Dubai Financial Market Brokers 2024
Dubai Financial Market (DFM) brokers offer access to one of the three stock exchanges in the UAE alongside the Abu Dhabi Securities Exchange and Nasdaq Dubai. The first two are mostly made up of UAE companies, while the latter was created for trading international stocks. This investing tutorial explains listing requirements and rules, the top brokers with access to the Dubai Financial Market, trading tips and more. Find out how to compare the best DFM brokers in 2024.
Dubai Financial Market Exchange Brokers
These are the 1 best brokers for trading on the Dubai Financial Market:
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1
eToro51% of retail investor accounts lose money when trading with this provider. eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk. Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong.
Ratings/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5
$100$10FCA, ASIC, CySEC, FSA, FSRA, MFSA, CNMV, AMFStocks, ETFs, Options, CryptoeToro Web, CopyTrader, TradingCentralVisa, Skrill, Neteller, Wire Transfer, Rapid Transfer, Swift, Debit Card, iDeal, Klarna, Sofort, Trustly, Przelewy24USD, EUR, GBP
Here is a short overview of each broker's pros and cons
- eToro - eToro is a top-rated multi-asset platform which offers trading services in thousands of CFDs, stocks and cryptoassets. Launched in 2007, the brand has millions of active traders globally and is authorized by tier one regulators, including the FCA and CySEC. The brand is particularly popular for its comprehensive social trading platform. Crypto Trading is offered via eToro USA LLC; Investments are subject to market risk, including the possible loss of principal. CFDs are not available in the US Cryptoasset investing is highly volatile and unregulated in the UK and some EU countries. No consumer protection. Tax on profits may apply. 51% of retail accounts lose money.
eToro
"eToro's social trading platform leads the pack with a terrific user experience and active community chat that can help beginners find opportunities. There are also competitive fees on thousands of CFDs and real stocks, plus excellent rewards for experienced strategy providers."
Christian Harris, Reviewer
eToro Quick Facts
| Demo Account | Yes |
|---|---|
| Instruments | Stocks, ETFs, Options, Crypto |
| Regulator | FCA, ASIC, CySEC, FSA, FSRA, MFSA, CNMV, AMF |
| Platforms | eToro Web, CopyTrader, TradingCentral |
| Minimum Deposit | $100 |
| Minimum Trade | $10 |
| Account Currencies | USD, EUR, GBP |
Stock Exchanges
eToro offers trading on 25 stock exchanges:
- Australian Securities Exchange (ASX)
- Borsa Italiana
- CAC 40 Index France
- DAX GER 40 Index
- Deutsche Boerse
- Dow Jones
- Dubai Financial Market
- Euronext
- FTSE UK Index
- Hang Seng
- Hong Kong Stock Exchange
- IBEX 35
- Japan Exchange Group
- Korean Stock Exchange
- London Stock Exchange
- Nasdaq
- Nasdaq Nordic & Baltics
- National Stock Exchange Of India
- New York Stock Exchange
- Russell 2000
- S&P 500
- SIX Swiss Exchange
- Shanghai Stock Exchange
- Taiwan Stock Exchange
- Tokyo Commodity Exchange
Pros
- The web platform and mobile app perform better in user reviews and app rankings than top competitors, including AvaTrade
- eToro has bolstered its investment offering, most recently with new crypto assets, now offering over 90 digital currencies
- Top copy traders can receive annual payments up to 1.5% of assets under copy in the broker's Popular Investor Program
Cons
- There is a $30 minimum withdrawal amount and a $5 fee, which will affect novices with low capital
- There are limited contact methods aside from the in-platform live chat
- The lack of additional charting platforms like MT4 will reduce the appeal for seasoned day traders accustomed to using third-party software
How To Choose Dubai Financial Market Brokers
The key factors to consider when comparing brokers that support trading on the Dubai Financial Market include:
Regulation
Dubai Financial Market brokers must hold relevant licensing to offer DFM securities to retail investors. All Dubai Financial Market brokers registered within the United Arab Emirates must comply with the guidance of the Securities Commodities Authority (SCA) and the Central Bank of UAE.
You should research whether your chosen brokerage is licensed to operate with a top-tier authority and verify this by visiting the website of the financial watchdog.
