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Best 7 Forex Brokers in Saudi Arabia/ For Saudi Arabians

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Author: Siraj

The Saudi investors have been rapidly moving towards forex and stock market investing over the past few years. This is evident from the cumulative growth of 400% in OTC foreign exchange instruments since 2004. Saudi Arabia is a well-established country and their people are best known among rich investors, thanks to its big oil industry, which accounts for roughly one-fifth of the world’s supply.

Saudi’s are rich and they love to do business instead of searching for full-time jobs. This is because they have recently started showing interest in forex markets to take advantage of the world’s largest liquid market.

On the back of increasing demand for retail online forex trading seen in the Kingdom, the need for transparent, well established, and regulated forex brokers are an unconditional necessity. It’s quite simple and easy to create a trading account with brokers operating in Saudia Arabia. However, it is essential that you select the regulated and best forex broker in Saudi Arabia who offer several trading options and instruments.

For Saudi investors, trading Tadawul has never been the only option. These traders can also trade other International forex markets and stocks online.

Although there are several brokers available in the market that are offering services to Saudi investors to trade both Tadawal (Saudi Stock Market) and international markets, we have selected 7 best brokers that are providing both platforms along with Islamic accounts according to Shariah laws. Below are the criteria we used for brokers selection.

Criteria Used for Saudi Brokers Selection

Choosing the right broker always play a big role in strengthening the profit-making opportunities. One cannot succeed in forex or stock market without having a strong trading platform that offers all the modern day trading features. Following are major factors that we used for selecting the best broker for Saudi Traders:

  • Regulation and compliance
  • Islamic account according to Shariah Law
  • Spreads and commissions
  • Customer support
  • Number of instruments
  • Payment options
  • Educational material
  • Trading platform interface
  • Trade execution

 

Here are the top 6 Forex Brokers list in Saudia Arabia

1. HY Markets

Headquartered in London, UK, and is licensed and authorized by the Financial Conduct Authority (FCA), HY Markets is one of the best forex brokers for Saudi investors. With more than 30 years of experience in the trading industry and offices in 20 countries, HY Markets offer several trading tools and instruments along with low minimum deposit requirement.

This broker offers three different types of accounts to traders according to their capital requirement and trading expertise.  These accounts include Mini, Standard, and Premium. They also offer VIP account, which is designed to facilitate big investors as this account provides access to all markets and cutting-edge service. The broker also provides Islamic account facility to Muslim trades.

Review at Glance
Regulated FCA (UK)
Islamic accounts available YES
Min. deposit $50
Minimum position size 0.02 lot
Spread Fixed
Platforms Metatrader 4
Payment options available wire transfer, credit and debit cards, PayPal, Skrill, Webmoney

 

Its Mini account is ideal for investors who are beginners. The Saudi trader can open a mini account with the deposit of $50. They offer leverage of 300:1 to all three account holders and the spread size is 1.8 pip for each of them. Its VIP account or Pro Trader Account starts with the minimum balance of $5000. The leverage on this account is 200:1 and the spread size is 0.5 pips.

Saudi trader can also use their demo account with $50,000 virtual funds for practice purpose. This Saudi broker offers several trading assets such as forex exchange, gold, energy products, commodities, indices, and stocks. In addition, the platform permits traders to trade various markets with a single account.

The educational section of this Saudi forex broker not only offer video lessons but they are offering textual lessons both for beginners and advanced traders. Their educational material ranges from capital markets to advance features such as trading tools and managing risks. Traders can also learn about fundamental and technical strategies. Saudi traders can reach their customer support during the business days through email, phone call or chat.

Pros & Cons:

Pros:

  • Islamic account
  • Several trading tools
  • Educational material

Cons:

  • Customer support

2. XTB

Founded in 2002 in Poland, XTB is a listed broker on the stock exchange. It accepts clients from Saudi Arabia and other parts of the world. This platform is popular for forex and CFDs. With offices in several countries, XTB  is licensed by major regulators including Poland’s KNF, UK’s FCA and  Germany’s BaFIN.

It offers numerous asset solution to CFD and forex traders in Saudia Arabia. Its products include more than 50 forex pairs, 60 ETFs and more than 1,500+ CFDs.

