Forex traders in UAE need a DFSA regulated forex broker in Dubai to trade currency and CFDs. To find the best Dubai forex broker in June 2021 the top fx providers based on spreads, forex trading platforms and features such as Islamic accounts were compared.
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Our DFSA regulated forex brokers list of UAE traders is the following.
Pepperstone was awarded the best UAE forex broker as it is regulated by the DFSA (Dubai Financial Services Authority) while offering clients:
In 2020, Pepperstone (Pepperstone Financial Services) became DFSA regulated with license number F004356.
Pepperstone offers three forex trading account types including the standard, razor, and Islamic account. Our razor vs standard account comparison found the Razor account was recommended for intermediate to expert traders who want the lowest fees. Pepperstone’s spreads are generally the tightest compared to other top brokers for most currency combinations.
Data taken from broker website. Accurate as at 04/06/2021
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The Razor Account ensures ECN-style trading and is commission-based. Taking into account the trading platform, the base account currency and what volume is traded (micro or standard lots), Pepperstone Razor account holders pay commission fees per each side of a trade.
The calculator below compares the average brokerage of Pepperstone to Axi and IG. This combines the average spread of 2021, commissions and current forex swaps. It highlights just how much traders save on each trader when selecting the Pepperstone Razor account.
With Pepperstone, Dubai forex traders can choose from a fine selection of trading platforms, including:
1) MetaTrader 4
Over the years, MT4 has become a standard for trading Forex. Being easily customizable, the platform offers access to live quotes, real-time charts, in-depth news and analytics, a range of order management tools and indicators, while also allowing traders to build and run Expert Advisors. Key features of Pepperstone’s MetaTrader 4 platform include:
2) MetaTrader 5
MT5 is a more powerful platform, which offers traders advanced functionality and superior tools for analysis. It is built on the MQL5 programming language, which has several advantages compared to MQL4, on which MT4 is based:
Key features of Pepperstone’s MetaTrader 5 platform include:
The platform also supports 38 languages, including Arabic, Hebrew, and Persian.
We should note that both MT4 and MT5 platforms allow Forex traders access to Pepperstone’s Smart Trader Tools package, which includes 16 trading tools and 15 custom indicators. The most popular features are:
This trading platform enables clients to place advanced order types and offers advanced customization options. What is unique about cTrader is that it can replicate an institutional trading environment, including depth of market. Additionally, it offers advanced risk management tools and allows for the optimized processing of expert advisors and indicators.
Key features of Pepperstone’s cTrader platform include:
As Pepperstone aggregates price quotes from 22 tier-one liquidity providers, it is able to ensure lightning-fast execution of market orders, with an advertised execution speed of 30 ms. Fast order execution speed is helpful to scalpers and social trading (copy trades). To get a more accurate reading of the ECN order execution speed, we used a MetaTrader 4 script to verify the quality of trade execution for various brokers. The results of our testing revealed that Pepperstone records the fastest execution speed with a measured speed of 100 milliseconds.
Below you can view a full trade execution speed comparison among Dubai-based forex brokers using limit orders.
Pepperstone in 2019 won the Investment Trends 2019 highest level of customer satisfaction. This is based on the industry survey of actual forex traders done annually for all major regulated forex brokers. This client satisfaction is based on their trading platforms, fees and customer service.
The broker offers live chat, phone and e-mail support. Customer service representatives are available 24 hours a day, 5 days a week (when currency markets are open). The support team are multilingual, which is tailored for forex traders based in the UAE.
For our review of UAE forex brokers, Pepperstone ranked on top of our star scoring system because it’s the perfect fit for Muslim traders and professional traders alike. You can start forex trading with low spreads, competitive commissions, easy-to-use trading platforms, fast order execution speed and a wide range of tradable instruments. Don‘t miss the chance to claim your FREE demo account by clicking the button below.
View Pepperstone Review >>Visit Pepperstone >>
The overall rating is based on review by our experts
Saxo Bank is a multi-regulated broker that operates in the UAE under DFSA oversight. If you want forex brokerage services with extra perks, Saxo Bank’s VIP trading account offers discounted pricing and exclusive benefits.
As a market maker broker, Saxo Bank only offers commission-free spreads, with no ECN-style trading account available. Three account tiers are available with different pricing and levels of customer support.
