It seems like you can’t go on Instagram for 5 seconds these days without seeing all of your favourite traders and influence out in Dubai, living the good life. Dubai is seemingly very strict on certain industries and rules which makes me wonder, can you trade forex in Dubai? Is it actually legal to do so? Let’s take a look so we can stay on the right side of the regulations!
Forex trading is completely legal in Dubai. Forex traders based in Dubai have access to brokers worldwide and all currency pairs. Not only that, forex is also tax free in Dubai, making it a great location for traders!
Is Forex Trading Possible In Dubai?
Forex trading in Dubai is completely legal. Not only is forex trading possible in Dubai, it’s actually one of the best countries in the world for forex trading as it’s tax free. In order to run a business in Dubai, you have to register with the government and pay a fee of course. As with all fees in Dubai, this is “reasonable” so there are no hidden costs.
Forex trading laws were first laid down in 1999 by Sheikh Mohammed bin Rashid Al Maktoum: the ruler of Dubai and vice president of the United Arab Emirates.
There is a lot of conflicting information online about “the law” in Dubai and whether or not it’s even legal to trade forex in UAE, so I’ll lay it down for you in simple terms!
Forex trading is completely legal in Dubai. You are allowed to start a business freely in the UAE, including forex trading businesses if you have yourself registered with the government and pay any fees associated with running a legal business.
Traders based in Dubai can open up an account with ANY broker that they choose. This is possible due to the fact that Dubai is a free trade port and doesn’t have any restrictions on forex trading.
Do Forex Traders In Dubai Pay Tax?
Not only is forex legal in Dubai – it’s also tax free! Traders in Dubai have great perks when it comes to tax. In some countries taxes are crippling forex traders and taking huge percentages of the profits – especially if not structured properly.
This isn’t in a problem in Dubai – at all! You could seek the council of an accountant as there are still various ways to structure the forex trading activities. Still, Dubai is a great location for forex traders – hence why many traders are looking to relocate there!
Can Forex Traders In Dubai Use Any Forex Broker?
In some countries, you’re only able to trade with brokers that are based within the country. This greatly limits possibilities and leaves you exposed to leverage restrictions which can great limit profits.
However, traders in Dubai are able to trade with brokers all around the world. Both regulated and unregulated brokers are accepted in Dubai so you only need to be aware of your choice if you are looking for forex brokers in Dubai.
I’d personally recommend using a regulated broker that has office presence in Dubai, as most do. If you are looking for higher leverages you do always the option of unregulated and offshore brokers. I wouldn’t recommend an offshore broker though, as the risks greatly outweigh the perks – in my opinion.
Are Forex Traders In Dubai Allowed To Trade All Currency Pairs?
Traders in Dubai have access to all currency pairs, metals and indices. This includes minor pairs, major pairs and exotic forex pairs. In Dubai, many traders favour the majors for simplicity and profitability.
I’d recommend major pairs like EURUSD and GBPUSD. They’re typically fast moving with low spreads, high volume, good liquidity and have plenty of trading opportunities throughout a given month.
In Summary – Can You Trade Forex In Dubai?
In summary, forex trading in Dubai is completely legal and traders are not restricted to brokers based within the country. Forex trading is also tax free! Traders can use any broker worldwide due to Dubai being a free trade port. Taxation on forex is minimal and there are many benefits associated with trading in Dubai.
Are you trading forex from Dubai? Let me know down below…