Zornitsa Stefanova
Zornitsa Stefanova is a Financial Research and Platform Testing Analyst at BestBrokers.com, specialising in hands-on reviews of forex, cryptocurrency and stock trading platforms. She evaluates brokerage companies from a user-focused perspective, testing key areas such as account setup, trading conditions, platform usability, available markets and overall reliability.
| Updated: More and more people worldwide are choosing forex as their preferred trading vehicle and residents of the Kingdom of Saudi Arabia are no exception. The country reported an average trading volume of $7.39 billion in 2025, representing a 23% increase from $5.82 billion three years earlier. If you, too, are looking to jump on the band wagon and start trading forex, we invite you to take a look at our experts’ selection of Saudi Arabia-friendly brokers.
Fusion Markets74-89% of retail's CFD accounts lose money
FP Markets73.33% of retail investor accounts lose money
BlackBull MarketsTrading leveraged products is risky
Pepperstone73.7% of retail investor accounts lose money
Global Prime74-89% of retail CFD accounts lose money
Capital.com69% of retail investor accounts lose money when trading CFDs with this provider.
IG69% of retail client accounts lose money when trading CFDs with this investment provider.
FxPro74% of retail investor accounts lose money
Plus500 USThis content applies only to Plus500 US and clients from the United States. Trading futures involves the risk of loss.
eToro52% of retail investor accounts lose moneySaudi Forex Brokers Ranked by Trustpilot Score
| Forex Broker | Trustpilot Reviews | |
|---|---|---|
| 1. FP Markets | 9,422 | 4.9 ⭐ |
| 2. Fusion Markets | 4,873 | 4.8 ⭐ |
| 3. BlackBull Markets | 2,681 | 4.8 ⭐ |
| 4. Global Prime | 341 | 4.7 ⭐ |
| 5. Capital.com | 13,311 | 4.6 ⭐ |
| 6. Pepperstone | 3,144 | 4.4 ⭐ |
| 7. IG | 8,324 | 3.9 ⭐ |
| 8. Admirals | 2,046 | 3.8 ⭐ |
| 9. Iron FX | 863 | 3.5 ⭐ |
| 10. FxPro | 751 | 3.2 ⭐ |
Saudi Forex Brokers Ranked by Spread Commission
| Forex Broker | EURUSD | USDJPY | EURGBP | GBPUSD |
|---|---|---|---|---|
| 1. Admirals | 0.7 | 1.1 | 0.9 | 1.1 |
| 2. Fusion Markets | 0.90 avg (Classic) | 1.04 avg. (Classic) | 1.03 avg. (Classic) | 1.04 avg. (Classic) |
| 3. Global Prime | 1.00 avg (Standard) | 1.20 avg (Standard) | 1.16 avg (Standard) | 1.18 avg (Standard) |
| 4. FxPro | 1.49 | 1.85 | 1.56 | 1.9 |
| 5. FP Markets | 1.17 | 1.64 | 1.40 | 1.43 |
| 6. IG | 0.86 avg. spread | 0.97 avg. spread | 1.83 avg. spread | 1.84 avg. spread |
| 7. Capital.com | 0.7 | 1.2 | 2.0 | 1.4 |
| 8. Iron FX | 1.2 | 0.9 | 1.0 | 1.3 |
| 9. Pepperstone | 1.10 (avg.) | 1.20 (avg.) | 1.30 (avg.) | 1.20 (avg.) |
| 10. BlackBull Markets | 0.8 | 0.8 | 1.4 | 0.8 |
Saudi Forex Brokers Ranked by Commission per Lot
| Forex Broker | Commission per lot |
|---|---|
| 1. Iron FX | $0 Standard Account; $18 Live Zero Fixed Spread; $10 STP/ECN Zero Spread; $6 STP/ECN Zero Spread Professional |
| 2. BlackBull Markets | $0 (Standard); $6 per lot (Prime); $4 per lot (Institutional) |
| 3. IG | $0 |
| 4. Capital.com | $0 |
| 5. Fusion Markets | $0 on Classic accounts; $4.50 per round turn on ZERO accounts |
| 6. FP Markets | Standard account: $0; Raw account: $6 round-turn per lot |
| 7. Admirals | $3 per lot |
| 8. Global Prime | $0 on Standard accounts; $7 round-turn on Raw accounts |
| 9. Pepperstone | $0 (Standard Account), $7 round-turn (Razor Account) |
| 10. FxPro | $0 on Standard Account; $3.50 per side on Raw+ and Elite Accounts |
Important Note: In Saudi Arabia, the supervisory body that regulates the local financial market is the Capital Market Authority (CMA). You can follow the CMA on the social media platform X, formerly Twitter, at @SaudiCMA or @SaudiCMA_En. The regulator’s website is also available in English in addition to Arabic, and you can pay a visit to its homepage at https://cma.org.sa/en/. Another entity that plays a key role in the regulation of the financial sector in the Kingdom is the Saudi Central Bank, often referred to as SAMA, which stands for its prior name (Saudi Arabian Monetary Authority).