Compared to other VIP retail investor accounts, Saxo Bank provides some of the best discounts for VIP traders. For instance, Saxo’s standard account holders trade spreads as low as 0.6 pips, while VIP clients are offered 0.4 pips.
As well as lower spreads, VIP customers gain the following premium benefits:
To start trading CFDs and forex via a VIP account, a high minimum deposit of $1,250,000 (USD) is required. With such a large deposit needed, VIP accounts are best-suited to high volume and experienced traders.
Ideal for active, high-volume traders, Saxo Bank’s VIP account type provides you access to tight no commission spreads as low as 0.4 pips. To complement its discounted spreads, the broker offers additional benefits to VIP accounts such as advanced analysis and access to senior management and exclusive events.
View Saxo Markets Review >>Visit Saxo Markets >>
IG is one of the world’s largest DFSA regulated forex brokers ranked as the best forex broker with a low minimum deposit. Dubai-based retail clients who seek to start trading with the lowest amount possible may put their trust in a regulated forex broker such as IG.
Founded in 1974, IG Group Holdings Plc is a leading multi-regulated online trading provider serving customers from offices in 16 countries across 5 continents. IG is a trading name of IG Limited, an entity registered in the DIFC and regulated by the DFSA.
IG allows clients to fund their trading account by using one of the following methods:
If clients choose to fund their IG account via wire transfer or via bPay, there is no minimum deposit requirement. However, if they choose to fund via a Debit or a Credit card, they will have to ensure a minimum deposit of $300 (or the equivalent in your domestic currency).
IG trading accounts can be funded by using 6 different account base currencies, including:
Islamic traders can take advantage of IG’s swap-free trading account and operate with a range of futures contracts that expire every Friday. All the costs are built into the broker’s spreads and there are no overnight charges.
IG offers traders from Saudi Arabia direct market access to over 17,000 CFD instruments including stockbroker services (over 12,000 stocks from global stock exchanges), a large choice of forex trading platforms, price improvement technology and low spreads that start from 0.6 pips on EUR/USD. IG only scored poorly for its low forex leverage of up to 50:1.
View IG Markets Review >>Visit IG Markets >>
HYCM is a multi-regulated, award-winning Forex broker with rich business history. HYCM is the trading name of Henyep Capital Markets (UK) Limited, HYCM (Europe) Ltd, HYCM Limited and Henyep Capital Markets (DIFC) Limited, all of which operate under one parent company – the Henyep Capital Markets group.
Based in Hong Kong, the Henyep Group is a global corporation which operates a diversified portfolio of businesses across Asia, Europe and the Middle East, including:
Note* The company has regional offices in London, Dubai, Kuwait and Limassol.
HYCM has over 40 years of financial experience serving clients mainly in Asia and the Middle East. The pivotal years of HYCM’s history can be summarized as follows:
In 2016, Henyep Investment Bank is renamed Henyep Capital Markets (DIFC) Ltd. Meanwhile, the Henyep Group consolidates capital markets investment brands and launches HYCM.com.
Our 40-year Group heritage in the financial markets has positioned us as one of the most trusted and transparent brokers in the Forex industry, serving both institutional and retail clients across the globe.
Henyep Capital Markets (UK) Limited is regulated by the United Kingdom’s Financial Conduct Authority (FCA) under reference number 186171.
HYCM (Europe) Ltd is regulated by the Cyprus Securities and Exchange Commission (CySEC) under license number 259/14. HYCM is authorized to offer services to residents of Austria, Belgium, the Czech Republic, Denmark, Germany, Hungary, Italy, Poland, Spain and Sweden.
Henyep Capital Markets (DIFC) Limited is regulated by the DFSA under license number 000048 and is allowed to service professional and retail customers in Dubai.
Over the past decade, HYCM has received 24 awards internationally, among which 7 in the UAE:
View HYCM Review >>Visit HYCM >>
When it comes to best MetaTrader 4 trading platform offerings among the top DFSA regulated forex brokers that we reviewed, Axi (formerly Axitrader) clearly outpaces the competition. Axi is an international forex broker regulated by tier-one financial institutions, as follows:
Axi’s MetaTrader 4 package includes a full suite of functions such as charts, analysis tools and price alerts, while the MT4 trading platform is available for:
Axi’s MT4 offering is based on superior network technology, which allows for considerable latency reduction. This means the chance for traders to experience slippage is also reduced significantly, which ensures lower trading costs compared to a standard connection. Axi’s servers are collocated in major financial centres and are connected directly to a pool of 20+ liquidity providers. The top-notch technological solution offered by Axi translates into fast order execution speed. Axi can boost the 130-millisecond execution speed of market orders.
