You’re well into your way of operating your own Forex Trading Business. We empower businesses and entrepreneurs who aim to obtain a Forex Trade License in Dubai, it is crucial if you’re objective is to :

1. To generate revenue from the commission of Forex services offered to your clientele
2. Engage in International Trade, whereby you can exchange domestic currency for foreign currency, or vice versa to pay for goods and services in other countries.
3. Forex contracts may be considered as a hedge to secure a specific exchange rate for transactions in the future, thus lowering the risk of fluctuating currencies which may impact profit.
4. A company with presence across different locations abroad, may require it to convert their domestic current into foreign local currency
5. Your company may invest in foreign markets, buy assets in the country’s local currency and require foreign exchange for the same purpose.

Now let’s quickly delve into how you can obtain a Foreign License in UAE

With the purpose to expand, grow your company’s prospects, you need to align with specific rules and regulations relevant to each country and jurisdiction. Here’s the overview on Forex Trading License in UAE given by Adv P.M.Mishra of Finjuris Counsel LLC,UAE

1. Minimum Capital Requirements – Your business may have to pass the criteria for having a certain minimum capital to ensure it meets commitment to clients and runs smoothly with financial resources
2. Background Screening : The key personnel and company’s directors will be required to give evidence of relevant work experience in the financial service industry, clear criminal background checks and adhere to ethical practices
3. Present Documents : Business owners will need to submit a detailed business plan, expansion growth, corporate structure, compliance and risk management policies and financial statements in order to procure their Forex Trading License
4. Seek Approval : The regulatory body will thoroughly verify your application and shall check background and finance experience before the forex trading license is issued.
5. Upon Approval : Once you acquire a Forex Trading License, you will need to adhere to the ongoing compliance terms and be willing for periodic reporting, financial audits, and oversight of compliance monitoring.

Now that you are aware of the basic overview, let us offer you a view of our legal experts at Finlaw who specifically explain the UAE scenario.

As a foreign investor or broker in the UAE, the thumb rule for Forex License in Dubai is to start your own company or expand into the foreign exchange trade, keep in mind these vital steps :

1. DIFC ( Dubai International Financial Center) and Dubai Multi Commodities Center (DMCC) are the regulatory bodies for a Forex Broker License
2. DMCC License is required for companies and entrepreneurs who wish to trade their own funds.
3. Dubai Financial Services Authorities are for those who wish to opt for a Forex trading company and therefore require a Forex Trading License
4. Dubai Financial Services Authority is responsible for checks on credibility, competence and background screening for companies or entrepreneurs wanting a Forex Trading License in UAE
5. It is ideal to check case studies, market trends and industry size before offering Forex Trade services
6. Have a clear understanding of the business strategy and approach of foreign exchange utilized by your company.
7. Once approval goes through, you can open a local bank account and deposit an intitial fund of approximately AED 50,000 to begin foreign exchange trading
8. The average cost of a Forex Trading License in Dubai is around AED 32,000
9. Operate from a designated office or choose to go for a flexi-desk to work anywhere in the world
10. You need to have a valid passport, visa,document and a trade name document in order to start foreign exchange trading services.

Why you must have a Forex License in Dubai :

Dubai is the emerging Financial leader which is home to the most affluent selling traders in the world. As a Forex Trader, you will need to follow the specific Sharia Laws which are designed with religious beliefs.

Dubai offers immense potential to global firms with its fairly zero tax-free environment. So you can invest or become a Forex trader today.

What are the advantages of Forex Trading in Dubai :

1. Tax Free Trading : As forex traders, any profit which is generated, does not require you to pay for taxes. This is a highly recommended marketplace as compared to other countries
2. High Leverage : Traders can invest high amount of money than their deposit available in trading accounts. This can result in higher profits
3. Strong Regulation : Brokers can Investors can enjoy an impartial, fair and transparent method while operating under the reputed (DFSI) Dubai Financial Services Authorities with protection against misconduct and fraud
4. Flexible Trading 24×7 – Traders can benefit from round the clock investing and trading and balance other commitments during trding hours of the day.
5. Advanced Technology and Trading Tools – Dubai offers Forex traders with advanced tools, software and sophisticated platforms to execute trading efficiently.
6. Diverse Portfolio – Dubai is at a strategic location and allows traders and investors to enjoy access to diverse countries and popular trades, dealing in foreign currencies for a locked in exchange rate.

Now that you have gained some insight into Forex License in UAE/ Dubai, you can reach out to our legal experts who are skilled about the UAE Regulatory bodies, DFSI criteria and the overall forex License process. Our associates can give you a complete consultation in Forex Trading and assist in launching your business in the UAE Marketplace.

We become your extended Legal team and facilitate smooth paperwork, documentation, rental space, industry insight, compliance and risk policies and break it all down for your ease.