Why UAE Traders Should Compare Forex Brokers?

As a United Arab Emirates (UAE) trader, there are many considerations when deciding on a forex broker. First of all, it must be mentioned that forex trading in the UAE is legal, with multiple regulators that monitor trading activity within the UAE. As such, we have made sure to pick forex and CFD brokers that accept residents from any part of the UAE.

Then there are the all-important trading factors that any broker should have, no matter where you live. Key factors taken into consideration include trading fees (such as commissions and spreads) account types, trading platforms, and the range of tradeable products. It’s also important to consider secondary factors that add to your overall trading experience. These include social or copy trading platforms, charting tools, market research for further education, and customer support.

In addition to regulations, there are also factors specific to UAE residents to consider like maximum leverage and the availability of an Islamic account. Maximum leverage is dictated by the broker’s regulator, which we have explained in more detail below. In terms of an Islamic account, with the UAE being a predominantly Muslim country, most brokers that accept UAE traders offer an Islamic account. An Islamic account is swap-free for those traders that can’t pay or receive interest (or Riba) due to religious reasons.

Weighing up all of the above factors together to choose a broker is tough and we understand that. That’s why the knowledgeable team at Compare Forex Brokers has done all of the complex analysis so you can make an informed choice. Every single review is also specific to the UAE so they apply directly to your needs as a trader.

How To Choose The Best Forex Broker In The UAE?

When choosing the best forex broker in the UAE, you should consider the following:

Regulation – Select a forex broker with regulation by the Dubai Financial Services Authority (DFSA), the Securities and Commodities Authority (SCA), or the Abu Dhabi Global Markets (ADGM).

Range of Markets – Find a forex broker that offers the range of markets and forex pairs you wish to trade in.

Trading Costs – Choose a forex broker that offers low trading costs. Check their spreads and commission fees.

Trading Tools – Select a forex broker with a wide range of advanced trading tools, such as pip value calculators, risk meters, guaranteed stop-loss orders, and charting tools.

User Experience – Find a forex broker that offers a great user experience with a user-friendly interface, fast execution speeds, and excellent mobile functionality.

Support – Choose a forex broker that offers excellent customer support and other support features, such as a demo trading account and educational resources to help you learn how to trade effectively.

Forex trading providers in the UAE will also have a mobile trading app where you will be able to access not only the forex market but also derivatives, cryptocurrencies and other financial instruments in your retail investor account.

What Are Some Of The Best Forex Brokers In The UAE?

Pepperstone, AvaTrade, IG Group, and eToro are some of the best forex brokers in the UAE, as they offer low spreads, fast execution speeds, and excellent user-friendly trading platforms with a wide range of markets on offer.

Can These Brokers Be Trusted?

Yes, brokers with regulation by one of the official financial regulators in the UAE can be trusted. All of the Dubai Financial Services Authority (DFSA), the Securities and Commodities Authority (SCA), and the Central Bank of the UAE have stringent rules designed to protect traders.

Forex Spreads Comparison of UAE Brokers

Ross Collins, the Chief Technology Researcher at CompareForexBrokers, tested the spreads of 20 brokers and found that Pepperstone has the best spreads in the UAE.

As part of his test, Ross captured the spreads of over 24 hours for the EUR/USD, AUD/USD, USD/JPY, GBP/USD, USD/CAD and USD/CHF currency pairs.

We found that Pepperstone finished top for the AUD/USD, GBP/USD and USD/CHF pairs and second for the EURUSD pair ahead of Tickmill who also were very competitive.

