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Forex brokers in Saudi Arabia – what you should know

Forex trading in Saudi Arabia is a very popular business activity. It’s not surprising since this country is one of the economically strongest countries in the world. With that in mind, many Forex brokers in Saudi Arabia offer online trading services on their platforms. Before we see what these brokers are, let’s see the best ways to trade Forex in Saudi Arabia. 

Ways to trade Forex in Saudi Arabia

Local financial authorities regulate forex trading in Saudi Arabia. It’s a safe and secure way to make money, speculating on the value of currency pairs. Before we give you a list of the best Forex brokers in Saudi Arabia, let’s look at all available ways of trading. 

 Here are the main ways to start trading Forex in Saudi Arabia.

  • Online trading platforms
  • Online Forex brokers
  • Retail aggregators
  • Direct market access
  • Futures commission merchants
  • Spread betting providers
  • Contract for difference CFD providers

However, the most common way to trade currencies in Saudi Arabia is by using Forex brokers’ services. The advantage of Forex brokers is that they offer trading education, customer support, and great technical analysis tools.

Why Trade Forex in Saudi Arabia?

Besides the fact it’s one of the strongest economies in the Middle East, here are other reasons why trade Forex in Saudi Arabia.

Well regulated market with many measures to protect investors

A variety of brokerages are present on the market, offering traders many opportunities to make a profit

Saudi Arabia has a strong national currency pegged to the US dollar.

Ways to trade Forex in Saudi Arabia
Source: fxbeginner.net

How to trade Forex in Saudi Arabia

Here are the crucial steps in trading currencies on Forex in Saudi Arabia.

First, you must be aware of the risks of trading currencies in the Forex market. You cannot be 100 percent sure that you will make profits. Knowing the risk means knowing the ways to mitigate them. 

The next step is finding a broker to open your trading account. Before opting for one brokerage, make sure to scrutinize as many offers as possible. Read reviews and testimonials from other traders. 

Once you find the broker and open a trading account, you will need to make a deposit and choose the currency pairs for trading. 

For trading currencies in Saudi Arabia, you have several options to fund your trading account.

Choosing the currency pairs is crucial. So make sure you know everything related to major, minor and exotic pairs and their advantages and disadvantages for trading. 

Before starting trading, if you are a complete beginner, consider taking advantage of free educational materials brokers offer so you can understand the concept of commissions, spreads, and everything related to withdrawing and depositing. 

Also, these materials can help you understand the whole trading process and the best strategies to implement. Most retail investor accounts lose money due to the lack of proper training and education. Therefore, practicing on a demo account is highly recommended before you open your first trade.

How to choose a Saudi Arabian broker

Broker News

Forex trade is seen as haram in Muslim countries. Fortunately, there are Islamic trading accounts that allow you to trade currencies abiding by sharia law. Sharia law postulates that there shouldn’t be interest rates in trading. Also, transactions must take place immediately, without delays. Islamic account is also known as a swap-free account. The Forex brokers we enlisted for you all offer this kind of service. Besides the possibility of trading in accordance with sharia law, you should look for the following factors when choosing the broker: security and credibility of the platform, transaction costs, withdrawal process, and overall trading packages. Also, it’s important that the broker has other assets for trading available so you can diversify your portfolio anytime.

Top Forex brokers in Saudi Arabia for 2023

Interactive Brokers

It is a top broker with ultra-competitive rates, flawless professionalism, and advanced services and tools to monitor your portfolio. It is no coincidence that many asset managers and investment advisers use this broker. Its service offering is also perfectly suited to individual investors.

Interactive Brokers also allow you to invest in most of the major stock exchanges in the world.

If you wish to open a securities account with Interactive Brokers, the procedure is done online and does not present any particular difficulty.

You must provide proof of identity and proof of address.

Interactive Brokers will ask you to fill in general information about your profile (identity, address, nationality, etc.). In addition, Interactive Brokers will ask you for your financial objectives and your level of knowledge of different financial products.

The choice of pricing mode (fixed or decreasing) will depend on the number of orders, the type of support purchased, and the size of the orders. The best pricing method is specific to each investor.

