Best FOREX Brokers In Saudi Arabia 2024

Best FOREX Brokers in Saudi Arabia for 2024

Top Tips for Selecting the Best FOREX Brokers in Saudi Arabia

Best FOREX Broker and Platform for Beginners in Saudi Arabia

Here are our expert’s 7 best FOREX online brokers active in the Kingdom of Saudi Arabia for 2024. You will have every chance of trading success if you choose one of these highly-rated brokers.

1. ICM - Capital 91.10: Best Deposit and Withdrawal Broker

2. Tradeview - 90.00: Trusted broker that offers very low trading costs as well as comprehensive financial literacy materials for its clients.

3. XTB - 85.55: Best Customer Service Broker

4. IG - 85.45: Best Regulations Broker plus Convenient Platform

5. Saxo Bank - 80.09: Excellent Private Trading Platform

6. CMC Markets - 80.07: More than 9,000 Assets

7. ThinkMarkets - 80.05: Aimed at the Audience of Traders

Here is a summary of each broker from our 7 Best Brokers in KSA picked with their pros and cons

What Is FOREX and Why Do We Need a Broker to Trade?

The FOREX market is where parties come together to buy and sell currencies. The market is not a physical location, but rather a decentralized and electronically enabled virtual space where large institutional players and retail traders alike can carry out trades. For the new FOREX trader, it can be comforting to know that the FOREX market is the largest financial market in the world at some six trillion dollars daily. The scale of the market is a source of comfort because it means it is both mature and well-run. Another big factor is that the market is liquid, meaning that you will always have sellers and buyers at the same time, which is required for a market to function well. The FOREX market operates 24 hours a day and five days a week (Monday through Friday), except for international holidays. The best FOREX brokers play a key role in this regard by enabling clients to buy and sell through a trading platform.

How Do I Choose the Best FOREX Broker in Saudi Arabia?

• whether the broker offers a broad selection of account types 
• if they offer competitive spreads
• whether you can easily complete deposits and withdrawals
• if there is a large number of currency pairs on offer, and
• whether the broker’s customer service teams are responsive.

FOREX Regulations in Saudi Arabia

Saudi Arabia FOREX trading is an increasingly popular activity in the country. Taxes are low for Saudi nationals, and many people have disposable income with which to trade.  While the SAMA is a financial oversight body, it is not a FOREX regulator per se. For that, brokers must be registered with the Capital Market Authority (CMA) before they can accept residents of Saudi Arabia as customers.

The CMA, founded in 2003, is a financial regulatory body in Saudi Arabia. It regulates and manages the Saudi Arabian capital market and is, therefore, involved in the activities of FOREX brokers. FOREX trading is completely legal in Saudi Arabia. The important caveat is that brokers must comply with Saudi regulators and Islamic principles to remain in good standing. 

These two oversight bodies work hand in glove to ensure that brokers continue to do what is required according to Saudi administrative and religious law. The SAMA and CMA are both concerned with illicit FOREX brokers operating in Saudi Arabia. In 2017, they jointly launched awareness campaigns to warn traders about illegal websites that offered FOREX trading services without the requisite approvals. 

At the get-go, it is important to learn more about regulatory bodies and their role in the FOREX market. These are government or independent entities charged with regulating the sector. Their role is two-fold:

1. Observing and regulating the work environment in the FOREX market; and

2. Protecting investors and their funds.

FOREX firms must have at least one license from a relevant regulatory authority. Otherwise, they should be avoided at all times.

Notwithstanding local regulations, it is always important to check if your broker happens to be regulated by overseas tier-1 regulators. However, even if your broker is not regulated by an overseas broker, it is perfectly acceptable if they are regulated by the CMA in Saudi Arabia.
In order to give you more information on regulation, we present the five most important FOREX market regulatory bodies from around the world.

1. The Financial Conduct Authority (FCA), UK;

2. The Swiss Financial Market Supervisory Authority (FINMA);

3. The Australian Securities and Investments Commission (ASIC);

4. The Financial Markets Authority, New Zealand; and

5. The National Futures Association (NFA), US.

While FOREX market regulatory bodies exist in almost every country, these five key regulators also happen to be some of the strictest.

