If you are thinking about signing up with one of the DFSA regulated Forex brokers, then you might be facing yourself with a rather unique situation. Dubai is indeed one of the most populated cities in the United Arab Emirates – and is actually one of the seven Emirates that make the country. It is understandable why this place is also the home of the world’s richest retail traders.
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However, considering that it is an Islamic city, there are several laws and religious customs that you have to be followed. Forex brokers, in particular, have to respect the Sharia law that was made to satisfy various Islamic beliefs.
In a city where most of the profits usually came from oil reserves, tourism, real estate, and aviation, financial services in Dubai are also beginning to take flight. One particular area in Dubai, referred to as the Dubai International Finacial Center (DIFC) is where things take a different route compared to the rest of Dubai – and all the other Emirates as well.
What Does the DIFC Entail?
The DIFC is a federal area that is financially-free – and is also one that occupies around 110 acres of the city of Dubai. It features its own legal system and courts, and it is completely separated from the rest of the country.
It also maintains its own jurisdiction over the corporate, commercial, civil, trust, employment, and security law matters. At the head of the organization is the DFSA – or the Dubai Financial Services Authority.
It is this exact organization that deals with the regulation for the Dubai forex companies – even if it is just a small part. The DFSA oversees the financial activity in that free zone, aiming to provide international standard services. The body that is responsible for the financial markets that are outside the DIFC is called the UAE Federal Securities and Services.
DFSA and DFSA-Regulated Brokers
When the DIFC was first created, a regulatory body also came into existence and that is the DFSA. This independent regulator of financial services oversees all the relevant services that take place in the free zone. These services may include:
- Commodities futures trading
- Credit and Banking Services
- Islamic finances
- International equities exchange
- Trust and custody services
- Asset management
- Collective investment companies
- International commodities derivatives exchange
Other responsibilities may include enforcing anti-money-laundering and counter-terrorism. The DFSA can also conduct investigations of regulated entities – DFSA regulated forex companies included.
How the DFSA Helps with Forex Trading
The DFSA may help you with your Forex trading in several ways. The most obvious ways in which it can prove helpful are the following:
- Giving the latest regulatory news to the consumer
- Helping the consumers in avoiding scams
- Allowing the investors to understand the basic rules
- Offering advice on how to solve various disputes and complaints
- Offering certain details about regulated firms
So, yes, there are various brokerages in the Emirate of Dubai – but most of the time, the advice is to go for DFSA-regulated brokerages.