8 Best DFSA Regulated Forex Brokers for 2023

A DFSA forex broker refers to a forex (Foreign Exchange) brokerage firm which is regulated and authorized by the Dubai authority called Dubai Financial Services Authority (DFSA).

They are the regulatory body of the special economic zone of Dubai in the UAE. This means, if you are a forex broker and looking to provide services in Dubai, you must be DFSA regulated.

The only alternative to this regulation for brokers operating in Dubai would be to register with the Central Bank of Dubai, though DFSA regulation is more recognized and respected all over the world.

In order to rank the best DFSA 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?

Below is our curated list of the best forex brokers regulated by the DFSA, with details and information about the regulation, the features, and the characteristics.

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.