UAE SCA / CMA Forex Broker License

A CMA (formerly SCA) forex license is issued by the Capital Markets Authority (CMA) of UAE and allows firms to operate regulated forex and CFD brokerage services in the United Arab Emirates. This license offers several unique advantages, namely access to local banking in UAE, the ability to legally market & offer services in UAE; as well as global recognition. Category 5, the most popular license classification, allows FX brokers to legally advertise and establish a presence in UAE. The Securities and Exchange Commission (SCA) was previously responsible for the regulation of forex & CFDs in UAE, however, it was replaced by CMA in 2026.

CMA / SCA Forex Broker Forex License Highlights

  • Establish a presence in the financial hub of the Middle East
  • The Capital Markets Authority (CMA) regulates forex activity in UAE
  • Capital requirements starting at 500,000 AED (~$150,000)
  • SCA is the previous regulator of forex & CFDs in UAE which has been replaced by CMA
  • Local office in UAE required
  • A minimum of 3 local directors required
  • Category 5 is the most popular license category, with 4 others issued by CMA

UAE CMA Forex Broker License Terminology

When exploring forex licensing in UAE, certain terms require explanation in order to fully understand the licensing process.

SCA: Securities and Commodities Authority

Prior to 2026, the Securities and Commodities Authority (SCA) of UAE issued Category 5 licenses. As a result of the passage of Federal Decree-Laws No. 32 and 33 of 2025, SCA was retired and replaced with the Capital Markets Authority (CMA).

CMA: Capital Markets Authority

The current regulator of forex & CFDs in UAE is the Capital Markets Authority (CMA). One can visit the official SCA website for more details.

DED: Department of Economic Development

DED stands for Department of Economic Development. While the UAE Securities and Commodities Authority (SCA) must approve all licensed activity, the initial company formation happens and is approved by the UAE DED.

NOC

A No Objection Letter (NOC) represents a step in the license application process. Issued by the Department of Economic Development (DED), this letter affirms that the applicant can proceed with the application process upon meeting certain conditions. The NOC document can be viewed as a type of license pre-approval and is valid for a fixed time period.

What is a SCA / CMA forex license License?

The term “SCA / CMA forex license” is commonly used to describe a Financial License, which is issued by the Capital Markets Authority of UAE. A financial license allows forex & derivatives along with stock, futures, and options brokers to legally operate in the UAE. Note the previous regulatory authority overseeing these licenses was the Securities And Commodities Authority (SCA) of UAE. In 2026, the Capital Markets Authority replaced SCA.

Key Highlights

  • Officially classified as a Financial License
  • Issued and regulated by the Capital Markets Authority (CMA)
  • Allows forex & CFD trading
  • The Securities And Commodities Authority (SCA) was the former regulator

How to get a SCA License in UAE? – Step-by-Step Application Process

    1. Initial Consultation: Review your business plan, corporate structure, and target services with our licensing experts.
    2. Company Incorporation: Form a UAE onshore or free‑zone entity aligned with SCA requirements.
    3. Document Preparation: Our team will work with your broker to draft governance manuals, KYC/AML policies, financial projections, and compliance frameworks.
    4. Application Submission: Upon a full review with our team we’ll officially submit your application.
    5. Staff Recruitment: During the application review, we’ll assist in filling the mandatory job roles required by SCA. While each category is different, there are a minimum of 3 roles to be filled which consist of executive, compliance, and promotional roles. 
    6. Regulatory Review: Respond promptly to any SCA clarification requests during the evaluation period.
    7. License Pre-Approval: Upon pre-approval, 6 months are allotted to fulfill regulatory requirements: office rental, hiring of key staff members, and injection of capital. 
    8. Bank Account Setup: Establish a UAE corporate bank account to handle client funds and operational capital.

UAE SCA License Categories Explained

License Category Description
Category 1: Securities Trading For companies engaged in buying, selling, or trading securities such as stocks and bonds within UAE markets.
Category 2: Investment Management Covers portfolio management, operating investment funds, and offering wealth-building strategies.
Category 3: Custody, Clearing & Registration Applicable to firms providing clearing, settlement, and safekeeping of securities transactions and ownership records.
Category 4: Credit Rating For businesses offering independent credit assessments of corporations and financial instruments.
Category 5: Advisory & Arrangement Ideal for financial advisors and consultants who structure deals or provide investment guidance.

    1. How Much Does It Cost to Obtain a UAE Forex License?

      Based on our professional experience, the recommended budget for a CMA / SCA forex license is $400,000 – $500,000 USD. Note that the majority of this budget consists of capital and staff salaries, some of which can be spent throughout the fiscal year.

      Item Details
      Capital 500,000 AED (~$150,000)
      Local Office Starting at $1,500 USD / month
      Monthly Staff X 3

      Starting at $10,000 / month
      Annual Audit & Accounting Fees $3,000 – $5,000 per annum
      License Application & Government Fees  $10,000 – $15,000
      License Consultation Fee Contact our team for a price quote
      Taxes 0% of net profits

      How Long Does it Take to Apply For a CMA Forex License?

      Our experience has shown that a new application for a CMA forex license will take approximately 6 – 7 months. This estimate is based on our positive track record of licenses approvals. We are happy to provide references if needed.

      CMA Forex License Application: Timeline Breakdown

      • Gather KYC: 1 month
      • Prepare the application, draft documentation, company formation: 2 months
      • Submit application & await CMA feedback: 3 – 4 months
      • Apply for bank account: 1 month

      How Does a CMA Forex License Compare to Other Jurisdictions?