AUDUSD	Average Spread	EURUSD	Average Spread	GBPUSD	Average Spread	USDCAD	Average Spread	USDCHF	Average Spread	USDJPY	Average Spread
Pepperstone	0.19	Tickmill	0.15	Pepperstone	0.41	Tickmill	0.5	Pepperstone	0.39	ThinkMarkets	0.25
Tickmill	0.37	Pepperstone	0.19	Tickmill	0.59	ThinkMarkets	0.56	CityIndex	0.44	Pepperstone	0.36
ThinkMarkets	0.42	Admiral Markets	0.21	ThinkMarkets	0.62	Pepperstone	0.61	Tickmill	0.52	Admiral Markets	0.58
Axi	0.67	ThinkMarkets	0.22	Admiral Markets	0.73	Axi	0.74	Axi	0.94	Axi	0.64
CMC Markets	0.68	Axi	0.43	CMC Markets	0.9	CMC Markets	0.75	CMC Markets	0.94	CMC Markets	0.64
Admiral Markets	0.7	CMC Markets	0.44	Axi	0.95	Admiral Markets	1.46	Admiral Markets	1.08	Tickmill	0.67

What Are The Commission Fees Of Trading Forex In The UAE?

Spreads and commissions break down the costs and trading fees of trading forex in the UAE. Spreads are the difference between the buying and selling price of two currencies, whereas commissions are small additional fees attached to each trade, usually calculated by round-turn per 100k traded.

Commission Fees With UAE Regulated Brokers (Sideways per standard lot)
Tickmill	$2.00
Admirals	$3.00
HF Markets	$3.00
Pepperstone	$3.50
Axi	$3.50
FxPro	$3.50
XM	$3.50
HYCM	$4.00

Is Trading Forex Taxable In The UAE?

No, trading forex is not taxable in the UAE, thanks to the tax-free zone status in Dubai, Abu Dhabi and other parts of the UAE. This means capital gains made from trading forex are not taxed.

How To Start Trading Forex In The UAE

There are some steps we recommend you take before you start trading.

Select a regulated forex broker.

You begin forex trading by selecting a regulated broker that offers the markets and currency pairs you wish to trade in. Find a forex broker that offers advanced trading tools and low trading costs. Look for features such as fast execution speeds, user-friendly platforms, and excellent mobile functionality.
Open a demo account.

Open a demo account with your chosen forex broker and practise your trading strategies. Most brokers offer unlimited demo trading accounts with virtual funds and educational resources to help you learn how to trade efficiently.
Fund your account

Open a live trading account, submit your Know Your Customer (KYC) documents, and fund your account. We recommend you start trading with small capital amounts in the beginning. Only start trading on live markets once you are confident you understand the fundamentals of forex trading.

Which Is the Most Beginner-Friendly Forex Broker In The UAE?

OANDA is the most beginner-friendly forex broker in the UAE as it offers an excellent MetaTrader 4 (MT4) demo account that only expires after 90 days of inactivity. Additionally, OANDA offers competitive low spreads, fast execution speeds, and a wide range of markets and currency pairs.

Can I Trade With High Leverage In The UAE?

Yes, you can trade with high leverage in the UAE as leverage is not restricted in the jurisdiction. You can trade with as high as 500:1 leverage in the UAE.

What Are The Forex Broker Regulations In The UAE?

The table below lists some rules traders must abide by to offer Forex Trading services.

Forex Broker Regulations In The UAE
UAE Nationals must hold at least a 60% stake in the brokerage to be granted a Central Bank of UAE license.	Must have at least $1,000,000 in operating capital	Trader funds must be kept in a separate account and not used for operating capital
Brokers should submit financial reports for regular review	Must have a dispute resolution process	Brokers must publish product disclosure documents

Which Forex Trading Broker Is Best For Trading CFDs In The UAE?

Pepperstone is the forex trading broker that is best for trading CFDs in the UAE. With a wide range of CFD markets on offer and excellent low trading costs, Pepperstone’s CFD trading options are a market leader.

FAQ

What is DFSA in the UAE?

DFSA is the Dubai Financial Services Authority, a regulatory body that oversees forex trading in the UAE.

Is forex trading good for beginners in the UAE?

Yes, forex trading is good for beginners in the UAE if you know what you are doing. Spend time learning about forex trading before you start trading live markets. Open a demo account and take advantage of all educational resources to learn more about forex trading.

What is a forex broker and what do they do?