Note* The below testings were conducted using a third-party MetaTrader 4 script on a demo account using market orders.
With Axi’s MT4 offering, traders based in the UAE can access more than 150 financial instruments, including:
MT4’s real-time pricing makes it possible for forex traders to closely monitor the movement of a particular financial market. Additionally, they are able to choose how market data is presented by using MT4 live charting options. The platform will also allow them to take advantage of automated trading via Expert Advisors and of automated news updates. eToro which is the leading social trading broker worldwide is not DFSA regulated so the MT4 copy trading feature through Axi is a leading choice for Dubai traders.
Another essential feature is the Autochartist MetaTrader Plugin, which is a sophisticated real-time market scanner that allows Forex traders to automatically identify chart patterns without human intervention. This Autochartist is also available on a demo account with Axi.
The Autochartist MT4 Plugin ensures:
Note * Axi’s MT4 offering may be appropriate for both beginners and experienced traders, regardless of their trading style.
Axi offers UAE traders two account types to trade forex and other CFD instruments (+150 trading products):
The selection of financial instruments offered by Axi is abundant. Dubai-based traders can trade over 80+ currencies and CFD trading on commodities, metals, oil, indices and cryptocurrencies.
Axi offers MT4 trading accounts suitable for both professional traders and beginners. The UAE forex traders can deposit funds using 10 different base account currencies, access leverage up to 30:1, advanced technological solution through MT4 NextGen, low latency and much more. If you want to trade cryptocurrencies like Bitcoin through CFD contracts and on the MetaTrader 4 trading platform, click the button below to claim your FREE 30-day demo account.
View AxiTrader Review >>Visit Axi>>
Our team of experts at Compare Forex Brokers have concluded that, among the best-regulated brokers in the UAE, Swissquote offers the broadest range of complex instruments (CFDs) on stock indices, commodities and bonds, as well as foreign exchange and cryptocurrencies.
Registered and based in the DIFC, Swissquote MEA Ltd is licensed and regulated by the DFSA. Swissquote Ltd is registered in England and Wales and regulated by the UK’s FCA.
With Swissquote, Dubai-based traders have the opportunity to choose from a variety of CFD instruments, including:
The details for each type of CFD are presented in the following table:
In addition, the broker offers up to 12 cryptocurrencies on its eTrading platform, including Bitcoin, Ethereum, Litecoin, Ripple, Bitcoin Cash, Chainlink, Ethereum Classic, EOS, Stellar, Tezos, Augur, Ox.
Dubai crypto traders can enjoy the following advantages:
Swissquote offers forex traders from the Saudi Arabia peninsula full access to the forex market and an additional 130 CFD instruments and digital currencies. UAE clients that want to trade forex and CFD instruments need to be ready to invest a minimum deposit of $1,000 and $50,000 for the VIP trading account.
Finally, when it comes to the most competitive fixed spread brokers in Dubai, our research clearly points to FxPro. The fixed spreads are established by the forex brokers and the spreads remain stable regardless of the market volatility. FxPro offers the most competitive fixed spreads for UAE traders.
FxPro Group Limited is the mother company that owns and controls:
The FxPro fixed spread account gives you the advantage of knowing the total trading costs before entering a transaction. The full cost of your forex transactions will be reflected in the spread you pay. For this reason, the fixed spreads offered by many FX brokers are going to be bigger than the variable spreads. The dealer’s markup widens the spread, that’s why the FXPro:
Below, our team of experts will review in more details what UAE traders can expect to find on the FxPro fixed spread account.
FxPro offers fixed spreads account only with the MetaTrader 4 trading platform. The only downside is that FxPro only offers fixed spreads on a limited number of currency pairs. Dubai-based traders are able to choose from 7 currency pairs with fixed pricing:
Note * Due to its proprietary order execution engine, FXPro execute client orders with no dealing intervention.
