HFMVisit HFM70.51% of retail investor accounts lose money
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HYCMVisit HYCM72% of retail investor accounts lose money
AvaTradeVisit AvaTrade79% of retail investor accounts lose money
PepperstoneVisit Pepperstone74-89% of retail investor accounts lose money when trading CFDs
FBSVisit FBS74-89% of retail CFD accounts lose money
Dubai is a city and emirate in the United Arab Emirates (UAE), a nation situated on the Arabian Peninsula.
Dubai has emerged as a significant economic hub, particularly for commodities, real estate, and financial services, drawing investors and businesses from around the world.
The currency of the UAE, including Dubai, is the UAE dirham, often represented as AED.
When it comes to the regulatory oversight of retail forex trading activity in Dubai, it falls under the purview of the Dubai Financial Services Authority (DFSA), which operates within the Dubai International Financial Centre (DIFC). The DFSA ensures that financial entities adhere to international best practices to maintain the integrity and stability of the local financial market.
In this article, you will find top forex brokers offering their services in Dubai.
In order to select and choose the following 9 brokers, here’s what was taken into consideration:
- If the DFSA or other regulations of the broker were in place for Dubai clients
- If a registered office was available
- If Arabic language was available on the broker’s website for Dubai clients
- The minimum deposit of the broker for Dubai traders
- If AED was available as a base currency for Dubai clients
- If Islamic accounts were provided by the broker for Dubai traders
- The spreads and leverage in place for Dubai clients
What are the best forex brokers in Dubai?
Below is our curated list of the best forex brokers for traders living in Dubai, with details and information about the country laws, the features, and the characteristics.
Is Forex Trading legal in Dubai?
The Dubai finance industry has been a cornerstone of its 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 of the country that you live in.
There are no specific 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.
What should Dubai traders 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 is leverage in the UAE (including Dubai) which 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.
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 at leastkeeps these fees to a minimum.
How to verify if a forex broker is regulated in Dubai
First, 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 one 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.
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