There is an immense demand for Forex Trading Companies in Dubai. It involves buying and selling of Currency and currency exchange is having a large audience base in the UAE.

Forex Trading is a regulated market in Dubai. Only with a valid trade license, the shareholders can operate a Forex Trading Company in the region. Individuals can avail of forex trading services via renowned Currency exchange Platform providers in Dubai.

What is a Forex Trading Company in Dubai?

Forex Trading is a network of buyers and sellers that transfer currency at an agreed price. The global markets are volatile and currency fluctuations are inevitable. So companies, individuals, banks, etc., indulge in forex trading to gain profits during the currency variations.

A forex trading company in Dubai will connect customers with international banking networks via an online platform. The forex market includes a global network of banks, spread across four major forex trading centers in different time zones.

It is the London, New York, Sydney and Tokyo. The trade happens 24 hours a day for 5 days. Most common currency pairs are of USD/ EUR, USD/ GBP, and USD/ JPY.

For the currency pair USD/EUR, it is the currency on the left (USD) is the base currency and the right is the quote currency (EUR). So, the exchange rate determines the value of the ‘quote currency’ requirement to purchase 1 unit of base currency. (quote currency rate varies as per current market).

How Forex Trading Work?

There are seven currency pairs that account for about 75% of trading in the forex market. Major currencies are the Japanese Yen (JPY), British Pound (GBP), Australian Dollar (AUD), Canadian Dollar (CAD), Swiss Franc (CHF), and New Zealand dollar (NZD).

The Forex Trading Company in Dubai will initiate the trade for their customers in three main ways. There are three options available –

• On-the-spot basis
• Agree on the amount and lock it up for a forward date in anticipation that the currency rate will have a positive impact.
• Buy currency pairs on a future date

The Forex Traders will carry on the Trade as per the investor’s specification and the currency pairs the investor chooses.

Also, there are only a low number of Retail investors or individuals doing Forex Trading due to the high-risk factors. Professionals, banks, fund houses, etc., operate Forex Trading to hedge their returns from currency fluctuations.

Steps in Setting Up a Forex Trading Company in Dubai

Dubai is a perfect place for setting up a Forex Trading Company. Dubai is a meeting point of the East and the West. Also, it is home to more than 200 nationalities. So, currency exchange and forex trading are much more relevant in the financial market of Dubai.

Opening a Forex Trading Company in Dubai is a prospective business idea. Many financial and technology companies set up their branches in Dubai. The financial landscape of Dubai is growing at a dynamic pace.

The entrepreneurs can easily set up a Forex Trading Company in Dubai with the assistance of expert Business Consultants such as AURION.

There are a few steps for obtaining the forex trading license. It is a highly volatile marketplace and is under the purview of the Central Bank of UAE. Forex Traders initiate the Currency Trading through a network of international banks operating across the world.

Investors can setup a Forex Trading company in Dubai either on the Dubai Mainland or any of the Free Trade Zones in Dubai. The entrepreneur who wants to offer Forex Trading Services must obtain the Services License with a specific business activity.

Where to Apply for a Forex Trading License in Dubai?

Forex Trading License in Dubai is available from any of the Free Zones or the Dubai Economy (Dubai Mainland). The Forex Trading License in Dubai is available through the Free Zones such as Dubai International Financial Center (DIFC) Free Zone and Dubai Multi Commodities Center (DMCC).

There is a requirement of special approval from the regulatory authority for processing the Forex Trading License in Dubai.

Also, the entrepreneur must connect with a Brokerage firm to connect with the global markets to start their business operations on full full-fledged basis.

After the review of the application and approval by the authority, the respective business licensing authority will issue the Forex Trading License to the entrepreneur. Now, the investor can start working on their forex company in the UAE instantly.

Why Set Up a Forex Trading Company in Dubai?

There are many advantages to setting up a Forex Trading Company in Dubai. It offers flexibility, easy business setup, security, and, credibility.

Setting up a Forex Trading Company in Dubai will offer the entrepreneurs ample flexibility in terms of doing trade operations. Conduct Forex Trading at any time, anywhere, and without a lot of effort.

It is all done electronically with a laptop or a mobile and an internet connection. The trader with a sound knowledge of the Forex Market can remotely work for their clients and gain profits out of the trade.

There are very minimal clearances in Dubai to obtain the Forex Trading License. The Regulatory Authority will approve the license and the investor must apply for the license through Free Zones or the Dubai Mainland.

The process of applying for the Forex Trading License is straightforward. Expert business consultant such as AURION will assist in the end-to-end setup process of the Forex Trading License in Dubai.

