Want to start Online Trading – Here are the Best Trading & Investing Platforms of UAE

By Sakshi Srivastav - 09 Aug 2021 Last Updated: 19 Sep 2021
Want to start Online Trading – Here are the Best Trading & Investing Platforms of UAE

Traders score, commodities traded, platforms, financing methods, Islamic account enabled, minimum deposit, and welcome bonus are all criteria we consider in our review process. Thus in this blog, for the year 2021, we will cover all of the finest trading platforms in the UAE and Dubai which you can use to get maximum returns. But first, if you are new to the concept of Trading, it is essential to polish up some of the basics first. So without any further ado, let’s learn!

Trading Platform; what is it?

A trading platform is a set of software that allows investors to use financial brokers to place, cancel, and monitor deals. Users can pick between PC trading platforms, mobile trading apps, web-based trading platforms, and custom-built in-house trading platforms.

The Financial Market in the United Arab Emirates

The United Arab Emirates has a diversified terrain comprised of seven distinct emirates. Dubai and Abu Dhabi are the two financial centers of the country that lead the way for investors. The country's economy was based on pearl diving, fishing, nomadic farming, and date palm agriculture before oil was discovered in the 1950s. The economy is rapidly expanding. The UAE's GDP was £330 billion in the 2019 Economic Report. It is now $382.6 billion.

Dubai Financial Market (DFM) and Abu Dhabi Securities Exchange (ADX) are the two largest financial securities exchange platforms (ADX). Both are governed by the Securities and Commodities Authority (SCA). UAE residents trade a variety of financial items through these markets. Futures, equities, securities, commodities, metals, derivatives, gemstones, and other financial instruments are among them.

Investment Possibilities

The ADX, which opened in 2000, is located in the heart of Abu Dhabi. They want to bring fresh finances and investment opportunities to the UAE. In 2005, the DFM transitioned from a public institution to a public joint stock company.

The pioneering DFM was the region's first of its type and the first Sharia-compliant financial trading market. They deal in debt products, exchange-traded funds (ETFs), equity instruments, and securities lending. Apart from those two, Dubai has seven other online trading platforms and UAE trading apps.

  • The Dubai Diamond Exchange
  • The Dubai Gold and Commodities Exchange
  • NASDAQ Dubai
  • The Dubai International Financial Centre
  • The Dubai Multi Commodities Centre
  • The Dubai Pearl Exchange
  • The Dubai Mercantile Exchange

The Securities and Commodities Authority (SCA) regulates the securities markets in the UAE. Through impartial investigations and suggestions, the SCA raises investing awareness. 624 entities and 490 approved enterprises are regulated and supervised by the Dubai Financial Services Authority (DFSA).

The DFSA regulates most online brokers, who use a UAE trading app. The dirham (AED) is the most well recognized currency in the UAE. Since 1997, the currency, which has been leveraged against the US dollar since 1978, has had a stable rate of 3.6725 AED. With relatively tiny rate changes, it remains extremely stable. The primary economic elements of the UAE's economy are national property and oil prices.

Specialties in Trading

The UAE economy is mostly driven by national property and oil prices. Despite a 25% drop in the Dubai stock market and a real-estate oversupply in 2018, non-oil GDP remained consistent with the previous year. Throughout the year of 2021, the Abu-Dhabi stock index performed admirably.

The Securities and Commodities Authority regulates the financial securities market in the United Arab Emirates (SCA). Founded in 2000, this organization allows Emiratis to invest their money and savings in commodities and securities that benefit the country's economy.

The organization also ensures the accuracy and integrity of transactions that determine market fair prices. They are devoted to raising investment awareness as a regulator by conducting objective investigations and making suggestions. The DFSA, or Dubai Financial Services Authority, is another regulatory body that controls and supervises 624 companies and 490 approved firms. The DFSA is in charge of online brokers.

How do you trade online in the United Arab Emirates?

If you want to start trading, you'll need to find a trustworthy and well-regulated online trading broker. Online brokers in the United Arab Emirates provide a variety of trading options. These are some of them:

Foreign exchange trading (FX trading)

It is the practise of exchanging one currency for another. Currency exchange rates fluctuate, and Forex traders profit from the difference in value between currencies. Because the forex market is one of the largest and most liquid in the world, its popularity has grown.

Contracts for Difference (CFD) trading

It is the trading of derivative financial products. Traders can bet on the future value of underlying assets such as currency pairings, stock indexes, or stocks using these.

Demo accounts:

Rather of risking real money, demo accounts provide a pool of virtual money. The accounts are used for trading practise and strategy development. They provide crucial information on the mechanics and speed of a trader's platform. Cash or margin accounts are the two types of brokerage accounts.

Islamic accounts:

These accounts are meant for traders who need a Sharia-compliant account.

When trading listed securities on the Dubai Financial Market, investors must register for a NIN investor number. As a result, they are able to trade on the ADX and DFM markets. They must find a broker from either exchange after receiving a NIN number. In the United Arab Emirates, securities transactions are settled in AED. Trading in the United Arab Emirates is quick, easy, and conducted in English.

UAE Online Trading Opportunities

  • There are numerous investment options in the United Arab Emirates. A favorable regulatory framework, a low tax rate, and political stability are all advantages. Due to the country's burgeoning Fintech sector, cryptocurrency exchanges now call the UAE home. The United Arab Emirates is a global leader in initial coin offers (ICOs) and online trading opportunities.
  • The United Arab Emirates is ranked first and seventh on the World Bank's list of the "best nations to do business in." The United Arab Emirates is ranked 25th in the world for launching a business and 15th for locating and safeguarding minority investors.

The challenges of Online Trading in the United Arab Emirates

In the United Arab Emirates, there are as many opportunities for online business as there are problems. Consumer expenditure is reduced by their 5% VAT. Disputes between the United Arab Emirates and Qatar have a huge economic impact on both countries. Credit availability in the UAE is a problem. It is ranked 44th for credit application success and 98th for cross-border trading in the globe. Import/export enterprises face hurdles as a result of this.

Conclusion

For investors wishing to diversify their investment portfolio, trading in the UAE offers a variety of options, including real estate, equities, derivatives, currencies, and more. Every financial market faces obstacles, but the UAE stock market, CFD trading, binary options, and cryptocurrency markets are leading the way. The UAE government is also working to make the country more appealing to bitcoin exchanges. Thus we hope this blog provided you with incite full information. For more information on other related aspects, feel free to check out our Website as well.

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