Telephone Numbers
Telephone Numbers
Best Brokerage Firms in Dubai
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Dubai Financial Market
Advantages and challenges of trading
What financial institutions are there in Dubai?
Products for trading through brokers in the United Arab Emirates
How to choose the best stockbroker
Top 5 stock brokers in Dubai
Dubai Financial Market
Over the past few decades, the economy of the Emirates has functioned as an international financial hub. Continuous deregulation and restructuring completely transformed the financial sector in 2000, leading to significant positive changes in the banking sector, insurance, shipping, and commodity markets.
The DFM (Dubai Financial Market) and ADX (Abu Dhabi Securities Exchange) are the two main stock exchanges. Both are controlled by the SCA (Securities and Commodities Authority). Here is what is traded:
Dubai signifies internal stability, low tax rates, and a loyal regulatory framework. The country has signed cooperation agreements with many international regulatory bodies that have set the goal of standardizing and regulating ICOs. The World Bank's economic data confirms the positive rating of the region's financial environment. The principality ranks 44th in its credit rating according to the World Bank.
The United Arab Emirates offers good opportunities for those who want to invest in securities or real estate. Considering the internal stability, favorable business environment, low tax rates, many banks, ordinary banks, and crypto exchanges, the Emirates have become a hub.
At the same time, Dubai's introduction of a value-added tax from last year has led to an increase in costs on the Dubai Stock Exchange.
The ongoing conflicts with Qatar also affect the region's economy, and so far, there is no end in sight to the disputes. Brokers in Dubai have been the most affected, as many international traders have refused to cooperate with them.
Abu Dhabi Securities Exchange (ADX)
Established in 2000, the fund offers financial instruments such as various types of securities.
Dubai Financial Market (DFM)
Established by the country's government in 2000, the company deals with numerous financial transactions such as ETFs, equity instruments, and securities.
Dubai International Financial Centre (DIFC)
It was established in 2002 with the aim of transforming Dubai into an international financial leader. The DIFC operates in a free economic zone.
Dubai Multi Commodities Centre (DMCC)
Located in the Jumeirah Lakes Towers, a free economic zone, it trades tea, diamonds, gold, and pearls.
Dubai Diamond Exchange (DDE)
It is a legal exchange closely associated with the World Federation of Diamond Bourses.
Dubai Pearl Exchange (DPE)
It is known for trading natural pearls as well as cultured pearls.
Dubai Gold and Commodities Exchange (DGCX)
Trades stocks, currencies, metals, and hydrocarbons.
Dubai Mercantile Exchange (DME)
It is managed by the DFSA and provides futures contracts for commodities and energy.
NASDAQ Dubai
An internationally recognized stock exchange in the Middle East. Any institution on this site instantly gains worldwide recognition and trust. Here, they trade:
Products for trading through brokers in the United Arab Emirates
Brokers (intermediaries) offer a wide range of products on their platforms and trading applications.
Stocks and ETFs
Investors invest in their chosen British, American, and global securities and ETFs, as well as dividend stocks, to generate passive income.
CFDs
CFDs (or contracts for difference) allow investors to trade without owning the underlying assets. The trader only needs to bet on the price movement. CFD trading provides leverage, which allows you to open larger positions and make profits with small resources, as if the buy/sell transactions were carried out with the participation of large capital.
Cryptocurrencies
The cryptocurrency market has been the fastest-growing market in recent years. It continues to gain popularity rapidly due to the significant gains that can be made with the help of virtual money. Every day, Bitcoin worth $6 billion is traded worldwide.
For the United Arab Emirates, cryptocurrency trading is a relatively new business, and access to them depends on local regulations. Since cryptocurrencies operate with decentralized assets, situations like changes in interest rates and political instability do not affect cryptocurrencies as much as national currencies.
Due to the high proportion of a young population with increasing income levels and the widespread adoption of online technologies, the volume of crypto buying/selling in the principality is constantly increasing.
