Best FOREX Brokers in the UAE for 2024

Best FOREX Brokers in the UAE

Top Tips for Selecting the Best FOREX Brokers in UAE

Best 7 FOREX Brokers and Platforms in the UAE for 2024

With so many choices out there, it's tough to select the right broker. In this case, we've done the work for you. Here is a summary of each broker according to specific criteria, along with their pros and cons:

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

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

Many of you will already know this, but for those starting out, the FOREX market is the largest financial market in the world, at some six trillion dollars daily and only followed by the credit market. The market operates 24 hours a day and five days a week (Monday through Friday), except international holidays. Brokerage firms play a key role in this regard by enabling clients to buy and sell through a trading platform. This could be done either on a personal computer (PC) or by using a smartphone.

How Do I Choose the Best FOREX Broker in the UAE?

Regardless of where they are based, the best UAE FOREX brokers must all reach acceptable operating standards before you can begin to choose from them. First, a broker must be well-regulated. This is in your interest. Brokers that top-tier watchdogs regulate are compelled to protect your affairs, notably by offering you access to a compensation scheme in the event they go under.

Next, the broker must have robust features, such as a powerful trading platform, deep market access, and fast execution. You can also ask the broker about its levels of liquidity, as this is especially important in the FOREX market. From there, you should check for other essential elements, like customer support, trader-friendly account deposit and withdrawal methods and access to educational materials.

Naturally, in the case of UAE brokers, you will need to ensure that the broker allows for Shariah trading of FOREX through interest-free accounts.

Regulation and Licensing in the UAE

It is legal to trade FOREX in the UAE, but the broker must be regulated by the required financial authorities. Interestingly, brokers setting up shop in the UAE have a choice between a few different regulatory bodies. Some choose to subscribe to all these bodies while others choose to concentrate on being regulated by one or two. In the UAE, there are four main financial regulators. These are:

• The Dubai Financial Services Authority (DFSA).

• The Abu Dhabi Global Market (ADGM).

• The Securities Commission Authority (SCA).

• The Central Bank of UAE (CBUAE).

Most UAE-based brokers are regulated by the SCA, as it is the starting point for FOREX licensing. The SCA governs all non-banking financial activities and one of its major roles is to enhance capital markets in the region and stimulate economic growth. Importantly, some older brokers are still only regulated by the CBUAE, but according to recent legislation, they must have transitioned to SCA regulation by July 2022.

Notwithstanding local regulations, it is always important to check if your broker happens to be regulated by overseas tier-1 regulators. The Financial Conduct Authority (FCA) in the UK and the Cyprus Securities and Exchange Commission (CySec) are but two premier regulators with which responsible brokers seek to be associated.

FOREX brokers must be regulated by the same regulators that regulate other financial assets, such as crypto, commodities, and indices. If you want to learn more about some of the best-regarded regulators, read our article on regulation here. Remember that you do not have to use a broker with international regulations if your local broker is regulated by a solid local regulator. In the case of the UAE, being regulated by the SCA is enough.

To ensure that your broker is legit, you can follow these steps:

• Ask the broker to explain its FOREX product, with specific emphasis on regulation

• Check if the broker is registered with a top-tier regulator or at least the applicable regulator in your area

• Ask how the broker plans to compensate you if it goes insolvent

• Stay on top of your account and make sure all transactions are above board

Leverage

Leverage in FOREX trading is a powerful tool that allows traders to control larger positions in the market with a smaller amount of actual capital. The amount of leverage you have access to depends on the regulatory framework within which your broker operates. Several key regulators have introduced specific guidelines to safeguard retail traders.

Let's look at some of these leverage rules set by major regulators:

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

Australian Securities and Investments Commission (ASIC) 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

The Cyprus Securities and Exchange Commission (CySEC) in Cyprus:

CySEC regulations fall closely in line with the European Securities and Markets Authority (ESMA) guidelines and the Markets in Financial Instruments Regulation (MiFIR).

30:1 for major currency pairs 

20:1 for non-major currency pairs

10:1 for major indices, such as the S&P 500

5:1 for equities (stocks) and other underlying assets

2:1 for cryptocurrencies 

As far as UAE leverage levels are concerned, you must consult with your broker closely. Brokers in the country have been known to allow leverage as high as 500:1 without breaking any rules. However, with so many regulators in the country, and with their spheres of influence overlapping, there is sometimes some confusion around what leverage is permissible and under what conditions. For example, the SCA does not apply any maximum leverage limitations to traders. However, the DFSA limits leverage to 30:1 on major FOREX pairs and 20:1 on minor pairs.

