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benefits of forex Trading

Is Forex Trading Legal In UAE ?

Forex Trading: Foreign companies can trade forex, CFDs, and binary options in UAE. As one of the most important financial centers in the Middle East, Dubai and the other Emirates of UAE serve as bases for forex traders and brokers.

UAE’s Securities Commodities Authority (SCA) regulates all non-banking financial activities, including forex Copy trading, CFDs, and other online activities. The primary objective of SCA is to enhance the UAE’s capital market and stimulate economic growth. By providing a steady channel and environment for forex investing, they are attracting foreign investments. All forex brokers are also regulated by the Central Bank of UAE, whereas licenses are issued by the Securities and Commodities Authority.

Benefits of online forex trading

Besides SCA, UAE also has two financial free zones: Dubai International Financial Centre (DIFC) in the Emirate of Dubai and Abu Dhabi Global Market (ADGM) in Abu Dhabi offering Forex Trading, CFDs and other non-banking financial trading activities. DIFC’s Dubai Financial Services Authority (DFSA) is an authority specifically established to regulate forex brokers and companies performing non-banking financial activities

It is certainly legal to trade forex through local brokers regulated by the SCA, Central Bank, or other regulatory authorities. A natural or legal person willing to offer such non-banking financial services within the UAE must establish an entity either on the mainland or in any financial free zone as described above, in accordance with the laws and regulations of the country. A UAE license, obtained through appropriate channels, is required for any entity dealing in forex or another online trading.

Article 6 of Law number 13 of 2011 regulating Economic Activities in the Emirate of Dubai and Article 328 of Federal Law number 2 of 2015 concerning Commercial Companies Law confirm that foreign companies cannot conduct activities within the UAE without obtaining a license. To provide Forex and CFD services in UAE, a company must first obtain a permit from either SCA, DIFC, ADGM, or another regulated free zone.

Forex Trading: Alternatives that are accessible

Foreign investors seeking to register for forex trading in UAE can choose from a variety of business registration options. You cannot obtain a license from any free zone in UAE since it is a regulated activity. The following are the most prominent regulated options for setting up a forex trading company in UAE:

A company located on the UAE mainland

Accordingly, a forex trading license can be obtained by setting up a mainland company in the UAE. Mainland licenses are issued by the Department of Economic Development (DED) in Dubai and other Emirates.