The Emirate of Dubai is one of the seven emirate states that make up the United Arab Emirates (UAE). Its capital city is the city of Dubai which is also known as the “City of Gold” for its flourishing gold trade. However, Dubai is best known as a leading international financial center in the Middle East. According to the 2007 MasterCard Worldwide Centers of Commerce Index, it is ranked as one of the top 50 financial centers in the world.
Since the inception of the Dubai International Financial Center (IFC) in 2004, Dubai has attracted many leading financial services providers and institutions to establish their operations in the emirate. The hive of financial activities in Dubai has also resulted in many investors reaping lucrative profits.
With the large number of affluent investors residing in the Middle East, Dubai has also become the regional hub for online financial investments such as spot forex, CFDs and binary options.
One of the fastest growing areas of growth in the Dubai financial sector is the online binary options trading industry. Many Dubai traders looking for lucrative returns for their money in the shortest possible time have turned to binary options trading to achieve their investment objectives. It is important to find the best possible binary trading platform.
Best Binary Options Broker in Dubai
While there are many binary options brokers whom a Dubai based binary options trader can sign up with, we highly recommend that traders only trade with the best binary options brokers Dubai has to offer. Below is our list of recommended binary options brokers.
In order for Dubai to succeed as the regional financial hub, it has to ensure that it is capable of providing investors with a safe and secured environment to invest in. For this main reason, the Dubai financial market is strictly regulated to prevent criminal activities such as money laundering and financial fraud. Hence, only financial services providers which have met the strict regulatory requirements imposed by the emirate of Dubai are permitted to operate in the Dubai IFC.
To acquire authorization to operate in the DIFC, Dubai binary brokers must fulfill the following regulatory requirements:
- Provide a risk disclosure statement signed by the client
- Verification of equivalent regulation of recognized jurisdictions such as Cyprus and the UK
- Possess a verified operations track record
- Possess qualified staffs with a minimum of 5 years experiences in retail financial products
- Segregate and monitor clients including all complaints made by the client
- Possess a system and control dealing with trade settlement limits
- Have in place an effective risk control measure
It should be noted that the emirate of Dubai is one of seven emirates in the UAE. Its financial markets are regulated at 2 distinct levels by different regulatory agencies. For activities within the Dubai IFC, the main regulatory oversight is provided by the Dubai Financial Services Authority (DFSA). The responsibilities of the DFSA include coming up with policies that will fulfill the objectives of the Dubai IFC and control its future direction. Apart from fulfilling the regulatory requirement set by the DFSA, financial services providers wishing to set up operations in the Dubai IFC must also register and license their operations with the DIFC Registrar.
For activities that fall outside the Dubai IFC, the regulatory oversight falls under the federal authority of the UAE Government. The regulatory bodies that are in charge of policing the financial industry of the UAE as a whole include the Central Bank of the UAE, the Emirates Securities and Commodities Authority (ESCA) and the Ministry of Economy Planning. Investments and Banking comes under the jurisdiction of the Central Bank while the ESCA handle the supervision of specific sectors of the securities and investment industry. Finally, the planning and monitoring of the UAE’s economic policies is carried out by the Ministry of Economic Planning.
Deposit Methods Available In Dubai
Being the main financial hub of the Middle East and as a host country to millions of migrant workers, Dubai has a well established money transfer infrastructure. As such, all Dubai binary options brokers accept major credit cards such as MasterCard, VISA, JCB, Diners and American Express. There also many local and international banks which provide remittance services hence making the process of moving money in and out of Dubai relatively simple and quick. Online fund transfers that are executed through web wallets such as PayPal are also supported by many binary options brokers in Dubai.
For money transfers that occur within the DIFC, there are no transfer restrictions. However in line with anti money laundering protocols, financial institutions are still required to report to the authorities any large transfer of money. Beginning from 2018, the UAE will also start imposing a VAT on remittances.
For income earned within the UAE, they are only subjected to relatively low taxes. In addition, the UAE government has signed tax treaties with numerous countries to avoid double taxation.
- Is it legal to trade binaries in Dubai?
As an international financial hub, Dubai has a friendly attitude towards bona fide financial investments. Also to encourage financial trading activities in the Dubai IFC, the DFSA approve of financial trading activities such as forex trading and binary option trading.
- Are binaries regulated in Dubai?
Binary options are regarded as financial investment products and as such are regulated by the DFSA.
- How to trade binaries in Dubai?
The procedure for trading binary options in Dubai is the same as in other countries. To start trading binary options in Dubai, a binary options trader first have to open a trading account with a binary options broker. Once the trader has deposited his trading funds and verify his identity, he can already begin his trading activities.
The regulatory oversight provided by the DFSA ensures transparency and stability for the binary options trading industry in Dubai. Regulated brokers are only permitted to operate once they can demonstrate high liquidity, ability to provide quality services in a secure trading environment.