Dubai is transforming into the world’s financial capital and a Fin-tech hub. The business investment options and financial services in the region are top-notch. Forex Trading is one of the major financial services in Dubai that is in high demand. There are many business benefits from opening a Forex Trading Company in Dubai.
So, for opening a Forex Trading Company in Dubai the investor must follow certain steps. There is an immense demand for Forex Trading Companies in Dubai. Forex Trading involves buying and selling of Currency and currency exchange is having a large audience base in the UAE.
Forex Trading is a regulated market in Dubai and can be initiated only with a valid trade license. Individuals can avail of forex trading services via the registered Forex Trading Platform providers in Dubai.
What is a Forex Trading Company in Dubai?
Forex Trading is a network of buyers and sellers who are involved in the transfer of currency at an agreed price. The global markets are volatile and currency fluctuations are inevitable. So companies, individuals, banks, etc., indulge in forex trading to gain profits during the currency variations.
A forex trading company in Dubai will connect the customers with the international banking networks via an online platform. The forex market is run by a global network of banks, spread across four major forex trading centers in different time zones.
It is the London, New York, Sydney and Tokyo. The trade happens 24 hours a day for 5 days. The trade is done on currency pairs of USD/ EUR, USD/ GBP, USD/ JPY, etc.
For the currency pair USD/EUR, it is the currency on the left (USD) is the base currency and the right is the quote currency (EUR). So, the exchange rate represents how much quote currency is required to purchase 1 unit of base currency. (quote currency rate varies as per current market).
How Forex Trading Work?
There are seven currency pairs that account for about 75% of trading in the forex market. Major currencies are the Japanese Yen (JPY), British Pound (GBP), Australian Dollar (AUD), Canadian Dollar (CAD), Swiss Franc (CHF), and New Zealand dollar (NZD).
The Forex Trading Company in Dubai will initiate the trade for their customers in three main ways. There are three options available – one is the on-the-spot basis, then agree on the amount and lock it up for a forward date in anticipation that the currency rate will have a positive impact.
Lastly, there is an option where the individual can buy currency pairs on a future date. The Forex Traders will trade as per the specifications and selected currency pairs on behalf of the investors.
Retail investors or individuals doing Forex Trading are limited due to the high risks involved. It is mostly done by professionals, banks, and fund houses to hedge their returns from currency fluctuations.
Steps in Setting Up a Forex Trading Company in Dubai
Dubai is a perfect place for setting up a Forex Trading Company. Dubai is a meeting point of the East and the West. Also, it is home to more than 200 nationalities, so currency exchange and forex trading are much more relevant in the financial market of Dubai.
Opening a Forex Trading Company in Dubai is a prospective business idea. There are many financial and technology companies that set up their branches in Dubai. The financial landscape of Dubai is growing at a dynamic pace.
The entrepreneurs can easily set up a Forex Trading Company in Dubai with the assistance of expert Business Consultants such as AURION.
There are a few steps to be followed for obtaining the forex trading license. It is a highly regulated marketplace and is governed by the Central Bank of UAE. Forex Trading is conducted through a network of international banks operating across the world.
A Forex Trading company in Dubai can be set up in either the Dubai Mainland or in any of the Free Trade Zones in Dubai. The entrepreneur who wants to offer Forex Trading Services must obtain the Services License with a specific business activity – Forex Trading.
Where to Apply for a Forex Trading License in Dubai?
The Dubai Financial Services Authority (DFSA) is the regulatory authority in Dubai that oversees and approves the Forex Trading License in Dubai. The Forex Trading License in Dubai can be applied through the Free Zones or the Dubai Economy (Dubai Mainland).
The Forex Trading License in Dubai can be applied through the Free Zones in Dubai, namely:
- Dubai International Financial Center (DIFC) Free Zone,
- Dubai World Trade Center (DWC) Free Zone,
- Dubai Airport Free Zone (DAFZA),
- Dubai Multi Commodities Center (DMCC),
- The International Free Zone Authority (IFZA) in Dubai.
The Forex Trading License from Free Zone or the Dubai Mainland must be approved by the Dubai Financial Services Authority (DFSA) before starting the business operations.
Also, the entrepreneur must connect with a Brokerage firm to connect with the global markets to start their business operations on full full-fledged basis.
Once the application is reviewed and approved by the DFSA, the Forex Trading License will be issued to the entrepreneur by the respective business licensing authority. Now, the investor can start working on their forex company in the UAE instantly.
Why Set Up a Forex Trading Company in Dubai?
There are many advantages to setting up a Forex Trading Company in Dubai. It offers flexibility, easy business setup, security, and, credibility.
Setting up a Forex Trading Company in Dubai will offer the entrepreneurs ample flexibility in terms of doing trade operations. It can be done at any time, anywhere, and without a lot of effort.
It is all done electronically with a laptop or a mobile and an internet connection. The trader with a sound knowledge of the Forex Market can remotely work for their clients and gain profits out of the trade.
There are very limited clearances required in Dubai to obtain the Forex Trading License. The License is approved by the DFSA authority and can be applied through Free Zones or through the Dubai Mainland.
The process of applying for the Forex Trading License is straightforward and can be done with the assistance of an expert business consultant such as AURION.
To learn more about opening a Forex Trading Company in Dubai, connect with our expert Business Consultants right away!