Tools
Look out for Dubai Financial Market brokers that provide access to educational content, intuitive trading platforms, mobile apps and additional features such as copy trading.
Integrated economic calendars and live news streams are also ideal for staying in the loop with UAE company publications and local economy health, which may influence your decisions when it comes to investing in the Dubai Financial Market index.
Customer Support
The best Dubai Financial Market brokers will provide reliable and responsive customer support options. This may include via email, live chat or toll-free telephone number available within the market’s operating hours.
Language flexibility should be a key consideration, especially if you are not of Arabic nationality. Tailored contact options should be available regardless of your country of residency.
Payment Methods
Look out for Dubai Financial Market brokers that offer local deposit and withdrawal solutions as well as internationally recognized payment methods. Global credit cards may be the most suitable so you can fund a trading account and begin investing right away.
Remember, the majority of Dubai Financial Market brokers may only offer account denominations in the UAE Dirham, so take currency exchange fees into consideration if this is not your local money.
Commission-free payment solutions should be top of your list, with third-party charges covered by the broker particularly advantageous. Fast withdrawal times are also important to look out for. Don’t be kept waiting to withdraw your hard-earned profits from DFM brokers.
Dubai Financial Market Background
The Government of Dubai owns 79.63% of the Dubai Financial Market through Borse Dubai Limited. The DFM conducts business in full compliance with the Islamic Sharia laws and is regulated by the Securities and Commodities Authority. In terms of capitalization, which is the total value of all of the shares of all of the securities traded on the Dubai Financial Market, the exchange comes in at around $119 billion USD.
Importantly, the DFM is a major stock market in the region, attracting local and global investors. Traders can speculate on leading real-estate companies, financial services providers, plus telecommunications via registered Dubai Financial Markets brokers.
A Brief History
The Dubai Financial Market Company (DFM PJSC) was founded on the 26th of March 2000. It was created as a public institution with an independent legal entity via the Government of Dubai and operated this way for six years.
Up until November 2006, the Dubai Financial Market was fully owned by the Government of Dubai, but at this point, it turned into a public shareholding company through an IPO and was divided into 8 billion shares. This led to 20% of shares (equating to 1.6 billion shares) going to the public and 80% being subscribed by Borse Dubai which the Dubai government owns. The public offering received unprecedented demand with subscriptions coming to AED 201 billion, meaning that DFM’s IPO was oversubscribed by 118 times.
In 2007, the Dubai Financial Market became the first regional exchange to be publicly listed, and in 2010, the Dubai Financial Market consolidated operations with Nasdaq Dubai. This means that investors can now access listed securities via online brokers for both DFM and Nasdaq with just one Investor Number.
In 2013, the United Arab Emirates was upgraded to Emerging Market Status by MSCI and some stocks were included in the MSCI Emerging Markets Index in May 2014.
In 2015, the Dubai Financial Market redesigned and launched an application called DFM Market Watch, allowing traders to check investments and markets more seamlessly.
Today, the number of listings comes to 66 companies, around three-quarters of which are in the financial (60.7%) and real estate (17.1%) sectors, with other firms in telecommunications, transportation, and industrials, among others. Most of these companies are operating within the UAE, but the market is receiving more interest from outside investors and foreign ownership is on the rise since 2019. The majority of foreign companies listed on the Dubai Financial Market are from the MENA region, including countries such as Bahrain, Sudan, Kuwait and Oman. The top DFM brokers offer access to all companies listed.
There has not been an IPO listed on the DFM since the year 2017, but the DFM is continuously trying to bring in local companies and encouraging them to list there rather than abroad. Efforts include letting companies in Dubai’s free zones list and letting family companies list.
How Does The Dubai Financial Market Work?
The Dubai Financial Market was established with the goal of offering securities trading services. With Dubai being a financial hub, the DFM has seen much success since it was established. The stock exchange is currently open to investors of any nationality based in any country via online DFM brokers. In addition, any individual or institution can apply for an Investor Number (NIN) with the Dubai CSD.
The DFM takes several measures to prevent unfair treatment of investors by regulating trading activity on securities. Therefore, the prices of the securities on DFM are determined by supply and demand, rather than by an individual entity. Stakeholders are given all relevant statistics and facts about securities in the form of reports. This is to ensure that investors have all of the information that is necessary to make informed decisions.
