What are the best forex brokers in Kuwait?
Introduction
The forex brokers in Kuwait support clients to trade in the Kuwaiti financial market by providing trading accounts to Kuwaiti nationals and non-Kuwaiti’s as their clients. Nevertheless, when trading Kuwaiti assets, traders should observe specific guidelines that we will discuss later in this article.
Forex Trading in Kuwait
Forex trading is gaining popularity in Kuwait as Kuwait’s trading volume has grown massively over the previous five years. Throughout the world, USD 5.1 trillion in the volume being traded daily is a tremendous amount compared to other financial markets like stocks and bonds.
Recent advancements in online technology, better coverage of the internet in Kuwait, and heightened competition amongst brokerages have made Forex trading more convenient and generally decreased trading costs.
In the Middle East, Kuwait has some of the best foreign trading brokerages offering trading services to Kuwaiti investors. The first thing we should look for while searching for a reputable broker is the brokerage license and whether it’s regulated.
How we chose the Best Forex Brokers in Kuwait
Finding a reliable forex trading broker in Kuwait isn’t an easy task. A trader has to consider regulations, platforms, commissions, deposit & withdrawal methods, and fees while choosing the best Broker in Kuwait.
Nevertheless, we have carried in-depth research to shortlist your options of the best forex brokers in Kuwait. You should open an account with multiple Kuwait forex brokers to get demo accounts at first. This way, you will be able to test the performance, features, platforms, and spreads of various brokers before trading real money on live markets. Let’s take a look at the best forex brokers in Kuwait (the best trading platforms in Kuwait).
How to choose to start trading with the best Broker?
There is a delusion that trading Forex in Kuwait is regarded as unsafe though, it’s not exactly the case, as trading Forex in Kuwait is very active. However, you will need to understand out of so many brokers which ones you want to trade with.
This guide intends to help traders looking for the best brokers in Kuwait to trade Forex, CFD’s, Indices and ETFs, and Cryptocurrencies. The best forex broker in Kuwait article broker will describe the things you should consider before opening a forex trading account.
Choosing the best forex broker isn’t an easy task for a newbie; these are multifold factors that a trader has to see before choosing a forex broker. For instance, Broker’s regulations, platforms, commissions, deposit & withdrawal methods, and fees are the main things to start with.
Regulations
The primary thing you should see while choosing a broker is to comprehend if a responsible regulatory authority regulates the Broker. By trading with a regulated forex trading broker, you can assure that the Broker has met the regulatory body’s operating measures. For instance, few of these standard regulatory conditions involve having sufficient capitalization and preserving segregated accounts to protect the clients’ funds. Furthermore, the regulation allows fund protection should the firm become bankrupt and guarantees the Broker is bracing uncompromising standards as a financial service provider.
Well, the countries having financial regulatory bodies that are backed with stringent regulatory implementation are:
- Australia (ASIC)
- Eurozone (Mifid and local regulators)
- India (SEBI)
- Japan (FSA and JSDA)
- Switzerland (FINMA)
- UK (FCA)
- USA (CFTC and SEC)
- Cyprus (CySEC)
However, Kuwait has a generous financial market, and the Central Bank of Kuwait (CBK) well regulates Kuwait brokers.
Trading Platform & Software
The forex trading platform or software is your gateway to the forex market; therefore, you want to guarantee that your trading platform is reliable. Many forex brokers offer various trading platforms to pick from, and mostly, the trading platforms are rendered by third-party trading solutions providers like MetaQuotes Software.
Well, few forex brokers provide their exclusive trading platforms to distinguish themselves from other brokers in the business. However, it requires huge cost and maintenance; thus, most brokers offer a common trading platform known as MetaTrader 4. This trading platform is used and provided by 85% of brokers in the market. Nowadays, brokers have also started offering MetaTrader 5 and Ctraders.
Commissions & Spreads
Another major factor that one has to consider before opening a forex trading account is the spreads and commission charged on each trade. The forex brokers earn a profit by charging traders a spread. For newbies, the spread is a difference between the bid and ask price. For instance, the Bid & Ask price for the EUR/USD pair is 1.1750/1.1778; this means the spread is three pips.
