Forex Prop Trading License in UAE

Applying For an SCA Forex Prop Trading License – Key Takeaways

  • License issued by the UAE Securities and Commodities Authority (SCA) 
  • License application process takes between 5 – 7 months
  • Categorized as SCA Type 5 authorization which allows for “Arrangement and Advice”
  • A minimum of 3 locals are required: Compliance Officer, Promotion Officer, Head of Category who have passed local exams
  • A budget of $250,000 is recommended

How To Obtain an SCA Prop Trading License?

Forex prop firms interested in obtaining prop trading regulation in Dubai should familiarize themselves with the licensing process:

  • As a starting point, we will initiate a call with your team to discuss the license at length.
  • If both parties agree that the license is a good fit, we’ll begin gathering the required KYC documentation in order to prepare the application.
  • We’ll draft the necessary business plans and policies in order to prepare the application for the SCA to review.
  • Once the application has been submitted we will keep your team posted as soon as the regulator comes back to us
  • Upon successful approval, we’ll assist with the formation of a local company.
  • Upon successful approval of the license, we’ll begin to set up a bank account.

Why Consider Applying For A UAE Forex Prop Trading License? 

The Dubai Securities and Commodities Authority (SCA) has recently presented a regulatory framework for so called “proprietary trading” businesses, often referred to as prop trading firms. As one of the first regulatory bodies to recognize this industry, obtaining a prop trading license in Dubai will make any prop firm a market leader in its own right. Furthermore, Dubai’s ascent as a leading economic powerhouse in the Middle East makes for an excellent combination.

Why Dubai?

Dubai is one of the few jurisdictions offering regulation for FX (forex) prop trading. Be one of the first to operate a licensed prop trading firm!

Important Facts Related to a Forex Prop Trading License in UAE 

  • A physical office and local directors are a strict requirement
  • Paid up capital is set at 500,000 AED
  • Category 5 allows permissions for promotions only
  • A local company is established after license approval
  • The estimated timeline for approval is 5 – 7 months
  • Live trading services aren’t covered by these license permissions, either the broker must upgrade or refer the business to a licensed entity

Forex Prop Trading Regulation by SCA – Permissions Overview 

  • Introducing – Ability to connect traders to licensed brokers
  • Promotion – Permission to promote and market financial products
  • Consultation – It is permissible to provide financial advice to clients
  • Analysis – Licensed prop firms can offer financial analysis

Atomiq Consulting – Your Forex Broker Licensing Partner

Since 2014, Atomiq Consulting has been a global leader for FX & CFD broker license consultation. With a solid track record in offshore and continental licensing, we are the ideal partner to assist you in obtaining a Dubai DFSA forex license. If you are strongly considering a prop trading license in Dubai, we are your ideal partner realizing your dreams. We have a reputation in the industry of getting things right the first time and in effect saving our clients time and money.

How Much Does a Dubai Prop Trading License Cost? Contact Us Today For a Price Quote!

Contact our team of consultants today to learn more about fees, requirements, and a quote for a Dubai Forex Prop Trading License!



    Blog Posts

    View all posts