08 Jul How to a Start Forex Trading Company in Dubai?
To start a forex trading company in Dubai, the stock market is said to be one of the most dynamic and active industries. With people trading in various sectors around the world, it is the largest market in the world in terms of daily trading volume. Amongst many regions, Dubai stands out particularly due to its relatively well-developed financial system and a business-friendly environment.
You can establish your forex trading company Setup in Dubai in the DIFC (Dubai International Financial Centre) which is a free zone or choose to set up one in the mainland region.
How to Set Up a Forex Trading Company in Dubai
If you wish to enter a thriving forex trading industry but don’t know how to begin, the following steps will guide you to start your forex trading company in Dubai.
1. Analyse The Market
Many people overlook this step and do not analyze the market in-depth. Before taking any step, it is necessary to know the pros, cons, and risks involved in the forex trading business. Today, the digital revolution has made everything easier than ever before. If you do your research and connect with the right forex broker online, they will help you understand all the aspects of forex trading.
2. What are Your Needs?
The amount of experience you hold in this field will determine your needs. If you already have prior experience in the stock market, you may go for more advanced platforms like the Kite by Zerodha. If you are a beginner, it will be better for you to stick to a broker that offers a simple trading platform, educational material, and constant support. Evaluating your needs is a must before you set up a forex trading company!
3. Select a Broker
Before you select a broker, you must carefully consider a few elements. One of the most important being whether the broker is legally regulated by a government agency. Moreover, enquire whether the broker functions as a market maker or uses an electronic communication network. Other elements to consider include the leverage offered by the broker, margin, narrow dealing spreads, trading platform offered, demo account, educational resources, and customer service.
4. Get Your Forex Trading License
The next step is to solicit the license for opening your forex trading company from the DFSA (Dubai Financial Service Authority). It has an independent legal procedure and it duly monitors the international equities, exchange, trading of commodities, etc. in UAE. Remember, that you will get the license to run your forex trading company, only if you pass the credibility test conducted by the DFSA.
5. Open a Trading Account
Now, you can begin forex trading with your live-funded account. Formulate a thorough easy-to-implement trading plan and make sure to stick to it throughout your trading tenure. It’s recommended to hire local business consultants to start your forex trading company as they offer valuable insights to help you understand the market, acquire the business license, and set up your forex trading company in the UAE.
Benefits of Starting a forex Trading Company in Dubai
Just like many other business sectors, forex trading is also very profitable in Dubai. Listed below are the major benefits of starting a forex trading company in Dubai:
- One of the major benefits of forex trading is that you can do it from anywhere, at any time without putting in excessive effort and earn great profits. An electronic device like a computer or a smartphone with a good internet connection is all you need to start trading. With the minimal risk involved, high liquidity, and low transaction cost, forex trading is easily manageable.
- With a rapidly evolving economy, Dubai attracts a lot of young entrepreneurs from around the world. The UAE provides a zero percent (almost) tax policy to its investors. This empowers you to earn extra revenue and makes it a good decision to establish your trading company.
- In Dubai, it is easy to set up your forex trading company. Mostly, people are skeptical about investing in the exchange market but being secured and regulated by DFSA (Dubai Financial Service Authority) empowers the investors to trade in foreign exchange.
How much does it cost to start a forex business in Dubai?
Typically, a forex trading license Cost is 32,000 AED. Keep in mind the number of visas required before choosing between a Flexi-desk or an office to operate your forex trading company. You are required to deposit the share capital amount of AED 50,000 to the bank and also show a bank letter. Moreover, you must have a copy of your passport and visa plus trade name document during the paperwork and identity evaluation.
Connect With Shuraa
Collaborate with Shuraa Business Setup to obtain your forex trading license in Dubai. Our team will happily assist you in launching your forex trading company setup in Dubai. Also, our legal advisers provide insightful information to clients and help them throughout the whole procedure related to paperwork, documentation, rental space, and more.