CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Between 54-87% of retail CFD accounts lose money. Based on 69 brokers who display this data. *Availability subject to regulation.
While the UAE is comprised of seven separate emirates, the main financial centres of the country are undisputedly the capital Abu Dhabi, and Dubai. Before discovering oil in the 1950s, the UAE’s economy was mainly driven by nomadic farming, fishing, pearl diving, date palm cultivation and seafaring. By 2014, according to the country’s 2015 Economic Report, the UAE’s GDP reached approximately £330 billion.
There the two main financial securities exchanges are the Abu Dhabi Securities Exchange (ADX) and the Dubai Financial Market (DFM). Both operate under the country’s Securities and Commodities Authority (SCA) and they deal in a number of financial products including securities, equities, bonds, mutual funds, futures, commodities, metals, stones, derivatives and Sukuk (Islamic bonds).
Based in Abu Dhabi, the ADX was founded in 2000 with the purpose of providing funds and investment opportunities in securities to benefit the national economy of the Emirates. The DFM was established as a public institution in the same year but was set up as a Public Joint Stock Company in 2005, with 20% of its shares sold through a public offering.
The DFM exchange was the first of its kind in the region, and the first financial market to comply with Sharia rules. The exchange deals primarily in equity instruments, debt instruments, exchange-traded funds or ETFs, and the lending and borrowing of securities.
In addition to the two Emirati exchanges mentioned above, Dubai hosts seven other exchanges where trading in various securities, commodities and derivative products take place, which are:
Forex traders may recognise the United Arab Emirates dirham (AED) as the UAE’s currency. The dirham has been pegged against the U.S. dollar since 1978, and has been fixed at a rate of one U.S. dollar to 3.6725 dirhams since 1997, with only minor market fluctuations around that rate typically seen.
Oil prices and national property prices make up the main drivers of the UAE’s economy. Despite a significant 25% fall in the Dubai stock market and a glut in the real estate market in 2018, non-oil GDP for the same period was on the par with the previous year. Conversely, the Abu Dhabi stock index had a strong performance in 2018.
The UAE’s financial securities markets operate under the Securities and Commodities Authority (SCA). Founded in 2000, the SCA offers Emiratis the opportunity to invest savings and funds in securities and commodities that serve the interest of the national economy. This agency secures the accuracy and integrity of transactions that, along with forces of supply and demand determine fair prices. The regulator is also committed to developing investment awareness by conducting studies and offering recommendations that work to secure financial and economic stability in the Emirates.
Another regulatory agency, the Dubai Financial Services Authority (DFSA) supervises and regulates 624 entities and 490 authorised firms. Online forex brokers regulated by the DFSA include FxPro and HYCM.
When looking for an online broker to trade forex or CFDs with, make sure to choose a well-regulated broker that has a strong reputation with clients, since they should be suitable for entrusting a margin deposit with them.
Online brokers generally offer several trading accounts for traders, including:
With respect to stock trading, in order to trade listed securities on the Dubai Financial Market (DFM) and Nasdaq Dubai, you must first apply for and obtain an NIN Investor Number. An NIN number allows you to trade on both the DFM and ADX exchanges and anyone from any nationality can apply.
After obtaining an NIN number, you then need to find a broker to trade listed stocks on either of the two exchanges. Transactions for listed securities in the UAE are settled in Arab Emirate Dirham (AED).
Due to its low taxation rate, supportive regulatory environment and political stability, several cryptocurrency exchanges and digital currencies have made the UAE their home base. Furthermore, the UAE has joined an expanding list of global regulators that have decided to regulate and standardise initial coin offerings or ICOs.
When it comes to the practical matters of doing businesses, the UAE ranked favourably among Middle Eastern countries at 7th and 1st respectively on the World Bank’s list. When it comes to starting a business, the UAE ranked 25th, while the country ranked 15th for protecting minority investors. Taken overall, these high rankings suggest an excellent environment exists for doing business in the UAE.
One recent challenging development in the UAE was the 2018 implementation of a value-added tax (VAT) of five per cent which has reportedly dampened consumer spending. The reported lower stock values and rising interest rates, which created a glut in the real estate market, have also taken their toll on the UAE’s economic prospects.
In addition, the ongoing dispute between the UAE and Qatar is having a growing impact on the economies of both countries. With the dispute more than a year old and with no sign of stopping anytime soon, reports continue to grow that it is the UAE, as well as its allies Saudi Arabia and Bahrain which are potentially suffering the most from the ordeal.
Finally, the UAE was ranked 44th for getting credit by the World Bank, and the country ranked even worse at 98th for trading across borders. This indicates a somewhat unfavourable environment for business start-ups looking for financing and for import/export firms.
Trading in the UAE could present significant opportunities for people looking to invest in stocks, derivatives or real estate. Nevertheless, while a future opportunity could present itself, the stock and real estate markets in Dubai experienced considerable selling pressure in 2018.
While some people expect a rebound in UAE stocks and real estate, the real opportunity in the Emirates could potentially involve the cryptocurrency market, with the UAE government and their regulating bodies currently collaborating to make the UAE an especially attractive venue for crypto exchanges, ICOs and cryptocurrency trading.
Forex.com scored best in our review of the top brokers for the united arab emirates , which takes into account 120+ factors across eight categories. Here are some areas where Forex.com scored highly in:
Forex.com offers one way to tradeForex . If you wanted to trade EURUSD
The two most important categories in our rating system are the cost of trading and the broker’s trust score. To calculate a broker’s trust score, we take into account a range of factors, including their regulation history, years in business, liquidity provider etc.
Forex.com have a AAA trust score . This is largely down to them being regulated by Financial Conduct Authority, segregating client funds, being segregating client funds, being established for over 19
|Regulated by||Financial Conduct Authority|
|Uses tier 1 banks|
|Segregates client funds|
Want to see how Forex.com? We’ve compared their spreads, features, and key information below.
|USD/JPY Spread||0.90||DAX Spread||250.0|
|FTSE 100 Spread||150.0|
|Platform||MT4, Web Trader, NinjaTrader, Tablet & Mobile apps|
|Base currency options||USD, GBP, EUR|
|Funding options||Bank transfer, Cheque, DebitCard,|