Middle Eastern nations have a strong position in global commerce and trading. Yes, that is a fact. They have the largest global crude oil reserves, and they trade in various kinds of commodities.
All major financial centers of Middle-East, Dubai, and the Emirates offer great opportunities and a base of operations for all forex brokers. There are numerous online trading options in forex and cryptocurrencies.
The Forex Trade Game in Dubai: An Outline Start Trading in the "City Of Gold",How? Step 1: Examine Your Needs Step 2: Select a Broker Step 3: Start Trade By Opening An Account Final Views On FX Trade Dubai
The Forex Trade Game in Dubai: An Outline
Dubai offers the best experience in forex trading in the middle-east, the local and the international forex brokers here are licensed by the securities and commodities authority (SCA) and regulated by the central bank of (UAE).
Additionally, these companies are located in the Dubai International Financial Centre(DIFC), it is a financial free zone in Dubai.
Dubai Financial Services Authority(DFSA), strictly regulates these firms.
Many among the several forex brokers offer Islamic trading accounts with no daily overnight swap fees that are regulated by the SCA, like SMC Comex and Century Financial.
Dubai is easily the best place to trade in forex, you can choose from the many local and foreign brokers who provide services here.
Residents of Dubai have the advantage to opt for local legal recourse overseen by the regulators such as SCA, DFSA and the Central Bank of the UAE, if any of the broker services in Dubai fail to fulfill their requirements.
Start Trading in the “City Of Gold”, How?
Forex brokers in Dubai receive clients from every part of the world, not just Emirate residents.
Anyhow, not all forex brokerages offer the same services. So, you must mindfully make certain of what your needs are before you start your account.
To begin forex trade in Dubai, a trader should be concerned about trading risks, after thorough market analysis, you will get the knowledge of how much of an extra effort is needed in the forex market.
Educational resources on forex trading are good for self-learning, different forex brokers offer many learning materials based on forex.
Most forex brokers offer open demo accounts for you so that you can try out their trading platform and assess their services.
Trading with a demo account before investing any funds is definitely recommended for both beginners and experienced traders. That way, you can determine the broker’s authenticity and measure their effectiveness in fulfilling orders.
Step 1: Examine Your Needs
Trading in the forex market depends on the level of experience you have. For example, if you have the experience of trading in stock markets, then you may probably have the idea to study the market trend from a technical perspective and check basic information associated with specific stocks.
Good knowledge is certainly important for trading in forex. Meanwhile, many of the forex brokers offer their exclusive platforms, like the MetaTrader4 and MetaTrader5 platforms of MetaQuotes Software, these platforms are the standards used by most brokers.
If you’re a novice to forex trading, it might be better to start with a broker that offers a simple trading platform and plenty of educational material for support. Your complete solution appears after you get a forex broker fit for your particular requirements.
Step 2: Select a Broker
When you decide about choosing a forex broker, many of the factors should be carefully examined. The most important factor is to note whether the broker is strictly regulated by a fair government agency.
For example, foreign agencies like the UK’s Financial Conduct Authority(FCA) or CYSEC of Cyprus regulates according to the Markets in the Financial Instruments Directive(MiFID) of the EU for foreign brokers. Similarly, SCA or DFSA are the agencies who regulate all Dubai based brokerage firms.
The other concerns to consider are whether the broker handles an Electronic Communication Network(ECN) or if the broker works as a market maker.
Some of the most relevant elements to examine before deciding on forex broker is given here below.
Regulatory supervision is one of the important parts as you choose a forex broker. If the broker has no official governing body to oversee operations, you will have less legal support in case, if the broker fails to satisfy its financial commitments, which could result in the loss of your whole margin deposit.
Your overall profits and loss in trading can have a significant impact based on the amount of leverage and the margin requirements. There are cases when the maximum leverage rates vary widely. Some brokers offer leverage up to 3000:1 on forex accounts. It means for every dollar you put up to there will be control position up to 3000$ in a currency pair.
It is the amount of money needed to implement leverage, take an instance
if your account has the leverage of 100:1, then you would need $1,000 deposited as margin to hold a $100,000 forex position in your trading account.
Note that trading with leveraged positions means you can make lots of money on profitable trades despite immensely depleting your account balance.
ECN or Market Maker
ECN broker shows the best bid and rates offered by a group of market makers. The ECN broker meets your order with the best exchange rates available. Some ECN brokers charge commissions beside the dealer spreads.
Otherwise, If the broker is a market maker, then your order is fulfilled by a broker who trades against you at their price. Therefore a conflict of interest arises as the market maker takes the other side without your knowledge.
Brokers make their money based on the difference between the exchange rate at which they buy and at which they sell, known as dealing spreads.
Instead of charging a commission per transaction, forex brokers only widen their dealing spreads to you. Therefore, finding a broker that offers small spreads can save plenty of money in the long run, if you intend active trading.
Online forex brokers use their own proprietary trading platforms or support the use of the popular MetaTrader4 and MetaTrader5 trading platforms.
Platforms offer state-of-the-art trading software with powerful analytical features, to estimate the direction of currency pairs.
MetaTrader is programmable and customizable, which allows you to program and automate your own trading plan.
Using a broker’s free demo account will show you the brokers efficiency; you can also practice trading using the demo account.
Customer Services 24X5
Ideal forex brokerage firms should be accessible to contact throughout the trading week (24 hours X 5 days) either by phone, live chat or email in the event of an incorrect trade.
If you are new to trading forex, look for a broker that offers educational resources at a wide range. These resources can include articles, videos and other tools you can use to make trading decisions.
Step 3: Start Trade By Opening An Account
Once you have the right broker, open a demo or live funded account and start trading.
Just keep in mind that trading results in a demo account could be completely different from a live account trading with funds, so it is sensible to start with small amounts.
Your trading plan should include sound money management principles to make the difference between a trader who makes profits and the one who stops after some losses.
In addition, many online forex brokers offer to trade in Contracts For Difference (CFDs), which can allow you to deal in various other commodities like cryptocurrencies, metals, and stock indices.
Final Views On FX Trade Dubai
If you have no experience in forex trading, then you need a good forex broker as a partner, and Dubai offers plenty of options to traders who want to earn and live a handsome life, regardless of their experience in the FX market.
If you have experience, then you won’t have any problem to get the broker who offers the services according to the requirements.
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