10 Best Forex Brokers in Middle East for 2023

The Middle East refers to a region comprising several countries in Western Asia and parts of North Africa, known for its significant oil reserves and emerging financial hubs like Dubai and Abu Dhabi.

The region doesn’t have a unified currency; instead, each country has its own, such as the Saudi Riyal, UAE Dirham, and the Qatari Riyal, among others.

When it comes to retail forex trading activity, regulatory oversight varies by nation. While there isn’t a single regulatory body for the entire Middle East, individual countries have their own regulatory agencies. For example, in the UAE, the Securities and Commodities Authority (SCA) and the Dubai Financial Services Authority (DFSA) oversee forex trading. These agencies aim to protect investors, ensure fair trading practices, and maintain the overall integrity of the financial markets in their respective jurisdictions.

In order to rank the best brokers in the Middle East we have taken into consideration the following factors:

• An active license in the Middle East
• The commissions charged on forex
• The deposit/withdrawal currencies accepted
• The general quality of the broker overall

What are the best forex brokers in Middle East?

Below is our curated list of the best forex brokers for traders living in the Middle East, with details and information about the country laws, the features, and the characteristics.

Is forex trading legal in the Middle East?

Throughout the Middle East, forex trading is generally legal. With that said, each country has its own regulators. The most well-known of these is the DFSA of Dubai which has great regulations in place.

Of course, there are still a few places in the region that do not generally permit or offer forex trading. These are Iran, Iraq, Yemen, and Syria where you will find no broker services available.

How to trade forex in the Middle East

How to trade forex in the Middle East will really depend a lot on the country you are registering from, so you should first check that the broker is available by contacting their customer support.

Once you have done this, the process is pretty much the same as everywhere else. You will have to provide proof of identity in the form of a passport along with your proof of residence when registering with the broker to verify your account. Once you are verified you may then be asked to fund your account before you begin trading, but you will be ready to go.

What should Middle Eastern traders look for in a forex broker?

As mentioned, many things like limitations and regulations will vary by country. Here though are a few general tips on the key points to look out for when making your choice.

1. Look for regulated forex brokers

This is a primary thing to look out for. You want to sign up with a well-regulated broker. Even if your country does not regulate the forex market you can still choose a broker that is well-regulated by a top-tier body such as Dubai (DFSA), UK (FCA), Europe (ESMA) or Australia (ASIC). Overall, these regulated brokers are more trustworthy.

2. Choose the best swap-free account

If you are trading leveraged assets or CFDs as offered by many brokers, and you choose to hold these positions open overnight, you will pay (or receive) a small interest on these positions.

Since interest is Haram according to Shariah law, you will want to find a good swap-free account if needed. These are also known as Islamic Accounts, and no interest is charged though it is sometimes replaced by a fixed fee charged after a certain period.

If you want to know more about Islamic accounts, halal assets, and Islamic trading in general, then feel free to check our best swap-free Islamic accounts.

3. If you’re not an expert, look for the best broker for beginners

As a new trader, you will want to find a suitable broker that offers an unlimited demo account as a great place to hone your skills, a low minimum deposit, and possibly lower-risk lot sizes like trading in nano lots which gives you a great entry point. Also, make sure they offer negative balance protection to avoid ever losing more than you deposit.

How to verify if a forex broker is regulated in the Middle East

The broker regulation in the Middle East and around the world will depend on the country the broker is operating in but there are many local regulatory bodies you can check with.

In Dubai, you can take a look at the DFSA official website to double-check the regulation, while in the EU the ESMA (EU) firms register can be a place to look. Here you can select the country the broker says to be registered in, and check if it is really registered in the country.

In the UK, the FCA official website is the place to start double-checking your broker’s regulatory status, while the ASIC official website serves this purpose for that body.

Is forex trading taxable in the Middle East?

Forex trading is taxable in the Middle East. Again though, this is dependent upon the country you are trading from since many countries particularly Gulf countries in the region are generally forex tax-free.

Still, we strongly recommend that you contact a professional local tax advisor on matters of tax as a priority when trading.