A forex broker is a financial services company that provides access to traders wanting to buy and sell currency pairs on a foreign exchange. They are a pathway to the foreign exchange and traders can buy and sell currency pairs on an electronic platform provided by the forex broker.

How do forex brokers in the UAE make money?

Forex brokers in the UAE make money from spreads and commissions. Spreads are the difference between the buying and selling price of two currency pairs while commissions are small additional fees attached to each trade calculated by round-turn per 100k traded.

How much money do I need to deposit to begin trading Forex?

While some forex brokers have a no deposit minimum in forex trading, since you are trading with leverage, you will need a small amount in your funding account to meet margin requirements.

Is it possible to trade forex without a broker?

No, it is only possible to trade forex with a forex broker. Forex brokers provide access to the liquidity pools in foreign exchange markets.

What are the non-trading fees for forex brokers in the UAE?

Non-trading fees for forex brokers in the UAE include:

Overnight fees
Deposit and withdrawal fees
Some brokers charge a monthly or annual account maintenance fee
Some brokers charge a currency conversion fee if you deposit with a currency that is not linked to your account
Some brokers charge an account inactivity fee if your account remains inactive for a set period of time

How would I know if my Forex broker is regulated in the UAE?

You can check whether your broker is regulated in the UAE by going to the broker’s website to see if they are regulated. Alternatively, you can go to the Dubai Financial Services Authority’s (DFSA) website to see if the broker registration number is listed with them.

Which forex broker has the best trading platform in the UAE?

Pepperstone is the forex broker with the best trading platform in the UAE as it offers the MetaTrader 4 (MT4) platform, the most popular platform. MT4 offers excellent execution speeds, a user-friendly layout and design, and excellent mobile functionality.

Which forex broker is best for MetaTrader in the UAE?

Pepperstone is the forex broker with the best MetaTrader 4in the UAE with fast execution speeds, competitive spreads and commissions, and excellent mobile functionality.

Can you do copy trading in the UAE?

Yes, you can do copy trading in the UAE. Copy trading is an excellent way for novice traders to learn from experienced traders and for professional traders to benefit from the most experienced traders in the industry.

Is it possible to trade with non-DFSA-regulated brokers in the UAE?

Yes, it is possible to trade with non-DFSA-regulated brokers in the UAE. Non-DFSA-regulated brokers are called offshore brokers and you should use them cautiously as DFSA regulations as well as ADGM and SCA) do not protect your trades.

Best Forex Brokers in the UAE

There are plenty of forex brokers out there and even more factors to consider when choosing a forex broker in the UAE. The best forex brokers should offer competitive spreads, low fees, great trading platforms, and a good range of currency pairs. There is no such thing as a ‘one-size-fits-all’ forex broker, so each broker usually specialises in one area.

While MetaTrader 4 is the most popular forex trading platform on the market, there are many other great platforms including cTrader. Therefore, it’s vital to choose a forex broker that offers the features that are important to you as a trader. At Compare Forex Brokers, we have considered every angle when it comes to recommending a broker for any trader’s style or level of experience.

Our best forex brokers UAE section review compiles the top brokers based on the above factors. Some of the forex brokers we have included are Pepperstone, XTB, and IG.

Top CFD Brokers UAE

CFD trading has risen in popularity in recent years and so have the number of online brokers offering their services. When you trade CFDs (contracts for difference), you are taking a position on the future value of a given financial market without buying the underlying asset. The best CFD Brokers allow you to trade a wide range of financial instruments from shares to indices to commodities. These brokers should also offer trading platforms that accommodate CFD trading.

MetaTrader 5 is perhaps the best trading platform for CFDs given it was designed for both centralised and decentralised trading, giving a wider range of markets to trade. Regardless, there are plenty of great CFD trading platforms out there which are available to UAE traders.

Check out our UAE best CFD brokers section reviews the top CFD brokers in the UAE. These include AvaTrade, SaxoBank, and XTB.

