Are Forex brokers in the UAE legal and safe? What are the bodies and bodies regulating the work of trading companies in the Emirates? How can I be sure that the authority that issued the license for the trading company is real? All of these questions will be answered through the following lines.
From here we also put another question for you: How do I discover fraudulent licenses to prevent me being tampered with as an investor in the UAE? In fact, there are many questions on the minds of investors before they start investing their money to ensure that their capital will not be tampered with by unreliable companies or for fear of falling under the penalty of law for violating one of the rules regulating trading and investment operations without their knowledge.
Al-Nasr newspaper website shares your concerns and we are working to clarify all your questions in order to improve the experience of the Emirati citizen with trading operations.
Can I trade forex legally and safely in the UAE?
Really, the answer will be yes! Investing in forex is one of the most wonderful and strongly emerging fields in the world of investment around the world, and the United Arab Emirates is considered one of the most important destinations for this investment due to the strength of the controls it puts in place in order to secure the trading process and register companies in a proverbial legal form, which guarantees all investors a high degree of safety that may be absent Other markets or to a lesser extent.
The Emirati investor should be aware of how to trade in forex and currencies before investing, in the UAE.
Financial bodies and regulators of trading companies in the United Arab Emirates.
First, let's take a look at the authorities that regulate work in the financial markets and trading in the UAE:
1) The Central Bank of the United Arab Emirates
It is the well-known and official body for directing the minting of the local currency in the Emirates, and it oversees the establishment of the rules governing many bodies.
In an economic context, it falls under his responsibilities (regulating licensed financial activities, laying down provisions and principles for them, determining precautionary practices necessary in order to carry out their duties - as well as setting appropriate regulations and standards to protect clients of licensed financial institutions)
As for the business of brokerage in currencies and commodities, as well as mediating in the money market operations, the Bank's decision No. The national participation rate must not be less than 60%.
The resolution sets the minimum in terms of capital at an amount of (1) million dirhams, (2) million dirhams, and (3) million dirhams.
The Central Bank allows, through its website, to view the updated lists up-to-date
For companies and licensors in the following areas
(Commercial banks - investment banks - financial investment companies - financing companies - financial and cash intermediaries - and even money changers)
2) The Securities and Commodities Authority (SCA)
It is considered a regulatory and supervisory body that was established in the United Arab Emirates in the capital Abu Dhabi in 2000, and it is a body attached to the Minister of Economy in the government.
This entity has all the necessary supervisory, supervisory and executive powers, and within the authority's competencies is to regulate what is related to the sale and purchase of domestic and foreign shares and bonds.
Each of the following work under the authority's umbrella:
A) Abu Dhabi Stock Exchange b) Dubai Financial Market
Both are linked to the Emirates Stock Exchange. The financial markets mainly deal in
(Equity shares - bonds - securities - investment funds - commodities - futures stocks - metals - stones - derivatives - Islamic instruments).
The Securities and Commodities Authority also provides through its website in the open data section an updated list of licensed companies and brokers
It also provides a list of violators and violations to prevent dealing with them until their situation is corrected.
How do I get to know the reliable and licensed companies to trade in the UAE?
The companies that have a license from the authorities entrusted with the authority in the UAE are considered among the best companies in terms of reliability and safety.
There are other global regulatory bodies that can also be relied upon to be licensed to trust trading and forex companies, such as companies registered with the British Financial Supervision Authority (FCA) - USA FMA - Swiss Supervisory Authority - ASIC - Australian regulatory authority, and you must verify the validity of the company’s license in case Doubt about its validity or the belief that this forex company is a scam and is not authorized to visit the site of the entity through which the company’s website claims to be licensed and enter the license number in the place specified on the site to verify the credibility of the license.
Users must be surveyed to choose the best trading company. FMP provides a complete section to evaluate trading companies and identify the most appropriate and reliable companies, as well as to avoid dealing with fraudulent or fraudulent companies.