How to Start a Forex Trading Company in Dubai?
Forex Trading is one of the most exciting, active and dynamic businesses to start in Dubai. Amongst different regions, Dubai stands out compared to others mainly because of its stable financial system and a business-friendly environment. People living here do trading in diverse sectors around the world and the place is considered as the largest market in the world in terms of daily trading volume.
Forex trading is legal in UAE and many businesses are generating high profits in the field. The main reason for Forex trading in the region is that most people are sending money back to their family and friends at home. Also, investing in a dynamic market like Dubai ensures high profitability when done properly. Because of all these reasons, the concerned authorities are encouraging the companies to grow and expand across entire Emirates.
To setup a Forex trading in Dubai, UAE, you need to acquire the Forex trading license from the Dubai Financial Service Authority or the concerned free zone authority. Trading in the Forex market without the Forex trading license is illegal in Dubai. One can establish a Forex trading company in the DIFC (Dubai International Financial Centre) which is a free zone or in the mainland region.
Benefits of Starting a Forex Trading Company in Dubai
Some of the major benefits of starting a Forex trading company in Dubai are:
- Easy to setup
- Business friendly government
- Strategically located
- Excellent tax benefits
- Regulated by DFSA or Dubai Financial Service Authority which empowers the investors to trade in foreign exchange
How to setup a Forex Trading Company in Dubai?
The following steps will guide you to setup your Forex trading company in Dubai.
Study the Market
An in-depth analysis of markets is needed for starting a trading company. Many traders fail to take this into consideration. It is vital to know the advantages, disadvantages and risks involved in the Forex trading business. If you do a proper research and tie up with the right Forex broker online, they will help you understand the different aspects of Forex trading.
Select a Broker
One of the most important things while considering a broker is that whether the broker is legally regulated by a government agency. Fraudulent brokers must be avoided. Also, one needs to examine whether the broker uses an electronic communication network or functions as a market maker. Most brokers offer a demo account where you can trade without investing any real money. So, you must use the demo account to examine whether the broker helps you achieve your objectives.
Create a Business Plan
It is one of the most important steps before setting up a company. An ideal business plan for starting Forex trading company needs
- Start-up capital
- Market Research
- Marketing strategy
- Description of buyer personas
- Target market description
- Competitor benchmarking
Obtain Your Forex Trading License
The next step is to request for the license from the DFSA (Dubai Financial Service Authority). DFSA is the authority that monitors all the financial trading activities in the country. The authority has an independent and systematic legal procedure and it carefully monitors the exchange, international equities, trading of commodities, etc. in UAE. You will be provided with the license to run your Forex trading company after you pass the credibility test conducted by the DFSA.
Open a Trading Account
Now, you can start Forex trading with your live-funded account. You should create a well thought out and pragmatic trading strategy and ensure that you follows it diligently throughout your trading tenure. You must hire professional business consultants to start your Forex trading company. These consultants can provide you with insights that help you understand the overall dynamics of the market, obtain the business license, and realize the goal of setting up a Forex trading company in Dubai.
Cost of starting a Forex business in Dubai
A Forex trading license costs around 32,000 AED. The share capital amount of AED 50,000 has to be deposited to the bank and a bank letter must be shown. You must also keep in mind the number of visas needed before choosing between a Flexi-desk or a company office to operate. Apart from that, you must have a copy of your passport, Visa and trade name document for paperwork and identity check.
How can Bizvise help you?
If you are looking for a professional consultant to help you start your Forex trading company in Dubai, then you can get in touch with Bizvise. Our company setup experts have helped numerous entrepreneurs start their companies all over the UAE.
Contact Bizvise now and our team will happily assist you in achieving your dreams!