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The post How to Start Forex Trading in Saudi Arabia by Sarah Horvath appeared first on Benzinga. Visit Benzinga to get more great content like this.
With its unique blend of financial growth and innovation, Saudi Arabia provides a promising environment for aspiring traders. However, understanding the legal framework, cultural considerations, and market dynamics is crucial for success. Whether you’re a novice or someone exploring new horizons, this guide will walk you through the essential steps to confidently and responsibly start your forex trading journey in the Kingdom.
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Best Forex Brokers in Saudi Arabia
Working with a reputable, licensed broker is one of the best ways to avoid forex scams. If you aren’t sure where to get started, consider a few of these top choices for forex brokers in Saudi Arabia below.
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Established in 2009, Vantage is a CFD broker with over 15 years in the industry and is trusted by 5,000,000+ traders. Vantage Markets is an excellent choice for both beginner and seasoned traders, offering features tailored to diverse needs. With a low $50 minimum deposit, no account maintenance fees, and access to over 1,000 tradable instruments, it appeals to those seeking affordability and variety. Advanced tools like MetaTrader 4 and 5, TradingView, and proprietary platforms cater to professional traders, while copy trading and educational resources support beginners. Negative balance protection and segregated accounts ensure enhanced security.
Best For
- Professional investors in need of an all-in-one broker
- Those who are keen to learn more with free trading education resources
- Intermediate and advanced traders with a small amount of capital
- Spreads from 0.0 pips on FX, no overnight fees, and $0 commission on US shares
- 1,000+ CFDs on forex, indices, commodities, shares, ETFs, and bonds to diversify your portfolio
- Leverage options vary from 100:1 to 1000:1, tailored to the regulatory requirements of each region
- Trade like professionals at a low cost with our copy trading tool
- One-click trading, comprehensive TradingView charts, expert market analysis, and real-time price alerts all within the same platform
- Free articles, interactive courses, educational videos, podcasts, and webinars, covering everything from how the markets work, to complex technical strategies
- Real-time market analysis and insights
- Intuitive mobile app with extensive functionality
- Negative balance protection
- 24/7 customer service is ideal for international account holders
- Convenient and seamless deposit and withdrawal process
- ASIC, FSCA, the FCS and VFSC regulations
- Funds withdrawal: 2-5 business days
- Promotional Campaign: Gain an extra 50% on your deposit or up to 100% when you make your first-time deposit to a Perpetual Account
- Product range could be increased
Founded in 2007, AxiCorp has grown from a two-person startup to an industry-leading online trading company, trusted by thousands of traders worldwide.
Axi is a fully digital and user-friendly global award-winning broker offering CFD trading on the popular MetaTrader4 (MT4) platform. It provides clients with extensive trading education for different levels and experiences, as well as smart automated trading solutions that include PAMM accounts and a Copy Trading app. On the Axi blog, you can access free market news, trading guides, price prediction articles and other useful resources that can help you build your trading skills and understand the markets better.
Talented Axi traders who wish to become professionals can receive funding through the Axi Select capital allocation programme.
You can open a Live trading account at Axi with a minimum deposit of $500. Axi also offers a free demo account that allows you to hone your skills and trade risk-free with $50,000 USD in virtual currency.
Best For
- Derivatives traders who use MT4
- Copy Trading
- Automated trading
- Traders looking for funding
- Competitive spreads with fast execution speed
- Copy trading to learn from professional traders
- Autochartist integration and advanced analytics driven by AI and ML
- Trading Central and user-friendly MetaTrader 4 platform
- Economic calendar with country and category filters for news of economic affairs and economic indicators from across the globe
- Axi Select capital allocation program offering funding up to $1 million USD
- No deposit or withdrawal fees
- Doesn’t accept U.S. traders
- Web trading platform could use some work
- $10 per month after 12 months of inactivity
PrimeXBT, founded in 2018 and opened in 2019, is a multi-asset brokerage that features up to 100 times leveraged trading on the most popular cryptocurrencies and stock indices, and up to 1,000 times leverage on forex pairs and commodities. The experience is broken down between dynamic crypto futures trading and CFDs for traditional assets. The brokerage also charges dynamic fees that decrease to as low as 0.001% as your balance grows.