Top 12 FX Brokers in Saudi Arabia
Fusion Markets Broker Details Supports Arabic No Saudi Currency (SAR) No Regulators ASIC, FSA (Seychelles), VFSC (Vanuatu) Min Deposit $0 Trading Platforms MetaTrader 4, MetaTrader 5, cTrader, DupliTrade, Fusion+ Copy Trading, TradingView Trustpilot Rating 4.8 out of 4,873 reviews Number of CFD Forex Pairs to Trade 90+ Leverage Forex & Metals CFDs: 1:30 (1:500 for forex and metals via the VFSC entity)
Index CFDs: 1:5
Cryptocurrency CFDs: 1:2 (ASIC), 1:10 (FSA, VFSC)Spread EURUSD: 0.90 avg (Classic)
USDJPY: 1.04 avg. (Classic)
EURGBP: 1.03 avg. (Classic)
GBPUSD: 1.04 avg. (Classic)Forex Commission per Lot per Trade $0 on Classic accounts; $4.50 per round turn on ZERO accounts Deposit Methods Visa, Mastercard, PayPal, Skrill, Neteller, FasaPay, Jeton Wallet, Perfect Money, OnlineNaira, DOKU, Bitcoin, Ethereum, Litecoin, USDT, Tether, Ripple, Bank Wire, ZotaPay, VNPAY, DuitNow, XPay, Dragonpay, VAPay, AstroPay, PayID, JetonBank, STICPAY, Interac, LuqaPay, MiFinity Withdrawal Methods Visa, Mastercard, Bank Wire, Skrill, Neteller, Bitcoin, Ethereum, Litecoin, Tether, Ripple, MiFinity, Interac, PayPal, AstroPay, Jetonbank, Dragonpay Key Pros
- Offers some of the lowest spreads
- ASIC clients have negative balance protection
- Supports popular trading platforms
- Offers two copy trading platforms
- Supports fiat and crypto payment methods
Key Cons
- Does not offer investor protection
- Traders outside Australia do not have negative balance protection.
- Accounts cannot be set up in minor currencies.
- Does not have an FCA license
- 2. FP Markets
Overall Score 4.37/5READ REVIEWTRADE NOW 73.33% of retail investor accounts lose moneyFP Markets Broker Details Supports Arabic No Saudi Currency (SAR) No Regulators ASIC, CySEC, FSA (Seychelles), FSCA, FSA (St. Vincent and the Grenadines), SCB (Bahamas), FSC (Mauritius) Min Deposit $50 (AU$100) Trading Platforms MetaTrader 4, MetaTrader 5, WebTrader, IRESS, cTrader, TradingView Trustpilot Rating 4.9 out of 9,422 reviews Number of CFD Forex Pairs to Trade 70+ Leverage Forex & Metals CFDs: 1:30
Index CFDs: 1:20
Cryptocurrency CFDs: Up to 1:2 (retail clients); up to 1:5 (professional clients)Spread EURUSD: 1.17
USDJPY: 1.64
EURGBP: 1.40
GBPUSD: 1.43Forex Commission per Lot per Trade Standard account: $0; Raw account: $6 round-turn per lot Deposit Methods Visa, Mastercard, Neteller, Bank Transfer, Skrill, SticPay, FasaPay, Virtual Pay, Perfect Money, PagSmile, Dragonpay, Crypto, Apple Pay, Google Pay, Online Banking, Broker-to-Broker, PayPal, XPay, Rapyd Withdrawal Methods Visa, Mastercard, Bank Wire, Neteller, Skrill, PayTrust88, PayPal Key Pros
- Offers a good selection of educational tools for traders
- Competitive spreads
- Easy mobile trading
- Regulated by reputable authorities
- Offers a wide range of currency pairs
Key Cons
- Some supported trading platforms feel outdated.