        Parameter CMA Category 5 Mauritius Vanuatu Seychelles
        Capital $500,000 AED $33,000 $50,000 $100,000
        Approval Timeline 6 – 7 months 6 – 7 months 7 – 9 months 7 – 9 months
        Market Making Permissions No Yes Yes Yes
        Bank Quality Excellent Acceptable Low Acceptable
        Regulator CMA FSC VFSC FSA
        Suggested Budget $300,000 $100,000 $150,000 $200,000

        Apply for an SCA License Today with Atomiq Consulting!

        1. Is a CMA Forex License Suitable for Your FX Brokerage Business?

          The United Arab Emirates is a rapidly growing and highly desirable jurisdiction for FX broker licensing. A license in the UAE puts your broker at the same playing field as the industry’s top players. With that in mind, this license is not for every broker, as we outline below.

          ✔ UAE May Be a Good Choice If:

          • Your broker has regulation in another jurisdiction.
          • Your firm has a budget that covers capital, office rent, and local directors.
          • Your broker is growing with an active client book of business.
          • You have an experienced sales, dealing and marketing team to support the brokerage.
          • You intend to target UAE and the MENA region as an expansion plan.

          ✘ You Should Consider Another Jurisdiction If:

          • Your broker is a start up firm.
          • You currently have no other licensing.
          • Your broker is new with a limited base of clients.
          • You do not have a dealing, marketing, or risk management team.
          • Your broker is on a limited budget or still in the fundraising phase.

          For new brokers / startups, an excellent entry point to the market would be St. Lucia. Excellent entry level license jurisdictions to consider would be Mauritius or South Africa.

      Looking to Obtain a Prop Trading License in UAE?

      UAE is the first jurisdiction to offer regulation for prop trading. By applying for a license under Category 5, it is popular to legally operate a prop firm in the UAE. To learn more about prop trading regulation, don’t hesitate to contact our team.

          1. Why Apply For A SCA FX Broker License?

        The United Arab Emirates has emerged as the fastest growing economic and fintech hub in the Middle East. Tax incentives and ease in business formation has witnessed a massive flow in capital from all parts of the world into UAE. Similar to operating out of London, Limassol, or Sydney, having a presence in Dubai is a sign to investors that your firm is a serious industry player. While many brokers prefer to maintain headquarters in other parts of the world, a Category 5 license has emerged as the most popular option as it allows a broker to maintain a presence in Dubai without needing to migrate the entire operation. Finally, the geographic position of UAE allows brokers to easily target both Asia and Europe, serving as a bridge between both continents.

          Apply for an SCA License Today with Atomiq Consulting!

      Atomiq Consulting specializes in forex & CFD regulation in the United Arab Emirates. To learn more about the license application process, ongoing charges, and address any other questions related to a forex broker license in UAE, don’t hesitate to contact us.

        1. Applying For a SCA Forex License in UAE – Key Takeaways

          • SCA will shortly be merged to UAE’s CMA Capital Markets Authority
          • The Securities and Commodities Authority (SCA) has a total of 5 license types
          • Category 5: Advisory & Arrangements is the most popular license category
          • A minimum of 500k AED is needed for SCA regulation
          • Regulations mandate a physical office in UAE
          • A minimum of 3 local directors are required

         

          Related Licensing Opportunities

          Forex brokers interested in exploring regulation in the UAE may also wish to consider jurisdictions in other parts of the globe. The regions below represent some of the best complements to an UAE forex broker license. Finally, we wish to highlight the brokers we currently have on sale via our online marketplace as well as crypto licensing services.

          Dubai DFSA Forex License

          The UAE is unique to other jurisdictions where it has multiple regulatory authorities within the same country. A forex license issued by the DFSA can be an excellent complement to an SCA forex license.

          Labuan Forex License

          A Labuan forex license is an excellent compliment to UAE regulation, especially for brokers looking to target traders in Southeast Asia.

          Crypto Licensing Solutions

          Many brokers are expanding into digital assets and crypto-related services. We assist clients with a variety of cryptocurrency licensing options worldwide.

          Licensed Brokers for Sale

          For firms seeking immediate market entry, it often makes sense to buy a forex license as a faster alternative to a fresh license application.

          UAE SCA Forex License – FAQ

          Are there any SCA licenses for sale?

          We often have SCA licenses on sale. Due to relatively fast approval period for a license application, it is rare to find licenses on sale. We suggest visiting our online Marketplace to see the latest offers.

          What is DED and how does it relate to SCA / CMA licensing?

          DED stands for Department of Economic Development. While the UAE Securities and Commodities Authority (SCA) must approve all licensed activity, the initial company formation happens and is approved by the UAE DED.  

          What are the local director requirements for SCA licensing?

          UAE has relatively hefty local substance requirements. The minimum number of directors for any license category would be 3 qualified individuals. 

          What is NOC? Why is it part of the forex broker license application process?

          In UAE, a No Objection Letter (NOC) represents a step in the license application process. Issued by the Department of Economic Development (DED), this letter affirms that the applicant can proceed with the application process upon meeting certain conditions. The NOC document can be viewed as a type of license pre-approval and is valid for a fixed time period. 

          What is the paid up capital for SCA licensing?

          Capital is dependent upon the license category but starts at 500,000 AED.

          Why is Category 5 so popular?

          A Category 5 license is the easiest to obtain with the least amount of requirements. Due to the growth of Dubai as a financial hub, many brokers prefer to establish a regulated presence in UAE while maintaining headquarters elsewhere, as such a Category 5 license best fits these requirements.  

          How long does it take to obtain SCA licensing in the UAE?

          Approval is dependent upon license category with a minimum expectation of 6 months.

           

          About the Author

          This article was written by Jonathan Baumgart, Founder and CEO of Atomiq Consulting. With over a decade of experience in the forex industry, Jonathan specializes in helping businesses launch brokerages and navigate global licensing requirements.


          Connect with Jonathan on LinkedIn



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