Changing or choosing a new forex broker in UAE can be a challenging task. This comes from the fact that you may have a lack of information about the possibilities when changing. Forex traders around the world are no different in this scenario.
For that reason we have collected a listing of the best recommended brokers in UAE along with some other useful information on forex trading there to keep you on the correct track.View Contents
Table of contents
Is Forex Trading legal in the UAE?
This is a commonly asked question, the answer to which is positive.
Yes, forex trading is legal and permitted in the UAE which is comprised of 7 independent Emirates.
Typically UAE forex brokers will register in Dubai since it is a special economic area within the UAE and home to some of the areas 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 the UAE
Due to the common point of typically being registered in Dubai, you will have to follow these DFSA regulations when starting to forex trade in the UAE.
This is generally simple though and should only require proof of your identity and residence prior to funding your account.
Top 10 Best Forex Brokers in the UAE
Here are the top 10 brokers that we have identified for your choosing as a forex trader in the UAE:
UAE trader? Here’s what to 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 here. 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 probably considered Haram and thus not legal in the UAE.
Therefore, it would be a good idea to steer clear of this while taking on board the following tips:
1. Look for brokers regulated within the UAE
Regulation in forex is of course 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 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. Paying overnight, or swap fees is 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 Islamic 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 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 could be used. These are the DFSA, the Central Bank of Dubai, or the SCA. With the DFSA, simply head over to their official website DFSA official website and use the search function to input the brokers 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 no 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 have a very strict approach in this regard, you would be well-advised to contact a tax professional on those issues.
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