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.
Here are the top 6 Forex Brokers list in Saudia Arabia
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.