Review at Glance
Regulation FCA (UK), CySec (Cyprus), KNF (Poland), IFSC ( Belize)
Minimum Initial Deposit £250, €250 or $250
Asset Coverage 1500+ CFD markets: Forex, Indices, Commodities, Shares & Cryptocurrencies
Demo Account Yes
Leverage 30:1
Trading Platforms xStation ( Web & Mobile ), MetaTrader 4

 

Its proprietary platforms include xStation 5 and MetaTrader 4. XTB has designed multiple account types according to traders requirements. They also offer a demo account to test the platform. Its other accounts include Standard Accounts, Pro Accounts, and Islamic Accounts.

Its Islamic account is designed according to Shariah laws. Their swap free accounts do not contain interest, which is strictly prohibited in Islam.

Its platform is user-friendly and easy to use. This Saudi broker has received “Best Trading Platform” award from the Online Personal Wealth Awards. The platform offers real-time news and live market commentary along with an economic calendar. Ultra-Fast execution speed and access to advanced chart trading tools are among the best features. You can use XTB on any device, including your desktop, laptop, tablet, or smartphone.

Pros & Cons:

Pros:

  • XTB offers access to more than 3000 trading markets
  • Traders can explore the available markets through searching tools
  • XTB is registered with the FCA in the UK

Cons:

  • Guaranteed stop losses are only available on the “basic” account type
  • XTB has no discount for higher trading volumes and has a required initial investment of $250

3. XM

XM group offer services to Saudi Traders. This Saudi broker offers the full MetaTrader platform along with other trading tools. It is one of the best multi-asset brokers with 1000 CFDs and 57 currency pairs. The broker also offers five CFDs on cryptocurrencies. The crypto coins include Bitcoin, Dash, Ethereum, Litecoin, and Ripple.

It is an online regulated broker. The broker is regulated by CySEC and ASIC-and it has also recently obtained regulatory status from FCA in the UK.

Account Features at a Glance
Interest No interest/swap charges on overnight positions
Spread No spread widening
Position Time Positions can be held with no time limit
Leverage Leverage up to 888:1
Trading Conditions Same trading conditions compared to other trading accounts
Trading Platform Free and instant access to all trading platforms
Customer Support 24/5 dedicated support from your Client Account Manager

 

It is also an Islamic/swap free broker which fulfills all the conditions of Shariah laws. Indeed, its forex Islamic accounts are quite different from other forex brokers. This is because they do not charge additional fees and commissions compared to most of the other brokers who replace additional fees by increasing the spread on Islamic accounts.

Traders can access its trading platforms from both demo and real accounts. Its MetaTrader 4 supports limit, stop, market and trailing orders. On the other hand, the MetaTrader 5 platform provides access to stocks, indices, and metals. Traders can use both platforms through web and Android devices.

The size of spreads depends on the nature of the account. One can open a Standard Account, Micro Account, and XM Zero Account. However, the minimum spread on all accounts stands around 0.1 pips. XM  do not charge hidden fee and commissions. Indeed, they do not charge commission on XM Zero account. On the other hand, the leverage stands around 2:1 to 30:1 according to the asset type. In addition, the broker permits traders to manage their own leverage risk.

Pros & Cons:

Pros:

  1. No up-front commissions
  2. No re-quotes, no hidden costs
  3. 100% real-time market execution

Cons:

  • MT4 and MT5 proprietary trading platform
  • Live Chat

4. OctaFx

OctaFx could be the best Saudi broker amid its Swap-free accounts. This broker seeks to offer strong trading platform along with the best trading opportunities according to Shariah laws. It recently won the Best Islamic Account Forex Broker award.

The broker is famous for providing the lowest spreads in the industry. It is one of the best options for forex and CFD traders.

Account Features at a Glance
Founded 2011
Regulators CySEC
Leverage 1:500
Payment Methods Credit cards, wire, neteller, skrill
Platforms MetaTrader 4, MetaTrader 5, cTrader
Dealing Desk No

 

Its quite easy to create an account on OctaFx. This is because they don’t need any documents and other details for account registration. They give traders access to all trading instruments and tools. One can use its MetaTrader4, MetaTrader5 and cTrader platform through mobile and web.

Pros & Cons:

Pros:

  • Used by 300,000+ traders
  • Established in 2011
  • Regulated by Unregulated
  • Min. deposit from $5

Cons:

  • Doesn’t offer VPS
  • Not FCA Regulated

5. IC Markets

IC Markets is an Australian based broker which is regulated by Australian regulators. Founded in 2007, this broker has a well-established trading platform. It offers services to clients from many countries including Saudi Arabia. The broker is well known for providing best forex and CFDs amid its competitive spreads on a wide range of assets.

