Forex Trading In UAE: Legal Or Illegal?
Forex trading in UAE has been a topic of debate among traders. People often get confused over the fact whether it is legal or illegal. Different people may have different perceptions but most of them don't know how it works. Who decides what comes under the legal umbrella and what doesn't? In this blog, we have discussed all you need to know about forex trading in UAE. Keep reading and go till the end in order to not miss anything important.
UAE offers lots of opportunities to traders who want to trade forex and make profit out of it. If you want to practice online currency trading Dubai, you must be aware of all the aspects. Forex trading is legal, there is no doubt. But there are many things to be considered. Let's start from SCA.
What Is SCA?
The SCA or Securities Commodities Authority of UAE is the authority that governs all non-banking financial practices in UAE. These activities include CFDs, forex trading, and other such activities. SCA's objective is to create enough opportunities for capital market and ensure better economic growth for the country. If you are willing to practice free online trade UAE, you must be aware of the laws and regulations.
SCA attracts traders from all around the world by offering enough opportunities and steady environment for trading. It works in collaboration with Central Bank of UAE where the bank regulates forex brokers who trade using the licensed issued by the SCA. All the people who want to practice online currency trading Dubai can use these opportunities and make profit.
DIFC & ADGM
There are two financial free zones in UAE that are DIFC (Dubai International Financial Centre) and ADGM (Abu Dhabi Global Market). These zones are created for practicing non-banking financial trading activities such as forex trading and CFDs. You can setup a company in any of these zones, get a licence, and start offering non-banking financial services. You can visit the best online trading website UAE and read more about these zones.
From the above discussion, one can easily conclude that forex trading is very much legal but it must be done following certain laws and regulations. If you want to offer any non-banking financial service, you first need to establish an entity in UAE and get licensed. Following that, you can deal in forex or other online trading activities. The same is applicable to traders i.e if you want to practice forex trading in UAE, you should first check with the broker if it is licensed and regulated by the SCA or other regulatory authorities.