Forex Trading in Dubai -Answers to Your 5 Most Frequently Asked Questions

Dubai is generally known as the commercial and financial hub of the Emirates. It has the second largest economy among all Emirate regions and has shown buoyancy even in the face of today’s challenging economic environment.

Currency trading, also known as Forex trading, has exploded in size and popularity in Dubai, UAE. It used to be that trading currencies was only possible for the elite and affluent people because of the large size of capital required. After some time however, Forex trading opened its doors to the average people, allowing them to trade in the markets with a few thousands or hundreds of bucks. The fierce competition among Forex brokers has also resulted to more opportunities for people to trade currencies.

After hearing the potentials of Forex trading and its advantages over real estate, stocks, annuities, CDs and other investments, you may want to consider taking the plunge and join the community of Forex traders. But before you do that, there are a number of things you should understand in order to determine whether Dubai Forex trading is for you or not. Below are 6 of the top questions asked by people who are looking to get started in Forex trading.

Why Should I Trade Forex Online in Dubai?

There are a number of benefits of trading Forex online. Some of the major reasons why Forex trading is advantageous include its high level of liquidity, 24-hour operation, opportunity to profit whether the market is up or down, low start up costs and convenience.

What are My Other Choices for Online Trading in Besides Forex?

Besides Forex, you can also choose to diversify your investment portfolio by trading precious metals namely gold, silver and copper. You can also consider trading oil and soft commodities. Several Forex brokers out there offer the feature to trade multiple products in one platform and account. 

How Much Do I Need In Order To Start Trading?

Not that you should but most Forex brokers allow traders to start for as little as $50. The most important thing to remember is that if you are really serious about Forex trading, then you should treat it like a real business. And as with any other business, it requires a considerable amount of capital to start. Be realistic and don’t expect to make $1 Million or even $100,000 from a $100 capital within a year. 

How do I Know a Dubai Forex Broker is Legitimate?

One way you can do this is by checking if the broker is regulated by a regulatory board in the country where it operates. Legitimate Forex brokers are under the supervision of regulatory boards so if a broker you’re looking at does not provide this information in its website, then it’s probably not regulated and legitimate.

Can I trade Multiple Products in a Single Account?

While many brokers offer one product only, there are some that offer multiple products, therefore making it possible for traders to diversify their investments. HY Markets is one example.

Is There a Regionally-based Broker Here in the UAE?

There are several. As more and more Dubai-based investors are entering the Forex market, brokers have decided to provide regionally based platforms that cater to them. The Dubai Gold and Commodities Exchange (DGCX) has the highest trading volume among all UAE based brokers. It offers commodity future contracts, currency futures and options as well. HY Markets, another Forex broker catering to Middle East-based traders allow for trading multiple products in one platform.

Surely, there are a lot more questions than the ones mentioned above. But the best way a Forex can learn about the ins and outs of Forex trading is by actually doing it hands-on. Thankfully, most Dubai Forex brokers today offer demo accounts for those who want to get their feet wet but aren’t yet ready to trade with real money.
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