Account Features at a Glance
Regulations        ASIC
Type      ECN
Minimum Deposit            $200
Headquarter      Australia
US Customers   No

 

This Saudi broker offers Islamic accounts according to Shariah law and Islamic principles. Their Islamic account does not contain any interest. This means that they do not credit or debit interest in Islamic accounts. On the other hand, it charges only a small rollover fee on overnight positions.

IC Markets offers 3 highly sophisticated trading platforms. These platforms include Meta Trader 4 (MT4), Meta Trader 5 (MT5) and cTrader. Traders can use its platform both through web and mobile. Beside from Islamic account, the broker offers three other accounts types to Saudi traders. These accounts include cTrader ECN Account, True ECN Account and Standard Account.

 Pros & Cons: 

Pros:

  • Outstanding trading platform
  • The wide range of tradeable products across global markets
  • Very safe, secure and highly regulated
  • Excellent customer support and educational resources

Cons

  • No bonuses or promotions

6. AvaTrade

Since 2006, AvaTrade has been providing online trading services to clients all over the world. The broker believes in fairness, uncompromising self-evaluation, constant innovation, and customer service. AvaTrade aims to provide services to customers according to their religious faith.

It is an Islamic/Swap free broker. AvaTrade does not receive or offer interest in Islamic accounts. Customers who hold Islamic trading account on AvaTrade platform will not be charged daily swaps. However, the broker charges a fixed fee on overnight positions. It imposes daily administration charges on MT4 platform instead of swaps.

Account Features at a Glance
Islamic Account Yes
Instruments       CFD, Forex, Crypto
Demo Account  Yes
Min. Deposit      $100
Regulation CBoI, ASIC, FSB
Mobile Apps iOS and Android

 

The broker, however, placed some restriction on Islamic accounts. On cannot trade cryptocurrency on Islamic accounts. The traders have to end Islamic account if they want to trade cryptocurrencies. Traders are also not eligible to trade certain forex pairs on Islamic account. These pairs include ZAR, TRY, RUB, MXN pairs. In addition, the broker would widen the spread on Islamic accounts.

Pros & Cons:

Pros:

  • Free Online Trading Coach
  • Strong Education Material
  • Number of assets
  • Active Customer Support Service

Cons:

  • Low Leverage
  • Higher Fees
  • Wide Spreads

 

 

FAQ:

What is Tadawal?

Tadawul is an Arabic term which is generally used for stock exchange. Established in March 2007, the Council of Ministers approved the formation of The Saudi Stock Exchange (Tadawul) according to the Article-20 of the Capital Market Law. Tadawul has the exclusive authority in Saudi Arabia to act as the Securities Exchange (the Exchange). The main role of Tadawal is to carry out listing and trading in securities along with other operations such as transfer, deposit, settlement, clearing, and registry of ownership of securities traded on the Exchange.

Is Tadawal the Part of FTSE Russell Index?

Saudi Arabia’s stock market is the part of FTSE Russell emerging market index. In March 2018, FTSE Russell added the Saudi stock market in its FTSE Emerging index. The inclusion indicates positive measures taken by authorities such as opening the market to foreign investors.

Can Saudi Investors Trade Foreign Markets?

Yes, Saudi investors are allowed to trade foreign markets. Access to international markets become so easy for Saudi investors after the emergence of online trading platforms. All the above-listed brokers allow Saudi traders to trade foreign markets as long as they provide documents that are necessary for account opening.

Is Forex Market Prohibited in Saudi Arabia?

Trading Forex and all other markets are allowed for Saudi investors. However, due to the religious faith, these investors only like to use trading accounts that are free of Swaps. Interest is strictly prohibited in Islam and the swap contracts are always composed of interest. In order to ease trading for Muslims, the brokers have recently started offering Islamic accounts that are free of swaps. All the above-listed brokers are offering swap free account to Saudi investors.

What is Swap-Free Account?

Islamic accounts/swap free accounts are trading accounts that are designed to facilitate Muslims in forex and other trading instruments. These accounts do not involve interest that brokers generally charge for holding a position more than one day. Instead, Islamic/swap free brokers charge a fixed amount for overnight positions. In some cases, swap free brokers charge the fee in the form of wide spreads on Islamic accounts compared to other accounts.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Remember, all trading carries risk. Past performance is no guarantee of future results.
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