- Could expand its product selection
- No investor compensation protection for clients under ASIC regulation
BlackBull Markets Broker Details Supports Arabic Yes Saudi Currency (SAR) No Regulators FSA (Seychelles, No. SD045), FMA (No. FSP403326) Min Deposit $0 (Standard)$0 (Prime)$20,000 (Institutional) Trading Platforms MetaTrader 4, MetaTrader 5, TradingView, cTrader, MT WebTrader, BlackBull Shares, BlackBull CopyTrader, BlackBull Trade, BlackBull Invest, ZuluTrade Trustpilot Rating 4.8 out of 2,681 reviews Number of CFD Forex Pairs to Trade 70+ Leverage Forex & Metals CFDs: 1:500
Index CFDs: 1:500
Cryptocurrency CFDs: 1:500Spread EURUSD: 0.8
USDJPY: 0.8
EURGBP: 1.4
GBPUSD: 0.8Forex Commission per Lot per Trade $0 (Standard); $6 per lot (Prime); $4 per lot (Institutional) Deposit Methods Visa, Mastercard, Neteller, Airtm, Skrill, bank transfer, HexoPay, American Express, POLi, Payment Asia, Help2Pay, FXPay, FasaPay, China UnionPay, Boleto, AstroPay, Beeteller, Bitcoin, Ethereum, Tether, Ripple, Litecoin, Bitcoin Cash, Chainlink, USD Coin, Stellar Withdrawal Methods Visa, Mastercard, bank transfer, Airtm, Skrill, Neteller, American Express, POLi, HexoPay, Payment Asia, Help2Pay, FXPay, China UnionPay, Boleto, FasaPay, Beeteller, AstroPay, Bitcoin, Litecoin, Bitcoin Cash, Tether, Ripple, Stellar, Chainlink, Ethereum, USD Coin Key Pros
- Uses a proprietary copy-trading platform
- Swap-free trading via ECN Standard and ECN Prime accounts
- Multi-platform support
- Provides 24/7 customer support
- Strong education hub for traders looking to hone their skills
Key Cons
- High commissions per lot on Prime and Institutional accounts
- Charges a $5 withdrawal fee
- 4. PepperstoneOverall Score 4.19/5READ REVIEWTRADE NOW 73.7% of retail investor accounts lose money
Pepperstone Broker Details Supports Arabic Yes Saudi Currency (SAR) No Regulators ASIC (No. 414530), UK FCA (No. 684312), CySEC (No. 388/20), BaFin (No. 151148), DFSA (F004356), CMA (128), SCB Bahamas (SIA-F217), FSA (SD108) Min Deposit $0 Trading Platforms MetaTrader 4, MetaTrader 5, cTrader, TradingView Trustpilot Rating 4.4 out of 3,144 reviews Number of CFD Forex Pairs to Trade 90+ Leverage Forex & Metals CFDs: 1:30
Index CFDs: 1:20
Cryptocurrency CFDs: 1:2Spread EURUSD: 1.10 (avg.)
USDJPY: 1.20 (avg.)
EURGBP: 1.30 (avg.)
GBPUSD: 1.20 (avg.)Forex Commission per Lot per Trade $0 (Standard Account), $7 round-turn (Razor Account) Deposit Methods Visa, Mastercard, PayPal, Bank Transfer, BPAY, Neteller, Skrill, Apple Pay, Google Pay, UnionPay, POLi, USDT, M-Pesa Withdrawal Methods Visa, Mastercard, PayPal, Bank Transfer, BPAY, Neteller, Skrill Key Pros
- Winner of multiple industry awards
- Commission-free FX trades via Standard accounts
- Over 1,200 instruments across all major asset classes
- Competitive spreads on FX trades via Razor accounts
- Seamless withdrawals within 1 to 3 business days
Key Cons
- A somewhat limited range of deposit and withdrawal options
- High swap rates on overnight positions
Global Prime Broker Details Supports Arabic No Saudi Currency (SAR) No Regulators ASIC (No. 385620), VFSC (No. 40256) Min Deposit $0 Trading Platforms MT4, MT4 WebTrader, MT4 Android, MT4 iOS; for VFSC clients: MT4, MT5 (Desktop, WebTrader, Mobile), and GP Copy Trustpilot Rating 4.7 out of 341 reviews Number of CFD Forex Pairs to Trade 59 Leverage Forex & Metals CFDs: 1:500 (1:30 for ASIC entity)
Index CFDs: 1:100 (1:20 for ASIC entity)
Cryptocurrency CFDs: Up to 1:2 (ASIC); up to 1:5 (Pro and VFSC)Spread EURUSD: 1.00 avg (Standard)
USDJPY: 1.20 avg (Standard)
EURGBP: 1.16 avg (Standard)
