Dubai Financial Services Authority (DFSA)
The Securities and Commodities Authority (SCA) is the chief regulatory body in the United Arab Emirates (UAE) for securities, commodities, and financial services. In collaboration with local regulators like the Central Bank of the UAE and DFSA (Dubai), the SCA governs forex brokers offering services to UAE residents under strict compliance and licensing rules.
The Securities and Commodities Authority (SCA) plays a central role in ensuring regulatory integrity and investor protection for forex trading in the UAE. Choosing an SCA-regulated broker offers transparency, risk protection, and compliance with local laws.
- Typically capped at 50:1 for retail forex trading
- May vary depending on broker type and regulatory category
- Higher leverage possible for professional clients with classification
- Licensing forex and CFD brokers in the mainland UAE
- Regulating financial service providers and protecting retail investors
- Collaborating with free-zone regulators like DFSA (Dubai) and FSRA (Abu Dhabi)
- Enforcing conduct, capital, AML, and risk disclosure rules
- Visit the SCA Portal
- Navigate to the list of licensed financial institutions
- Confirm license type, number, and regulatory category
- Minimum Capital Requirements: Based on service category (AED 1–10 million)
- Segregation of Client Funds: Mandatory for retail protection
- Leverage & Margin Disclosure: Brokers must disclose risk and leverage terms
- AML/KYC Obligations: Enforced under UAE’s national compliance laws
- Product Suitability Tests: Retail clients must be risk-profiled before CFD access
- No Misleading Promotions: All advertisements must be approved and compliant
Advantages
- Unified regulation for UAE mainland financial services
Collaborates with other regulators (DFSA, FSRA, CBUAE)
High standards for client protection and capital adequacy
Islamic finance compatibility through licensed Shariah products
Limitations
- Fewer licensed forex brokers than offshore jurisdictions
Licensing process is lengthy and localized
No investor compensation fund currently offered under SCA
Country
United Arab Emirates
Established
2000
Contact
+971 2 499 9000
Complaint bodies
Securities and Commodities Authority (SCA) Dispute Resolution Committees within the UAE courts
Hotline
800 72223
Complaint email
Last updated on: March 27, 2025
High Risk Warning : Please note that foreign exchange and other leveraged trading involves significant risk of loss. It is not suitable for all investors and you should make sure you understand the risks involved, seeking independent advice if necessary.