Not many industries are as dynamic and active as the stock market. You can enjoy daily earnings and plan accordingly for future investments. A profitable venture in Dubai is to form a forex trading company, thanks to the enormous business sector and adequate support from the UAE’s government. However, many entrepreneurs wonder is forex trading legal in Dubai?
Is forex trading legal in the UAE?
Majority of the UAE’s population comprises expats which explains the need for sending money back home. Therefore, forex providers are mushrooming in the country. However, forex trading is legal in Dubai? Yes, forex trading is legal in the UAE. In the following article, you will learn how to start a forex company and also how the business is it is regulated. It is also important to note that any entity dealing in forex must have a legal license to do so.
You can establish your dream company in the DIFC (Dubai International Financial Centre) which is a free zone and has independent jurisdiction beneficial for investors. Moreover, you can also choose the mainland region to form your forex trading company in the UAE. It has diverse opportunities and gives fat returns on your investments.
How to start forex trading in the UAE?
If you’re willing to get into the prosperous forex trading industry but don’t know how to go about it, here’s a guide to make it easier for you. Follow the steps mentioned below to get started with your forex trading business in Dubai:
1. Market analysis
The first step that many traders overlook is in-depth market analysis. You should know about the pros, cons, risks, etc., associated with the venture to make an educated decision. Today’s digital age has made it easier than ever to find the relevant content and everything’s just one click away. If you approach the right forex broker, you’ll get this information compiled from them to ensure that you understand all the aspects of forex trading. Therefore, you can collaborate with the business setup consultants at Shuraa Business Setup.
2. Evaluate your needs
You should have a clear understanding of what you want to achieve via forex trading and what’s the estimated timeframe to accomplish the same. Novice traders should never indulge in hefty trading practices that involve a lot of capital. On the other hand, seasoned traders should look for the best broker who offers a reliable forex trading platform and introduces you to the new policy changes as well. Always consider your needs before applying for a forex trading license in Dubai.
3. Select a broker
Never choose a broker that doesn’t have a legal affiliation with a government agency. The UAE’s government takes strict actions against fraudulent brokers but you must analyse the forex trading broker. Therefore, forex trading legal is in the UAE. Furthermore, check whether the broker is a market maker or uses the ECN (electronic communication network). Next, inquire about the leverage and margin policies maintained by the concerned brokerage agency. You should also ask for a demo account to understand the trading platform offered by the broker. Once you’re satisfied with all these constraints, you can finalize the broker for your forex trading company.
4. Acquire the forex trading license
You need to approach the DFSA (Dubai Financial Service Authority) to obtain the forex license for your forex trading company. It has an independent legal framework and duly monitors the trading of commodities, international equities, exchange, etc. in the country. Moreover, DFSA also runs a company fit test to check the credibility of brokerage firms and issues the license only when it finds you capable enough to run a forex trading company.
5. Start trading with your forex account
Get started with your live funded account to begin forex trading. Devise an educated trading plan and stick to it during your trading tenure. Always remember that there’s no substitute for hard work. Therefore, leave no stone unturned before investing your money and when you do that, you’ll gain decent profits right from the start. Be it high capitalization stocks or cryptocurrencies – you can trade in your favourite stream with the forex trading license.
Advantages of forex trading in Dubai
Just like the other business sectors, forex trading is also a profitable venture in Dubai. Numerous forex trading companies have made a name for their brand’s in the marketplace. The following benefits ensure that your venture is hassle-free and a profitable one:
1. Flexible business
One major benefit of forex trading is that you can do it anytime, anywhere without a lot of effort. All you need is an electronic device like a computer or a mobile phone with good internet connectivity. You can trade in foreign exchange with these minimum requirements. Furthermore, irrespective of the market conditions, you can trade in foreign exchange. Even in a recession or bearish period, an investor can trade and make profits out of it. With high liquidity and low transaction cost, the risk involved in forex trading is manageable.
2. Business in a strong economy and tax benefits
Dubai’s economy is evolving at a rapid pace and this attracts people from around the world. The UAE also provides tax benefits to its investors. Therefore, by establishing a forex company in Dubai, you can save your money, thanks to the zero (almost) percent tax policy. It empowers you to earn extra revenue and the same can be used for other business growth activities.
3. Secured and regulated
Foreign exchange trading in Dubai is regulated by the Dubai Financial Services Authority (DFSA). And’s here’s the answer to is forex trading is legal in the UAE? DFSA It issues the forex license to the investors and keeps a check on all the activities in the market. Moreover, the DFSA ensures that trading, exchange, and other financial activities are being undertaken as per the legal framework. Furthermore, it also regulates banks and other financial bodies. The governing body empowers the investors to trade in foreign exchange.
4. Easy to set up
It’s very easy to set up a forex trading business in Dubai. Generally, people are skeptical of investing in the exchange market but the foreign exchange has always maintained a good reputation. That’s why starting a forex company in Dubai is beneficial and investors continue to explore the sector with diligent interest. Furthermore, there are several business benefits provided by the government to encourage investors.
Cost and requirements for the forex trading license in Dubai
Typically, the expected cost of the forex trading license is AED 32,000. The investor can choose whether to take a flexi-desk or an office. Before selecting, you need to keep in mind the number of visas in this case, as the number of visas would depend on the size of the office. You are required to have a share capital of AED 50,000 ($13,625) in the DMCC (Dubai Multi Commodities Centre). Deposit this amount in the bank and show a bank letter also. Moreover, you need to have a passport copy, copy of your visa, and trade name document during the paperwork and identity evaluation.
Shuraa – Your business companion
You don’t have to worry about obtaining the forex trading license in Dubai when you collaborate with Shuraa Business Setup. Instead of wondering if forex trading is legal in Dubai, get cracking with a free consultation with us. We have helped 35,000+ companies establish in the UAE’s marketplace and we’ll happily assist you in launching your forex trading business. Our legal advisors provide insightful information to the clients and help them with all the processes related to paperwork, documentation, rental space, and more.
So, are you ready for business set up in Dubai with Shuraa? To know more about forex trading companies in Dubai, connect with us by calling at +97144081900 or send a WhatsApp message on +971 50 777 5554. For email assistance, you can write to us at [email protected].