Steps for Starting a Forex Trading Company
1. Research the Sector
- Studying the market: Deep dive into the UAE’s forex industry and identify gaps you can bridge with your business.
- Competitor research: Understand what your competitors do, and how they do it.
- Scout locations: Look at popular forex business areas in Dubai or across the UAE. Your business address will affect the cost of your forex trading company license.
2. Choose a Jurisdiction
Free zones:
Free zones offer complete business ownership, repatriations of both capital and profits, unrestricted access to international markets, and a simpler business setup in Dubai.
Mainland:
If you want to get a forex trading license in Dubai mainland, it offers benefits like unrestricted local and international trade activities and the ability to collaborate with government entities.
Offshore:
RAKEZ Free Zone, Dubai, and Ajman have free zones that allow offshore business setup. Offshore companies can only trade outside the country.
3. Apply for the Forex Trading Company License
DIFC Free Zone:
Regulated by the Dubai Financial Services Authority (DFSA), you can apply for License Category 3A which caters to forex trading activities.
DMCC:
The Dubai Multi Commodities Center also offers a license to setup forex trading business. You will need a share capital of around AED 50,000 for this license application.
If you want a mainland license, the Securities and Commodities Authority (SCA) is the main regulatory body, with operations being overseen by the Central Bank.
4. Open a Bank Account
You need a corporate bank account regardless of whether you apply for a free zone license or a license from the mainland. Our consultants can help you find a bank that suits your business and help you with the application process.
5. Choose a Reliable Broker
Registering with a broker who has a legal affiliation with a government agency is essential. Popular options include IBKR, equiti, Forex.com and Multibank. However, it is recommended that you use a broker that is based in the UAE in case of any legal issues. Many brokers also offer demo accounts that you can use for free to help you make your decision.
Benefits of Forex Trading Company in UAE
- Ease of Business Setup: There is a lot less red tape around setting up a business in the UAE. It is much quicker to get a trade license and bank account compared to other countries.
- Low Taxes: Corporate tax is levied at 9%, and only on taxable income over AED 375,000. VAT is only 5% in the country, making it a lucrative business environment.
- High Business Growth: The UAE is a thriving business destination and is an attractive location for foreign investment.
- Free Zones: Certain free zones offer licenses and special business support for forex trading companies.
- Stable Business Environment: The forex industry sector in Dubai is well regulated by the authorities, making it very secure. This makes starting a forex trading company completely legal in the country.
Get a Forex Trading License in Dubai With A&A Associate
Frequently Asked Questions
The Securities and Commodities Authority (SCA), the Dubai Financial Services Authority (DFSA), and the Central Bank are the main regulators of forex trading.
A forex trading license is not the same as a crypto license as a forex license only allows activities related to trading of foreign currencies like a crypto license relates to activities related to trading and holding cryptocurrencies.