There are no inactivity fees. Or, more accurately, there are no more inactivity fees (there used to be on wallets under $100,000, but they have been removed).

To place orders on securities listed in dollars, pounds sterling, Swiss francs, Swedish krona, etc., you must first convert your euros into the currency of the coveted share. These exchange fees are ultra-competitive.

AvaTrade

AvaTrade

AvaTrade is an Irish broker licensed in Saudi Arabia. The main instrument offered by AvaTrade, the currencies are sufficiently varied. Among the 56 pairs available, there are major pairs, secondary pairs (currency cross), and a certain number of exotic pairs. In the market average, AvaTrade allows the trader to trade from 0.01 lot or the equivalent of 1000 units. 

There are three types of accounts at AvaTrade, each account giving access to different classes of instruments:

The Limited Risk account is ideal for beginners and inexperienced investors because it does not give access to certain very risky/speculative instruments. Protective mechanisms make it possible to know the maximum loss on each transaction in advance, which cannot exceed the capital invested.

The Standard account: this classic account represents the standard offer. It gives access to a wider range of instruments than the limited risk account, with always protects against a negative balance.

The Pro account: this premium account is intended for the most experienced profiles because it gives access to the entire catalog of instruments, including the riskiest and most speculative.

Here are the main points to remember from the range of instruments and markets accessible with the Forex and CFD broker AvaTrade:

XTB broker

This broker offers 49 currency pairs for trading in Forex. The first important point to highlight is the presence of 3 accounts at XTB, each account giving access to different classes of instruments:

The Limited Risk account is ideal for beginners and inexperienced investors because it does not give access to certain very risky/speculative instruments. 

The Standard account: this classic account represents the standard offer. It gives access to a wider range of instruments than the limited risk account, with protection against the negative balance.

The Pro account: this premium account is intended for the most experienced profiles because it gives access to the entire catalog of instruments, including the riskiest and most speculative.

In our opinion, XTB offers enough variety to appeal to all types of customers. The main attraction of its offer is the possibility of negotiating cash shares by being a real owner! CFDs and currencies complete the offer and allow you to diversify. Another advantage likely to appeal to beginners: is the “Limited Risk” account specific to the French market, despite a minimum deposit of €250.

Plus500

The online broker Plus500 does not just urge investors to come and deposit their funds. It offers a very wide catalog of financial instruments with more than 2000 assets, including:

  • A wide selection of currency pairs in its forex section;
  • The main raw materials of the world market: gold, oil, and gas, for example;
  • The most dynamic cryptocurrencies: Bitcoin, Litecoin, Ethereum, etc.;
  • A large selection of stocks distributed by geographical area 
  • Hundreds of options and ETFs.

The trading platform is part of a complex UK financial holding company. The broker was born within the company of Plus500 LTD, a listed company in the London market of the City. Its head office is located in Haifa. The subsidiary Plus500 CY LTD takes care of the provision of stock market services. 

Plus500 has positioned itself in the growth sector of CFDs (for Contracts For Difference) which makes it possible to be remunerated on the price difference between the opening of a position and its closing. The instruments are spread over many financial markets: stocks, cryptocurrencies (including the popular Bitcoin), currency exchange, stock market indices, and even commodities.

It is one of the main sponsors of the Spanish football team Atletico de Madrid. This is a rather positive indicator of the trading company’s overall health and business image.

Capital.com 

The new platform has set the bar high, with more than 100 currency pairs ranging from classic to exotic. That should be enough for the most passionate Forex traders! Capital.com is a trading platform created in 2016 and more recently arrived on the Saudi Arabian market. 

Capital.com was able to quickly attract more than a million users around the world by promoting an ergonomic platform and low fees. Its main advantages are a truly modern platform, which will appeal to novice and experienced traders, a rich and diversified investment universe, no additional costs, and competitive spreads.

Forex brokers in Saudi Arabia – Bottom Line

Will Forex ever end - is there an end to currency trading?

Forex trading is profitable and legal in Saudi Arabia. Many broker companies are present on its market, and the trading process is not different from when you trade from Europe or the United States. The thing is to choose the one that offers the types of accounts, fees, and spread as well as other types of instruments that match your trading goals and your trading profile. 

 

 



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