Based on our research we have prepared this guide that will help you to pick the best forex broker for trading in Saudi Arabia.
Best Forex Brokers for trading in Saudi Arabia
List of the overall best brokers in Saudi Arabia:
- IQ OPTION
Finding some really good online forex broker in Saudi Arabia should’t be that difficult as there are countless options on the web. When you browse the Internet you may easily find the most prominent foreign brands welcoming forex traders from Saudi Arabia and offering top notch online trading platforms. The majority of global brokers physically reside either in other Gulf countries (mostly in Dubai) or directly in the U.K., Cyprus (EU Finance Hub) or in Australia.
Forex trading can be very risky if you are not working with regulated broker. In order to pick the right forex trading company, you need to understand how it all works.
Picking a CMA regulated forex broker in Saudi Arabia
The Capital Market Authority (CMA) is the one and only regulatory agency on SA capital market. Its main goal is to raise investor awareness by running various awareness programs. Besides teaching investors the best practices to invest safe on capital markets, main duties are protecting local investors from unfair practice, fraud and scam. Other than that, monitoring and regulating the entities operating on Saudi securities market is the main concern. Probably due to the nature and complexity of the local market, there are hardly any local forex broker offices in Riyadh, Jeddah, Quassim or Dammam or elsewhere in the country, the quite opposite situation is with forex brokers in UAE Dubai which come from Europe or Australia and open their offices mostly in DIFC Dubai. Saudis have been able to trade only with the global brands without their physical presence in the country. But nevertheless you can still trade currencies legally and therefore reap all the benefits of trading with low spreads, no commissions islamic accounts and using the state of the art trading platforms.
Is Forex Legal in Saudi Arabia?
Forex is legal in Saudi Arabia. Although the CMA market regulator just recently issued its first license to one local broker, any big global brand will accept you as a new trader and you can get great trading conditions.
Benefits of trading forex
By working with the top rated global brokers, as a trader, you might be able to reap several advantages:
- Huge Liquidity: the currency market is the largest finance market in the world, there are always buyers, just as there will always be many sellers. Thanks to this, you may expect a certain degree of liquidity and almost immediate trade execution usually under 400 miliseconds with most top rated online trading platforms!
- Accessibility: Currency trading market is accessible almost 24 hours a day, due to trading sessions from cities in other time zones, generally from Monday till Friday evening.
- Small Investments: A potential currency trader can start even with smaller investment of say $500 and invest more later.
- Small Commissions: There are a few brokers in that charge commissions per each traded Lot, these are usually ECN Brokers. But most brokerages earn their profit through the difference in selling and buying price which is so called “spread” in currency pairs.
By picking the right broker, you will ensure that your trading goes flawlessly and hopefully very soon, you will be making steady profits.
Choosing a Forex Broker for traders residing in Saudi Arabia
As a Forex trader, you should know the fact that at the moment there is just one CMA Saudi Arabia regulated forex broker and that is since April 25th 2019 the Riyad Capital (a subsidiary of Riyad Bank). At the moment it is not yet clear which way will the regulatory take in future but most probably they will give licenses only to a selected few just like in Russia instead of allowing free competition on the growing local retail market.
The good news is, almost all big global fx brokers accept forex traders from Saudi Arabia – but generally we can say that only those who have local offices have been regulated by the Capital Market Authority (CMA) . To make sure that your interests and assets are protected, you can check that you are working with a CMA-regulated Forex broker.
Also, when checking out a Forex broker, you should do a deep check of their regulations, as not everything on their website is actually true. Regulation in the finance world mostly in U.K. and EU gets more strict year over year, and luckily these days it is really hard to find a broker that is scam and also regulated in the UK/EU. From experience we can say that the really bad guys who will rip you off are unknown companies located somewhere in the Caribbean without having a local presence in the UK and EU most of them may not be regulated by the world’s most prominent regulatory bodies like FCA UK, CySEC Cyprus or even ASIC Australia – and those unregulated brokers you may want to avoid!