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Home / Features / Why You Should Trade with Dubai DFSA Regulated Brokers

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Why You Should Trade with Dubai DFSA Regulated Brokers

It is no secret to anyone that the Middle East is recognized for having and manifesting a very conservative approach to business. For the model of government they have, it was seen as a necessity to create an area where the very numerous Sharia laws are followed, but at the same time, allow all companies and entrepreneurs in the world to create a start as the base of all businesses.

As previously written in 2004, the Dubai Financial Services Authority, also known as "DFSA" by its initials, is recognized as the only independent financial regulatory agency. It was founded simultaneously with the establishment of the area Economic Special (DIFC) Dubai International Financial Center in Dubai, United Arab Emirates. In order to grant specific conditions where finance and the economy have their own civil and commercial laws, where this will enable them to have specific conditions that allow development throughout their global environment and allow them to function as a commercial center for the Middle East.

This new model was a great decision due to the fact that, in recent years, indicators that show significant growth have been observed, with an economic boom that contributed to the development of Dubai in all areas, since Dubai is not the same as before, differs from the rest of the United Arab Emirates, which are currently also under the rules of these regulatory entities. The difference is that the DFSA provides a regulatory environment for international standards in the DIFC area, specifically.

So we can ask ourselves a big question: Why should we have a broker regulated by the Dubai Financial Services Authority (DFSA)?

Thanks to the world of globalization and the internet, we have come to know Dubai as a great influence and of great reference in the financial and business world, since it functions as a great commercial center. Many of the entrepreneurs, investors, merchants, and richer people welcome this country to maintain, retain, and increase its wealth. Since the foreign ownership of the company allows operating in Dubai through multiple benefits, including low taxes and maximum returns, while in fact, companies can establish businesses with very little government interference.

We can ask ourselves what advantage does this have for Brokers.

It is very easy to explain, since we find that Dubai opened the doors to many investors from all over the world, with the opportunity to do good business, there was a large influx of stockbrokers opening branches or authorizing their organizations in their jurisdictions. Unfortunately, it was observed that many were not regulated by the DFSA, which of course, carries with it significant risks as they can fall into the fraudulent operation process. However, most UAE brokers are regulated by the DFSA.

The investor or trader should pay special attention to common scam signs, such as: calls from people we do not know, with wonderful opportunities or investments so complex that they cannot understand them, nor should they trust everything that is said. And, of course, to avoid having any contact with unlicensed or unregulated brokers.

In order to verify any company or broker, the necessary step is to verify in the DFSA online list where the information of the broker license that is available in the Public Registry of DFSA appears in detail.

In summary, DFSA regulates more than 600 entities and authorizes hundreds of brokers, while being the guarantor of regulating financial and auxiliary services, supervising and enforcing the requirements.

As investors and merchants doing business in Dubai have some problems and are victims of various scams; due to the possibility of enabling brokerage companies without the DFSA regulator, it is vitally important to choose those companies that have the necessary operating license, that they meet all the requirements and are authorized. Very important, the problems appeared only with unregulated companies operating in Dubai.

As the Dubai Financial Services Authority guarantees the highest quality services to clients through its strict regulation and constant and very promising improvement, a proposal for high liquidity, quality, and reliability of software, security and banking data, as well as standards of client's awareness. To the client, for example, protection from applicable laws is generally available only with brokers regulated by the DFSA.

Therefore, DFSA really helps the markets of Dubai and the Middle East to progress in the industry and to take the necessary steps to facilitate a solid position and a transparent possibility of international supply for investors, brokers, and traders.

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