According to a study by UK-based finance company CMC Markets, the UAE is ranked fifth in the world in its interest in stock trading. This places it as the only Arab nation to be in the top 10, primarily driven by the development and listing of major companies over the past decade. As a result, the Arab stock exchanges have exceeded USD 4 trillion (AED 14.69 trillion) by the end of 2022, with the country’s Abu Dhabi Securities Exchange (ADX) reaching USD 714.6 billion (AED 2.625 trillion) in the same year.
With huge trading potential, it’s no wonder many traders are entering the market and using brokerage services. To ensure the best trading experience, finding the best platform that suits personal trading needs is important by looking at its features, rules, deposits, and much more. For interested traders, this article will visit how people can choose the right trading platform in the UAE:
Find platforms that limit loss
With any form of trading or investment, a loss is possible. This is especially true during periods of high economic news, such as when Gulf stocks became volatile when the US government forged an agreement to suspend the USD 31.4 trillion (AED 155 trillion) debt ceiling and cap government spending.
Given these risks, it’s essential to have a platform that can limit loss and ensure you remain profitable. Trading platform Exness established rules for stock trading to minimize losses during special circumstances, such as during the announcement of a stock company’s financial reports. As these moments can cause price gaps, they cap leverage at 1:5 to reduce the risk of heavy losses during these volatile periods. Furthermore, they also increased the margin requirements of newly opened positions after this economic news.
Complies with regulations
The UAE is an open market that accommodates most forms of trading. However, for Muslim traders, it’s essential that they find a brokerage that follows Sharia. Islamic banks have been available. But recently, the UAE’s President, Sheikh Mohamed bin Zayed Al Nahyan has decreed Commercial Transactions Law 2022, expected to boost Islamic financial and banking services through an advanced legislative framework, well-defining concepts, financing formulas, and investment accounts. In return, experts predict that banking and trading will improve overall in accessibility and quality.
With better support for banking services, more companies are working towards accommodating Muslim traders. The leading online trading platform IQ Option introduced Islamic accounts to its Android users, enabling zero-swap trading and exclusive halal assets so Muslim traders can trade on the market without deviating from their faith.
Ensure security and stability
As with any trading broker, security and stability should be paramount. While security safeguards a broker’s capital is safe, stability is an essential part of executing trades at optimal times. One of the best ways to check whether a brokerage firm is licensed is by checking the Dubai Financial Services Authority’s Public Registry. They provide an up-to-date list of authorized firms, individuals, and funds— ensuring that traders are working with safe and reliable platforms.
Plenty of trading platforms are available online, making it challenging to choose the best one. But by looking for key features that fit personal needs, brokers can make the most out of the right platform and facilitate efficient trades. If you’re looking for companies to invest in, visit our post on the biggest trading companies in Dubai for inspiration.