The best Forex brokers regulated by the Dubai Financial Services Authority (DFSA), according to our research, are:
- HFM
- XM
- Pepperstone
- IG Markets
- Axi
- XTB
- HYCM
- Amana Capital
In order to rank these brokers we have taken into consideration a multitude of factors:
- An active DFSA license
- The commissions charged on forex
- The general quality of the broker
- The deposit/withdrawal currencies accepted
What are the best DFSA forex brokers?
Warning
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you can afford to take the high risk of losing your money.
Below is our curated list and review of the best forex brokers regulated by the DFSA, with details and information about the regulation, the features, and the characteristics.
HFM
best trading features
HFM, regulated by DFSA n° F004885, operates under HF Markets (DIFC) Limited. HFM accepts AED as account currency. HFM sets leverage at 30:1 but allows up to 400:1 for professional traders.
-
Regulations:
-
Avg. EUR/USD Spread:
-
Platforms:
About HFM
HFM, formerly known as HotForex, is a global multi-asset broker founded in 2010. HFM offers trading on forex, stocks, commodities, indices, and cryptocurrencies through MetaTrader and proprietary platforms. HFM is regulated by multiple authorities including FCA, CySEC, and FSCA. HFM is known for competitive spreads, fast execution, and extensive educational resources. HFM serves over 3.5 million clients worldwide. The HF Markets Group CEO is George Koumantaris.
HFM Features
The features of HFM are listed below.
- HFM is regulated by DFSA n° F004885 with the trading name HF Markets (DIFC) Limited.
- Only 3 HFM account types are available. These are the Premium, Premium Pro, and VIP accounts.
- The minimum deposit under DFSA starts from 0 AED on the HFM premium account.
- HFM accepts AED as the account base currency under DFSA regulation.
- HFM charges low spreads on forex starting from 0.3 pips on EUR/USD.
- An Islamic account is available on request under DFSA for the HFM premium account type, though spreads will start from 0 pips.
- Leverage is capped at 30:1 due to DFSA regulation but if you qualify as a professional trader with HFM the ratio is higher up to 400:1.
- The HFM local registered office for DFSA regulation is in Index Tower, Dubai, UAE.
HFM Pros and Cons
Advantages of HFM
The advantages of HFM are listed below.
- High Leverage Options
- Low Minimum Deposit
- Wide Range of Trading Instruments
Disadvantages of HFM
The disadvantages of HFM are listed below.
- Higher Trading Costs
- Limited Educational Resources
XM
no requotes
XM, regulated in Dubai as Trading Point MENA Limited by DFSA, uses DFSA license n° F003484. XM offers low spreads and Islamic accounts without swap under DFSA oversight.
-
Regulations:
-
Avg. EUR/USD Spread:
-
Platforms:
About XM
XM is a global forex and CFD broker founded in 2009, offering trading on currencies, commodities, indices, stocks, and cryptocurrencies. XM provides MetaTrader 4, MetaTrader 5, and proprietary platforms. XM is regulated by multiple authorities including CySEC, ASIC, and IFSC. XM is known for competitive spreads, extensive educational resources, and multilingual customer support. XM serves over 5 million clients from 196 countries. XM offers various account types and a no-requote policy.
XM Features
The features of XM are listed below.
- XM is regulated in Dubai as Trading Point MENA Limited by the DFSA, license n° F003484.
- XM has a physical office in Emirates Financial Towers, Dubai, UAE.
- AED deposits are available with XM through local exchangers though are not supported as the account currency even when trading under DFSA regulation.
- XM provides for one of the best Islamic accounts keeping the same trading conditions without any swap under DFSA regulation.
- XM is able to provide low spreads on forex from 0.6 pips on the EUR/USD pair.
- XM won the award for the “Best FX Educational Broker in the MENA region” for 2021.
XM Pros and Cons
Advantages of XM
The advantages of XM are listed below.
- There’s a wide range of account types
- The demo account at XM is unlimited
- Wide range of educational resources
Disadvantages of XM
The disadvantages of XM are listed below.
- No social trading features available
- The account availability changes depending on the location of the trader
- High minimum deposit to invest in securities ($10000 for the XM Shares account)
Pepperstone
best for day traders & scalpers
Pepperstone Financial Services (DIFC) Limited holds DFSA license n° F004356. Pepperstone offers Islamic accounts and limits leverage to 30:1, increasing to 500:1 for professional traders.