GBPUSD: 1.18 avg (Standard)Forex Commission per Lot per Trade $0 on Standard accounts; $7 round-turn on Raw accounts Deposit Methods Visa, Mastercard, PayPal, Skrill, Neteller, Gate8, Dragonpay, FasaPay, VNPay, Pagsmile, BPAY, POLi, AstroPay, Bank Transfer, Interac, Perfect Money, PayID, Jeton, MiFinity, XPay, Crypto Withdrawal Methods Mastercard, Visa, Local Bank Transfer, Bank Wire Transfer, Skrill, Neteller, AstroPay, PayPal, Dragonpay, Perfect Money, Jeton, Interac, Cryptocurrencies
Key Pros
- Overseen by a top-tier financial regulator (ASIC)
- No fees on deposits and withdrawals
- Low fees for FX trading
- Streamlined sign-up process
- A broad range of currency pairs
Key Cons
- Could offer more trading platforms
- Limited range of educational resources
- Does not offer Islamic or cent accounts
ActivTrades Broker Details Supports Arabic No Saudi Currency (SAR) No Regulators FCA (UK), CMVM (Portugal), CVM (Brazil), SCB (Bahamas), FSC (Mauritius) Min Deposit $0 Trading Platforms ActivTrader, TradingView, MT4, MT5 Trustpilot Rating 3.9 out of 1,251 reviews Number of CFD Forex Pairs to Trade 56 Leverage Forex & Metals CFDs: 1:30 (1:400 under the Bahamas entity)
Index CFDs: 1:20 (1:200 under the Bahamas entity)
Cryptocurrency CFDs: 1:2 (1:20 under the Bahamas entity)Spread EURUSD: 0.50
USDJPY: 0.50
EURGBP: 0.80
GBPUSD: 0.80Forex Commission per Lot per Trade $0 Deposit Methods Visa, Mastercard, PayPal, Apple Pay, Google Pay, Skrill, Neteller, Bank Transfer, Cryptocurrencies Withdrawal Methods Visa, Mastercard, PayPal, Skrill, Neteller, Bank Transfer, Cryptocurrencies Key Pros
- Has held an FCA license since 2009
- Safeguards all traders with negative balance protection
- Stores client funds at top-tier banks such as Barclays and Lloyd’s
- Supports free PayPal deposits and withdrawals
Key Cons
- Additional fees apply to card deposits
- Charges administrative fees after 50 weeks of inactivity
IG Broker Details Supports Arabic Yes Saudi Currency (SAR) No Regulators ASIC, FCA, DFSA, CFTC, FMA, FINMA, BaFin, MAS, JFSA, FSCA, BMA (Bermuda) Min Deposit $0 Trading Platforms MetaTrader 4, L2 Dealer, ProRealTime, IG proprietary software, TradingView Trustpilot Rating 3.9 out of 8,324 reviews Number of CFD Forex Pairs to Trade 90+ Leverage Forex & Metals CFDs: 1:30
Index CFDs: 1:20
Cryptocurrency CFDs: 1:2Spread EURUSD: 0.86 avg. spread
USDJPY: 0.97 avg. spread
EURGBP: 1.83 avg. spread
GBPUSD: 1.84 avg. spreadForex Commission per Lot per Trade $0 Deposit Methods Visa, Mastercard, Bank Transfer, Wire Transfer, Visa Electron, Discover, PayPal, Apple Pay, BPAY Withdrawal Methods Visa, Visa Electron, Mastercard, Discover, Bank Transfer Key Pros
- Extensive selection of over 17,000 tradable markets
- Listed on the FTSE 250 index
- Competitive pricing and low forex spreads
- No fees on most deposits or withdrawals
- Demo accounts for risk-free forex trading practice
Key Cons
- Limited payment options
- Customer support can be slow to respond during busy hours
Admirals Broker Details Supports Arabic No Saudi Currency (SAR) No Regulators CySEC (No. 201/13), ASIC (No. 410681), FCA (No. 595450), JSC (No. 57026), FSCA (No. FSP51311), EFSA (No. 4.1-1/46), CMA (No. 178), CIRO, FSA (No. SD073) Min Deposit $100 ($1 for the Invest MT5 account) Trading Platforms MetaTrader 4, MetaTrader 5, WebTrader, MT Supreme Edition, StereoTrader Trustpilot Rating 3.8 out of 2,046 reviews Number of CFD Forex Pairs to Trade 82 Leverage Forex & Metals CFDs: 1:30
Index CFDs: 1:20
Cryptocurrency CFDs: 1:2Spread EURUSD: 0.7
USDJPY: 1.1
EURGBP: 0.9
GBPUSD: 1.1Forex Commission per Lot per Trade $3 per lot Deposit Methods Visa, Mastercard, Skrill, Klarna, bank transfer, PayPal, Neteller, iDEAL, POLi, Perfect Money, and cryptocurrencies Withdrawal Methods Bank transfer, Visa, Mastercard, PayPal, Neteller, Skrill, and Perfect Money Key Pros
- Over 8,000 markets available
- 80+ forex pairs tradable as CFDs
