Dubai is a hub of forex trading. The investors in Dubai have turned to forex trading after the fall of real estate market in Dubai. Since then, forex brokers and trading companies have grown in Dubai, attracting local and foreign investors alike.
About Forex Trading: Forex trading involves two parties where both the parties exchange one foreign currency for the other at the agreed rate. Transactions between both the parties can be settled in 3 ways. The three types of settlements are immediate, future or deferred. Immediate transactions are Spot settlements. Latest figures released by Dubai Economic Development (DED) show that the UAE has recorded the growth of 6.2% which is more than any other Middle East region.
Pros and Cons of Forex Trading: As UAE is tax free, the benefits of forex trading in Dubai are immense. However, many still remain sceptical due to the Forex markets reputation as a risky endeavour. In reality, the major currency pairs haven’t changed more than 30% in the last 10 years and it is only the high leverage trading behavior of the investors themselves that lead to their losses. In fact since each forex trade is a double sided trade, it is possible to make profits no matter which way the market is moving.
Forex Trading in Dubai: Not only local residents of Dubai but anyone from anywhere can register for a forex trading account in Dubai. Forex trading has not only cleared geographical barriers but also time barriers because now you can do forex trading for 24 hours a day and 5 days a week.
Forex Brokers in Dubai: Some people see forex as some get rich quick scheme that they can exploit using an internet connection only. These thoughts are incorrect and may lead to financial disasters. Like any other business, success in forex trading requires correct market information and tools that can turn it into profit. For newcomers to forex trading, it is recommended to get services of a broker who gives correct trading signal on correct time. Those brokers can give correct forex trading signals who are analyzing the market in the right pattern with the help of charts and software. There are many such brokers in Dubai who give correct trading signals in time. There are also many brokers who are not providing the right data and can be labeled as scam. When you are just starting out with forex trading you should take your time and do a detailed research before signing up with a broker. To make your research easier we recommend to check out the list of the most trustworthy brokers on business24-7 for beginning.
Many brokers and forex trading companies provide free demonstration accounts so that prospective clients can gain trading experience first and then trade in real. These demo accounts are also beneficial for experienced traders who can get familiar with the rules of game.
Whether you are an expat in Dubai, or a local, forex trading can earn you a decent passive income stream.