Why Compare Forex Brokers Before You Trade?

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.

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
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).

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.

THE GLOBAL LEADING FOREX BROKER COMPARISON