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In 2023 itself, the foreign exchange market reached a market size of US$ 805 billion on a global scale and is expected to experience a growth of 6.92% between the years 2024 and 2032. The allure of Dubai extends beyond its commercial marketplace, towering skyscrapers, world-class infrastructure, and strategic location. Dubai’s population is brimming with expats who need to send money back to their families. This makes Dubai a fertile ground for ambitious entrepreneurs who are looking to start their forex trading company and capitalise on currency fluctuations.
The forex trading market in the UAE is continuously thriving, with new traders entering almost every day. In 2023 alone, 18,500 new traders entered the market owing to the country’s robust regulatory framework, which provides a transparent and secure forex trading environment for entrepreneurs.
Additionally, the forex industry in Dubai receives adequate support from the UAE government, which can lead to the exponential growth of a forex trading company in Dubai.
For example, the Dubai International Financial Centre (DIFC), one of the world’s most advanced financial hubs and one of Dubai’s independent free zones, is a popular option for entities willing to start a forex trading company.
If you are planning to start your forex trading company in Dubai, you need to follow several steps. Below is a step-by-step guide to help you to get started.
An in-depth market analysis is the key to success when it comes to forex trading. As the market is continuously fluctuating, entrepreneurs need to familiarise themselves with market dynamics, trading strategies, associated risks, etc. This foundational knowledge will later guide you in making well-informed decisions.
The next step involves devising the business plan based on the research conducted. Starting a business in Dubai without proper planning might turn out to be a bad mistake in the future. So, it’s better to get a plan before you start the forex trading company in Dubai.
Adequate capital is a must for businesses. Forex trading involves huge fund transactions; hence, it requires funds for multiple purposes, so businesses planning to get their forex trading company set up in Dubai must ensure if they have reliable sources of funds or not.
The next step includes the selection of the best location for the forex business. The entities can select the location based on the requirements. The main two options for the entities planning to start the forex company include the DIFC (Dubai International Financial Centre) and the mainland region.
Having a reliable broker who is legally affiliated with a government agency by your side is essential for forex traders. To choose among a pool of brokers, you should check whether the broker you are associating with uses the Electronic Communication Network (ECN) or is a market maker. You should also inquire about the leverage and margin policies maintained by the brokerage agency.
You can also request a demo account, which will allow you to trade without investing real money, and you can learn your broker’s trading methods through it. These constraints will enable you to choose a government-certified broker who will effectively guide you through the complexities of the forex trading market in Dubai.
To secure your forex trading license in Dubai, you need to submit an application to the Dubai Financial Service Authority (DFSA). The application process involves submitting a set of documents along with the application form, including:
Apart from monitoring the trading of commodities, DFSA also performs a check to assess your capability to run a forex trading business. This is where company shareholders and directors undergo background checks and might even be called for an interview with the regulatory authority. Once every detail is verified and the application is approved, you will be granted a forex trading license in Dubai.
After receiving your license, you can begin your forex trading journey. To begin trading, have a well-defined trading plan in place and stick to it diligently. After all, the forex market can be extremely harsh on those who are inexperienced or ill-informed.
Starting your forex trading company in Dubai is an endeavour that requires high-end research, planning, and execution. If you possess a solid understanding of the trading industry and are compliant with the regulatory requirements of the country, Dubai can be your gateway to forex trading success. So, what are you waiting for? Click Here.
Get your Forex trading company set up in Dubai with CDA.
Take the first step towards establishing your forex trading company by reaching out to our trading professionals today. Starting a forex trading company might seem like a lengthy process. The newcomers who are planning to enter the forex market for the first time might not have the idea to start a forex trading company in Dubai. But don’t worry, CDA has your back!
Our team of expert business set-up consultants can provide you with all the insights and assistance you need to get your setup process simplified. We can gather all the required documents for your business and get approval from the authorities. Our team can sort out all the complexities of your business. To learn more, call us right away.
