How to start a Forex trading company in Dubai?

start a Forex trading company in Dubai

The forex market, or foreign exchange, is the globe’s largest and most liquid financial arena. Daily trades reaching trillions of dollars create a landscape with the potential for investors to capitalise on currency price shifts. This presents a chance for daily returns and strategic future investment planning. Establishing a forex trading company in Dubai emerges as a lucrative opportunity, given the city’s expansive business sector and the substantial support extended by the UAE government. Nevertheless, prospective entrepreneurs often need clarification on the legality of forex trading in Dubai. In this blog, Shuraa Business Setup will guide you to start a forex trading company in Dubai.  

Is Forex Trading Company in Dubai legal? 

Indeed, forex trading is entirely legal in the UAE. Given the significant expatriate population, there’s a substantial demand for transferring funds back to home countries, leading to a proliferation of forex service providers in the country. 

Dubai, in particular, has emerged as a focal point for forex trading firms, owing to its advantageous geographical location, business-friendly atmosphere, and modern infrastructure. Its status as a global financial hub makes it an appealing destination for companies seeking to establish a foothold in the Middle East and beyond. 

You can establish your desired company within the DIFC (Dubai International Financial Centre), a free zone offering independent jurisdiction advantageous for investors. Alternatively, you can opt for the mainland region, which provides diverse opportunities and promising returns on investments within the UAE. 

Types of Licenses Required for Starting a Forex Trading Company in Dubai 

The specific license you’ll need to initiate a forex trading venture in Dubai hinges on your business model. Here are two standard options: 

1. DMCC License (Category 3)

This license suits companies intending to trade forex using their capital. It’s classified as a professional license and does not permit handling client funds. Opting for a DMCC license offers a simpler and more cost-effective route than obtaining a DIFC license. 

2. DIFC License (Category 3A)

The Brokerage License within Category 3A enables firms to trade forex, commodities, and derivatives. Issued by the Dubai Financial Services Authority (DFSA), it is designed for companies providing forex brokerage services, including the management of client funds. Acquiring this license entails stricter regulatory requirements and carries a higher cost than the DMCC license. 

How do you start a Forex trading company in Dubai? 

Venturing into the lucrative forex trading industry in the UAE might seem daunting, but with the proper guidance, you can navigate the process smoothly. Follow these steps to kickstart your forex trading business in Dubai: 

1. Conduct Market Analysis

Start with a thorough market analysis to grasp the nuances, risks, and opportunities inherent in forex trading. Leverage digital resources to access a wealth of information at your fingertips. Alternatively, consult reputable forex brokers like Shuraa Business Setup for comprehensive insights tailored to your needs. 

2. Assess Your Objectives

Define your trading goals and timeframe realistically. Novices should avoid high-stakes trading, while experienced traders should prioritise finding a reliable broker offering robust trading platforms and keeping abreast of policy changes. Always align your strategy with your objectives before pursuing a forex trading license in Dubai. 

3. Select a Business Location

You can choose between various free zones and mainland options in the UAE, each offering distinct advantages and requirements. Popular choices include the Dubai Multi Commodities Centre (DMCC) and the Dubai International Financial Centre (DIFC). 

4. Register Your Company

Complete the necessary company registration procedures with the relevant authorities according to your chosen location. This typically involves obtaining a trade license and opening a corporate bank account. Depending on your location, you may require a local sponsor. 

5. Choose a Reputable Broker

Ensure the broker you select holds legal accreditation from a government agency to avoid fraudulent practices. The UAE government imposes strict penalties on unscrupulous brokers, underscoring the importance of due diligence. Opt for a broker licensed and regulated by reputable authorities such as the Securities and Commodities Authority (SCA).

Evaluate whether the broker operates as a market maker or utilises an Electronic Communication Network (ECN). Additionally, scrutinise the broker’s leverage and margin policies. Request a demo account to familiarise yourself with the broker’s trading platform before making a final decision for your forex trading company. 

6. Acquire the Forex Trading License

You need to approach the DFSA (Dubai Financial Service Authority) to obtain the forex license for your forex trading company. It has an independent legal framework and duly monitors the trading of commodities, international equities, exchange, etc., in the country. 

Moreover, DFSA also runs a company fit test to check the credibility of brokerage firms. It issues the license only when it finds you capable enough to run a forex trading company.  

7. Start Trading with Your Forex Account

Get started with your live-funded account to begin forex trading. Devise an educated trading plan and stick to it during your trading tenure. Always remember that there’s no substitute for hard work. 

