Best CFD Brokers in UAE

Best CFD brokers in the UAE compared

The table uses facts from each broker's own pages and the regulators' public registers. It lists only what we could check, so there are no spread figures for Pepperstone or Capital.com.

Pepperstone: which entity serves UAE traders?

Pepperstone is licensed by seven regulators: ASIC in Australia, the FCA in the UK, CySEC in Cyprus, BaFin in Germany, the DFSA in Dubai, the SCB in the Bahamas and the CMA in Kenya. According to its UAE site, retail traders in the UAE are introduced by Pepperstone Financial Services LLC (UAE CMA 20200000358, introduction and financial consultation) to the product issuer, Pepperstone Markets Limited, licensed by the Securities Commission of The Bahamas (SIA-F217). Its DIFC firm (DFSA F004356) serves professional clients. It has a Downtown Dubai office, Arabic support and AED deposits through a UAE bank account.

Pepperstone also holds a UAE CMA licence, but it is a Category 5 licence for arrangement and advice to professional clients. It is not a retail trading licence.

The minimum deposit is $10, and you can trade on MetaTrader 4, MetaTrader 5, cTrader and TradingView. The drawback for many UAE traders is the swap-free account: Pepperstone offers it only to residents of an eligible-country list, and the UAE is not on it.

Capital.com: licensed by the UAE Capital Market Authority

Capital Com MENA Securities Trading LLC holds a UAE Capital Market Authority (formerly SCA) Category One dealing licence, No. 20200000176. It is the only one of the three brokers here with a UAE CMA dealing licence. It has no DFSA licence. The wider group is also regulated by the FCA in the UK, CySEC in Cyprus and ASIC in Australia.

Capital.com offers swap-free (Islamic) accounts to UAE residents and AED-denominated accounts. The minimum deposit is $20, there is no trading commission, and there are no deposit, withdrawal or account fees. Withdrawals are processed within 24 hours; how fast the money arrives depends on the payment method.

You can trade on the Capital.com web platform and app, MetaTrader 4, MetaTrader 5 (Expert Advisors supported) and TradingView.

XS: swap-free with no minimum deposit

XS (XS.com) was established in Australia in 2010. It operates through eight entities, licensed by the FSA in Seychelles (SD089), ASIC (374409), CySEC (412/22), the LFSA in Labuan (MB/21/0081), the FSCA in South Africa (53199), the FSC in Mauritius (GB25204786) and the UAE CMA (20200000339), plus a commercial licence in Kuwait.

Its UAE CMA licence is a Category 5 licence for arrangement and advice. It is not a retail trading licence, and XS has no FCA or DFSA licence, so UAE residents trade with one of its international entities. Check which entity your account agreement names.

XS spreads start from 0.1 pips on EUR/USD (Elite account, $6 round-turn commission, $500 minimum). The Standard account has no minimum deposit and no commission, with spreads from 1.1 pips on EUR/USD. XS offers a swap-free account, and you trade on MetaTrader 4 and MetaTrader 5.

Crypto CFDs for UAE traders

A crypto CFD lets you trade the price of Bitcoin or another coin without owning it. No coin is held for you, so there is nothing to withdraw to a wallet. Our guide to what a crypto CFD is explains the costs, including overnight financing.

Capital.com offers crypto CFDs under its UAE entity. For Pepperstone and XS, crypto CFD availability depends on the entity that opens your account, so check on the broker's own site before you deposit.

If you want to own coins and move them to your own wallet, you need a crypto exchange, not a CFD broker. See crypto exchange vs broker for the difference.

How to choose a CFD broker in the UAE

Check these points before you open an account.

• Licence: look the firm up on the regulator's own register, not on the broker's website. For onshore firms, use the UAE Capital Market Authority (formerly SCA). For firms in the DIFC, use the DFSA public register.
• Licence type: an arrangement and advice licence is not a dealing licence. Make sure the licence covers trading with retail clients.
• Legal entity: your account agreement names the company that holds your money. Make sure it is the licensed one.
• Swap-free terms: read whether a fee replaces the swap and which products the account covers.
• Fees: compare spreads, commission and overnight financing together. A broker with no commission still earns from the spread.
• Platforms: if you use Expert Advisors, you need MetaTrader 4 or 5. All three brokers offer both.
• Deposits and withdrawals: check whether you can hold an account in dirhams and how long withdrawals take. Capital.com offers AED accounts and processes withdrawals within 24 hours.

What a CFD is, and the risk

A CFD (contract for difference) is an agreement with a broker to exchange the change in an asset's price between the moment you open a trade and the moment you close it. You get exposure to the price without owning the asset.

CFDs use leverage: a small deposit controls a larger position. Leverage magnifies gains and losses alike, and you can lose your deposit quickly. Most retail CFD accounts lose money. Before you trade, read the percentage of retail accounts that lose money on the broker's own site.

Islamic (swap-free) CFD accounts in the UAE

A swap-free account does not charge or pay overnight swap on positions held past the daily rollover. A broker may charge a fee instead or limit the products the account covers, so read its terms.

Capital.com and XS offer swap-free accounts to UAE residents. Pepperstone's swap-free account is limited to an eligible-country list, and the UAE is not on it. For many UAE traders, that is the reason to choose Capital.com.

This describes a product feature, not a religious ruling. Whether a swap-free account meets your requirements is a question for a qualified scholar.