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IG MarketsVisit IG Markets70% of retail CFD accounts lose money
XTBVisit XTB79% of retail investor accounts lose money
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
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GO MarketsVisit GO Markets62% of retail CFD accounts lose money
The United Arab Emirates (UAE) is a federation of seven emirates situated in the southeast of the Arabian Peninsula. Within global financial markets, the UAE stands out as a significant financial hub, especially its city of Dubai, where the Dubai International Financial Centre (DIFC) is located.
The official currency of the UAE is the UAE Dirham, abbreviated as AED.
For retail forex trading activity in the UAE, the primary regulatory body is the Dubai Financial Services Authority (DFSA), which operates within the DIFC. The DFSA ensures forex brokers in the region adhere to rigorous regulatory guidelines, with the aim of protecting traders and maintaining the UAE’s financial market’s integrity.
In order to rank the best UAE forex brokers, we took several factors into consideration including:
- UAE forex license
- Available languages
- The general quality of the broker
- Forex commissions
What are the best UAE forex brokers?
Below is our curated list of the best forex brokers for traders living in United Arab Emirates, with details and information about the country laws, the features, and the characteristics.
Is forex trading legal in the UAE?
Forex trading is legal and permitted in the United Arab Emirates which comprises 7 independent Emirates.
Typically UAE forex brokers will register in Dubai since it is a special economic area within the UAE and home to one of the area’s most respected regulators the DFSA. Outside of that, you can look for regulation by the SCA which is the UAE’s Federal and Securities Commission Authority, or the Central Bank of Dubai.
In any case, the most commonly found and trusted regulation for UAE brokers is from the DFSA.
How to trade forex in UAE
Due to the common point of typically being registered in Dubai, you will have to follow DFSA regulations when starting to forex trade in the UAE.
This is generally simple and should only require proof of your identity and residence prior to funding your account.
What should UAE traders look for in a forex broker?
As a UAE trader, there are a few country-specific points to look out for when you are getting into forex trading. It is also helpful to know that 50:1 leverage will typically be available unless you are a professional trader in which case 400:1 will be open to you.
You should also remember that although it may be offered, spread betting is considered Haram and thus not legal within the Emirates.
Here are three more top tips when considering a UAE broker:
1. Look for UAE regulated brokers
Regulation in forex is always a key issue. For this reason, and to ensure you are with the most trusted brokers, you should always seek out the best approved regional regulation. In this case, that means DFSA brokers or those regulated by the Central Bank of Dubai.
If you want to trade with an international broker under ESMA, CySEC, or FCA regulations, this may be available to you although depending on where in the UAE you are based, it makes sense that you should verify with local authorities first.
2. Look for Sharia-compliant accounts if you need it
As a Muslim area, this point will be key. Overnight, or swap fees are considered to be interest and therefore against Sharia law. You should do everything you can to ensure the broker you choose provides for a fully compliant rollover-free trading account.
If you want to know more about Islamic accounts, which assets are halal, which ones are not, and more information about Islamic trading, check out our post on the best swap-free trading brokers.
3. Look for brokers that make your trading life easier
Convenience is key. Since the AED is rarely supported as a forex broker base currency, this is one more thing you should check for. It is very likely then that you will be paying a conversion fee every time you deposit or withdraw cash from your account. You should try to make sure that these fees are at the very least competitive in order to bring down your cost of trading overall.
How to verify if a forex broker is regulated in the UAE
As mentioned, within the UAE, there are 3 specific regulators that can be used. These are the DFSA, the Central Bank of Dubai, and the SCA. With the DFSA, simply head over to their DFSA official website and use the search function to input the broker’s business name (You will often find this at the bottom of the broker homepage).
Is forex trading taxable in the UAE?
Although each Emirate acts independently when it comes to tax matters, this is one of the few tax-free regions in the world. Given that they do not apply any capital gains tax at all then, your forex trading should be tax-free.
With that said, there may well be some other types of tax to consider like VAT or something else, and given the UAE has a very strict approach in this regard, you would be well-advised to contact a tax professional on those issues.
InvestinGoal.com may receive monetary compensation from the brokerage companies listed above.
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