How to Choose a Forex Broker in UAE?
Over the past few years, the forex market has become saturated with a mix of good and dishonest forex brokers. Searching for the best forex brokers in UAE might drive you nuts. Therefore, let us share some tips to make the process easier for you;
1) Select a broker with a good reputation
Always check the reputation of a broker before signing up at any broker. Do some research about the broker. Read blogs, posts, articles, and collect information about your prospective broker as much as possible. You can also read online reviews of existing customers. Lastly, check the broker’s rating on independent rating websites, such as Trustpilot.
2) Choose a broker with at least 3 years of presence in the forex industry
Signing up with any broker for the first time has always been a tough call. However, it becomes even more sensitive when a broker is relatively new to the industry. Factors such as funds protection and liquidity issues can test a broker’s competency over time. A substandard broker is not likely to last longer. Therefore, it is better to sign up with a broker that has been in business for more than three years.
3) Check out the broker’s regulation.
Open an account with a broker regulated within the UAE. Regulation makes brokers follow a set of rules designed to protect the interest of all stakeholders. Besides keeping clients’ funds in segregated bank accounts, regulated brokers also maintain enough funds to ensure increased liquidity. The Central Bank of UAE (CBUAE) is the prime regulatory body in the United Arab Emirates. Some other renowned regulatory bodies in the UAE include;
- Dubai Financial Services Authority (DFSA)
- Dubai International Financial Center (DIFC)
4) Deposit & Withdrawal Process
It is paramount to check if your broker offers a fast deposit and withdrawal process. Usually, brokers support instant deposits. However, when it comes to placing a withdrawal request, the brokers may keep you waiting for days and weeks. Some brokers even take more time to process withdrawals. The worst part is that brokers who claim to offer fast withdrawals may charge a withdrawal fee.
5) International Presence
The international presence of a broker adds to its credibility. A broker that holds international recognition is likely to have the best operational framework. Multiple regulations of a broker speak enough about its competency.
6) Customer support in local language
It is worth checking if your broker offers customer support in Arabic. Even world-class customer support services might not make any sense to a local trader who does not understand a foreign language. Good forex brokers usually offer multilingual customer support. A broker should also have competent staff to address your issues and provide a timely resolution.
Top Forex Brokers in UAE
Given below are the five best forex brokers in the UAE that we have hand picked for you.
- XM
- Exness
- FXPro
- IG – Most trusted forex broker of all times.
- FOREX.com – It’s a low-cost broker suitable for both novice traders and professionals.
- City Index – Excellent all-rounder.
- Saxo Bank – Offers excellent research tools.
- FXCM – It provides user-friendly trading platforms with excellent customer support.
Factors that we considered while choosing the best forex brokers in the UAE
1) Analyzed broker’s reputation
The reputation of a broker tells everything about its professionalism and competency. We explored different reviewing websites to confirm the reliability of the above-listed brokers. We also read comments and feedback of clients on renowned social networking platforms, such as Reddit and Quora. We considered both positive and negative reviews about these brokers and made identifiable patterns. We ensured to include brokers with the highest reputation in the UAE.
2) Checked regulations
We have checked the regulatory status of each broker on the CBUAE & DFSA websites. All the brokers mentioned above hold a valid license from the concerned regulatory authorities in UAE. Finding the company’s registration numbers from their official web pages and tracing them on the concerned regulatory authority portals was a tough job that we performed during our investigation process.
3) Tested deposit & withdrawals
To check the efficiency of the deposit and withdrawal process, we made deposits and withdrawal attempts with each of the above-mentioned brokers. Honestly, we had no issues at all. Besides getting an instant deposit facility, we were able to withdraw our funds without any restriction.
4) Confirmed demo accounts availability
We have confirmed that all the brokers that we have selected above offer demo accounts. You can use demo accounts to practise different trading strategies without fearing the loss of real investment. The best part is that these brokers offer demo accounts with unlimited expiry.
5) Explored various features
We have thoroughly checked different services and features of all the brokers mentioned above, such as types of accounts, offered spreads, available leverage, risk management tools, and customer support. Not to mention, we found them very competitive.
6) Tested trading platforms
In addition to testing user comfortability, we checked the efficiency of trading platforms offered by the above brokers. With lower latency and minimal slippage, the trading platforms work great. Besides having all the basic and advanced trading tools, the trading platforms are easy to navigate.
7) Confirmed availability of mobile trading platforms
All our listed brokers offer mobile trading platforms to facilitate on-the-go users. Clients can download the supported version of mobile trading apps from Apple Store and Google Play Store.
8) Contacted customer support
We also checked the customer support service of our listed brokers. Despite raising multiple queries and complaints, we found them well-behaved, competitive, and professional.
Forex Brokers in UAE – FAQs
Is forex trading legal in UAE?
Yes, forex trading is legal in UAE. However, traders need to ensure that their respective brokers hold a license from CBUAE and DFSA.
Do forex traders pay taxes in the UAE?
No, traders do not have to pay any taxes on their forex earnings.
Who regulates forex trading in UAE?
The Central Bank of United Arab Emirates (CBUAE) is the prime regulatory body that oversees forex brokers. However, the Dubai Financial Services Authority (DFSA) and Dubai Islamic Financial Centre (DIFC) also control forex brokers in different jurisdictions.
How many forex traders are there in the UAE?
As per the stats published at brokernotes.com, there are nearly 0.97 million traders in the middle east including the UAE.
Can UAE residents sign up with a forex broker from abroad?
Yes, they can. However, before accepting clients from the country or abroad, brokers need to seek permission from CBUAE and DFSA.
Conclusion
As opposed to many other countries, making money through forex trading is relatively easier in the United Arab Emirates (UAE). Traders do not have to pay taxes on their forex earnings. The country does not have any restrictions in place concerning the minimum or maximum amount you can deposit in your trading accounts. That’s why people having high earning profiles also trade forex without any hesitation in the UAE. Overall, the country is no less than a trading paradise for forex traders and brokers.
