Trade Like a Sheik: Your Guide to Forex Trading in the UAE
Forex Trading in UAE
According to a recent report by Investment Trends, the number of foreign exchange (FX) and contracts for difference (CFDs) traders in the UAE increased by 9%, with 18,500 traders initiating their first trade in the past year.
While not the largest market, the UAE has consistently shown positive growth over the past 12 months, with a 9% increase in traders to 49,000, surpassing figures from Spain, Singapore, and France.
The reactivation of dormant traders has also doubled, reaching 7,000, up from 4,000 in 2022, contributing to the overall market expansion. The UAE is the only market showing growth among those surveyed in the leverage trading industry in 2023.
less
High-Impact UAE Economic Data
- GDP (Gross Domestic Product): It is a key indicator of UAE's economic performance and overall health.
- Full Year GDP Growth: Indicates the percentage change in the UAE's GDP over a complete fiscal year, usually compared to the previous year.
- GDP per Capita: Represents the average economic output per person in the United Arab Emirates.
- Inflation Rate: Monitored closely by policymakers to ensure price stability and economic growth.
The Brokers
Forex accounts are typically denominated in major currencies, but some brokers, like Swissquote and Multibank, offer AED as a base currency for UAE residents.
DFSA-regulated brokers like Swissquote provide leverage up to 1:30. In contrast, SCA-regulated ones like MultiBank offer up to 1:500. In contrast, offshore brokers often provide higher leverage, such as 1:500. For customer support in English or Arabic, UAE traders find brokers like FP Markets, Swissquote, Vantage, ADSS, and AvaTrade to be reliable choices.
The Regulations
With three regulators, including the Securities and Commodities Authority (SCA), the Dubai Financial Services Authority (DFSA), and the Central Bank of the UAE, traders benefit from a well-regulated environment. Moreover, traders in the UAE have the flexibility to engage with brokers regulated abroad.
In the UAE, regulators like the SCA and DFSA set high standards for brokers. The SCA mandates fund segregation and negative balance protection, while the DFSA prohibits credit card funding and ensures transparent marketing.
- A vast pool of financial opportunities
- The absence of personal income tax
- Easy access to major financial markets in Europe, Asia, and Africa
- Efficient trading platforms, high-speed internet connections, and reliable access to market data
- Network with a diverse community of traders
- Highly competitive, with a large number of skilled traders
- Volatile market conditions
- Strict regulatory requirements for forex trading
- Forex traders may need to adjust their schedules to accommodate different market hours
- Comply with Shariah-compliant trading practices
FAQ