Additionally, FxPro offers a unique pricing model where the fixed spreads are predetermined based on specific time intervals. For example, when trading the EUR/USD on MT4 Fixed Spread Account, the spreads offered will be as follows:
We should note that depending on the market conditions, volatility and liquidity, the EUR/USD fixed spread can increase to 2.7 pips. By comparison, the FxPro only charges a commission if you opt to trade through FxPro cTrader account. Dubai-based clients, trading on the foreign exchange market can expect to be charged $4.5 for each 1 standard lot traded. But the average floating spread on the commission-based account is 0.37 pips on EUR/USD.
Below you can review a full comparison of forex brokers in Dubai offering fixed spreads account.
Note* Only AvaTrade is able to offer more competitive fixed spreads than FxPro.
Based on our review, we concluded that it’s safe to trade with FxPro. FxPro offers UAE residents access to trade over 250 instruments, 4 trading platforms, ultra-fast order execution in under 11 milliseconds, up to 7,000 orders executed each second, no requotes, leverage up to 200:1 and the chance to trade with a fixed spread account. Claim your free demo account by clicking the button below.
View FxPro Review >>Visit FxPro >>
CMC Markets is a global broker that is overseen by Dubai’s regulatory authority (DFSA), meaning the broker is able to take on UAE clients.
The broker is well-known for having one of the best product ranges currently available. As well as a diverse range of asset classes including cryptocurrency, commodities, shares, treasuries and indices, over 330 spot and future forex pairs can be traded.
All spreads offered by CMC Markets carry no commission and traders paying no additional commission fees on top of the spread. On average, spreads are tight considering compensation is included in the spreads:
To access fx markets traders can use the broker’s proprietary trading platform, Next Generation or alternatively, MetaTrader 4. Both platforms are available as desktop platform, Webtrader platform or mobile trading apps.
In terms of each platform’s trading tools, Next Generation and MT4 both offer the following features:
The DFSA regulated broker provides access to an unbeatable range of forex. With 330+ fx markets to choose from, you trade a diverse range of major, minor and emerging currency pairs. CMC Markets provides an excellent selection of tools to help you build forex trading strategies, available on both MetaTrader 4 and the broker’s proprietary trading platform, Next Generation.
View CMC Markets Review >>Visit CMC Markets>>
XM is a global broker that is regulated by Dubai’s financial authority (DFSA) as well as CYSEC, ASIC, FCA and IFSC. XM is popular among UAE traders as it offers good trading platform options (MT4 and MT5), tight spreads plus excellent customer service.
To get in touch with XM, you can use live chat, phone or email. Phone and email enquiries are responded to 24 hours a day, 5 days a week, while live chat is available 24/7.
Regardless of which contact method you use, XM’s customer support representatives provide quick and relevant answers. If you have a general query about trading platforms, deposits and withdrawals or account types, the broker’s website provides a helpful FAQ section covering commonly asked questions.
The DFSA regulated broker offers efficient customer support with live chat, email and phone contact methods available. Traders based in the UAE can access help 24/5 via phone and email, or 24/7 using the broker’s live chat support.
View XM Review >>Visit XM >>
Yes, forex trading is legal in the United Arab Emirates (UAE) such as Dubai and Abu Dhabi.
Retail investors in the UAE wanting to trade forex and other CFDs need to ensure their broker is regulated by the Dubai Investment Financial Center (DIFC) which is the regulatory body with oversite for the Dubai Freezone or Abu Dhabi Global Markets (ADGM) for Abu Dhabi. The Central Bank of the United Arab Emirates (CB of UAE) regulation is also suitable.
While DIFC regulated brokers are not required to offer an Islamic account, most of them will offer a swap-free account.
A No Dealing Brokers (NDD) that uses ECN, STP or DMA (or a combination of them) trading execution tools will typically offer the lowest spreads. When using an NDD broker, choose a commission account as these spreads are tighter than a Standard account which is a spread only account
Forex brokers will generally make money using two methods. This is either through commission or by widening the spreads.
When a broker charges a commission, this means they are charging a fee each time you trade. The commission will usually vary depending on the size of your trading lots and some may reduce the commission if you trade in high volumes. Most brokers will charge a commission when you open your position and when you close your position (known as round-turn).
The other way a broker will make money is by adding pips to the spread to widen it. A wider spread is usually done in place of commission. Each pip added to the spread equates to USD$10.
There are two basic types of brokers. These are Market Makers and No Dealing Desk brokers (NDD).
A market maker sources their own liquidity, this means they can set their own prices however many keep their prices in line with prices offered by liquidity providers in the market. Market makers profit when you make a loss and lose when your profit as they are always the counterparty to your trades.
