Forex News

Can you do day trading with forex from Dubai?

Dubai is known for its variety of investments and is a part of all sorts of major trading centers. Natural oils are Dubai’s greatest wealth, and due to the tax they have to pay for fiat exchange in foreign countries, investing in the forex market can help them save a lot in taxes. The forex market can be entered by choosing the right forex brokers online or locally in Dubai. Local brokers are more comfortable with this exchange than online ones since they can be dealt with face-to-face. 

Understanding the Concept of Forex Day Trading

Before the introduction of forex, real estate, and stocks were considered some of the best trading options. However, forex acts more as an asset than a liability, while the former is prone to risks, loss, and damage. When the financial crisis hit in 2008, investors from Dubai understood that they could get superior returns on their foreign exchange under this asset class. With the development of regional equity markets, interest in forex grew, and the Gulf Cooperation Council added it as an alternative investment product. Many investors are interested in forex because it has a higher risk tolerance than other markets. 

Understanding the concept of forex trading is very important for every trader in Dubai. They should be aware of trading dangers, have a thorough knowledge of market research, and know how much work should be done before beginning the trade in Dubai. Many blogs, books, and other educational guides are available online to aid Dubai traders in learning about trading. Some reliable forex brokers provide their clients with relevant materials to get comfortable with forex.

Regulations on Forex Trading in Dubai

Dubai is home to various SCA-regulated forex brokers, like Century Finance and SMC Comex, that provide Islamic trading accounts without daily overnight swap costs. The Dubai Financial Services Authority (DFSA) oversees businesses based in the Dubai International Financial Centre (DIFC), a financial-free zone in Dubai. One of the highest concentrations of forex brokerages in the Middle East may be found domestically and internationally in Dubai. The Securities and Commodities Authority grants local forex brokers brokerage licenses, while the Central Bank of the United Arab Emirates (UAE) oversees their regulation (SCA).

Selecting the Right Forex Broker in Dubai

Forex trading in Dubai is quite simple; choosing a trustworthy broker who can handle the deposit and provides features as per the investor’s necessities is important. The best forex broker in Dubai is available both online and offline. Those who prefer brokers in Dubai can easily access local legal remedies if the broker fails. The SCA, DFSA, or Central Bank of the UAE will regulate local brokers. Legal redress is quite vital when residents are spending a lot of money. Moreover, this guarantees that the broker is subject to local regulation, letting people know that the items supplied are consistent with their expectations.

Things to consider before choosing a broker

  • All non-banking services are governed and regulated by the Securities Commodities Authority (SCA) of the United Arab Emirates; it is important to check if the broker has the necessary authorization.
  • Mobile applications are necessary for linking traders to real-time pricing variations throughout the market trading hours in the UAE due to the country’s excellent technology; the trader can incorporate alerts to enable position management.
  • The UAE Dirham is not considered a basic currency by all firms. So, to fund a day trading account, the investor has to pay to convert local money to USD, EUR, or GBP.
  • Top brokers will provide local access to DFM, NASDAQ Dubai, ADX equities, and various tradable assets in a single interface.
  • Although many of the top trading brokers in the UAE don’t charge a commission to join or leave a transaction, traders should do homework because they can mark up their spreads.
  • Include dependable trading tools like customizable charts and technical indicators to enable forecasting and price research. 

Tips for Day Trading with Forex from Dubai

In the UAE, day trading is a well-liked way to engage in financial market speculation. Investors can venture on UAE stock exchanges, trade currency pairings with AED, and access global markets. Every trading transaction initiated and completed before the market closes on the same day is called “day trading.” Several intraday tactics may be used to capitalize on market changes. Transactions may last for a few minutes or a whole day.

Among the new generation of Dubai traders, day trading in the United Arab Emirates has grown fairly popular. Many Dubai traders have been inspired to try it from the comfort of their homes because of low taxes, easy access to technology, and a profusion of real-time market data. Before beginning the trade, it is crucial to use a demo account so that the trader can understand how day trading works before entering the market.

  • Create a Position: In order to recognize and comprehend those with the greatest profit potential, the trader must analyze the market. Peer evaluations of day trading experiences in the UAE may be found on several forums pages online. Whenever the trader starts a position on an asset like the AED/USD, they can choose to go long or short, depending on their perception of its price movement.
  • Monitoring: In the UAE, day trading is a focused, short-term approach. Observe news and events in the economic, social, and environmental fields for potential short-term market changes. Keeping track of the day trading outcomes might be helpful for developing future trading plans.
  • Risk Minimization: Leverage can be used to increase profit potential, and stop orders can be used to reduce losses. Strive to avoid making hasty judgments and adhere to an exit strategy.
  • Close down the position: Users can close positions using mobile and desktop devices with several brokers in the UAE. The closing account balance will determine the day trade that is performed.

Some tactics that have to be followed in day trading are:

  • Momentum Trading: This is the best tactic for beginners. It depends on reacting to breaking news and spotting trending price changes. Merely maintain a position until a setback is evident.
  • Swing Trade: This entails profiting from sudden price changes. Swing day trading in the UAE is based on the premise that price patterns won’t mirror directional trends. Instead, it works on trying to profit from the recurrent upward and downward movements that occur over time.


Only traders are responsible for day trading profits and losses. Day trading in the UAE offers a dynamic and fast-paced atmosphere. With the advantages of no personal income tax and stringent enough rules to secure the cash and lower the danger of scams, it is the perfect place to begin a day trading career. While using an international broker is possible, industry-recognized oversight is necessary. Trades, which entail price speculation on various asset types, including stocks, commodities, currency, and futures, can span a few minutes to a whole day.

17 posts

John Franklin

About author
John Franklin has completed his MBA with specialization in finance. He has keen interest in finance news writing and leads our finance news team. He loves reading finance magazines.
Related posts
Forex News

Crypto vs. Forex trading: which is right for Filipino investors?

The popularity of cryptocurrency and Forex trading in the Philippines is likely due to a combination of factors. First, Filipinos are increasingly…
Forex News

Is forex income taxable in South Africa for traders?

Are you a forex trader in South Africa, wondering if your income from trading is taxable? Well, the answer is not as…
Forex News

Get maximum profit by selecting best instruments for Nigerian forex trading

Forex of foreign exchange trading is changing one currency to another to make profits from the forex market potentially. Different currencies are…