Leverage

Depending on the regulatory framework within which your broker operates, you'll encounter varying leverage rules. Several key regulators have introduced specific guidelines to safeguard retail traders.
Let's take a look at some of these leverage rules set by major regulators:
CMA in Saudi Arabia:
FOREX brokers in Saudi Arabia can offer high leverage to traders, with some brokers providing leverage as high as 2000:1. The CMA allows brokers to decide how much leverage to offer traders in FOREX trading, and there is no government-instituted cap on leverage usage. It's important to note that while high leverage can amplify profits, it also increases the risk of significant losses.
ASIC in Australia:
30:1 for major currency pairs
20:1 for non-major currency pairs, gold, and major stock market indices
10:1 for commodities other than gold and minor stock market indices
5:1 for equities (stocks) and other underlying assets
2:1 for cryptocurrencies
FINMA in Switzerland:
FINMA doesn't specify leverage limits as does ASIC. However, Swiss brokers must strictly adhere to robust capital and risk management requirements, ensuring that they do not offer excessively high leverage that could endanger their financial stability or their clients' funds.
FCA in the UK:
30:1 for major currency pairs
20:1 for non-major currency pairs, gold, and major indices
10:1 for commodities (excluding gold) and non-major equity indices
5:1 for individual equities and other reference values
2:1 for cryptocurrencies
It's important to note that these regulations primarily apply to retail clients. Professional or institutional clients may have access to different leverage levels based on the regulatory environment and the broker's policies.

Stop out

In the world of trading, "stop out" is a term with which you should be familiar. It's the point where your broker automatically closes some or all of your active positions to prevent your account from diving into negative territory. The stop-out level is usually defined as a percentage, representing the margin level at which your broker starts shutting down your open trades. Let's break down the percentages:
Stop out of 0%:
Your broker won't close any of your positions, even if your margin level reaches rock bottom. This is because some brokers allow you to end up in the red, which means you might owe them money if your trades keep losing.
Stop out of 50%:
Once your equity dwindles to half of your used margin, the stop-out alarm goes off. Your broker steps in and starts closing your trades, beginning with those least profitable. This continues until your margin level bounces back above the stop-out level.
Stop out of 100%:
When your margin level hits 100%, your broker takes the drastic step of automatically closing all your open positions. In some setups where the broker separates margin-call and stop-out levels, the margin call happens at 100% and the stop-out at 50%. If your margin level plunges to 50%, your trading platform springs into action with a stop-out, closing your trade at the market price.
Keep in mind that the specific percentage and the order in which positions get closed can vary between the best online brokers. So, it's crucial for traders to know their broker's stop-out policy. It's worth noting that while stop-out measures are designed to shield traders from going into the red, they can also result in substantial losses, especially in volatile markets where positions are swiftly closed automatically, especially if the market suddenly reverses post-stop out. That's why you should always employ protective strategies like setting stop-loss orders and avoiding excessive leverage.

Commissions and Fees in Saudi Arabia

Trading fees can be tricky to keep track of, so it's important to compare them with industry standards. Here are some fees of which to be aware:

Spreads: 

There are two main kinds of spread, one is fixed and the other is variable. Generally, the spread refers to the difference between two prices, such as the bid/ask rate in a currency exchange rate. An example of a good spread is 1.4 pips for the EUR/USD (the narrower the better, this means that a spread of 1.4 pips is better than a spread of 2 pips). You can learn more about this concept in this article.

Commission: 

This is the service charge that brokers require for carrying out transactions on behalf of their clients.

Rollover fees: When you leave a trade open overnight, the broker normally charges a rollover fee for the facility of holding your trade open for that period. This is because they assume the risk of the market changing adversely. You should know as a Muslim trader that it is Haram to pay conventional rollover fees. This is why you should only trade with a broker that offers Islamic swap-free trading. Just be aware that the spreads are likely to be wider.

Withdrawal and deposit fees: 

Some platforms might charge fees for depositing or withdrawing funds. Pay attention to this. It's important to be aware of these and any associated limits or conditions.

Subscription or inactivity fees: 

Certain platforms have monthly charges or fees for inactive accounts. Ensure you're aware of these potential costs.

To keep track of trading fees, you can follow these steps:

• Research different brokers and trading platforms

• Compare the fees and charges of each platform

• Choose a platform that offers competitive fees and suits your trading needs.

Payments, Deposits, and Withdrawals in Saudi Arabia

FOREX Trading Customer Service

Technical Aspects of the Broker’s Website

Ask Other Traders on Our Network

What Trading Platforms, Tools, and Features Should a Broker Offer?

When choosing a trading platform, you should consider a range of features that cater to both novice and seasoned traders. Here are some elements to keep in mind:

• Shariah-compliant accounts: You should be able to access a swap-free account that is consistent with the dictates of Shariah financial law.

• Technical analysis tools: The platform should have robust technical indicators to help traders make informed decisions.

• Customization and user interface: Traders should be able to mold the platform according to their preferences, allowing them to set up their trading environment precisely how they want. We find that the products from the MetaTrader suite, especially MT4, offer excellent features for this purpose.

• Platform accessibility: A top-notch trading platform should offer flexibility in terms of access, whether it's web-based or a downloadable application.

• Risk-management tools: Trading inherently comes with risks, and a high-quality platform should provide instruments that allow traders to set stop-losses, take-profits, and other crucial order types.