Forex
The foreign exchange market is the most extensive trading area in the world. The daily trading volume is $5.1 trillion. This is a very large amount compared to other sectors of the financial market. By buying/selling foreign currency using Forex, you can make money and profit from fluctuations in their prices. Forex is becoming increasingly popular in the United Arab Emirates. Advances in online technology, broader Internet coverage, and increased competition among brokerage firms have made trading more accessible and reduced costs.
Advantages
Cost reduction. Forex trading usually involves very low commission costs.
Numerous trading options, including futures and spot.
High liquidity. Compared to other exchanges, Forex has a larger number of participants. This leads to more liquidity, which is an advantage. The use of leverage also allows you to manage significantly larger positions with the help of small capital deposits.
Central bank intervention. Central banks rarely intervene in Forex transactions. Investors give their orders directly to their chosen interactive brokers, who then maintain the process.
Recommended currency pairs. Approximately twenty-eight currency pairs are available. This includes the eight main items on the Forex website. Investors who can handle volatility can switch to other currencies without losing money.
Disadvantages:
Interference from brokerage firms often leads to unfair commission fees as well as a lack of transparency.
Some advanced features require users to register for VIP accounts of retail investors, which are more costly.
Sometimes there are increased risk factors due to high leverage, meaning investors lose money quickly. Any uncertainty about the value of currencies can lead to either increased profits or more serious losses.
Prices can rise or fall in response to currency volatility, which leads to high risk.
High risk of fraud.
How to choose the best stockbroker
Below are some tips for choosing a stockbroker who can best help you achieve your goals.
Each stockbroker offers their own package of services, the scope of which can vary greatly. Some offer market research and analysis services, while others provide free webinars and educational materials designed to help you get an edge in your investments.
In Dubai, stockbrokers are usually members of local exchanges like the DFM or NASDAQ Dubai, which guarantees access to markets in Dubai.
Some brokers have access to international markets. Here, the profit may be higher, but the commissions will also be high.
Before making a contract, decide whether you want to take your investments to the domestic or international level.
Check the commission plans
Stockbrokers vary greatly in their commission rates. The offer is largely based on the additional benefits the client receives. A general rule is: Services with many offers are more expensive, and services with fewer offers are more accessible. The wider the market access, the more you will have to pay. Additionally, firms may set the minimum deposit cost higher or lower, and may or may not allow small orders to be placed.
The opinions of other clients always help to form an initial impression of the company you plan to contract with. Reviews often write about how comfortable the collaboration was, describing experiences with personal relationships, investment results, and other useful information. The more positive reviews describing successful collaboration examples, the more trust in the company increases.
There are 3 types of online stockbrokers offering clients different collaboration options. It is important to understand and analyze the full range of services offered before making a choice.
Below is a description of the top 5 online brokers with a comparison of their strengths and weaknesses. The best stockbrokers were selected based on a detailed analysis of 133 popular brokerage companies and an evaluation of their overall effectiveness in various categories:
Additionally, the pros and cons of each broker are revealed. An analytical conclusion containing the main results will facilitate the decision-making process when choosing.
Rating 4.7/5. Holder of the title "Best Social Trading Broker of 2022 among Dubai users."
Founded in 2017, eToro has become one of the most respected players in the industry, gaining over 25 million users worldwide.
Combining simple order types as well as copy trading functions, eToro is an interesting exchange broker for beginners.
In addition to access to 2,800 real stocks, eToro users also have the right to trade 2,850 stocks in the form of CFDs (contracts for difference), meaning they will profit from price movements.
eToro's own platform (Web Trader) is intuitive: it includes various options for charting and order types, as well as basic risk management tools like stop-loss, take-profit, and trailing stop. Clients also have the right to use the capabilities of the award-winning CopyTrader platform, which allows you to copy the right trades and portfolios of professional investors.
In addition to demo and standard accounts, eToro also works with Islamic accounts, which allow users to trade only halal stocks.
eToro is licensed by three first-tier regulators, including the SEC, FCA, CySEC, and ASIC, which makes mediation safe for the client.