-
Regulations:
-
Avg. EUR/USD Spread:
-
Platforms:
About Pepperstone
Pepperstone is a global forex and CFD broker founded in 2010 in Melbourne, Australia. Pepperstone offers trading on currencies, commodities, indices, stocks, and cryptocurrencies through MetaTrader and cTrader platforms. Pepperstone is regulated by multiple authorities including ASIC, FCA, and CySEC. Pepperstone is known for competitive spreads, fast execution, and extensive educational resources. Pepperstone serves clients in over 160 countries worldwide. The Pepperstone CEO is Tamas Szabo.
Pepperstone Features
The features of Pepperstone are listed below.
- Pepperstone Financial Services (DIFC) Limited is the entity regulated by the DFSA with license n° F004356.
- Pepperstone’s physical office for the DFSA regulation is in Currency Tower, Dubai, UAE.
- Pepperstone does not support AED for account currency in the DFSA entity though you can use it for deposits and be liable to conversion fees.
- Pepperstone is known for the low spreads charged from 0 pips on the forex pair EUR/USD.
- An Islamic account is available on request though the spread starts from 1 pip on Pepperstone DFSA.
- The DFSA imposes maximum leverage of 30:1 which can be raised to 500:1 if you qualify as a professional trader with Pepperstone.
- High-volume traders can join the Pepperstone active trader program to further reduce costs and get other benefits.
Pepperstone Pros and Cons
Advantages of Pepperstone
The advantages of Pepperstone are listed below.
- Stable raw spreads (0,09 pips on EUR/USD on average)
- Caters for algorithmic trading
- Has won over 30 Forex industry awards
Disadvantages of Pepperstone
The disadvantages of Pepperstone are listed below.
- The demo account is not unlimited
IG Markets
total number of assets
IG Markets operates as IG Limited with DFSA license n° F001780. IG Markets provides 80 forex pairs under DFSA regulation and allows higher leverage for professionals.
-
Regulations:
-
Avg. EUR/USD Spread:
-
Platforms:
About IG Markets
IG Markets is a global online trading provider founded in 1974, offering access to over 17,000 financial markets including forex, stocks, indices, commodities, and cryptocurrencies. IG Markets provides proprietary trading platforms alongside MetaTrader 4 and ProRealTime. IG Markets is regulated by multiple top-tier authorities worldwide, including the FCA and ASIC. IG Markets is known for competitive spreads, extensive educational resources, and innovative features like weekend trading. The IG Markets’ parent company “IG Group” CEO is Breon Corcoran.
IG Markets Features
The features of IG Markets are listed below.
- IG Markets operates in the UAE as IG Limited, a DFSA regulated entity with license n° F001780.
- IG Markets physical office for the DFSA regulation is in Al Fattan Currency House, Dubai, UAE.
- IG Markets provide access to over 17,000 assets including more than 80 forex pairs with spreads from 0.6 pips on the EUR/USD.
- If you qualify as a professional trader with IG Markets you can avail of higher leverage up to 222:1 on forex under DFSA oversight.
- IG Markets no longer offer an Islamic account for swap-free trading even for traders under DFSA regulation.
- IG Markets supports AED under DFSA and there is a minimum deposit of 20,000 AED to open the account.
IG Markets Pros and Cons
Advantages of IG Markets
The advantages of IG Markets are listed below.
- Low spreads from 0.6 pips on Forex
- Wide range of financial instruments
- 40 years of experience in the Forex industry
Disadvantages of IG Markets
The disadvantages of IG Markets are listed below.
- No copy trading features
- No social trading features
Axi
top-algo trading
AxiCorp Financial Services Pty Ltd holds a DFSA license n° F003742. Axi provides Islamic accounts and restricts leverage to 30:1, increasing to 500:1 for professionals.
-
Regulations:
-
Avg. EUR/USD Spread:
-
Platforms:
About Axi
Axi, formerly known as AxiTrader, is a global forex and CFD broker founded in 2007 and headquartered in Sydney, Australia. Axi offers trading on currencies, commodities, indices, cryptocurrencies, and stocks through MetaTrader 4 and proprietary platforms. Axi is regulated by multiple authorities including ASIC, FCA, and DFSA. Axi is known for competitive spreads, fast execution, and extensive educational resources. Axi serves clients in over 100 countries worldwide. The Axi CEO is Rajesh Yohannan.
Axi Features
The features of Axi are listed below.
- AxiCorp Financial Services Pty Ltd is regulated by the DFSA with license n° F003742.
- The Axi physical office registered for DFSA regulation is in Al Fattan Currency House, Dubai, UAE.
