There are very few business industries that are as diverse and dynamic as the stock market. From enjoying daily benefits to making long-term investments, you can form a forex trading company in Dubai. This profitable venture is well supported by the business-friendly UAE government regulations and the entrepreneur community.
More than half of the UAE’s population is based on ex-pats who have family back in their home country. Here comes the forex trading company to help without the need for forex traders.
With the right skill set, any businessman can start a forex trading company in Dubai, and make a huge profit out of it. As there are more than 50 free zones in the area that are ideal jurisdictions for such financial companies.
One of them is the Dubai international financial center also known as DIFC. DIFC is a popular location choice among business people who want to establish a forex trading company in Dubai.
In this blog, we have talked about the procedure of opening a forex trading company in Dubai.
The steps to start a forex trading company in Dubai
To launch a forex trading company in UAE, first, you have to acquire a forex trading license from Dubai Financial Services Authority or from the free zone authority if you are opening your trading business in free zones.
To take more help and understand the forex license process, you can contact Vigor business setup consultants who can help you obtain your forex license.
Step 1: Market and competition analysis
Before you start your forex trading company in Dubai, you first have to understand the market thoroughly and deeply. You must know what are the advantages, disadvantages, and risks of having this business. So, you can make an informed decision.
Since the digital revolution, everything is just one click away. With that, you can get a better understanding of the forex industry by contacting reliable brokers like Vigor business setup consultants who can help you understand all the market aspects of forex trading.
Step 2: Your business goals
After understanding forex trading in Dubai comes the evaluation of the forex market. You must set the goals and needs that you want to achieve before starting the forex trading company in Dubai.
If you are an aspiring trader, starting with high-capital trading practices can be an act of risk. Rather, you must start with easily manageable trading activities.
But if you already have experience with trading, then find a broker who keeps you posted with every day- changing trading trends and policies so you can take the right step at the right time to earn maximum profit.
Step 3: Find a reliable forex broker
There are a few things you must look for when selecting a broker for your forex trading business in Dubai:
- The broker must have a legal affiliation with the UAE government agency.
- See whether the broker is using ECN (electronic communication network) or a market maker.
- Ask about the margin and leverage policies managed by the relevant brokerage company.
- With that, also ask for a demo account to get a better understanding of what trading platforms the broker offers.
Step 4: Acquire the trading license in Dubai
For the forex license, you have to get in touch with the Dubai Financial Service Authority (DFSA). DFSA is in charge of forex trading and handles the legal structure of all forex commodities, exchanges, and foreign equities in the UAE. With this, DFSA is also responsible for conducting the credibility test of brokerage agencies and issuing them licenses only if the brokerage agencies are following all the legal matters and are capable of operating forex trading companies in the country.
Step 5: Run a forex trading company
With a license, you are fully ready to start your forex trading. For that, you have to build an industry-cut trading plan and try to follow it during your forex trading venture.
With time and hard work, you will be able to earn a decent percentage of profits, whether you trade in capitalization stocks or cryptocurrencies.
The benefits of forex trading in Dubai
Each company setup in Dubai, be it in the forex trading industry or any other market enjoy numerous benefits from tax policies to annual profit return and more. Starting a forex trading firm in Dubai also comes with such and many more advantages.
- Forex traders in Dubai can benefit from the city’s well-developed financial infrastructure, access to international markets, and low costs of trading.
- With a strong regulatory framework and government support, investors can safely trade without fear of fraud or scams.
- Dubai offers advantages such as tax-free profits which are not available in other countries.
- Traders have access to a wide range of products including currencies, indices, stocks, and commodities with high liquidity.
- Traders also benefit from low minimum deposit requirements and highly competitive spreads which helps them maximize their profits.
- Like any other business in the UAE, setting up a forex trading company in the UAE is also easy and follows a smooth process. Forex trading is legal in the UAE which gives assurance to people who are confused about investing in the foreign exchange market.
All these factors make forex trading in Dubai an attractive option for investors looking to diversify their ventures.
The cost of setting up a forex trading company in Dubai
Setting up a forex trading company in Dubai can be an expensive undertaking. The cost of setting up such a business will depend on the size and scope of the company. The expected cost of the license of a forex trading company in Dubai is AED 30,000.
It will require significant investments in terms of both capital and resources. They will also need to meet certain minimum capital requirements set by the DFSA.
With that, they must have sufficient liquidity to ensure that their clients’ funds are secure and protected at all times.
The requirements of a forex trading license in Dubai
- It is the choice of the business person whether they want to have a Flexi-desk or go with a physical office.
- After getting the license, you can sponsor visas for your families and employees as the sponsor number depends on the size of your office. With that, you would be asked to invest a capital of AED 50,000 in the Dubai Multi Commodities Centre (DMCC).
- You also have to submit passport copies of shareholders, visa copy of yours, trade name approval, and other documentation.
Forex trading company in Dubai
Forex trading business in Dubai is one of the most lucrative businesses in the UAE. And the registration procedure is also minimal and straightforward. Getting in contact with Vigor business setup can be a true help. Our company setup consultants can assist you with the license application and other legal formalities.
If you are thinking of starting a forex trading company in Dubai, don’t delay, rather start today with us!