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.
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.
First on our listing of top forex brokers in Dubai is HotForex. They are comprehensively regulated around the world by the FCA, CySEC, FSCA, DFSA, and FSA and are well-known as one of the top brokers in the MENA region. They also provide Arab language support. Here you will find three account types available under DFSA regulation. The Premium, Premium Pro, and VIP accounts with a minimum deposit of 400 AED, 2000AED, and 74000AED respectively. The Premium Pro is for professional traders and both Islamic and demo accounts are available. Deposits can be made through wire transfers, Visa, and eWallets and are for the most part fee-free. While AED deposits may not be available, USD and EUR certainly are and USD is their only base currency. Trading takes place through MT4 or MT5 platforms with a spread starting from 0 pips and leverage of up to 50:1 on major forex pairs, 400:1 if you are a professional trader.
XM is another top Dubai broker regulated by the DFSA, CySEC, ASIC, and the IFSC. They offer a great Islamic account service and Arab language support throughout. Here you will find a Micro, Standard, Ultra Low, and Shares account to choose from. Both Micro and Standard accounts are available with a $5 minimum deposit, the Ultra Low account for $50 and the Shares account from $10,000 with both a full demo and Islamic account available when needed. You can fund your account through wire transfer, credit card, or eWallet and for the most part there are no fees. AED deposits may be available through credit cards or local bank transfer in some cases. Trading is available through both MT4 and MT5 trading platforms with spreads that starts from 0 pips.
FxPro are next on our list of top Dubai forex brokers and again they are a well-regulated, award winning broker with dozens of awards and regulation from the FCA, CySEC, FSCA, and SCB. They also provide Arab language support. With FxPro there are a total of 3 account choices with a minimum deposit of $100 to trade and a full demo account available to try out first in addition to Islamic accounts being available on request. You can make your account deposits through wire transfer, credit or cards that are Visa, MasterCard, or Maestro, and AED deposits are also available through card payment in EUR or USD. Trading is through MT4, MT5, or cTrader, with USD, EUR, or GBP all available as base currencies while the spread starts from 0 pips and the maximum leverage on major forex pairs trading is 50:1.
4. IG Markets
Next on the list of top Dubai brokers is IG Markets who again are regulated by many trustworthy bodies in the form of the FCA, NFA, DFSA, and MAS in Singapore. They have a total of more than 9500 tradable assets and also provide Arab language support. Both DMA (Direct Market Access) and CFD accounts are available here as too as Islamic accounts where needed and a fully operational demo account to try out. The minimum deposit with this broker is $300. This can be funded through wire transfer, credit cards, or eWallets with the majority being fee free. AED deposits may be available although an AED base currency is not. USD and EUR deposits and base currencies are catered for. Trading is done through MT4 and the brokers proprietary trading platforms while spreads start from 0.6 pips on forex trading and a leverage of 50:1 is available.
ADS Securities are the next top Dubai broker and are regulated by the Central Bank of the UAE as well as the FCA and SFC of Hong Kong. They provide an all round broker service for investing and crypto trading and also support Arabic. There are two trading account types to choose from here. One is the classic account with a minimum deposit of $100 that can be turned into a swap-free account while the other is an Elite account reserved for professional traders. A demo account is also made available. Although there is no AED deposit method available, credit cards and eWallets can be used to deposit and trade in the USD base currency through the MT4 trading platform and with spread starting from 0.1 pips.
HYCM is another of the best Dubai forex brokers. They are comprehensively regulated by the FCA, CySEC, DFSA, and CIMA and provide for a great choice of accounts as well as supporting Arabic. The account types available are 4 in all. The fixed spread, raw spread, standard, and VIP accounts are all available with minimum deposits ranging from $100 to $200 depending on the account type. The VIP account is the exception here with a $10,000 minimum deposit. Both a full demo account and Islamic trading accounts are available to forex traders. Deposits through wire transfer, major credit cards, Skrill, WebMoney, and Neteller are all provided for and are free in most cases with AED deposits available by wire transfer or credit card also. USD, EUR, and GBP are all provided as base currency choices. Trading spreads start from 0.2 pips while trading takes place through either MT4 or MT5 trading platforms and a maximum leverage of 50:1 is available.
AvaTrade is a well known European broker that is also top in Dubai. They are regulated by the Central Bank of Ireland, ASIC, FFAJ, and the FSCA and are one of only a few brokers to offer exclusively fixed spread trading. Arabic language support is available too. A retail, options trading, and spread betting account are all available here although it is best to steer away from the spread betting as a Dubai-based trader as you will see in the next section. There is a minimum deposit in place of $100 and both full demo accounts and Islamic accounts are available. Deposits are catered for through wire transfer, credit cards, and eWallet methods with the majority being free of charge. AED deposits are available through both wire transfer and card payment with the USD, EUR, and GBP as base currencies. Trading takes place through MT4, MT5, and Webtrader and the fixed spreads here start from 1.3 pips.
Next on our top Dubai forex broker listing, Swissquote are regulated by the DFSA, FCA, and MAS in Singapore. They offer something more equivalent to a banking or investing service here and no forex assets are available, just stocks, ETFs, and bonds to trade. Arabic is not supported at this time. With this broker, 3 account types in the form of a Standard, Premium, and Prime account type are available. The minimum deposit varies with one account being available with no minimum deposit while the others require a $1200 or $2000 minimum. The more you deposit, the lower your spreads also become. They also cater for an automated trading advisor based on your trading preferences.
OctaFX is well-regulated by both the FCA and CySEC and provides one of the top swap-free account services in the sector although Arabic language support is unavailable at the present time. The account types you can choose from are the Micro, ECN, and Pro accounts that feature MT4, cTrader, and MT5 as trading platforms respectively based on your choice. The minimum deposit here is $100 or $500 for a pro account and demo accounts are fully available as well as Islamic accounts where requested. You can fund your account through Visa, Skrill, Neteller, or Bitcoin and this funding is free in most cases. Only USD deposits are provided for though, so no AED deposits, although USD, EUR, and GBP base currencies are available. Spreads on your trading also start from a good value 0 pips.
Last but not least on our listing of top Dubai forex brokers is FBS. They are regulated by the IFSC and CySEC and have always been known as a top broker, particularly for new traders. Arabic language support is also available. Here you can select from a cent, standard, or ECN account that feature a minimum deposit of $1, $100, or $1,000 respectively. A Fixed Zero Spread Account is also available for a minimum deposit of $500 while both demo and Islamic accounts are catered for. Funding your account can be completed through wire transfer, credit cards, or eWallets and is fee-free for the most part. AED deposits are typically accepted through local exchangers while USD, EUR, and GBP are the brokers available base currencies. For trading, spreads start from 0 pips on the Zero Spread Account and generally from 0.5 pips on other accounts with trading completed through MT4, MT5, or Webtrader and a proprietary copytrading platform available.
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.