- AED is not available as the base currency so depositing with AED will come with a conversion fee under Axi DFSA.
- Traders with DFSA have Islamic accounts available with Axi providing more than 140 trading instruments.
- Axi allows trading on more than 70 forex pairs with low spreads starting from 0.1 pips on EUR/USD.
- Maximum leverage available is 30:1 on forex under DFSA but it may increase up to 500:1 if you qualify as a professional trader with Axi.
- Axi collected the “Best Forex Broker in Middle East” award for 2019.
Axi Pros and Cons
Advantages of Axi
The advantages of Axi are listed below.
- Low Forex Fees
- No Deposit/Withdrawal Fees
- Regulatory Assurance
Disadvantages of Axi
The disadvantages of Axi are listed below.
- Limited Platform Options
- Lack of Advanced Educational Resources
XTB
best for educational resources
XTB MENA Limited holds DFSA authorization, license n° F006316. XTB offers trading on 1,900 markets and limits leverage to 100:1 for professional traders under DFSA.
-
Regulations:
-
Avg. EUR/USD Spread:
-
Platforms:
About XTB
XTB is a global forex and CFD broker founded in 2002 and headquartered in Poland. XTB offers trading on over 2,000 instruments including currencies, stocks, indices, commodities, and cryptocurrencies. XTB provides the proprietary xStation platform and is regulated by multiple authorities including FCA, CySEC, and KNF. XTB is listed on the Warsaw Stock Exchange and serves over 897,500 clients worldwide. The XTB CEO is Omar Arnaout since March 2017.
XTB Features
The features of XTB are listed below.
- XTB operates in Dubai as XTB MENA Limited which is authorized and licensed by the DFSA, n° F006316.
- The XTB physical office for DFSA regulation is in Happiness Street, Dubai, United Arab Emirates.
- XTB allows trading on over 1,900 global markets and 57 forex pairs charging spreads from 0.8 on EUR/USD.
- Leverage for professional traders under the DFSA entity of XTB is available up to 100:1 on forex majors.
- AED accounts are not available on XTB though you can still deposit in local money with DFSA oversight.
XTB Pros and Cons
Advantages of XTB
The advantages of XTB are listed below.
- No minimum deposit
- Wide selection of assets
- Competitive trading costs
Disadvantages of XTB
The disadvantages of XTB are listed below.
- Small withdrawal fee
- No social or copy trading
- XTB demo account is limited to 30 days
HYCM
overall trading experience
HYCM, with DFSA license n° F000048, provides Islamic accounts and accepts AED deposits. HYCM offers spreads from 0.1 pips on EUR/USD, under DFSA regulation.
-
Regulations:
-
Avg. EUR/USD Spread:
-
Platforms:
About HYCM
HYCM is a forex and CFD provider with over 40 years of cumulative group experience. HYCM offers trading in various assets through MetaTrader 4, MetaTrader 5, and its proprietary HYCM Trader app. HYCM provides fast order execution, and professional customer support, and is regulated by multiple authorities in Europe and Asia.
HYCM Features
The features of HYCM are listed below.
- HYCM Capital Markets (DIFC) Limited is authorized by the DFSA with a license n° F000048.
- HYCM registered office for DFSA is in Liberty House, Dubai, UAE.
- HYCM provides an Islamic account on request for those traders who require no swap fees with DFSA oversight.
- Spreads with HYCM start from 0.1 pips on the EUR/USD and you can also trade with fixed spreads from 1.5 pips on the EUR/USD.
- HYCM accepts AED deposits as well as accounts with AED as the base currency with the DFSA regulated entity.
- HYCM was the winner of the “Best Forex Broker” award in the UAE for 2020.
HYCM Pros and Cons
Advantages of HYCM
The advantages of HYCM are listed below.
- Low Trading Fees
- User-Friendly Platforms
- Educational Resources
Disadvantages of HYCM
The disadvantages of HYCM are listed below.
- Limited Product Range
- Inactivity Fee
Amana Capital
wide range of trading platforms
Amana Capital, under DFSA license n° F003269, provides Islamic accounts and covers 54 forex pairs. Amana Capital operates with conversion fees for AED deposits under DFSA regulation.
-
Regulations:
-
Avg. EUR/USD Spread:
-
Platforms:
About Amana Capital
Amana Capital is a global online trading broker established in 2010, offering trading on forex, metals, commodities, indices, cryptocurrencies, and stocks. Amana Capital provides multiple trading platforms and API solutions. Amana Capital is regulated by multiple authorities including CySEC. Amana Capital is known for competitive pricing and advanced technology. Amana Capital serves both retail and institutional clients. Amana Capital has recently undergone significant transformation and expansion. The CEO of Amana Capital is Muhammad Rasoul.
