The short answer: the UAE has three financial regulators that can license a forex broker, and which one matters depends on where the broker sits. The Capital Market Authority (CMA) covers the onshore UAE, the Dubai Financial Services Authority (DFSA) covers the Dubai International Financial Centre, and the Financial Services Regulatory Authority (FSRA) covers Abu Dhabi Global Market (ADGM). For retail traders, the DFSA and FSRA run almost identical rulebooks: leverage capped at 30:1 on major currency pairs, a forced close-out when margin runs low, and negative balance protection. What none of them can do is protect you if your account is actually held by an offshore company in the same group, which is common.
The three UAE regulators at a glance
- Capital Market Authority (CMA): the federal regulator for the onshore UAE. It replaced the Securities and Commodities Authority (SCA) on 1 January 2026. It licenses firms to trade OTC derivatives and spot currencies onshore and controls how financial products are promoted to UAE residents.
- Dubai Financial Services Authority (DFSA): regulates firms in the DIFC, Dubai’s financial free zone. It has had dedicated retail CFD rules since December 2021.
- Financial Services Regulatory Authority (FSRA): regulates firms in ADGM, Abu Dhabi’s financial free zone. Its rules for over-the-counter leveraged products, which cover CFDs and rolling spot forex, took effect in November 2022.
The Central Bank of the UAE supervises banks and payments, not forex brokers’ trading business.
DFSA vs FSRA: what retail traders get
The two free-zone regulators set the same minimum margins for retail clients, which caps your leverage:
| Asset | Minimum margin | Maximum leverage |
|---|---|---|
| Major currency pairs | 3.33% | 30:1 |
| Minor currency pairs | 5% | 20:1 |
| Gold | 5% | 20:1 |
| Major stock indices | 5% | 20:1 |
| Oil, other commodities, minor indices | 10% | 10:1 |
| Individual shares | 20% | 5:1 |
| Crypto | 50% | 2:1 |
Both also force a close-out before losses run away: the DFSA requires brokers to close your positions once your equity falls below 50% of the margin needed, and the FSRA proposed the same 50% level in its rules. Both limit your losses to the money in your account through negative balance protection, and the FSRA’s rules also restrict funding retail accounts by credit card.
The differences are small and mostly about the firm, not you. The DFSA’s retail CFD rules came first; ADGM wrote its rules later and moved the conditions it used to impose case by case into its rulebook. For a trader, a retail licence from either is broadly equivalent.
One thing neither offers is a compensation scheme. If a DFSA- or FSRA-licensed broker fails, there’s no fund that pays clients back up to a limit, the way the UK’s FSCS does. Your protection comes from client money segregation and the regulator’s supervision.
What a CMA (onshore) licence means
An onshore CMA licence lets a firm deal with UAE residents directly from the mainland. We found no published numeric leverage cap from the CMA, so onshore brokers set their own limits. Check the client agreement for the leverage, close-out level and loss limits you’re actually getting.
The CMA also enforces the UAE’s promotion rules, which date from SCA Decision No. 3 of 2017. Financial products that aren’t registered with the regulator can’t be promoted to UAE investors “by any means”, and foreign firms can’t hold a promotion licence themselves. That’s why the most cautious offshore brokers show UAE visitors little or no marketing.