- Swap-free forex accounts for Islamic customers
- Offers forex trading in micro lots
- No fees on deposits
Key Cons
- Only one free withdrawal per calendar month
- Not publicly traded on a stock exchange
FxPro Broker Details Supports Arabic No Saudi Currency (SAR) No Regulators FCA (No. 509956), CySEC (No. 078/07), FSCA (No. 45052), SCB (No. SIA-F184), FSA (No. SD120) Min Deposit $0 Trading Platforms MetaTrader 4, MetaTrader 5, cTrader, FxPro Edge (proprietary) Trustpilot Rating 3.2 out of 751 reviews Number of CFD Forex Pairs to Trade 70+ Leverage Forex & Metals CFDs: 1:30
Index CFDs: 1:20
Cryptocurrency CFDs: 1:2Spread EURUSD: 1.49
USDJPY: 1.85
EURGBP: 1.56
GBPUSD: 1.9Forex Commission per Lot per Trade $0 on Standard Account; $3.50 per side on Raw+ and Elite Accounts Deposit Methods Visa, Mastercard, Maestro, Domestic Bank Transfer, International Bank Transfer, Neteller, PayPal, Skrill, UnionPay, Broker-to-Broker Transfer Withdrawal Methods Bank Transfer, Mastercard, Visa, UnionPay, Maestro, PayPal, Skrill, Neteller Key Pros
- Over 2,100 CFDs across eight asset classes
- Zero fees on deposits and most withdrawals, provided the account has had trading activity
- Floating spreads with no commissions on MT4 FX trades
- Winner of over 100 industry awards
- Fills orders in less than 8 milliseconds
Key Cons
- FX spreads are slightly higher than industry averages
- Charges fees on withdrawals from accounts with no trading activity
CMC Markets Broker Details Supports Arabic Yes Saudi Currency (SAR) No Regulators FCA, ASIC, MAS, CIRO, BaFin, FMA, BMA, DFSA Min Deposit $0 Trading Platforms MT4, MT5, TradingView, Next Generation (proprietary) Trustpilot Rating 4.3 out of 2,571 reviews Number of CFD Forex Pairs to Trade 330+ Leverage Forex & Metals CFDs: 1:30
Index CFDs: 1:20
Cryptocurrency CFDs: 1:2Spread EURUSD: 0.5 (min)
USDJPY: 0.7 (min)
EURGBP: 0.8 (min)
GBPUSD: 0.9 (min)Forex Commission per Lot per Trade $0 for forex trading Deposit Methods Visa, Mastercard, Maestro, Online Banking, Bank Transfer, PayPal, PayID, Online Bill Payment, PayNow, Inward Telegraphic Transfer, Checks, OnlineNaira Withdrawal Methods Visa, Mastercard, PayPal, Bank Transfer, Electronic Funds Transfer (EFT) Key Pros
- A reputable brand listed on the LSE
- One of the first online forex brokers
- Covers an extensive selection of currency pairs (330+)
- Offers a proprietary trading platform (Next Generation)
- Enables smooth mobile trading
Key Cons
- Automated trading is available only on MetaTrader 4
- Fees on stock CFDs can be high
- Supports a limited number of withdrawal methods
City Index Broker Details Supports Arabic No Saudi Currency (SAR) No Regulators FCA (No. 446717), MAS (No. 201130598R), ASIC (No. 345646), HKFSC (BCQ152), JFSA (2010401047199), DFSA (F000542) Min Deposit $0 ($150 for Singapore and Australia) Trading Platforms MT4, WebTrader, Trading App, TradingView Trustpilot Rating 4.2 out of 393 reviews Number of CFD Forex Pairs to Trade 84+ Leverage Forex & Metals CFDs: 1:30 (1:20 for Singapore)
Index CFDs: 1:20
Cryptocurrency CFDs: 1:2Spread EURUSD: 1.4
USDJPY: 1.3
EURGBP: 1.5
GBPUSD: 1.5Forex Commission per Lot per Trade $0 on forex trades; 1.8 CPS for US shares ($10 minimum); 0.08% for other shares ($10 or A$5 minimum) Deposit Methods Visa, Visa Electron, Mastercard, Maestro, PayNow, Bank Transfer, Online Banking, PayPal, PayID, BPAY, EFT, Bill Payments Withdrawal Methods Mastercard, Visa, Visa Electron, Maestro, PayPal, Bank Transfer Key Pros
- No commissions on forex spread betting and CFDs
- Lightning-fast speed of order execution
- Long track record spanning over 40 years
- Over 1 million registered customers
- Excels in delivering quality educational content
Key Cons
- No support for MT5 for the time being