The platform features a few trading products to serve all of your needs, including the flagship PrimeXBT crypto futures platform, which offers comprehensive trading tools, an educational platform called PrimeXBT Trading Academy, weekly trading competitions, and the Covesting copy trading module, which allows you to copy strategies and invest alongside other experienced traders of your choice. All trading aspects of the trading platform feature a modern and sleek customizable user interface.
PrimeXBT requires KYC in the same way as other brokerages do. The platform boasts a plethora of safety features to ensure the security of your funds and account. Some features include 2FA, manual withdrawal clearance, crypto address whitelisting and cold storage of digital assets.
Best For
- Traders who are looking to maximize their profits
- Active traders
- Traders of any level
- Traders who prefer anonymity
- Traders who want to diversify their portfolios across different asset type
- Traders who want good customer support — 24/7 live chat feature in 16 languages
- Multi-asset platform (forex, crypto, indices, commodities, share CFDs) under one account (Crypto Futures, PXTrader, MT5)
- FSCA-authorized entity in South Africa (FSP 45697), plus additional global licenses
- 0% commissions on CFDs (spread-only) with competitive, variable spreads
- High leverage options (up to 1:2000 on MT5 forex; up to 1:500 on Crypto Futures) — for experienced traders
- TradingView-powered charts and advanced technical analysis; interface customization and alerts
- Flexible funding and settlement in fiat or crypto (USD, USDT, USDC, BTC, ETH) with broad payment rails
- Free demo account, weekly trading contests, and a Rewards Center with bonuses/cashback
- Native mobile apps (iOS/Android) with full trading, funding, and account management
- Not available to clients in the U.S. or Canada; additional regional restrictions apply
- Variable product/payment availability by jurisdiction; some features may be limited locally
- Leverage and derivatives carry high risk (financing every 8 hours on futures; overnight fees on CFDs)
- Spreads are not fixed and can widen during volatility/liquidity gaps
- Crypto withdrawals incur network fees; higher withdrawal limits typically require account verification
Established in 1996 in Gland, Switzerland, Swissquote Group Holding Ltd. (SWK: SQN) is a banking group that has become one of Switzerland’s leading providers of online foreign exchange (forex) trading and financial services. The company went public in May 2000, and its stock trades on the SIX Swiss Exchange under the symbol SQN.
Swissquote has an impressive range of offerings, with a vast selection of over 3 million securities, forex and CFD instruments. Additionally, they excel in execution, boasting a remarkable median execution speed of 9 ms, establishing them as leaders in the industry.
Their platform offerings include the standard MetaTrader 4 & 5, as well as a user-friendly proprietary CFXD platform that integrates charts from TradingView. With swift execution and intuitive platforms, Swissquote caters well to the requirements of day traders and scalpers alike.
Swissquote offers clients extensive resources to trade foreign currency and other assets as well as providing excellent trading platforms with a wide variety of research tools.
The biggest downside to the platform is the trading fees are above average, and its minimum deposit requirement is $1,000.
Best For
- Forex traders
- Finance professionals
- Contract for difference (CFD) traders
- Derivatives and commodity traders
- Wide range of tradable assets
- Excellent trading platforms
- Quantitative asset management (QAM)
- Robo-Advisor for automated trading
- Over 3 million instruments
- Lightning-fast execution speeds
- Excellent education tools and resources
- No U.S. clients
- High minimum deposit
- Higher trading fees than other industry leaders
The products and services available to you will depend on your country of residence and the FOREX.com entity that holds your account, as well as any as well as any applicable regulatory guidelines. To verify the availability of any products or features within your country of residence, please contact the broker directly
FOREX.com is a highly trusted global broker for forex and CFD traders. With a massive range of tradable currencies, low account minimums and an impressive trading platform, FOREX.com is an excellent choice for traders searching for a home base for their currency trading. New traders and seasoned veterans alike will love FOREX.com’s extensive education and research center that provides free, informative forex trading courses at multiple skill levels.
FOREX.com is regulated by Commodity Futures Trading Commission (CFTC) and member of the National Futures Association (NFA) in the U.S. They also are regulated by the Financial Conduct Authority (FCA) in the UK among other regulators including CIRO, ASIC and more.