Which brokers we review hold a UAE licence
| Broker | Our score | UAE licence | What it covers | What to know |
|---|---|---|---|---|
| Pepperstone | 7.4 | DFSA (F004356) and CMA onshore | Retail dealing via DIFC; onshore company introduces only | Pepperstone Markets Limited, Bahamas, is the product issuer for UAE retail clients |
| Capital.com | 7.1 | CMA onshore (20200000176) | Capital Com MENA Securities Trading L.L.C., Category One | Lists up to 500:1 leverage on major FX for UAE clients |
| AvaTrade | 6.7 | FSRA (ADGM) | Ava Trade Middle East Ltd | Serves UAE residents from ADGM |
| HFM | 5.8 | DFSA | HF Markets (DIFC) Ltd | Serves UAE residents from the DIFC |
| Axi | 5.8 | DFSA (branch) | AxiCorp Financial Services, DIFC branch | Axi says client money rules don’t apply to the branch’s current business |
| IG | 7.2 | DFSA (F001780) | IG Limited, matched principal | IG says UAE accounts will move to its Bermuda company |
| Deriv | 5.5 | CMA onshore (20200000243) | Deriv Capital Contracts & Currencies L.L.C, Category 1, since 2025 | Leverage up to 1:1000 for UAE clients |
| CMC Markets | 6.7 | DFSA (F002740) | Futures, options and shares only | Licence doesn’t cover CFDs or forex |
| Interactive Brokers | 7.7 | DFSA (F008423, branch) | Arranging and custody only | Licence doesn’t cover forex or CFDs |
| Saxo | 7.4 | None | Representative office only | Gulf accounts are held by Saxo Bank A/S in Denmark |
The pattern to notice: a UAE licence on a broker’s homepage doesn’t guarantee your account sits with the UAE company. Pepperstone holds DFSA and CMA licences, but its UAE retail clients trade with its Bahamas company. IG’s UAE accounts are moving to Bermuda. CMC Markets and Interactive Brokers have DFSA licences that don’t cover forex or CFDs at all. And the two onshore CMA-licensed brokers, Capital.com and Deriv, publish leverage far above the 30:1 retail cap that applies in the DIFC and ADGM. See how these brokers rank in our best forex brokers in the UAE list.
How to check a UAE licence yourself
- Find the company name in the broker’s client agreement or website footer. Use the legal name, not the brand.
- Search it on the DFSA public register or the FSRA public register, or check the CMA’s list of licensed firms for onshore brokers.
- Look at the permitted activities. For forex trading you want dealing in investments, as principal or matched principal, with CFDs or forex among the products, and a retail endorsement if you’re a retail client.
- Confirm that this licensed company is the one named as your counterparty. If the agreement names a company in Seychelles, the Bahamas or St Vincent, the UAE licence isn’t protecting you.
Common questions
What is the difference between a DFSA and an ADGM licence?
The DFSA regulates firms in the Dubai International Financial Centre; the FSRA regulates firms in Abu Dhabi Global Market. For retail forex and CFD traders the protections are almost identical: 30:1 maximum leverage on major pairs, a forced close-out when margin runs low and negative balance protection.
Which forex brokers are regulated by the FSRA in Abu Dhabi?
Of the brokers we review, AvaTrade serves UAE residents through Ava Trade Middle East Ltd, licensed by the FSRA in ADGM. Check any other broker on the FSRA public register.
Which forex brokers are DFSA regulated?
Of the brokers we review, Pepperstone, HFM, Axi and IG hold DFSA licences that cover retail CFD or forex business. CMC Markets and Interactive Brokers hold DFSA licences that don’t cover forex or CFDs.
What is the maximum forex leverage in the UAE?
30:1 on major currency pairs for retail clients of DFSA- and FSRA-licensed brokers, and 20:1 on minor pairs and gold, set through minimum margins of 3.33% and 5%. Offshore brokers that accept UAE residents often advertise far higher leverage, but without the UAE protections that come with these limits.
Is forex trading legal in the UAE?
Yes. The UAE licenses brokers through the CMA onshore, the DFSA in the DIFC and the FSRA in ADGM. Trading with an offshore broker isn’t banned for residents, but it leaves you outside all three regulators’ protection.
Sources
- IG: DFSA retail CFD rules (margins, 50% close-out, negative balance protection) (in force since December 2021)
- ADGM FSRA: OTC leveraged products rules implemented (30 November 2022)
- ADGM FSRA Consultation Paper No. 5 of 2022: margins, close-out, referrals, card funding (26 September 2022)
- DFSA Rulebook: referrals from an unregulated person prohibited (checked 20 October 2026)
- CMS: SCA Decision No. 3 of 2017 on promotion and introduction (July 2017)
- DFSA public register (checked 20 October 2026)
- ADGM FSRA public register (checked 20 October 2026)