- Higher min. deposit requirements compared to rival brokers
- Spread betting is limited to specific jurisdictions
Iron FX Broker Details Supports Arabic Yes Saudi Currency (SAR) No Regulators FCA (license no. 585561), FSCA (license no. 45276), CySEC (license no. 125/10) Min Deposit $100 Trading Platforms MetaTrader 4, WebTrader, VPS, PMAM, TradeCopier, Mobile App Trustpilot Rating 3.5 out of 863 reviews Number of CFD Forex Pairs to Trade 80+ Leverage Forex & Metals CFDs: 1:30
Index CFDs: 1:20
Cryptocurrency CFDs: 1:2Spread EURUSD: 1.2
USDJPY: 0.9
EURGBP: 1.0
GBPUSD: 1.3Forex Commission per Lot per Trade $0 Standard Account; $18 Live Zero Fixed Spread; $10 STP/ECN Zero Spread; $6 STP/ECN Zero Spread Professional Deposit Methods Visa, Mastercard, Bank Wire, Skrill, Neteller, China Union Pay, Fasapay, Perfect Money, Bitwallet, Paysafecard Withdrawal Methods Bank Wire Key Pros
- Offers a wide selection of trading instruments
- Supports MT4
- Enables easy trading on the go via a dedicated app
- Supports various deposit methods
- Traders can choose from 7 different account types
Key Cons
- The Bahamas entity operates with no license
- Platforms like MT5, TradingView, and cTrader are not supported
- Withdrawals are possible only via bank wire
Is Forex Trading Legal in Saudi Arabia?
Neither the Capital Market Authority (CMA) nor the Saudi Central Bank (SAMA) prohibit the trading of foreign exchange currencies, and international brokers can accept Saudi traders as long as they have the approval of the Kingdom’s financial authorities. As it stands, a number of brokers have entered the Saudi Arabian market seeking to cater to the many forex traders in the region, and to great success.
Some entities bear the seal of approval of the CMA, while others are regulated strictly by foreign but trusted financial supervisory bodies in the MENA region, such as the Financial Services Regulatory Authority (FSRA) in Abu Dhabi and the Dubai Financial Services Authority (DFSA). Also, brokers regulated by the Securities and Commodities Authority (SCA) in the UAE typically allow Saudi clients to open trading accounts as long as they complete the necessary identification and know-your-customer procedures.
As suggested, at the time of writing, forex brokers do not necessarily need to be licensed specifically by the CMA or SAMA in order to accept forex clients. However, it is generally a good idea to stick to locally licensed brokers or ones that are regulated by a supervisory body that has a good reputation in the international trading scene.
It should also be noted that a number of the forex brokers suitable for Saudi Arabia offer multiple account types that clients can choose from depending on their eligibility and preferences. Some account types are reserved for retail traders, while others can only be opened by professionals. Plenty of brokers also offer swap-free Islamic accounts. The prevalence of these accounts is a direct result of Sharia law, which prohibits the charging or receiving of interest (Riba). Swap-free accounts specifically cater to this requirement by eliminating overnight rollover interest and swap charges.
Capital Market Authority (CMA) Regulation Info
SAMA is the primary regulator of licensed banks and money-changing businesses, while the CMA focuses on non-bank financial institutions and the capital market. In its role as Saudi Arabia’s capital markets watchdog, the CMA has duties that encompass a wide range of regulatory rules that are centered around the Kingdom’s finance sector. The CMA has the authorization to regulate the capital market, monitor companies, penalize financial service businesses that operate in Saudi Arabia when necessary, and more. It also keeps investors safe from fraudulent schemes and other such dangers.