To learn more about opening a Forex Trading Company in Dubai, connect with our expert Business Consultants right away!

The post How to Open a Forex Trading Company in Dubai? appeared first on AURION.

Opening a financial services company in Dubai is highly beneficial for investors as Dubai is the center for finance and building business. There is immense potential in the field of Financial Services in Dubai.

The technological advancements in the field of finance, the rising demand from domestic companies in Dubai, and the global connectivity and reach make Dubai the perfect hub for opening a Financial Services Company.

Scope of Financial Services Companies in Dubai

There is a wide scope for a Financial Service company in Dubai. Ranging from expense management, performance analysis, investment brokerage, and forex trading the list goes on and on.

Companies in Dubai are always looking to outsource the finance section to a professional company to reduce overall operational costs and hire finance staff.

The financial companies in Dubai will be constantly supporting the companies with various financial services.  There is a significant impact of technology in the finance sector.

A host of automated technologies are being used in financial services companies to render the required assignments for the companies.

Where to Set Up a Financial Services Company in Dubai?

Setting up a financial services company in Dubai is a prospective business investment for foreign investors.  There are two main business jurisdictions in which the financial services company can be set up.

The Mainland of Dubai is governed by the Department of Economic Development. The Company can be registered as a Limited Liability Company in Dubai. Financial Services fall under the professional license category.

The investor can also start the financial services as a single-owner company using a professional license from the mainland.

Similarly, the investor can choose the Free Zones in Dubai for setting up their financial services company. The DIFC Free Zone is the prime choice for finance-related companies in Dubai.

There are few Free zones such as the Dubai Airport Free Zone (DAFZA), Dubai Multi Commodities Center (DMCC), etc., that offer cost effective financial services licenses in Dubai.

How to start a financial services company in Dubai?

Central Bank and Emirates Securities and Commodities Authority approval is a mandatory requirement for starting a financial services company in Dubai, UAE. 

Be it in either Mainland or Free Zone, there are certain approvals from the Government entities required for opening a financial services company in Dubai.

Here are the steps to starting a financial services company in Dubai.

1. Choose the business jurisdiction – Free Zones or Mainland
2. Get the Name Approval for the company and choose the business activities from the business jurisdiction.
3. Get the necessary approvals from the Government authorities
4. Prepare the tenancy contract, application form, share capital certificate, and business plan for submitting it to the Government Licensing Authorities
5. Make the required fee payment and obtain the financial services license from the respective licensing authority

The Financial Services Company has a wide range of services to offer ranging from banking, investment, fund management, insurance, and more. It is critical for the investor to choose the right business activities while setting up the company.

Expert Business Consultants at AURION will guide and assist you in choosing the right business activities for the business and set up your business in a hassle-free way.

Free Zones to Choose for opening a Financial Services Company in Dubai

For an overseas investor, starting a financial Services company in any of the Dubai-based Free Trade Zones is an ideal option.

The investor can keep the overall cost low when going ahead with a Free Zone. At the same time, experience world-class business infrastructure and amenities.

1. Dubai International Financial Center (DIFC)

The Dubai International Financial Center is the top choice for starting a financial services company in Dubai. The Free Zone offers the right company formation packages and business amenities for a financial services company.

The investors will get a 3-year UAE residence visa and will be able to conduct financial services from the list of selected business activities under the trade license.

The entrepreneur can choose from Flexi-Desk, executive office, and shared office space depending on the nature of their business operations.

2. Dubai Airport Free Zone (DAFZA)

The proximity of the Dubai Airport Free Zone (DAFZA)   to the airport makes it a convenient location for foreign investors to set up a financial services company.  Also, DAFZA offers a host of business facilities and competitive Company formation packages with office space.

Dubai Airport Free Zone is one of the most prestigious free zones in Dubai and offers immense business benefits for investors. The entrepreneur can get a reputed Dubai Address with office space and business license from DAFZA in less than 2 Working days.

3. Dubai Multi-Commodities Center (DMCC)

The DMCC Free Zone is one of the largest Free Trade Zones in UAE. The Free Zone offers a host of business support services, business activities, and infrastructure.

The Free Zone has office towers in the Jumeriah Lakes Towers area with various specifications as per client requirements. Also, there is a host of business activities under each of the business licenses to choose from for the investor. 

Hence, in a nutshell, there are immense choices available in Dubai to start a Financial Services Company for the investor. Depending on the shareholder requirements and budget, the right business jurisdiction in Dubai can be selected for starting the financial services company.

Connect with our expert team of Business Consultants to know more about the competitive company formation packages available for getting a Financial Consultancy License or starting a financial services company in Dubai.

Contact Us: Aurion Business Consultants

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