Forex Trading in Dubai

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The best DFSA licensed forex brokers in Dubai are: IQ Option, AVAtrade and Pepperstone. We compared trusted brokers based on: traders scorecommodities you can tradetrading platformsfunding methodsminimum deposit and welcome bonus and regulation. Below is a more detailed overview over the best brokers for Dubai residents:

Top 2 Brokers For Forex Trading in Dubai:

Below we list the top 3 brokers for forex trading in Dubai. You can access the full list of best forex brokers in UAE here.

01. AVAtrade: Best Overall Offer

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Founded in Dublin in 2006, AvaTrade offers average-to-competitive fee spreads and several tradable currency pairs and CFD’s over stocks. They provide several online trading platforms, each aimed towards traders with different experience and skill levels.

Deposits and withdrawals are free of charge. The minimum deposit is $100. There are fees for inactivity and overnight financing. A dedicated educational and research site offers several free courses, videos, and market analysis. Customer support is responsive and available through phone, email, and live chat. AvaTrade is regulated in six jurisdictions and available since 2021 in the UAE. They are regarded as the best online broker with a long operational history.


02. Forex.com – Best Platform and App

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Forex.com finishes up on second place as the best forex trading platform and app. They offer access to the full MetaTrader platform suite (MT4 and MT5) for desktop and mobile, two proprietary platforms: Advanced Trading (for desktop) and Web Trading (for browser) and a proprietary mobile trading app. It is a real powerhouse on different platforms combined with simple design, great range of different order types, high “ease of use” level and social copy trading features.

Their overall great offer makes this forex and CFD broker a good choice for traders at all levels.


Beginner’s Guide to Forex Trading in Dubai

This article explains UAE forex regulation, the Dubai International Finance Centre (DIFC) and Dubai Financial Services Authority’s (DFSA) regulatory role. We help investors understand security and other issues ​when selecting a Dubai forex broker and we review the 5 best DFSA-regulated forex brokers in Dubai.

The Importance of Regulation for Forex Trading in Dubai

Globally the forex trading industry deals with increasingly sophisticated methods of ​fraud, data and identity theft. Dubai traders are not exempt. Large scale fraud and deception led to increased regulation. Fraudsters can easily pose as legitimate broker and steal unsuspecting traders’ funds and data. Dubai required a strong regulatory framework to protect traders and firms.

Exential Investments Scam

A disaster that lingers in Dubai’s forex memory is the Exential Investments scam. Established in spring 2012, Exential Investments, Inc. was a money management company claiming to provide forex investment services that would double an investors’ deposits. 7,000 of th​eir investors lived in the UAE, ​a large number ​in Dubai. Concerns surfaced in 2016 when several clients could not withdraw their funds. Others received some returns but these were to encourage investors to keep investing and helped Exential maintain the charade. 

Dubai authorities learned many lessons. The UAE put stringent regulations in place. These only cover licensed brokerages. ​They cannot monitor every platform since new ones spring up in real-time. Forex traders need to remain vigilant. A good rule of thumb is to not trust ANY forex broker promising guaranteed returns.

Dubai International Finance Centre (DIFC)

A better approach is to use ​regulatory bodies in your jurisdiction. Forex trading in Dubai is regulated by the federal Securities and Commodities Authority (SCA). This includes parts of Dubai. ​Here we focus on the 110 acres known as the Dubai International Finance Centre (DIFC).

This special economic area, established in 2004, provides a location where local standards align with international counterparts. The purpose is to broaden the range of financial assets on offer and help Dubai become an investment magnet. Since its creation the DIFC became the world’s leading financial hub.

Independent frameworks

​DIFC ​features its own judicial, legal, and regulatory framework. Aligned with international standards, it retains the region’s specific character. This led to Dubai becoming a global top-10 financial center,​ providing a range of banking services, including deposits, credit, M&A, underwriting, VC/PE, trade finance, capital markets, forex, and other brokerage facilities.

To encourage the DIFC business growth and development, 3 independent bodies were created:

Figure 1: Bodies of the DIFC

DFSA

Each body has a crucial part to play in the forex regulatory situation. The focus is on the Dubai Financial Services Authority (DFSA) the independent regulator of financial services conducted in or from the Dubai International Financial Centre (DIFC). 

Dubai Financial Services Authority (DFSA)

The DFSA is the focus of global ​forex brokers serving Dubai residents. With stringent guidelines, these applications are not a formality. Those who overcome DFSA hurdles earned their place.

Searching for the right forex broker in Dubai the DIFC requires research and caution. It is easy to confuse security with credibility. Regulated brokers are not immune from hacks. Despite ​good compliance intentions, your funds and personal data can remain at risk. Brokerage size and length of time trading are two telling security barometers. Brokerages that perform with these criteria, have the best expertise and financial resources to protect you. The opposite is the case for new trading platforms starting and learning as they go.

Essential license check

If you find a preferred broker for forex trading in Dubai, a vital step is to check its DIFC license status. The best way to do this is:

  • Go to the DFSA website
  • Type in the name of the broker you want to check and
  • Click “search”

If your preferred broker for forex trading in Dubai does not appear, it does not have a DFSA license or operates under a different name than its trading name. Take the necessary steps and do your research.

Forex Trading in Dubai – Conclusion

Having learned from experience and thanks to the stringent DFSA regulation, Dubai forex traders have good reason to be confident. There is a wealth of educational material on safer brokerages to use. Competition among regulated and licensed brokerages is increasing. This means there is less reason to increase trading risks for forex trading in Dubai.

If you have used any of the forex brokerages mentioned in this article, please let us know your experiences. We are keen to hear direct user feedback to align it with our research. We want to provide the best information possible.

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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.