How to Start Forex Trading in Dubai
Forex Trading Overview:
Forex trading is the exchange from one currency to another at a mutually agreed rate. A 24 hours a day, 5 days a week Business, Forex is a $3 Trillion business worldwide. Forex is also one of the largest exchange markets in the world, along with the stocks and bonds market. More and more people are turning to Foreign Exchange Trading as a way of financial protection and investment. The prevalence of setting up forex trading business in Dubai is ever increasing, making Dubai the future platform for the ultimate trading experience. Trading in Dubai is widely used by locals and expats alike.
Forex Trading License Dubai
Only DMCC offers a Forex Trading license. Firms whose main activities are based on the trading of their own money in Forex, Over the Counter (OTC) and Exchange Traded Derivatives on regulated exchanges.
Scope of Forex Trading License in Dubai
Having a Forex Trading license you will be able to get global exposure for easy accessibility and reach to investors. Forex gives you exposure and investment options. It also helps in making profits at market fluctuations.
How to Start Forex Trading in Dubai
The relevant questions, according to our experience, that have been asked to investors who want to obtain this license are as below:
- What is the experience of the company in this sector? (Number of years, qualifications of principals, etc).
- Do you have a professional proprietary trading certificate?
- Provide details of the financial strength of the applicants (available funds for investment) and what are the sources of the funds to be invested? Also attach supporting documents.
- Who are your main investors?
- What exchange will you be trading in?
- What markets will you be trading in?
- What financial instruments will you be trading in?
- Are you going to raise money from third party clients?
Upon providing the details of all the above questions, below and few other documents are required by the authority.
Required Documents
- Passport Copies of Shareholder
- Visa Copies (Visit / Entry Stamp / Residence)
- Trade Name options
Cost for Setting up Forex Trading Business in Dubai
The approximate cost of business setup including licensing and registration up to AED 32,000 ($ 8,720. The investor will decide whether to take an office or choose a Flexi Desk provided by DMCC only in option, depending on the number of employee visas required and the budgeting.
Share Capital Requirements
There is an AED 50,000($ 13,625) share capital required and needs to be deposited in their personal account and a bank guarantee letter needs to be shown to the
DMCC authority.
Pros of Forex Trading Business Setup in Dubai
- Exchange markets are quite broad and definitely risk-based. In such a market, Forex Trading usually comes as a First choice for most traders/investors due to it’s easy start-up rules, user-friendly platforms and timings and a very minimal deposit to start with. Many people start Forex Trading companies in Dubai for it’s fast setup process and the favorable tax regulations, where there is 0% income and corporate tax.
- Benefits of Forex Trading is that it is recession proof, you can trade at anytime, anywhere in the world with a computer and internet connection, it is risk manageable, has high liquidity, and low transaction cost.
Flyingcolour Business Setup in Dubai and UAE has assisted clients to setup Forex Trading companies and has all the required expertise and knowledge for the setup process. This blog post is written by Ms. Florine. Feel free to call today for a more detail send inquiry to info[at]flyingcolour[dot]com or call +971 4 4542366.
