How to Start a Forex Trading Company in Dubai?

Forex trading business is a speculative form of business where you do not get physical delivery currency laid out on the computer screens. Dubai is a progressive hub for businesses and therefore an ideal market for forex trading. Stock markets or trading exchanges will be one of the most volatile and engaging markets around the world. Businesses from various sectors list themselves on stock exchanges for the possibility of earning better financial returns by involving a crowd of risk-takers. Forming a forex trading business or company in Dubai is a lucrative offer which can enhance exponential growth and expansion. 

Forex can be a thriving sector in Dubai because of the large crowd of expats who are the local residents in Dubai, and their need for sending money back home is a large window of opportunity for whoever thinks of forex as a business avenue.

Benefits of Opening up a Forex Trading Company in Dubai

• The forex trading business is a highly reliable business strategy. With minimal criteria like a mobile phone and good internet, you are able to trade from anywhere in the world. Even during a recession, you can make your business out of the weaknesses of the market, which will help you elevate your business. Liquidity and adaptability are the two reasons which make the forex trading business highly acceptable. 
• The taxation policy for starting a forex trading business in Dubai is zero. This makes it an extremely feasible option to cater to. It helps in good fund creation, which can help in growing the business to other sectors as well.
• The Dubai Financial Service Authority DFSA has got credible and authoritative restrictions, which help regulate the smooth running of the businesses. DFSA also ensures that there are no unscrupulous brokers or trading organisations which will ruin the market as there are tight and strict obligations to obtain the forex trading license in the first place.
• The easy setup of the business is yet another advantage of entering into the forex trading business in Dubai.

Steps to Start a Forex Trading Company in Dubai

Forex trading is a legal business in Dubai, and in order to start a forex trading company in Dubai, it is necessary to follow up on some essential steps.

This blog intends to clear your ambiguity regarding those steps.  

1. Study the market

The first and foremost step when considering stepping into the forex trading business is to understand the positives and negatives of the market and the favourability of entering into business with forex. To get an in-depth insight, consider speaking up with a forex broker to find out more about the innate possibilities of a forex trading company in Dubai. As they are constant players in the forex market, they will know about the ups and downs, which can come across your business frequently. With the influx of digital transactions, it is good to explore those areas as well. 

2. Understand your requirements

An analysis of what you intend to achieve via forex trading needs to be understood well and it is also necessary to have a self-prediction on how long it will take you to achieve the said objectives. If you are a complete beginner, it will be wise not to go for high-risk trading methods but rather learn step by step how business in trading is done. Get proper support that aids in your growth. Once you feel that you are equipped, you can go ahead with platforms like Kite by Zerodha. An experienced forex trader should get the assistance of a well-placed broker to know and keep up with the latest developments in trading.

3. Choose a broker to work with

The choosing of a broker has the ability to determine the success of your stint in building the forex trading company in Dubai. The initial point you have to ensure is whether the broker is having an official license as per the regulatory authorities of Dubai. The Dubai Government takes strict actions against illegal brokers. You also need to understand whether the broker is a market maker or makes use of an electronic communication network. You can take up a demo account with brokers to learn and understand his/ her trading process and methods. A demo account is where you needn’t invest any money to trade. Other elements you need to know are the leverage and margin, narrow dealing spreads, trading platform, customer service etc.

4. Get your Forex Trading licence

Obtain your forex trading license to operate your forex trading company in Dubai from the DFSA (Dubai Financial Service Authority). DFSA is an autonomous legislative authority and is given the responsibility to oversee the trading of commodities, foreign currency, international equities etc. They are also given the authority to check whether a business is deemed fit to work as a brokerage company and only after this you will be provided with your license to commence forex trading in Dubai. 

5. Open a forex account and begin trading

To begin with your trading prospects, you need to deposit money in your trading account and start a live trading session. To honour success in the trading journey, you have a well-devised trading strategy, which will help you flourish in this sector. As a trader, you need to put in all your effort and hard work to bring out the best in your business. Hiring local consultants will help you with a better analysis of the market, and you can imbibe those valuable insights to ascertain the success of your company.