to your brokerage account using a wire (bank) transfer, or debit and credit cards.

Can I invest in any company?

Yes! You can invest any any company which is listed on a stock exchange.

Which Is The Best Performing Stock Trading App in UAE?

With an intuitive design, most of the buy and sell options that ore offered on the desktop version and availability on iOS and Android Interactive Brokers might be among the best apps for stock trading.


Methodology
The mission of Business24-7 is to provide comprehensive, unbiased ratings and reviews of the best forex brokers. Trading platform, fees, mobile trading, payments, assets, regulation,
education and research are all part of our six-month evaluation of a broker’s account.The rating scale was based on thousands of data points that have been weighted into the scoring system. Brokerages were 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.

Disclaimer
All trading involves risk. More than 80% of investors lose in spread bet and CFD trading. As these complex instruments allow for the use of leverage, there is a high risk of losing more money than you have deposited. Before attempting to participate in spread bets and CFDs, consider how well you understand them and if you can afford to lose your money.

Previous articleeToro UAE Review 2022 | Award Winner in 3 Categories For Dubai Users
Next articleBest Futures Trading Platforms in UAE 2022
Stefan Grasic (Dipl.-Jur) is the World Wide Director of research for Buisness24-7 and has considerable experience in the financial and investment niche, but also enjoys writing articles for the general readership. Stefan is an active Crypto, Forex and general investment researcher advising blockchain companies at their start up level. He keeps fit by mountain biking, surfing, skiing and lots of other adrenaline sports.

LEAVE A REPLY

Please enter your comment!
Please enter your name here