A no dealing desk broker does not own any liquidity. Instead, they are a middle man whose primary role is to connect you with liquidity providers in the market. NDD Brokers connect you with liquidity providers using technologies such as electronic communication networks (ECN), straight-through process (STP) and direct market access (DMA). This kind of broker does not profit when you make a loss so will gain compensation by other means such as charging a commission or widening the spread prices.
Market maker spreads tend to be wider than NDD spreads however they often include extra features such as risk management tools however often do no allow trading automation. NDD brokers spreads are usually tighter than market makers meaning you can save on costs and usually allow trading automation and social/copy trading.
The regulatory frameworks that govern the activity of the best United Arab Emirates (UAE) forex brokers offer traders a fair and secure trading environment. All reviewed forex brokers offering financial services to UAE-based traders are regulated by the Dubai Financial Services Authority (DFSA) and other tier-one regulatory agencies (ASIC, FCA or CySEC).
Based on our broker review validation process, Pepperstone was selected as the best forex broker in the UAE. The overall quality of the financial services offered by Pepperstone is superior to what the competition has to offer. Pepperstone stands out due to its range of trading platforms, lower average spreads and commissions, lightning-fast trade execution speed and access to a deep liquidity pool.
In addition, our team of industry experts rated the best forex brokers in the UAE based on a variety of categories like:
With over 40 years of experience in the financial markets, HYCM won easily as the most reputable forex broker in UAE. When it comes to MetaTrader 4 features, Axi took the most points in our star scoring system while IG Markets was named as the best forex broker in the UAE with low minimum deposits.
Additionally, FxPro and SwissQuote ranked as the best forex brokers for UAE-based traders with the lowest fixed spreads and the best range of CFD instruments, respectively.
Risk Warning: Trading Forex and CFD instruments come with a high-risk level of losing all your funds. CFDs are complex instruments, so you need to make sure you understand how CFD works before you invest any of your funds.
Forex brokers in UAE are governed by regulatory frameworks that comply with international standards. Regulation of forex trading in the UAE is conducted by 4 main financial regulatory bodies, including:
Our team of industry experts at Compare Forex Brokers will break down the regulatory environment in the UAE below.
Being the largest city within the United Arab Emirates, Dubai has become a global city and key financial centre in the Middle East. Located within the city of Dubai is a federal financial free zone known as the Dubai International Financial Centre (DIFC). Within this economic zone, financial services regulation is enforced by the Dubai Financial Services Authority (DFSA), which operates only in the DIFC.
Forex brokers that do business in the DIFC are strictly regulated by the DFSA, while brokerages that operate outside the DIFC fall under the supervision of the Central Bank of the United Arab Emirates (CB of UAE) and the Securities and Commodities Authority (SCA).
Note* The SCA is the only regulatory agency in the UAE that is responsible for issuing forex licenses (CFD licenses).
In the past, Forex trading was not accessible to retail investors in the DIFC, but only to customers who were considered as professional traders. It was so due to a minimum requirement of over $1 million in liquid assets. However, due to the rising interest in retail forex, the DFSA introduced changes to the regulatory framework and included the following requirements:
As a regulator, the DFSA can help UAE traders to determine if a particular brokerage is regulated or not, advise them how to avoid scams and how to resolve disputes. DFSA brokers can’t accept traders in the United States.
In its mission to ensure market fairness, transparency and customer protection, the CB of UAE works in close cooperation with the SCA. It is the regulatory body that grants licenses to forex brokers and ensures that licensed brokerages provide high-quality services to UAE clients. To obtain a license to do business in the UAE, forex brokers must meet two strict requirements:
Offshore brokerages can also service UAE clientele through a local representative body (branch).
By reviewing different aspects of regulated Forex brokers’ offers to clients in the UAE, our team of experts at Compare Forex Brokers concluded that the best brokerages to trade with are as follows:
Justin Grossbard has been investing for the past 20 years and writing for the past 10. He co-founded Compare Forex Brokers in 2014 after working with the foreign exchange trading industry for several years. He also founded a number of FinTech and digital startups including Innovate Online and SMS Comparison. Justin holds a Masters Degree and an Honours in Commerce from Monash University. He and his wife Paula live in Melbourne, Australia with his son and Siberian cat. In his spare time, he watches Australian Rules Football and invests on global markets.