Dubai is a globally renowned financial hub and has become a fertile ground for Forex traders. Since the city offers low tax, good infrastructure, strong banking systems, and robust regulatory authorities, Forex traders can invest seamlessly. However, to make the most of everything Dubai has to offer for currency trading it is important to pick the right broker. This guide walks you through everything you need to know before choosing Forex brokers in Dubai – what is important, what to look out for, and how to make the right choice for you.
Why Does Platform Choice Matter?
Before you open a Forex trading account, it is crucial to understand why finding the right broker matters:
Regulation:
Brokers that adhere to regulations and follow a stringent safety protocol can ensure that your precious funds are protected. Brokers that follow guidelines set out by regulatory bodies like DFSA (Dubai Financial Services Authority), SCA (Securities & Commodities Authority), and FSRA (Abu Dhabi Global Market) are more likely to handle your investments with care.
Fees and Charges:
Forex trading comes at a cost – however, unlike regular commissions, it involves spreads, overnight fees, swap fees, deposit/withdrawal costs, and inactivity charges. Before committing to a broker, it is best to take a look at their spread policy and fee structure. It is best to opt for a broker that promises transparency and mentions all costs upfront.
Account Types:
While choosing a broker, make sure to ask about the different kinds of accounts at your disposal. The different kinds of accounts, like a Demat account, will allow you to engage in multiple investment avenues. Account types can also impact cost and Forex strategies.
Tools and Usability:
Today, trading platforms come equipped with a range of tools that make investing easier. Make sure to test out a platform’s usability and resources before making a final decision. Having access to charting, technical analysis, automated EA, etc., can make executing a trade quick and smooth. Additionally, being able to use a platform on mobile devices and count on it to function well can also make or break a trade.
How to Decide Which Trading Platform is Best for You?
If you are looking to kickstart your investment journey, especially with Forex, here are a few pertinent questions you can ask yourself to find the right platform:
What is your trading frequency and style?
How often you plan to trade and what style you lean towards can help you pick a broker that suits you best. If you trade often or are a scalper, it is best to go for platforms with minimal spreads, quick execution, and low-cost per trade policies. If you trade in the long term or more occasionally, you might want to go for a broker offering support, mobile apps, easy-to-use interface, and educational resources.
How important are safety and regulation for you?
If you are averse to losing capital to a questionable broker, it is best to stick to platforms approved and regulated by bodies like DFSA, SCA, FSRA, etc. Such platforms usually exercise clear policies regarding segregating client funds, negative balance protection, and so on.
Will you want special accounts?
Are you a novice trader who wants to get the hang of trading with a basic account? Or are you experienced enough to experiment with different accounts? If you fall under the latter category, you can go for a platform that offers multi-currency accounts, algorithmic trading accounts, low minimum deposit accounts, and more.
Will you have to pay costs beyond spreads?
While spreads are common charges associated with Forex trading, what other costs are you comfortable paying? Certain platforms charge deposit and withdrawal fees, overnight or swap fees, inactivity fees, and so on. If you do not have the bandwidth to pay for such charges, it is best to pick a relatively inexpensive platform.
What kind of user support and tools would you need?
If you are multilingual, it might be better to opt for a platform that allows you to switch between languages. Similarly, it might be better to opt for a platform with robust customer service, especially if you are new to Forex trading. Learning tools like webinars and tutorials can also help you improve your strategies and prove invaluable.
At Orient Finance, we make Forex trading as seamless and smooth as can be. We are a certified trading platform and offer over 60 currency pairs, lightning-fast execution, razor-thin spreads, and a 24 x 5 trading window.
Choose Orient Finance and harness the power of Forex trading.