• Performance and reliability: Beginner traders especially need a platform that operates seamlessly with minimal downtimes or glitches. This ensures a smooth trading journey, allowing them to focus on market movements rather than technical hiccups.

• Learning and educational resources: The best brokers will offer platforms that are not only intuitive but also come with tutorials, guides, and responsive customer support to assist traders in navigating any challenges they might face.

To choose the perfect trading platform, here’s some solid advice:

• Determine your trading style and needs.

• Research different platforms and compare their features.

• Test the platforms with a demo account to see which one suits you best.

• Choose a platform that offers the features you need and is user-friendly.

• Ensure that the platform is reliable and has a good reputation in the industry.

Remember that the trading platform you choose can have a significant impact on your trading success, so it's important to choose wisely.

Which FOREX Broker Has the Best Platform?

Which FOREX Broker Charges the Lowest Fees?

Look no further, as we have done all the analysis and cost comparisons for you. We can reveal that ICM’s ECN account offers the lowest fees on the market.

Which FOREX Broker Offers the Most CFDs?

Which FOREX Broker Offers the Most Assets?

Which FOREX Broker is Best for Professionals?

What Tradable Assets and Instruments Do The Best Online Trading Platforms Offer?

• FOREX

• Commodities

• CFDs

• Equities or Stocks

• Indices

• Cryptocurrencies

Is FOREX trading Halal or Haram?

• Avoid paying interest as Shariah law strictly prohibits earning or paying interest (riba)
• FOREX trading could be considered gambling, which is haram, but the majority of scholars believe FOREX trading is not the same as gambling
• FOREX trading must always be conducted transparently and fairly to align with Shariah principles
• FOREX trading involves the immediate exchange of currencies, which is viewed favorably from an Islamic perspective according to the "hand to hand" principle.

How to Open an Islamic Account

The Dos and Don’ts of FOREX Brokers

1. The FOREX brokerage firm cannot recommend a buy or sell.
2. The FOREX brokerage firm must not provide price or market expectations (rise/fall).  
3. The FOREX firm cannot control your financial dealings (deposit/withdrawal).
4. The FOREX brokerage firm should not “manage” your portfolio under any circumstance.
5. The FOREX brokerage firm cannot grant a client a bonus unless there are clear terms guiding it beforehand;
6. The brokerage firm must not use bank accounts not under its name; and
7. FOREX brokerage firms cannot have or offer the service of account managers.

FOREX Trading Scams and How to Avoid Them

Each market is prone to its own scams. For example, countries that have powerful regulators that demand total transparency from brokers will often not suffer from the same scams that are prevalent in markets where the same information is not readily available. In the case of Saudi Arabia, the CMA has in the past tried to alert its members to the dangers of websites that claim to be legitimate but are, in fact, run by malicious actors.

The CMA is proactive in making sure that only the best online brokers in Saudi Arabia have the chance to shine. The regulator runs public awareness campaigns as soon as it becomes aware of scam activity. Together with the SAMA, the CMA has successfully countered scams like clone websites and shopfront websites that lure in customers but have no back-end operations to support them. The CMA can shut down such websites, in coordination with concerned authorities. However, due to the ease of creating and building new websites, authorities must be constantly vigilant. Therefore, the CMA and SAMA continue to jointly promote risk awareness and education.

Will Your Money Be Protected if Your Broker Becomes Insolvent?

Who is Arincen and What Do We Do?

Conclusion

Arincen’s Review Methodology

The team at Arincen collected more than 120 pieces of data covering in excess of 100 licensed FOREX companies. Data collection was done in three ways: 

1. Companies’ Websites.

2. Other Websites that have ranked FOREX companies.

3. A survey questionnaire (referred to here as Survey “1”) we had sent to the companies invited to participate in the exercise. We have identified 13 criteria for our assessment, each containing several aspects and carrying its own relative weight. These include licensing, deposits and withdrawals, number of assets, etc.      

Afterward, we validated the data by: 

1. Registering with FOREX companies as a secret shopper and/or as Arincen.

2. Survey number “2,” in which we asked these companies’ customers for important feedback and experience. 

The next step saw us evaluate and rank each company, relying on the hard work of 15 Arincen employees. We were careful in ensuring the most accurate assessment possible, including taking into account different languages, as well as the various mobile-app operating systems, e.g., Apple, Samsung etc. 

To add credibility to our research project, we sent a third and final survey (referred to here as Survey “3”) to enable participating FOREX companies to evaluate our own research and whether it accurately reflects the realities on the ground. We were fortunate enough to receive a mark of 9.9 out of 10! We have kept to a minimum the margin of error, which stood at a measly 1%. To learn more about how we came up with the evaluation, please click here.