Best DFSA (Dubai) Regulated Forex Brokers 2018
Dubai is the main banking hub of the Middle East, where Forex trading is taken very seriously and is closely monitored by the DFSA. With a wide selection of DFSA brokers to choose from, how can you know which is the best? FXEmpire has carried out in-depth research to come up with the leading Dubai brokers. See the list inside.
Introduction to DFSA Regulation
The DFSA is an acronym which stands for Dubai Financial Services Authority. It is the regulator for trading and financial related activities such as securities, banking, asset management, trusts, commodities and derivatives when it comes to firms operating within the Dubai International Finance Centre; more specifically within the Special Economic Zone (SEZ). It is the sole independent regulator of the aforementioned services in this zone.
The major responsibility of The DFSA is to create investor confidence through a number of ways; the first being creating, amending and enforcing policies that govern all companies that fall under its mandate. In order to carry out business that is related to financial services, firms must first submit their application to the DFSA expressing their interests and proving their capabilities to legally operate in this zone. The applications are assessed and based on this, the firm is either granted a license to operate or the application is rejected, citing appropriate reasons for the same. DFSA believes in mitigating risk for all industry players by setting objectives for them to achieve in the best way possible without infringing on any legislation.
Aside from the firms, individuals dispensing their duties within the authorized firm also need to be licensed to ensure that they fully understand the legal framework within which they should operate. DFSA also maintains a list of authorized audit firms that the licensees are required to use in order to maintain integrity and enhance investor confidence in the financial industry.
How DFSA Regulation Protects You
The whole DFSA operation revolves around risk. As such it is imperative that they carry out market research in order to single out any impending risk and stay ahead of the curve in this regard. So before investors in this industry can be exposed to unnecessary risk, the DFSA will have identified, assessed and mitigated it. They also carry out random supervisory visits at all firms that operate under its mandate to make sure that their operations are in line with the rules and regulations of the industry. In addition to this, the DFSA has the power to carry out investigations where firms are suspected to have gone against existing regulation. This ensures that there is no breach of legislation thereby creating an environment fit for honest business.
Guidelines for DFSA Regulated Brokers
Regulated brokers are meant to act within the confines of the law which includes classifying all their clients into their rightful group so as to accommodate the diverse public and serve them better. Taking into account that unscrupulous businesses often take different forms, the DFSA expects that firms will strictly adhere to KYC (Know Your Customer) guidelines in order to prevent unlawful activities such as money laundering. A good number of policies have been put in place to make sure that regulations are adhered to. For example, each firm is required to maintain a predefined amount of capital to ensure that there are no solvency issues at any time. This figure is based off a number of factors including the audit report availed by appointed auditors and the resulting credit rating of the firm in question.
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List of Brokers
|BROKER||USER RATING||REGULATED BY||HEADQUARTERS||MIN. DEPOSIT||OFFICIAL SITE|
|ASIC, CySEC, FCA||Israel||$100||Open Account|
|ASIC, BVI, FSA(JP), FSB, MiFID||Ireland||$100||Open Account|
|ASIC, CySEC, FCA||Cyprus||$200||Open Account|
|CySEC, FSB||Cyprus||$100||Open Account|
|BaFin, FCA||United Kingdom||$300||Open Account|