Best Copy Trading Platform UAE

Copy trading allows you to directly copy the trading strategies taken by another trader. It is a form of social trading where you can decide how much you want to trade or simply copy everything automatically in real time. This form of trading is particularly suited for inexperienced or beginner traders that need some trading ideas before getting started.

The best brokers that offer copy trading platforms either have their own proprietary platforms or use popular third-party platforms such as ZuluTrade or DupliTrade. Some of the top brokers that offer the best social trading include eToro, IC Markets, and FP Markets.

If you are a social or copy trader based in the UAE, check out our best copy trading platforms UAE page.

Best CFD Trading Platform for Beginners

CFD trading platforms for beginners should offer many things, including being user-friendly, low spreads, and good risk management tools. This is because CFDs are a high-risk trading venture so the CFD platforms a broker offers should help alleviate those risks.

All the best trading platforms should also give you a good range of CFD products to trade, with additional trading tools and features. This gives a broker versatility to its platform offering to suit any trading style, preference, or experience level.

For a list of brokers that offer the best CFD platforms, you can read our Best CFD Trading Platforms for Beginners page.

UAE Broker Comparison Methodology

Given the complexities of forex and CFD trading in the UAE, deciding on a broker is no easy task. While foreign exchange trading is legal in the UAE, there are still many factors to consider for forex traders. These can be summarised below:

Trading account types
Spreads and Commissions
Trading Platforms
Copy Trading Tools
Financial Instruments
Mobile app
Funding Methods and Minimum Deposit
Regulations
Risk Management Tools
Educational Resources
Customer Service

While there is a lot to consider, the team at Compare Forex Brokers has gone through each of the above with a fine tooth comb. Things like trading costs involve a lot of moving parts, from spreads to commissions to funding costs. A broker can offer ECN-like execution or be a market maker, which will also affect your trading costs, particularly spreads. For some of our brokers, we also provide spread modules that detail the minimum average spreads for major pairs such as EUR/USD and GBP/USD. Each review also has plenty of tables and images illustrating the most important broker details at a glance. Whichever type of trader you are, there is a broker for you. We also break down each review in layman’s terms so as to be easily understood by any retail trader.

It’s worth mentioning that regulations are a big factor in every broker’s choice. This is because the regulatory environment in the UAE is quite complicated. This is explained in more detail below but rest assured, every broker review contains a list of the top forex brokers that accept UAE traders.

Honesty is paramount in every UAE broker review we do. As such, the team at Compare Forex Brokers is transparent about all the broker information that we share. This means that we don’t just write glowing reviews about a broker. We consider both pros and cons of a given broker, so you can make an informed decision.

All reviews are general, we don’t give out trading advice. Therefore, it’s important to do your own research in addition to reading our reviews. Most of the brokers we review offer a demo account, which you can practise trading on before opening an account and trading with real money.

Regulations in the UAE

There is a higher level of complexity in the regulatory environment of the United Arab Emirates not present in other countries. Indeed, the UAE has a number of regulators:

The DFSA (Dubai Financial Services Authority) regulates the Dubai free trade zone
The ADGM (Abu Dhabi Global Market) regulates the Abu Dhabi free trade zone
Regulators on the mainland (outside the free trade zone) include the Central Bank of UAE (CBUAE) and the SCA (Securities and Commodities Authority).
The Dubai International Financial Centre (DIFC) provides the regulatory framework for Dubai’s Free Financial Zone, based on international standards set by the UK’s financial regulator (FCA).

Forex brokers in UAE are regulated to protect their traders, similar to how Australian traders are protected by the ASIC in Australia and European traders are protected by CySEC. Whether you are planning to trade in the forex market, ETFs or crypto, choosing a regulated broker in the UAE is important.

Understanding The Risks Of Forex Trading

Disclaimer: Trading with instruments that use leverage, while useful comes with high risk as it can result in outsized losses. Before trading with margin, ensure you research how leverage works and appreciate the risks you undertake. Using leverage is at your own risk. There are also retail CFD account scams, which is also why you should choose a regulated broker.

THE GLOBAL LEADING FOREX BROKER COMPARISON