Last Updated: 28th September 2021.
With over 13.9 Million forex traders in the world and over 6.6 trillion dollars being traded daily.
This proofs that Forex trading has really become a profitable way to acquire wealth without stressing yourself in Bricks and Mortal World.
Forex trading can also serve as a means to tap into the large and global market with 24 hours daily trading.
This shows that you don’t have limitations or a time frame as to when you can make money or not. The market is always open 24 hours daily.
Which makes a profitable way to also make money in your very less busy time. You can keep your day-to-day job and still become a forex trader.
That is the power of leverage.
As beneficial and interesting as forex trading sounds to be, the problem is that it is totally banned in some countries of the world.
While only restricted in some parts of the world and fully available in some parts of the world.
And that is exactly what brought an article to this popular question “Is Forex Trading Legal In Dubai?”
In a few minutes, you will find an answer to “Is Forex Trading Legal In Dubai”.
And basically all you need to know about forex trading in Dubai.
But before we start, here is an outline of what we will be going through in this article.
- Is Forex Trading Legal In Dubai
- Overview of The UAE Financial Market
- Top Forex Brokers in Dubai.
Let us dive in!
Is Forex Trading Legal In Dubai?
In a word, YES forex trading is 100% legal in Dubai and other UAE countries. All you need to do and keep in mind is that you just have to look for a broker that supports Islamic accounts.
As of the time of writing this article, forex trading doesn’t have any limitations or restrictions in Dubai but to make it more standard, it is important you look for brokers with Islamic accounts.
What are Islamic accounts?
The Islamic bank accounts are the type of accounts that are based on profit and loss sharing with accounts holders or with the bank.
This was made possible under the Islamic law in UAE that money must not be allowed to create more money.
What it means is that the law above is from the Sharia-compliant financing and investment tools. If you must trade forex in Dubai, you have to abide by this rule to avoid any future problems.
One of the most popular and widely used Islamic banks is that of the “Dubai Islamic Bank” which was founded in the year 1975 by Haj Saeed Bin Ahmed AI Lootah.
The bank is the first “Islamic Bank” and is the only bank that applies all the principles of Islam into its operation to date.
Am not saying you must go for this account, the most important thing is that broker support Islamic accounts.
And that leads to the next chapter.
Overview Of Dubai Financial Market (UAE)
Firstly, forex trading as began as far back as the 1970s and the Dubai local currency is (United Emirates dirhan AED) which was introduced by “Abd al-Malik” on 19th May 1973.
The country’s currency has since far back 1997 pegged the US dollars at the rate of 3.6725 AED which is still the way it is at the time of writing this article. ($1 = 3.6725 EAD)
The country’s GDP is $43,103 (2020) per capita and the total worth of $412.142 Billion as of 2019 with the global rank of 29th as of 2020.
Dubai is also a uniquely affluent emirate and that is because it doesn’t thrive or is dependent on selling oil to survive.
The Dubai economy diverse is based on Trade, Technology, Tourism, Transportation, and other financial services.
According to the world bank statement, UAE is indeed the main financial center in the Middle East and the whole Gulf Region.
It is consisting of 7 Emirates, the most important fact is that the Emirates of Abu Dhabi and Dubai are the most 2 hosts of financial securities exchanges in the whole country. Without doubt.
The 2 top leading exchanges in the country are;
Asides from the most popular listed above 2, there are also about 5 exchanges with a physical address located directly in the city.
There Are:
I have included the physical addresses and the company websites should in case you need to learn more about them.
- Dubai Mercantile Exchange (DME)
- Office Address (The Exchange Building (Gate Village – 11), Level 8 – Dubai – United Arab Emirates)
- Company Website (dubaimerc.com)
- Dubai Multi Commodities Centre (DMCC)
- Office Address (1st Floor, Almas Tower, Jumeirah Lakes Tower – Dubai – United Arab Emirates)
- Company Website (dmcc.com)
- Dubai Pearl Exchange (DPE)
- Office Address (Al Sufouh Rd, Behind Bank Of Sharjah, Dubai Media City – Dubai – United Arab Emirates)
- Company Website (dpe.com)
- Dubai Diamond Excahnge (DDE)
- Office Address (Level 2، Almas Tower – Jumeirah Lakes Towers – Dubai – United Arab Emirates
- Company Website (dmcc.ae)
- Dubai International Financial Centre(DIFC)
- Office Address (Sheikh Zayed Rd – Trade Centre – DIFC – Dubai – United Arab Emirates)
- Company Website (difc.ae)
Top Forex Brokers in UAE
While looking to select a forex broker platform, they are things you have to put into consideration that determine the quality of the platform.
These qualities vary according to individual needs but here are the top 2 picks you need to look for in as much trading forex in UAE is concerned.
#1: Quality Support In Arabic Language
Quality support in the Arabic language won’t only help you in the time of having issues but can also help you spot scammers.
Issues arise in different cases within the platform.
This might be an issue of deposit or withdrawal
You need a quick guide on how to use the platform.