Most of the brokers offer floating, fixed, or commission-free spreads; thus, being a trader, we need to choose the Broker having the smallest spread and no trading commission.
History
We need to make sure that the forex broker we choose has a history of at least 2-3 years.
Deposits and withdrawals
Ensure that your forex trading broker in Kuwait can make deposits and withdrawals processed within 2 to 3 days. Know days, most of the forex brokers are processing withdrawals on the same day, but you better check it with a broker first.
Islamic Accounts (Swap-free)
Most of Kuwait’s population is Muslims; therefore, they prefer to choose an Islamic account. The Islamic Forex trading account is considered halal and is offered to Muslim customers who want to invest in an Islamic way. Thus, many brokers provide a swap-free forex trading account that differs in various ways from a standard Forex trading account.
As Islamic Sharia law forbids the collection of interest, therefore, the Muslim traders or holders of Islamic accounts are not charged over-night fees or swaps. Of course, this type of account isn’t in favor of a broker as they can’t make money on leveraged money extended to the trader, but still, it adds up the volume from the global clientage.
Account Types
It’s widespread for forex trading brokers to offer various trading accounts to attract different categories of forex traders. These account types typically include:
Micro Account – It’s the smallest kind of forex trading account as f offers to trade micro lot, equivalent to 1000 units of the instrument traded.
Mini Account – The Mini account is considered a next-level trading account and is placed higher than a micro account where one trading lot is equal to 10,000 units of a traded instrument.
Standard Account – Finally, the standard account is the most common one as it’s where one traded lot is equivalent to 100,000 units of an instrument.
Forex Brokers in Kuwait FAQ’s
Is forex trading legal in Kuwait?
There is a delusion that trading Forex in Kuwait is regarded as unsafe though, it’s not exactly the case, as trading Forex in Kuwait is very active. However, you will need to understand out of so many brokers which ones you want to trade with.
With that being said, Forex trading is permitted in Kuwait as traders need to exchange currency for conducting business. Forex is an indispensable part of export and import and required to invest internationally. The crucial thing is that when trading Forex, you choose a reliable and trustworthy broker that is regulated. Kuwait Forex trading is not forbidden; many international online brokers are granting favorable trading conditions.
Do Forex Traders Pay Tax in Kuwait?
Forex trading income is taxable in Kuwait; therefore, a trader should make sure all taxes are paid for a financial year. Forex trader in Kuwait needs to file tax returns even if he incurred losses on the year. By the way, these trading losses cannot be compensated against the tax on personal income. If you are a forex trading from Kuwait, it’s advised to seek advice from a Kuwait tax professional to assure they are abiding by all Kuwait’s fair tax laws.
Who regulates forex trading in Kuwait?
All the forex brokers in Kuwait are highly regulated by the CBK (Commercial Bank of Kuwait) and work in Kuwaiti dinar’s base currency (KWD). The CBK is the State’s primary regulatory authority that oversees financial firms’ regulation and protects the Kuwaiti economy against risks of volatility in the global capital markets.
Besides, the brokerage firms that are marking forex trading services in Kuwait are licensed and regulated by the Kuwait Ministry of Trade and Industry. Another vital body that supervises financial pursuits is the KCCI (Kuwait Chamber of Commerce and Industry).
Choosing on of the best forex brokers Kuwait will allow you to ensure that you are trading with a regulated broker!
Can Kuwaitis sign up with a forex broker from abroad?
Yes, Kuwaitis can sign up from abroad. There are loads of forex brokers outside of Kuwait that accept Kuwaiti clients.
Conclusion
By now, you should be aware of the factors that one needs to consider while choosing the best forex broker, especially in the Kuwaiti market. Nonetheless, this guide will provide you a roadmap to choosing a forex broker that is best suited for your needs. Once you have discovered the appropriate Broker to work with, you can concentrate more on your trading activities and trade more confidently, thereby enhancing your odds of successful trading the market.