Amana Capital Features
The features of Amana Capital are listed below.
- Amana Capital is regulated in Dubai by the DFSA, license n° F003269 with the business name Amana Financial Services (Dubai) Limited.
- The DFSA physical office of Amana Capital is in Central Park Offices, Dubai, UAE.
- Amana Capital provides access to over 800 CFDs of which 54 are forex pairs where spreads start from 0.1 pips on EUR/USD.
- Islamic accounts are available on request at Amana Capital DFSA where fees are applied in case trading positions are held open for more than five days.
- Under DFSA Amana Capital doesn’t support AED as base currency so you will incur conversion fees if used for deposits.
Amana Capital Pros and Cons
Advantages of Amana Capital
The advantages of Amana Capital are listed below.
- Strong Regulatory Framework
- Negative Balance Protection
- Competitive Trading Fees
Disadvantages of Amana Capital
The disadvantages of Amana Capital are listed below.
- Mixed Customer Feedback
- Limited 24/7 Support
- Higher Spreads on Standard Accounts
How does the DFSA work?
Taking a closer look at exactly how DFSA regulation works, the United Arab Emirates is of course made up of 7 different Emirates. The emirate of Dubai is one of these. Within this region, Dubai is treated as a special economic zone operating with its own laws, entities, courts, and more.
All of this means that if a financial firm wishes to start operating in Dubai, they must be regulated by the DFSA and follow the rules set out by the regulator. The only alternative here is to be regulated by the Central Bank of Dubai which is also acceptable. If you are based outside of Dubai, then standard UAE financial regulation is sufficient.
The DFSA plays several roles when it comes to keeping you safe and secure as a trader. These include having financial oversight in the region, as well as oversight of brokers and any other types of financial firms. The main purpose of this is to promote growth in the region, but also to protect traders and investors in all ways possible.
What are the characteristics and benefits of DFSA?
When you are trading and doing business in Dubai, the first point to be aware of is the seriousness with which these dealings are taken. This means that only reputable major brokers should really be applying for, and receiving regulation in the Emirate.
That regulatory process is stringent and works to ensure 100% compliance with DFSA guidelines. This has trademarked the regulator as one of the best, and most trusted not only among Dubai-based traders, but across the whole Middle East and the rest of the world.
Under DFSA regulation, you can expect that the maximum leverage will be 50:1 which is great, though you should be mindful that both ICF coverage, and negative balance protection are not mandatory in the region.
What are the prohibitions with DFSA?
When considering things that are prohibited under DFSA regulations, there are not too many points to note from the regulation itself. The main prohibitions in the area come from Shariah law. This typically means that spread betting is not allowed, as it is considered to be gambling, which is not permitted according to Sharia law. Another point of the laws is that you should only open swap-free accounts. This is since the swap is an interest that you pay or receive, both of which would not be permitted under the laws.
Differences between DFSA Regulated and DFSA Licensed Brokers
Being a DFSA regulated broker means that you have to pass through an entire regulatory process, which as we have outlined, can be expensive, long, and challenging. On the other hand, if you are a licensed broker, you can operate within that area without the need to complete a lengthy regulation process so long as you respect the local laws.
In Dubai, this can happen with brokers who are regulated by the Central Bank of Dubai. The DFSA recognizes this regulation, and these brokers are licensed to provide services in the region.
How to check if a broker is DFSA regulated
It is always a good idea to double-check that your broker is fully DFSA regulated. In order to do this, you simply need to head over to their official DFSA website and use the search function to input the broker’s business name. This name may be different, though it can often be found at the bottom of the broker’s homepage.
In the case that you want to check if a broker is regulated by the Central Bank of Dubai, all you need to do is contact the authorities there. This can be done by going to the DCB Official website, and inputting the required details. Both processes should take no longer than a few minutes.
How does DFSA intervene in case of financial abuse?
As an independent financial regulator, the DFSA has widespread power to take action against any fraudulent firms within the area. This is evident in their 2019 case against a Deutsche Bank compliance officer who gave misleading information to the DFSA. This resulted in a fine, though there is no record of any banned brokers to date.
How DFSA can help you
If you suspect a case of financial abuse, or other breaches of DFSA regulations, you can report the information to DFSA authorities by visiting their official website. They will take the needed steps to investigate your complaint as quickly as possible.