To come up with this list, we have tested several Forex brokers Dubai holding DFSA licenses in the United Arab Emirates (UAE).
We opened a real account and deposited between €4,000 and €6,000 with each broker. We placed real trades in each popular market to get the real spreads.
We also reached out to customer support to solve issues that we had encountered. Finally, we withdrew our funds to see if there is any issue with the withdrawal process.
We handpick the best forex brokers based on our trading data and experience as a trader.
UAE DFSA Regulations for Forex Brokers
The Dubai Financial Services Authority (DFSA) license is the most desired operating license for operating forex brokerage businesses based in Dubai, UAE. The DFSA license was launched by the similarly named regulator in 2004 and was targeted to the foreign companies willing to establish companies in Dubai. It is awarded to the financial firms, including forex brokers, based in the Dubai International Financial Center (DIFC).
There are multiple regulated forex broker regulators in the UAE (in both Dubai and Abu Dhabi). Apart from the DFSA, all the UAE regulators need the brokerages to have a UAE citizen as the majority shareholder. The DFSA was created to open up Dubai to global financial companies.
DFSA is a reputed financial market regulator and imposes strict regulations on the companies overseen by it. It actively supervises the regulated companies and needs them to regularly report on the business activities.
Retail forex brokers holding the DFSA license can oper maximum leverage of 50:1. These brokers should offer swap-free accounts to Islamic traders and have to show a standard risk disclosure statement to their traders.
On the negative side, DFSA does not offer any compensation scheme and negative balance protection.
DFSA imported most of its regulations from the United Kingdom’s financial market regulator, the Financial Conduct Authority, which is deemed as one of the top regulators.
Some of the key highlights of trading with DFSA-regulated brokers:
|🏦Regulator||Dubai Financial Services Authority (DFSA)|
|🛡️Is It safe to trade||Yes|
|🔒Negative Balance Protection||No|
Best Forex Trading Brokers in UAE
To select the best DFSA-regulated forex brokers, we have tested and reviewed several forex brokers. We opened a live account, deposited real money, and placed real trades with each broker. With our test, we got a picture of the real spreads and commissions, trading platforms, deposit and withdrawal conditions, educational resources, and customer services.
- Pepperstone – Best Overall Forex Broker in UAE
- XM – Best Forex Broker for Beginners in UAE
- AxiTrader – Best MT4 Broker in UAE
- CMC Markets – Best Forex Trading Platform in UAE
- AvaTrade – Best Forex Broker with Lowest Spread & Trading Fees in UAE
Best Overall Forex Broker in UAE
We picked Pepperstone as the overall best forex broker in UAE.
Pepperstone is the overall best forex broker operating in Dubai with its extended and versatile services. It is headquartered in Australia but holds multiple global regulatory licenses, including DFSA.
Pepperstone offers trading services with forex and CFDs of indices, stocks, commodities, and cryptocurrencies. It also provides trading on several industry-standard platforms: MT4, MT5, and cTrader. It also offers competitive spreads with only 1.15 pips on EUR/USD pair. Trading conditions with the broker are also excellent with no limit in trading strategies.
Best Forex Broker for Beginners in UAE
We picked AxiTrader as the best forex broker for beginners in UAE.
XM offers some of the best educational resources on forex trading, which is very essential for beginner traders. It offers forex guides to platform tutorials and also conducts webinars and seminars.
XM offers a vast arsenal of indicators and tools for market research and analysis. Beginner traders can also execute trades on a demo account without risking it with real money. It also has an excellent customer support desk.
Best MT4 Broker in UAE
We picked AxiTrader as the best MT4 broker in UAE.
AxiTrader (formerly Axi) aces as the best MT4 forex trading platform. It offers trading services only on the industry-standard MT4, which was developed by MetaQuotes Software. Its market search tools are inbuilt into the MT4 platform.
AxiTrader offers MT4 clients on all platforms: web, desktop, and mobile.
Best Forex Trading Platform in UAE
We picked CMC Markets as the best forex trading platform in UAE.
CMC Markets remains the best forex trading platform for many reasons. It offers 339 currency pairs for trading, which is one of the highest in the industry. It also offers trading services with forex options products.
The broker also aces when it comes to trading fees as it charges some of the lowest industry spreads. It offers trading on MT4 and its proprietary platform and offers trading with a wide range of instruments.
Lowest Spread & Trading Fee Forex Broker in UAE
We picked AvaTrade as the best forex broker with the lowest spread and trading fees in UAE.
AvaTrade offers very competitive spreads on currency pairs. Based on our testing, the broker offers an average spread of 0.87 pips on the EUR/USD pair, which is much lower than the industry average of 1.6 pips. Its spreads are also attractive for CFD trading instruments, other than forex.
AvaTrade does not charge any commission on trades and does not have any deposit and withdrawal fees.
DFSA-Regulated Forex Brokers List & Review
Here is a list of some of the major DFSA-regulated forex brokers:
|UAE Forex Broker||DFSA Regulated||Visit Broker|
|IG Markets||Yes||Visit IG Markets|
|CMC Markets||Yes||Visit CMC Markets|
|Amana Capital||Yes||Visit Amana Capital|
|HenYap Markets||Yes||Visit HenYap Markets|
FAQ & More on UAE Brokers
Traders usually have many questions related to trading generic trading-related queries. We tried to pick and answer some of the most important queries related to DFSA-regulated brokers.
How to Verify DFSA-Regulated Brokers?
All DFSA-regulated forex brokers are listed on the public registry maintained by the regulator, which is the most reliable and legitimate source to check license details.
Go to www.dfsa.ae/public-register/firms and search for the forex broker’s name on the search box. The incorporated name of the broker will then appear and licensing details of it can be seen just by clicking on the name.
Forex Trading Brokers in Dubai
Foreign retail forex brokers are mostly based in Dubai, within the economic zone of Dubai International Financial Center (DIFC). Many reputed forex brokers have started operating from Dubai due to the potential in the region.
Some of the forex brokers in Dubai are:
- Amana Capital
- CMC Markets
MT4 Forex Company Dubai
Many forex brokers still prefer to provide trading services on MT4 trading platform due to its popularity.
Some of the top DFSA-regulated forex brokers offering trading on MT4 are:
- Amana Capital
Low Spread Forex Brokers in Dubai
Spreads charged on currency pairs can make or break the business of a forex broker. It is one of the primary sources of earning for the brokers, but higher spreads will push traders away.
Some DFSA-regulated low spread forex brokers are:
- CMC Markets
CFD Trading Dubai UAE
Contract for Difference or CFDs are agreements between buyers and sellers of financial derivatives, settled in cash upon closing. These are complex financial instruments.
The advantages of CFD trading Dubai UAE are that CFDs are leveraged products, thus traders are able to take big positions with small margins. There is also an opportunity to hedge instruments.
Some of the CFD brokers in Dubai UAE are:
Tax in Dubai UAE for Forex Trading
Forex trading in Dubai is tax-free.
Generally, Dubai is known for its lowest rates of taxes. Commonly, there is no income tax or capital tax in Dubai UAE.