In 2019, the CMA issued its first forex license, which was granted to Riyad Capital, authorizing them to conduct dealing and money managing activities that cover forex brokerage services. Other CMA-licensed entities like Al-Rajhi Capital and Derayah Financial also offer international trading and brokerage services to clients in the Kingdom.
How Can I Verify CMA Authorization?
In general, you will not face much difficulty while trying to confirm that a given forex broker is licensed. This type of information is typically provided on the broker’s website, either in the footer or on a separate page. If the CMA has granted the company its seal of approval, this is where you will be able to see the broker’s CMA license. You will also find information regarding the other licenses the said broker has managed to earn and hold onto.
In the case of CMA licensing, if you do not completely trust a given broker and wish to find details on their regulatory oversight elsewhere, the regulator’s website has a register that includes all CMA-authorized entities. Over 210 licensees are currently featured in the register, including various brokers, investment management firms, custodians, and financial advisors.
Are My Funds Safe with Forex Brokers in Saudi Arabia?
Whether your funds are safe at Saudi Arabia-facing brokers is something you will not need to worry about, provided you stick with regulated brands. The vast majority of supervisory entities have strict rules in place that demand companies do their due diligence to keep users’ funds secure. As a result, client funds are held in segregated bank accounts, preventing them from being mixed with the broker’s operational capital.
This measure is mandatory for CMA-licensed brokers and is a fundamental pillar of investor protection globally. Fund segregation ensures that client assets cannot be used for the broker’s operational needs or to cover its debts in the unlikely event of insolvency. Encryption algorithms are also utilized, specifically with regard to the transactions undertaken by users, as well as trader data in general. Of course, all of this applies to strictly regulated brokers.
Another security measure utilized by brokers looking to attract Saudi traders is two-factor authentication (2FA), which is used when logging in to one’s account. This technology requires clients to verify their identity using a secondary method in addition to their password. This second verification step often involves receiving a unique confirmation code via a text message, email, or a dedicated third-party authentication application. Many properly licensed brokers also participate in investor compensation schemes, ensuring everyone gets their money back should a broking firm become insolvent.
Last but not least, we have negative balance protection, a core aspect of the way many forex brokers treat their retail clients. As suggested by its name, this service will ensure that no retail trader’s account will be able to incur a negative balance, which is why it has become such a popular tool in the global forex scene. The feature’s popularity was also boosted by an event that occurred in 2015 when the Swiss national bank scrapped the Swiss franc’s peg to the euro. This led to devastating consequences for retail investors, as many lost more money than they had held in their accounts.
Do Brokers in Saudi Arabia Provide Negative Balance Protection?
Once again, this is a matter of what entity your broker is licensed by. Regulatory authorities such as the UK’s FCA and the Securities Commission of the Bahamas, for instance, mandate that negative balance protection be offered to retail traders. Therefore, if you are a retail trader and your broker’s regulator has such a rule in place, then you can be certain that you will be offered negative balance protection.
Things differ for pros, however. Since the aforementioned rule does not apply to those who trade forex for a living, many brokers do not offer this service to their professional users. This is one aspect of professional trading that can be considered a downside. We recommend Saudis and all retail traders, in general, to avoid using the services of brokers without negative balance protection. We consider this the bare minimum a broker must cover to protect its clients against crippling losses.
Do You Pay Taxes on Forex Trading in Saudi Arabia?
At the time of writing, there is no personal income tax on individuals in Saudi Arabia, which means forex profits realized by individual retail traders are generally exempt from taxation. A 20% corporate tax applies to the net profits of foreign-owned entities and non-Saudi shares of a mixed company’s capital gains.
Saudi and Gulf Cooperation Council (GCC) nationals are subject to Zakat, which is the main tax consideration for them. It is an Islamic levy of 2.5% applied to assessable wealth or the business’s Zakat base. Said base is calculated as the total Zakat-eligible assets minus the deductible liabilities, and includes investment holdings.
Given the complex nature of the distinction between individual and business income, the possibility of laws changing, and the potential consequences should you be caught off guard by unfamiliar legislation, it is best that you consult a professional tax advisor in Saudi Arabia before you start trading.