Listing Requirements
In order for the shares of a company to be traded on the DFM, there are specific listing requirements and rules that must be met. Firms must provide a description of their operations and company history. Importantly, the performance of the company must be strong if they are to attract investors looking to buy shares through brokers that support trading on the Dubai Financial Market. If the performance of the company is deemed to be good enough, then a certain number of shares will be made public.
Listed companies on the Dubai Financial Market will also be required to maintain either their market value or share turnover higher than a level determined by DFM. The company is at risk of being delisted if this requirement is not met.
The Dubai Financial Market General Index
The DFM General Index is a tool that traders can use to see how the market is performing. This means that investors do not have to look through all 66 stock charts for every company listed. This index tracks the general market performance for the entirety of the DFM. Several top DFM brokers offer insights and access to the index.
In terms of performance in recent years, the DFM General Index had its worst year in more than a decade in 2018 with a loss of nearly 25%. This rose again the following year by around 10%. The outlook remains uncertain in the wake of the Russia-Ukraine war.
Growth
Despite the above, the DFM has one of the most steady growth rates in the world. During the 2008 financial crisis, most companies were experiencing decreases in performance and growth, and for many companies, this has remained the same ever since. And unsurprisingly, when companies are performing poorly, this tends to have a negative effect on the financial market of the country they are listed in.
However, this hasn’t applied to the Dubai Financial Market, which has seen the number of traded shares routinely increase since it was conceived in 2000. Since its launch, the exchange has moved from having only 11 companies listed to the 66 that it has now.
How To Invest In The Dubai Financial Market
Investing in the DFM is straightforward. The stock exchange makes specific efforts to ensure the process is efficient for all investors, including through the development of a Dubai Financial Market app, which allows traders to monitor their investments. To get started, individuals need to open a trading account with registered Dubai Financial Market brokers. They also need to obtain a Dubai Financial Market Investor Number.
As is the case with any kind of stock trading, it is wise to look into the company and sector that you are investing in and be aware of the level of risk that you are willing to take prior to taking a position. See our stock trading guide for strategy tips.
Final Word On DFM Brokers
Since its conception, the Dubai Financial Market has been one of the best-performing exchanges in the United Arab Emirates. It has seen fairly steady growth since it was established and was able to maintain relative success even during the global financial crisis of 2008. See our list of top brokers with access to the Dubai Financial Market to start investing today.
FAQs
What Timezone Do Dubai Financial Market Brokers Operate?
The Dubai Financial Market uses the Asia/Dubai timezone, also known as Gulf Standard Time. Currently, this timezone is GMT+04:00 and uses the abbreviation +04. This timezone does not follow Daylight Saving Time.
What Currency Is Used When Trading With Brokers Offering The Dubai Financial Market Index?
The Dubai Financial Market trades in Emirati Dirhams, using the currency code AED. The symbol for this currency is د.إ. You may need to exchange your local currency to AED when trading with Dubai Financial Market brokers.
What Are The Dubai Financial Market Trading Hours At Online Brokers?
The Dubai Financial Market is open Monday – Friday from 10:00 until 14:45 Gulf Standard Time (GMT+04:00). The best DFM brokers offer uninterrupted market access during this period.
Who Owns The Dubai Financial Market?
Until 2006, the DFM was fully owned by the Government of Dubai, but after this, it was turned into a public joint-stock company through an IPO. From this point onwards, 20% of the shares were sold to the public and 80% were subscribed by Borse Dubai, which is owned by the Government of Dubai.
Where Is The DFM located?
As the name suggests, the Dubai Financial Market location is Dubai, United Arab Emirates. Global investors can still speculate on listed stocks if they meet eligibility requirements. Note, leading DFM brokers may be based elsewhere in other major investing hubs.
Are DFM Brokers Regulated?
The best DFM brokers and platforms are regulated by the Central Bank of UAE or trusted international agencies, such as the UK Financial Conduct Authority. The DFM is also regulated by the Securities and Commodities Authority (SCA). This helps ensure that investors receive a degree of security and have channels to raise issues.