How to Setup and Start a Forex Trading Company in Dubai?

If you are planning to start a forex trading company in Dubai, you need to get a forex trading license from the Dubai Financial Service Authority or the relevant free zone authority.

You must also keep in mind that trading without a forex trading license is considered illegal in the United Arab Emirates.

You can always get the help of business setup consultants in Dubai, UAE, to obtain a forex trading license. Listed below are the steps needed to start a forex trading company in Dubai:

Step 1: Choose a Reliable Broker

The first step in starting a forex trading company is to choose a reliable business setup consultant in Dubai, UAE, which has a legal affiliation with a government agency. Take your time to research and review the broker you chose before opening an account with them. Most brokers provide you with a demo account where you can trade without investing any real money into it.

So, you can check your demo account to check whether the broker you chose meets your demands and needs.

Step 2: Obtain a Forex Trading License

After choosing a suitable broker for your company, you need to obtain a forex trade license from the Dubai Financial Services Authority or DFSA. The DFSA monitors all kinds of financial trading in the country. The DFSC runs a company check to make sure that you are capable enough to run a forex trading company in Dubai, UAE.

Step 3: Start a Forex Trading Company in Dubai

After you have obtained the forex trading license from the Dubai Financial Services Authority, you can begin forex trading in Dubai. Remember, you must devise a strong financial plan and move according to it. The forex market can be cruel to under-educated and inexperienced players.

Benefits of Forex Trading Company in UAE

The forex trading industry has a few benefits that no other business sector can offer. This is because the forex industry is a unique type of business. The forex industry has a daily turnover of around 6.6 trillion dollars which makes it one of the biggest industries you can do business in.

As we can see, the size of the forex industry gives it some unique advantages that no other industry can offer or replicate.

Listed below are some of the benefits of a forex trading company in Dubai:

• Stability and Security

First and foremost, due to its high liquidity and size, it is considered one of the most stable sectors in the business world. The market cannot be manipulated even by the big players, unlike the stock market which can be easily influenced.

And since the forex industry in Dubai is well regulated by the authorities, it is very secure. You can very easily start a forex trading company and perform your business activities in a legal manner.

• Flexibility

The biggest advantage of a forex trading company is its flexibility. You can do your business activities from anywhere and at any time you want. All you need to trade in the forex market is an electronic device and a good internet connection. You can do it on your laptop or even on your phone.

This gives you a lot of freedom to find a balance between your work and personal life. Unlike a stock market, you can make great profits even during your recession and bearish periods.

• Tax Benefits

Even though Dubai announced that it would introduce a corporate tax for the first time starting next year, the company needs to have an income of at least USD 102,000 to be eligible to pay corporate taxes.

On top of all that, the company needs to be situated on the mainland. Companies located in the free zone areas are not subjected to paying corporate tax.

So, you can start a forex trading company and reap the zero-tax benefits which will significantly increase your profits.

• Easy to Begin

The forex industry is easy to get in and get out of since the industry has a huge number of transactions that take place every single day. It is very simple to convert or liquidate your position in the market.

For instance, if you are planning to enter the real estate industry, you will have to look for a property to buy or develop. In the forex market, hundreds and thousands of people are looking to exchange their money every single second. Therefore, you can easily enter the market whenever you want.