Stop out

Stop outs are unwelcome events. It is one of the worst things that can happen to a retail FOREX trader. If this happens to you, rest assured that you have not planned your trading activities well 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 from broker to broker. So, traders must 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 the UAE

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. The first step in FOREX trading is identifying the spread differential, defined as the difference between the bid (sell) price and the ask (buy) price of a currency pair. While most FOREX currency pairs are traded without commission, the spread is one “cost” that applies to any trade that you place. This is, indeed, the biggest source of profit for the FOREX company.

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.

Remember that because brokers catering to UAE clients cannot charge rollover fees as it is against Shariah law, they often seek to make more money through spreads, which are typically higher in markets bound by Islamic law.

Commission: 

This is the service charge that brokers require for carrying out transactions on behalf of their clients. As for commissions, FOREX trading companies can be placed into three categories. The first offers fixed spreads, while the second offers variable spreads, with a third category of companies offering low-cost spreads, which come with a (relatively high) fixed commission.

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. As we have said, you should know that as a Muslim trader, it is Haram to pay conventional rollover fees. This is why you should only trade with a broker that offers Islamic swap-free trading.

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 of each platform.

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

Remember that trading fees can have a significant impact on your trading profits, so it's important to choose a platform that offers competitive fees and suits your trading needs.

Tradable Assets and Instruments

• FOREX

• Commodities

• Equities or Stocks

• Indices

• Cryptocurrencies

Trading Platforms, Tools, and Features

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.

Payments, Deposits, and Withdrawals in the UAE

FOREX Trading Customer Service

• Quick resolution of issues
• Educational support
• Assistance with queries during volatile markets
• Account security
• Customized advice (although not all customer service desks offer this)
• Technical assistance
• Regulatory compliance queries

Technical Aspects of the Broker’s Website

Brokers in the UAE must offer the same level of technical proficiency as any other broker in the world. This means that the broker’s website must be 

• visually appealing 

• easily navigable, and 

• highly functional. 

Orders must be processed as swiftly as possible with minimal lag that could cause slippage.

Brokers in the UAE can use the popular MetaTrader suite of tools or their own proprietary platforms. Whichever they choose, brokers operate in a highly competitive marketplace, where technical fundamentals are increasingly important as traders demand faster speeds and more advanced analysis tools.

Ask Other Traders on Our Network

Arincen’s Website features a powerful social network where traders can learn from each other in a supportive community. Every trader starts as a novice, and it helps to be able to watch and study the trades of other, more experienced, investors. This important feature has allowed many traders to make their learning curve less steep and expensive.

Is FOREX trading Halal or Haram?

• Avoid paying interest as Shariah law prohibits earning or paying interest (riba)
• FOREX trading could be considered gambling, which is Haram, but most scholars believe FOREX trading is different from gambling
• FOREX trading must always be conducted transparently and fairly to align with Sharia principles
• FOREX trading involves the immediate exchange of currencies, which is viewed favorably from an Islamic perspective

How to Open an Islamic Account

Which FOREX Broker has the Best Platform?

Which FOREX Broker Charges the Lowest Fees?

You will find that ICM charges the lowest fees in the market on its ECN account.

Which FOREX Broker Offers the Most CFDs?

Which is the Best FOREX Broker for the Most Assets?

Which is the Best FOREX Broker for Professionals?

FOREX Trading Scams and How to Avoid Them

Many online trading scams involve fake online trading platforms that offer attractive, not-to-be-missed trading promotions and packages. Often, these deals are too good to be true, and this is proven when traders invest money, and the website administrators disappear with their funds.
The best way to avoid being swindled is to check that the broker you are using is regulated by a trustworthy regulator. It is not enough to check if these brokers are registered companies alone, as the most sophisticated criminal syndicates often go to the lengths of registering their fraudulent companies with a company registration authority.
In general, you should keep a keen eye for red flags, such as:

• A deal that is too good to be true.

• A website with unclear contact details.

• A package that has been created “just for you” with dubiously favorable claims.

• A buggy or unresponsive website that is often a clone website.

It's worth noting that scams are continually evolving and moving with the times. Read your local regulator's website to see which new scams have been detected.

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 from 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.

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 more than 100 licensed FOREX companies. Data collection was done in three ways:

1. Companies’ Websites.

2. Other Websites that have ranked FOREX companies.

3. 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 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 demanding work of 15 Arincen employees. We were careful to ensure the most accurate assessment possible, including considering 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 final and third survey (referred to here as Survey “3”) to enable participating FOREX companies to evaluate our 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.