There are things that are just not clear to you as you begin trading or learning from the platform if offer tutorial.
By looking for a broker platform that supports quality Arabic language, you can be sure that you will always find quick and well-understandable answers whenever cases arise.
It also saves you time from a lot of guess works.
#2: Well Reputable
Fraudulent activities are on the rise every day and internet fraudsters are looking for all the best possible ways to upgrade their games.
These scammers also go as far as cloning original company websites all in the name of scamming people.
They can just trick the domain name.
For example forexbrokers.com to forrexbrokers.com
As a result, a well reputable platform matters a lot in ensuring the safety of your money.
There are many ways you can spot out a fake forex broker platform, part of them are:
- By checking online forums that are full of forex traders
- By typing “Forex Broker Platform Name Review” into Google and see what people are saying about it.
- You can also check trustpilot.com or other reviews sites to get facts about the platform.
Luckily, what have listed below with the requirements above and beyond, we have also included the original links to the websites.
Top 5 Forex Brokers In Dubai
Below are the top 5 forex brokers in Dubai that you can get started right away.
#1: Pepperstone
As of the time of writing this article Pepperstone is the best overall forex broker in Dubai.
Pepperstone was founded in the year 2010 by a group of online traders with the intention of improving the forex trading industry.
The platform has since ever then gains global recognition and it has about 2 million users globally. You can trade over 180 currency pairs with Pepperstone.
Pepperstone is licensed and regulated in Dubai and that makes it the best option for Dubai residency.
The platform also provides excellent customer support by employing the indigenous Arabic native language speakers and also provides support in the English language for those who might want to.
The platform supports the most popular trading software, Metal Trader 4 and MT5 on both Android, IOS, and computer users.
The platform supports Islamic Account and that makes it the best option in Dubai.
However, the minimum amount that can be deposited on this platform into your real account is $200 but be rest assured it is a reliable platform.
#2: eToro
This is another good and reliable platform on the list with over 20 million users around the world.
The eToro platform offers an academy for its users called eToro academy. This is useful for those who want to learn how to trade or who might to properly build their trading career.
eToro covers a wide range of assets that you can tap into and start trading from. Assets like stocks, commodities, cryptocurrency, currencies, and the likes.
The platform provides up to a $100,000 demo trading account. This is useful if you are learning how to trade or you just want to test the eToro platform.
eToro is the largest trading platform and with that, it has so many successful crypto traders which you can learn from or copy their trade.
The minimum deposit on eToro is $200 and also the amazing platform supports Islamic Account and as well provides support in the native language.
If over 20 million traders are not wrong, you can never go wrong with eToro.
#3: IQ Option
IQ option is the best overall in one trading platform and it has over 48 Million users and over 1 million transactions per day.
The platform was founded in the year 2014 and it has received so many recognized awards because of its industrial achievements.
IQ option has a very low minimum deposit ($10) into real your real account and provides $100,000 for a demo account. If you want to learn and practices, this is the best.
The platform is open 7 days a week and 24 hours a day which means you can always trade at your less busy time.
IQ option supports over 10 payments method for both deposits and withdrawals. You only need to go for what suit your need the most.
The platform also supports investment options at a minimum of ($1). This option is suitable for you if you don’t want to trade yourself.
It also covers a wide range of assets to choose from. It is indeed a great platform.
#4: HotForex
HotForex is just great but also has a local physical office in Dubai. The platform has also been around quite an age now. It was founded in the year 2010.
The platform offers so many great features supporting the Dubai residency and that is because Dubai is one of its target markets.
HotForex provides free swap of Islamic Account and it is regulated by DFSA (The Independent Regulator of Financial Services).
Hot Forex provides up to 100% welcome bonuses and you can trade in over 48 currency pairs. The bonus is amazing if you are just joining the platform because you can double your money despite the fact that you are yet to trade.
The minimum deposit on HotForex is $50 and depositing is not an issue because it offers various payments options.
In a word, the platform offers all the other features other platforms provide.
#5: XM.
XM is another great platform on the list and it has also been around. It is quite reputable also with lots of features that other platform offers.
It has over 50 currency pairs and these currencies are the best in the market that the platform believes can really fetch you lots of money.
It supports swap-free Islamic Account
XM also offers quality online education which makes a great choice. The educations are basically about forex trading.
It teaches you leverage, how to enter the market safely, risk management, and other important stuff that is really amazing.
It provides support in the Arabic language and also the minimum deposit on it is $15.
Generally speaking, it has similarities that other platforms have and it is also a great idea. I have only listed 5 so that you can have an alternative.
Conclusion
I have been able to answer your question, is forex trading legal in Dubai and clear all your doubts?
As you can see that forex trading is 100% legal in Dubai, you just have to do it the right way and you too can get started and take share in the huge amount of money being traded daily.
In addition, a forex broker also plays a vital role in forex trading, choosing a reliable one will really contribute to your success.
With that, we have come to the end of this article.
Which forex broker are you going to try first?
Do you have any previous experience with these forex brokers?
Do let me know in the comment section below.