How to Open a Forex Trading Company in Dubai?

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. Currency Exchange 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.

There is an immense demand for Forex Trading Companies in Dubai. It 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. Only with a valid trade license, the shareholders can operate a Forex Trading Company in the region. Individuals can avail of forex trading services via renowned Currency exchange Platform providers in Dubai.

What is a Forex Trading Company in Dubai?

Forex Trading is a network of buyers and sellers that transfer 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 customers with international banking networks via an online platform. The forex market includes 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. Most common currency pairs are of USD/ EUR, USD/ GBP, and USD/ JPY.

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 determines the value of the ‘quote currency’ requirement 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 –

• On-the-spot basis
• Agree on the amount and lock it up for a forward date in anticipation that the currency rate will have a positive impact.
• Buy currency pairs on a future date

The Forex Traders will carry on the Trade as per the investor’s specification and the currency pairs the investor chooses.

Also, there are only a low number of Retail investors or individuals doing Forex Trading due to the high-risk factors. Professionals, banks, fund houses, etc., operate Forex Trading 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. Many financial and technology companies 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 for obtaining the forex trading license. It is a highly volatile marketplace and is under the purview of the Central Bank of UAE. Forex Traders initiate the Currency Trading through a network of international banks operating across the world.

Investors can setup a Forex Trading company in Dubai either on the Dubai Mainland or 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.

Where to Apply for a Forex Trading License in Dubai?

Forex Trading License in Dubai is available from any of the Free Zones or the Dubai Economy (Dubai Mainland). The Forex Trading License in Dubai is available through the Free Zones such as Dubai International Financial Center (DIFC) Free Zone and Dubai Multi Commodities Center (DMCC).

There is a requirement of special approval from the regulatory authority for processing the Forex Trading License in Dubai.

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.

After the review of the application and approval by the authority, the respective business licensing authority will issue the Forex Trading License to the entrepreneur. 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. Conduct Forex Trading 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 minimal clearances in Dubai to obtain the Forex Trading License. The Regulatory Authority will approve the license and the investor must apply for the license through Free Zones or the Dubai Mainland.

The process of applying for the Forex Trading License is straightforward. Expert business consultant such as AURION will assist in the end-to-end setup process of the Forex Trading License in Dubai.

To learn more about opening a Forex Trading Company in Dubai, connect with our expert Business Consultants right away!