Disadvantages:
Algorithmic trading is not available;
Forex and CFD commissions are above the industry average;
Educational and research tools are limited;
No advanced trading functions.
Rating 4.9/5. With fast and reliable execution of trades, access to more than 5,000 different international stocks and their options, and no commission fees on securities transactions, this is the best choice for professional, active investors.
TradeStation users have access to a powerful platform that allows them to develop, test, optimize, track, and automate various strategies. They have a palette of tools for dynamic market scanning, advanced order management, and fully customizable charts. These functions are suitable for experienced investors but will be difficult for ordinary investors.
As for order execution, TradeStation guarantees high execution speed (0.040 seconds) and reliability through the use of a combination of advanced routing technology and connections to dozens of stock, futures, and options market centers.
TradeStation also offers a historical database that includes 50 years of daily securities data and 28 years of intraday securities data. This will be needed if the client wants to check strategies for a historical period.
Advantages:
Disadvantages:
Payment for inactivity.
Rating 4.8/5. It offers more than 100,000 financial instruments, including 17,500 stocks, with the possibility of short selling, high liquidity, and a competitive commission structure. It is the best choice for professional day traders and institutional investors.
Clients have the right to choose between two main trading platforms:
Trader Workstation (TWS) is an advanced desktop version suitable for experienced investors as well as institutional investors. It offers advanced trading tools and more than 100 different order types.
Client Portal – the web version is suitable for beginners.
Both platforms have comprehensive research capabilities and an intuitive design, guaranteeing fast, reliable execution of trades. There are various customization options for all types of stock investors, including dynamic charts, a full-featured news widget, option chains, and detailed information on order flow.
The Interactive Brokers platform and its features allow for commission-free trading on the Lite account and a competitive commission structure of $0.0005 to $0.005 per share on the Pro account, compared to other brokers. There are no fees for withdrawals, inactivity, or maintenance.
Disadvantages:
Account funding is limited to bank transfers and credit cards in any currency. This can be a disadvantage if you want to use multiple options for depositing/withdrawing money, including electronic payments.
Rating 4.5/5. It offers the widest selection of securities in Dubai (almost 50,000 types on main and emerging sites), so it is an interesting choice for professional traders looking for various assets. Users have additional access to 40,000 securities, including crypto-ETFs and ETNs.
Both of Saxo Bank's proprietary platforms (SaxoTraderGO and SaxoTraderPRO) guarantee the speed and reliability of trade execution, the right to use comprehensive educational material, and advanced securities trading functions. These include:
Commission fees start at $1 per share, so they are competitive and may even decrease with an increase in trading volume. The company does not charge commissions for management or storage, but you will have to pay for inactivity ($100 for 180 days).
Opening an account for residents of the principality starts at $2,000. Muslim traders prefer the account option without Islamic swaps, but they only have the right to trade securities of halal companies.
Disadvantages:
High minimum deposit for clients;
Long setup procedure.
Rating 4.2/5. It is a broker with a wide range of services that combines automated investment, independent trading, and consulting. Such a set of options gives users the opportunity to receive many different services from a single toolbar at a reasonable price.
The Sarwa trading platform (Sarwa Trade) allows you to trade in more than 4,000 international stocks and ETFs, which can be purchased collectively or in smaller parts (fractional). The platform has an intuitive design, offering simple options for buying/selling, watchlists, and order types (market, limit).
Sarwa does not charge commissions for trading, conversion, withdrawal, or inactivity. This makes Sarwa a cheap exchange broker and an interesting choice for investors who need low commissions.
No minimum deposit is required to open an account. Dubai citizens have the right to contribute directly in dirhams (the local currency).
Disadvantages:
Research and educational tools are below average;
Algorithmic trading is not supported;
Only traditional bank transfers are offered to fund your account.
Making money from buying and selling stocks is no longer the preserve of the select few. Successes in the fields of information and digital technologies have opened the doors of offline and online platforms to a wide user base in different countries, including the Arab Emirates. This article provides information about leading brokerage firms in Dubai and a brief overview, taking into account the strengths and weaknesses of the local financial market.
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