The forex market is attractive to foreign investors in the UAE, and brokers interested in operating in this field must first obtain a licence. In the following lines, you will discover what are the steps for obtaining this type of licence, with the mention that the formalities can enter the agency of our company formation agents in Dubai.
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What is a forex broker licence and how can you obtain one in Dubai?
As a basic rule for obtaining a Forex broker licence in Dubai, applicants must first open a company in order to offer such services, both locally and internationally. Here are some formalities and information about this type of license:
- Dubai International Financial Center (DIFC) and Dubai Multi Commodities Center (DMCC) are specific areas where you can use a Forex broker licence.
- DMCC licence is required for those who want to trade their own funds, as companies or individuals.
- Dubai Financial Service Authority (DFSA) offers approvals for those interested in Forex licence for a forex trading company.
- DFSA is also the institution that tests brokers to determine credibility and competence before obtaining a license.
- It is recommended to study the market before setting up the company and offering the related services.
- Have a clear picture of forex trading and the projects you want to implement.
- As soon as the approvals have been obtained, it is necessary to open a local bank account and deposit a certain amount of money, around AED 50,000, in order to start trading activities.
- Around AED 32,000 is the average cost of a Forex trading license in Dubai.
- You can choose either an office for carrying out activities or a flexi-desk and the possibility to work from anywhere.
In addition to the above, applicants must prepare a valid passport, visa, and trade name document to set up a Forex trading company and work as a broker. More information about the Forex broker licence in Dubai can be provided by one of our company formation agents in Dubai.
Advantages of Forex trading in Dubai
The flexibility of a business is an important issue for investors of any kind. And Forex trading company offers this benefit from the beginning. It is not necessary to have a physical office to be able to carry out such activities.
Safety is another aspect to consider. As DFSA is the institution that oversees Forex trading activities in Dubai, you will benefit from investment protection. Market activities can be controlled at any time.
Another equally important aspect is that the tax is zero for Forex trading companies. Therefore, a licenced Forex broker in Dubai may be the best option to enter the investment market.
Why invest in Dubai
Dubai is without a doubt one of the most attractive business destinations in the world. Considered the city of the future, Dubai offers the best facilities for the optimal development of any type of business. Well-developed infrastructure, as well as a multilingual and experienced workforce, are other key benefits for foreigners looking to do business in the UAE. Here are some facts about the economic direction of the country:
- The UAE recorded more than USD 150 billion in total FDI by 2020.
- As of 2020, the government has approved 100% foreign ownership of a company in more than 122 economic activities.
- The UK, USA, India, Saudi Arabia, and France are the largest foreign investors in the UAE.
- According to the 2020 Doing Business report, the UAE ranked 16th out of 190 economies in the world in terms of business conditions and development.
Want to know more about Forex broker licence in Dubai? Do not hesitate to contact our company and ask for all the information that interests you.