As a Dubai-based forex trader, your world is open when it comes to choosing your first, or next forex broker.
To make that choice a little easier and ensure you choose the best forex broker in dubai that fits for your trading style, we have compiled this forex brokers list and further information.
Here you can check out important issues around forex trading in Dubai as well as choosing a very top forex broker. View Contents
Table of contents
Is Forex Trading legal in Dubai?
Of course Dubai is a world renowned and spectacular location. The capital city of the Emirate of Dubai, one of 7 Emirates in the UAE, this is a place that has developed rapidly to international acclaim.
It’s finance industry has been a cornerstone of this development. Financial activities including forex market trading are regulated by the DFSA (Dubai Financial Services Authority) which is very well-respected globally in terms of forex regulation.
Brokers may also ask the alternative authority in the area the Central Bank of Dubai to allow them to offer other financial services in the region.
How to trade forex in Dubai
Dubai-based and regulated forex brokers do accept traders from all around the world. With that said, it is recommended that you register under the regulation that oversees the country that you live in.
There are no specifically special rules you must follow as a Dubai forex trader though you will still have to follow the general regulations of the broker you choose.
This will mean having your proof of ID in the form of passport or drivers license ready alongside some proof of residence before continuing to fund your trading account.
Top 10 Best Forex Brokers in Dubai
Here are 10 of the top forex brokers in Dubai that we have found to ensure all your needs as a trader are met.
Dubaian trader? Here’s what to look for in a forex broker
As a Dubai-based trader, the only trading regulations that you need to keep a close eye out for are probably the following: Leverage in the UAE (including Dubai) is typically restricted to a maximum leverage of 50:1.
This number can be increased if you hold a professional account though holding this account type will have other requirements. The extension can be up to 400:1 maximum leverage.
The second limitation is in the case of spread betting. This is considered betting and so, it is both Haram under Islamic trading rule, and likely illegal within the country as a whole.
To ensure you choose the best broker possible, here are three tips to help you in your search and selection:
1. Look for regulated forex brokers
Regulation is always key in choosing a top forex broker in the forex trading sector worldwide. Since you are based in Dubai, it makes a lot of sense and will give you the best protection to find a broker that is regulated by the DFSA as they are one of the most respected bodies in the region.
If you are going for regulation outside of Dubai then your best bet will most likely be CySEC, FCA, and ASIC as top regulators. Any ESMA regulated broker is also a great and secure choice.
2. Choose the best swap-free account
Naturally, trading from Dubai, you will want to follow local laws and also trade in the most compliant way possible if you are an Islamic trader. This means following Sharia law and opening an Islamic account in most cases.
Thinking of that then, you should choose the best, Islamic trading or swap-free account available and try to be mindful of the fees that a broker may impose in the place of a swap-fee.
If you want to know more about islamic accounts, which assets are halal, which ones are not, and more information about islamic trading, check our Swap-free broker guide.
3. Look for brokers that make your trading life easier
AED is a currency that is not often featured among top forex brokers as a base currency. This means you will often have to pay a conversion fee on your deposits.
With that in mind then, if you can, you should choose a top broker that does allow for AED deposits or in the least case on that keeps these fees to a minimum.
How to verify if a forex broker is regulated in Dubai
First of all here, you will need to find the business name of your broker. Typically this can be noted from the bottom of your selected forex brokers homepage. Once you have found this, simply type it into the search bar and you should generate a result if the broker is regulated by the DFSA in Dubai.
Is forex trading taxable in Dubai?
Within the UAE, it is important to note that each Emirate acts autonomously when it comes to tax. With that said, Dubai is on of the few global tax-free locations and so, they do not apply a Capital Gains Tax.
In theory, this means your forex trading gains should be tax-free although you should always be careful to double check with a professional tax advisor since the UAE takes a very strict stance on tax evasion.
We strongly suggest you contacting Dubai or UAE authorities if you don’t know how to manage this aspect
InvestinGoal.com may receive a monetary compensations from the brokerage companies listed above.