Leverage Comparison at Saudi Arabia and Offshore Forex Brokers
This will be reliant on the regulator of your broker of choice, specifically the one that oversees the operations of the broker’s Saudi Arabia-facing business. For example, brokers licensed by the Securities Commission of the Bahamas can offer leverage of up to 1:200 to retail clients. This is a far wider leverage than what traders in most European countries, the UK, and even the outlier that is Poland, can utilize. US regulators also impose a more modest limit of 1:50.
The professional leverage of many licensed brokers, on the other hand, is usually a much more familiar 1:500. Traders might also come across brokers where the permitted leverage for pros is not capped at all, which can certainly make the said brokers quite tempting to try out. Keep in mind some brokers accepting Saudi traders offer leverage as high as 1:1000 or 1:3000 to all customers regardless of their trading volume and experience level. Of course, the larger the leverage, the higher the risk of incurring substantial losses, so even pros will need to limit themselves when trading.
Eligibility Criteria for Becoming a Professional Trader in Saudi Arabia
Becoming a professional is the long-term aspiration of many forex traders, and it certainly comes with a range of perks. One such advantage is the ability to trade with large or, in some jurisdictions, unlimited leverage. If you wish to qualify for a professional account at your forex broker of choice, you will need to meet two of three requirements as specified by your broker.
The first such condition is to have a trading portfolio that exceeds $/€500,000. Next, you may also qualify if you have worked as a professional in the financial services sector for no less than a year. Last but not least, having made notable trades at least 10 times per quarter over the last four quarters is another factor that can make you eligible for a professional account at your forex broker of choice.
What Trading Platforms Are Available to Traders in Saudi Arabia?
There are no particular regulatory restrictions on what platforms Saudi Arabian traders can utilize, which means that one’s choice of platform will primarily depend on the forex broker they decide to stick with. Some brokers have gone through the effort to create a proprietary platform, with XTB being an example of a broker that only offers its own platform to clients. There are also brokers that offer multiple options in addition to their own software, however, or simply rely on third-party platforms entirely.
As already mentioned, many forex brokers catering to Saudi forex traders will allow them to apply for Islamic accounts that do not charge swaps on positions left open overnight. The availability of trading platforms supporting swap-free trading varies across different brokers, but both MetaTrader iterations will usually be viable for traders seeking to use an Islamic forex account.
Regardless of what platform you go with, you will find that you will not have any issues keeping track of your trading account while you are out and about. Pretty much all modern forex platforms support both desktop and mobile devices.
MetaTrader 4 (MT4): This platform is among the most widely known pieces of trading software in the online forex sphere. It has been around since 2005, and it now boasts compatibility across desktop and mobile devices alike. MT4 supports the trading of various assets, including currency pairs, and its trading signals enable automated copy trading.
MetaTrader 5 (MT5): MT5 is another Metaquotes piece of software that became the favorite of many forex enthusiast, including traders who reside in Saudi Arabia. Just like its predecessor, MT5 is available at plenty of online brokers, and it facilitates the trading of forex, cryptocurrencies, and more. MT5 is also suitable for those interested in stocks.
cTrader: With a variety of chart types, 60+ technical indicators, an intuitive interface that provides users with thorough symbol information, and a market sentiment indicator tool, cTrader has established itself as a competitive platform option in the online trading scene. The software became available in 2011, and it is compatible with Windows and Mac machines, along with smartphones.
With the forex market steadily growing in Saudi Arabia, forex traders may need to become better familiarized with their local regulatory landscape and who they can turn to should they come across issues. That is why we have provided a few links that can be useful to Saudi Arabian forex traders:
- Capital Market Authority (CMA): To be able to provide financial services to traders in Saudi Arabia, forex brokers are required to obtain permission from the CMA.
- The validity of any license issued by the local regulator can be checked on the official website of the CMA by looking for the entity on the regulator’s registry page.
- To regulate the forex sector in Saudi Arabia, the CMA works in conjunction with the Saudi Arabian Monetary Agency (SAMA).
- Forex brokers can also offer trading services to investors in Saudi Arabia as long as they hold a valid license issued by other top-tier regulators. Such organizations include ASIC, the FCA, and BaFIN, to name a few. These regulators tend to impose strict rules that include leverage limits, negative balance protection, and additional investor protection tools.
- Other MENA Regulators: Saudi traders should also check the websites and official licensee registers of the DFSA in Dubai, SCA in the United Arab Emirates and FSRA in Abu Dhabi, if they plan on joining a MENA-regulated broker.
- To warn Saudi Arabian traders about the issues that may arise from unregulated forex trading, SAMA, the CMA, and the Ministry of Commerce have launched an awareness campaign.
About the Editorial Team