Therefore, leave no stone unturned before investing your money, and when you do, you’ll gain decent profits right from the start. Be it high-capitalization stocks or cryptocurrencies; you can trade in your favourite stream using a forex trading license. 

Benefits of Forex Trading in Dubai

Like other business sectors, forex trading is also profitable in Dubai. Numerous forex trading companies have made a name for their brands in the marketplace. The following Advantages ensure that your venture is hassle-free and a profitable one: 

1. Flexible Business

One significant benefit of forex trading is that you can do it anytime, anywhere, without much effort. You only need an electronic device like a computer or a mobile phone with good internet connectivity. You can trade in foreign exchange with these minimum requirements. 

Furthermore, you can trade in foreign exchange irrespective of market conditions. Even in a recession or bearish period, an investor can make profits. With high liquidity and low transaction costs, the risk involved in forex trading is manageable. 

2. Business in a Strong Economy and Tax Benefits

Dubai’s economy is evolving rapidly, attracting people from around the world. The UAE also provides tax benefits to its investors. Therefore, you can save money by establishing a forex company in Dubai thanks to the zero (almost) per cent tax policy. It empowers you to earn extra revenue, which can be used for other business growth activities. 

3. Secured and Regulated

The UAE has a well-established regulatory framework for financial activities, including forex trading. The Dubai Financial Services Authority (DFSA) regulates foreign exchange trading in Dubai. DFSA issues the forex license to the investors and keeps a check on all the activities in the market. 

Moreover, the DFSA ensures that trading, exchange, and other financial activities are undertaken according to the legal framework. It also regulates banks and other financial bodies. The governing body empowers investors to trade in foreign exchange. 

4. Easy Business Setup

It’s straightforward to set up a forex trading business in Dubai. Although people are generally sceptical of investing in the exchange market, foreign exchange has always maintained a good reputation. That’s why starting a forex company in Dubai is beneficial, and investors continue to explore the sector with diligence. Furthermore, the government provides several business benefits to encourage investors. 

Cost of getting a Forex Trading License in Dubai 

The anticipated cost for obtaining a forex trading license is typically AED 32,000*. Investors can select a flexi-desk or an office space. However, it’s essential to consider various factors that can significantly impact the total expenses associated with establishing your forex trading venture in Dubai. These factors include: 

Furthermore, in the Dubai Multi Commodities Centre (DMCC), a share capital of AED 50,000* ($13,625*) is mandatory. This amount must be deposited in a bank, and a bank letter confirming the deposit is required. Additionally, you must provide a copy of your passport, visa, and trade name document during the paperwork and identity verification process. 

Shuraa – Your Business Companion 

Concerned about acquiring a forex trading license in Dubai? Partnering with Shuraa Business Setup eliminates the hassle. Instead of questioning the legality of forex trading in Dubai, seize the opportunity to have a free consultation. 

Having facilitated the establishment of over 50,000 companies in the UAE marketplace, we stand ready to guide you through launching your forex trading venture. Our experienced legal advisors offer invaluable insights and expert assistance with paperwork, documentation, rental space, and more. Reach out to us today to get started. 


Q1. What is forex trading? 

Forex trading involves buying and selling currencies to profit from fluctuations in their exchange rates. It’s the world’s largest financial market, with trillions of dollars traded daily. Currencies are traded in pairs, and traders speculate on whether the value of one currency will rise, or fall compared to the other. 

Q2. Is forex trading legal in Dubai? 

Yes, forex trading is legal in Dubai. However, it’s crucial to operate under a proper license. Depending on your business model, the Dubai Multi Commodities Centre (DMCC) or the Dubai International Financial Centre (DIFC) issue licenses. 

Q3. How do I get a forex trading license in Dubai? 

The process of obtaining a forex trading license in Dubai involves several steps: 

  • Decide whether you’ll trade with your funds (DMCC license) or manage client funds (DIFC license). 
  • Choose the appropriate authority (DMCC or DIFC) based on your business model. 
  • Gather necessary documents like business plans, financial statements, and KYC documentation. 
  • Submit your application and pay the license fee to the chosen authority. 

Q4. How do I open a forex trading account in Dubai? 

You can’t open a forex trading account directly as a business. However, if you have a DIFC license, you can establish a forex trading company and then offer trading accounts to your clients. If you want to trade personally, you can open an account with a reputable, Dubai-based forex broker licensed by the Securities and Commodities Authority (SCA). 

Q5. Do I need to be a resident of Dubai to start a forex trading company? 

No, residency isn’t mandatory. However, depending on your business setup and visa requirements, you might need sponsor visas for employees. 


Recent Posts