Best For
- Beginner forex traders
- Active forex traders
- Impressive, easy-to-navigate platform
- Up to 30:1 leverage
- Access to 80+ FX pairs and 80+ technical indicators
- Trade to your full capability with the mobile app with quality execution with one-swipe trading, advanced TradingView charting and analysis tools, real-time trade & order alerts and full account management features
- Exclusive trading tools including Trading Central, TradingView, Smart Signals and Performance Analytics
- EUR/USD spread as little as 0.0 and low commissions
- 30 indicators for technical analysis, nine timeframes and graphical objects such as Line Studies and Shapes on MT4
- Various tradable asset classes including forex, shares CFDs, crypto CFDs, commodities and indices
- No negative balance protection
- $15 per month inactivity fee after no trading activity for 12 months
6 Steps to Get Started with Forex in Saudi Arabia
No matter where you live, trading forex starts with a solid brokerage account from a licensed forex broker authorized to accept clients in your home country. Let’s take a look at a few of the basic steps you’ll go through when you open your 1st forex brokerage account.
- Step 1: Test your internet connection: A fast, reliable internet connection is the most important tool you can have at your disposal when you trade forex. Run a speed test on your computer or mobile device to ensure that your connection is stable before you continue.
- Step 2: Choose a forex broker: The forex broker you work with will directly influence the fees you pay, the leverage you have access to and the currencies you can purchase. Look for a broker licensed by the Capital Market Authority (CMA), the governing body that regulates forex brokers in Saudi Arabia. Though brokers are not required to register with the CMA before accepting clients in Saudi Arabia, sticking with a licensed broker can help you avoid forex scams and fraud.
- Step 3: Open an account: Once you choose a forex broker you want to work with, open an account through your broker’s process. You’ll need to provide a bit of personal information before you can open an account with most brokers.
- Step 4: Download your trading platform: Though some brokers offer a proprietary platform, you might also need to download a 3rd-party trading platform like MetaTrader 4 or 5. Know which platforms are compatible with your forex broker before you download.
- Step 5: Fund your account: After your account is opened, you’ll need to deposit funds into your trading account. Most traders in Saudi Arabia accomplish this by linking their bank account directly to a trading account.
- Step 6: Make your first trade: When your deposit clears, you can officially make your 1st forex trade by placing an order through your broker.
Saudi Arabia Forex Trading Strategies
There are 2 major trading strategies that forex traders use to determine if a currency will rise or fall in value: fundamental analysis and technical analysis. Let’s take a look at a few of the differences between the 2 major trading strategies and when each is most appropriate.
Fundamental Analysis
Fundamental analysis relies on studying the underlying economies of the countries that use each currency and their financial situations. When deciding which currencies are likely to change in value, fundamental analysts may examine:
- GDP reports
- Consumer confidence indexes
- Inflation rates
- Interest rates
- Trade balances
- Manufacturing indexes
Most traders who use fundamental analysis as their primary trading strategy take a medium-term or long-term approach to trading. They often hold their currencies for months before converting back to their base currency.
Technical Analysis
Traders who use technical analysis to determine which currencies to buy or sell rely almost entirely on charting patterns and movements that may signal how the currency will change in value based on previous patterns. Technical analysts usually don’t do much research into the underlying economic or political situation of the countries whose currencies they’re buying and instead search for:
- Reversal candlesticks that may signal that a currency will reverse its price trend direction
- “Breakout” candlesticks that indicate that a currency will move outside of a pattern of low volatility
- Trendlines that indicate a mean price average that the currency is likely to return to
Most traders who use technical analysis as their primary trading strategy take a short-term or medium-term approach to trading. They may hold a currency for as little as a few minutes before selling it with the intention of capitalizing on quick price movements.
Forex Trading Example in Saudi Arabia
Let’s take a look at an example of how you might be able to make money trading forex by taking advantage of currency movements.
Imagine that you open your brokerage account and fund it with 10,000 SAR. Your broker offers you 10:1 leverage on your account. This leverage enables you to trade with the power of 100,000 SAR despite only having 10,000 SAR in your account.
You believe that the value of the riyal will fall in comparison to the euro, so you decide to convert your entire lot of SAR to EUR. At the time of conversion, 1 SAR is equal to €.2400 EUR. When your order is filled, you’re left with a total of €24,000 after using all of your capital and your leverage.
Soon you see that the value of the SAR is falling in comparison to the EUR. When 1 SAR equals €.2200 EUR, you decide to sell your entire lot. When you convert your entire lot of EUR back to SAR, you’re left with a total of 109,090 SAR. After accounting for your initial investment and the amount of money that you borrowed in leverage, your total profit on this trade is 9,090 SAR.
Tips for Trading Forex in Saudi Arabia
Trading forex is legal and safe in Saudi Arabia. Unlike some other countries, there are no legal limitations on the amount of profit you can take when forex trading. However, the forex industry is relatively new in Saudi Arabia, which means that there are fewer regulations than competing foreign countries. Protect yourself and your money by taking the following precautions, such as choosing a reliable forex broker and understanding the exchange rate of the Riyal.
- Only Work with a Licensed Broker: Not every broker in Saudi Arabia is licensed or subject to government oversight. Working with an unlicensed broker can greatly increase your chances of getting involved in a forex scam. Check the CMA’s website to ensure that your broker is licensed before you open an account.
- Know Your Leverage: Using leverage to trade forex is legal in Saudi Arabia — your broker may offer you up to 1,000:1 leverage, and there is no government-instituted cap on leverage usage. This can amplify your profits if your trades are successful, but it can also quickly put you into debt with a single bad trade. If you decide to use leverage to trade, be sure to use as little as possible.
- Work with a Demo Account First: Before you deposit any of your own money, you should practice your trading strategy with a demo account. Demo accounts allow you to trade with fake virtual money before investing your own funds.
Your hunt for a quality forex broker should bring you to the firm that offers the most options and extras. International Brokers is a stout choice because you get more than access to the markets. You also gain access to:
- Low commissions
- Tight spreads as low as 1:10
- Deep liquidity
- Over 100 currency pairs
- Professional trading tools
Register for an account so that you can start trading today. Remember, no matter where you plan to manage your forex portfolio, you need options, service and extensive market access.
Forex Terminology
If this is your 1st time opening an account to trade forex, you might not be familiar with the unique forex terminology traders and brokers use when discussing the currency market. Let’s take a look at a few of the most common terms you’ll hear when you start forex trading.
- Pip: a single pip is the smallest unit of any given currency, usually rounded to the 4th decimal place. If the value of the SAR moves from 1.0000 to 1.0010 in relation to a certain currency, forex traders might say that the value has moved by 10 pips.
- Lot size: your lot size is the number of units of currency you’re buying or selling. For example, if you place an order to sell 100,000 SAR, your lot size is 100,000. Most forex traders consider 100,000 units of any currency to be a standard lot.
- Orders: an order is a set of instructions you provide to your broker telling them which currency you want to buy or sell, your lot size and when they should execute the order. There are multiple types of orders, and you can use a variety of order types to limit your losses and maximize your profits automatically.
- Calls: a call (sometimes called a “margin call”) is a major risk of using leverage to trade currencies. If you borrow money in leverage to trade and the value of your lot goes down, your broker might subject you to a call.
After you receive a call, you must deposit more money into your brokerage account in order to maintain your position. A single margin call may wipe out a substantial amount of forex profits, so be very careful when using leverage to trade.
Enter The Saudi Arabian Forex Market
The forex market of Saudi Arabia is relatively new compared to other countries in Europe, Asia and North America. This means there are fewer regulations and restrictions on brokers in Saudi Arabia than other countries.
If you decide to trade forex as a traveler or resident of Saudi Arabia, be sure to do your research and thoroughly read all brokerage terms and conditions before opening an account.
Frequently Asked Questions
Can you trade forex under Islamic law?
Forex trading is allowed under Islam.
Can you legally trade forex in Saudi Arabia?
Saudi Arabia allows forex trading to retail customers through approved brokers.
The post How to Start Forex Trading in Saudi Arabia by Sarah Horvath appeared first on Benzinga. Visit Benzinga to get more great content like this.
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