Forex trading in Saudi Arabia - Is Forex trading legal?Forex trading is legal in Saudi Arabia - Islamic Forex Accounts Available
- Several traders in Saudi Arabia are trading Gold, Oil, and Forex successfully
- It is legal to trade Forex, Gold, and Oil in Saudi Arabia
- You can open an Interest Free Islamic account for Free
- Try the brokers in a Demo Account before trading with them
- Invest and trade only if you are satisfied with the broker’s services
Forex trading in Saudi Arabia
Saudi Arabia has predominantly been a strong economy driven by oil and petroleum exports. However, the economy had understood the need for diversification due to the entry of new competitors. Forex trading in Saudi Arabia has been an investment for a small proportion of investors. Considering the computer literacy and awareness, only a few investors were aware of this new investment product earlier. Overall the nation has slow progress in exploring global investment products like Forex trading. The popularity of Forex trading is continuously increasing due to the introduction of Islamic Forex Trading accounts in Saudi Arabia by some leading Forex brokers. Rapid growth in the field of computers and internet among the tech-savvy Saudi residents has brought many new traders into Forex trading in Saudi Arabia. Explore more to learn Forex trading in KSA and register for an online Forex trading in Saudi Arabia.
Forex trading in KSA – Best Forex brokers in Saudi Arabia
Due to the growth of Forex trading in Saudi Arabia, the number of Forex brokers has increased in Saudi Arabia. But all these brokers are not regulated by regulating authorities. It is imperative that while choosing a broker, one should check whether he is registered with the regulating agencies to carry out Forex trade. One also needs to keep abreast of how the broker charges them. Some of them recover separate commission or some charge a mark upon the spread.
Also, one should trade with a broker who provides excellent customer service. The brokers should offer proper technical analysis to their customers. When the trade volumes are high, there is more leverage; there are possibilities of making huge profits too.
We have analyzed the following Forex brokers in Saudi Arabia and found reliable and safe for Forex trading in KSA. They provide Islamic accounts and Arabic language support to their clients doing Forex trading in Saudi Arabia.
CFD trading in Saudi Arabia
The term CFD stands for ‘contract for difference’ and it is a commonly traded derivative instrument. CFD trading in Saudi Arabia involves speculating the currency price or price of any other asset under consideration and entering into a buy or sell contract with the CFD Broker. CFD trading in Saudi Arabia is provided by several online CFD Brokers complying with Islamic principles. To ensure compliance with Islamic principles while trading CFD, you should register for an Islamic CFD Trading Account.
While trading CFD, a contract is agreed upon between a trader and an online CFD broker. When the trader closes the position, both parties exchange an amount which is the difference between the opening and closing prices of the asset traded. So, if you think that the price of the Gold (XUA) is going to rise, you can open a ‘long or buy’ position in Gold. You would earn a profit if the price of gold rises, if the price falls, you would incur a loss and are liable to pay the difference plus any commission and/or interest to the broker. The conditions are reversed if you open a ‘short to sell’ position, which means you’ll gain a profit if the price decreases.
Start trading Forex and CFD in Saudi Arabia – Check out the best Forex and CFD brokers in Saudi Arabia on the Islamic Forex trading page.
Best Forex Brokers in Saudi Arabia 2022
Best Islamic Forex Brokers in Saudi Arabia 2022
Islamic Forex broker in Saudi Arabia – Forex trading in KSA (Kingdom of Saudi Arabia)
Ava Trade is one of the Forex brokers offering Islamic trading accounts for Forex trading in KSA. It is one of the biggest online trading platforms specializing in Forex trading complying with Islamic principles. They have local offices and Arabic speaking staff who are well conversant with Islamic Forex trading accounts. That is the reason it has become one of the most popular Forex brokers in the MENA region. You can access their website in the Arabic language and the local Arabic speaking support staff ready to guide you. Ava Trade support staff can guide you through the account opening and verification process so that you can jump into trading quickly.
Ava Trade has excellent training materials to educate the traders the right way, and educational materials are in the Arabic language for your easy understanding. Ava Trade believes a right start can lead the trader to success in the Financial Market while adhering to Islamic principles.
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Saudi Regulated Forex Brokers – Forex trading in Jeddah
Saudi Arabian Monetary Authority (SAMA) is the regulatory body in Saudi Arabia that regulate the Forex markets and Saudi Forex brokers. It is the regulatory body that issues and manages Saudi Arabia’s national currency. There are a few Forex brokers which have their offices in the GCC region and offer trading services to Saudi Forex traders. AVATrade, FBS and easyMarkets, and BlackBull Markets are the Global Forex trading online brokers accepting Forex traders from Saudi Arabia. These brokers are legitimate and offer Islamic Forex trading accounts too. If you are looking for a Saudi regulated Forex broker, you may try one of the brokers listed on this page by opening a demo account and trying their features. Most of the Forex traders in Jeddah trust FBS, RoboForex, LiteFinance, easyMarkets, and BlackBull Markets for CFD and Forex trading in Jeddah.
Forex market hours in Saudi Arabia
Forex market hours is one of the most critical facts of trading Forex in Saudi Arabia. It is open for 24 hours a day with five days a working week having three main sessions. They are the Asian session- Tokyo, US session- New York and the European session- London. There are sometimes when two sessions are open at the same time known as session overlap.
When is the right time to trade Forex in Saudi Arabia?
The technical indicators work well when there is enough liquidity in the market. There is higher liquidity in the market when US and European sessions overlap. The major news release also takes place during these sessions. Hence, it is better to trade from 3 pm to 6 pm Saudi time, when both London and Newyork markets are open.
- London Forex market session –
London session is the first session of a trading day which is referred to as the European session. It begins at 10 AM Riyadh time ends at 6 PM Riyadh time. The European session is the most active trading session with high liquidity leverage, which means a massive volume of trading is done in this session. This session also overlaps with the other two sessions.
- New York Forex market session –
It is the US trading session. It begins at 3 PM Riyadh time and closes by 8 PM or 11 PM Riyadh time. This session has the highest liquidity around 3 PM Riyadh time to 6 PM Riyadh time.
- Tokyo Forex market session –
It is the Asian trading session, it begins at 11 PM GMT and ends at 8 AM GMT.
Market hours for trading in Forex in Saudi Arabia provide the traders with flexible trading hours. However, it is advisable to trade during the most liquid hours to make successful trades. Also, some of the most rewarding market times happen when two or more markets are open at the same time. On can concentrate on these aspects while making a trade to ensure profitable trade.
Is it legal to trade Forex in Saudi Arabia?
It is legal to trade Forex in Saudi Arabia. Several brokers are having their offices in Saudi Arabia and complying with Saudi regulators and Islamic principles. You can always try their services in a Demo Account for Free. You should inform your account manager and select to open an Islamic trading account while registering with the broker.
The specialty of the Islamic Forex account is that it does not allow any interest in your trading account. Thus it keeps your account compliant with Sharia laws.
Is Forex trading Halal in Saudi Arabia?
Yes, Forex trading is Halal in Saudi Arabia. The traders should select an Islamic Forex trading account with a regulated Forex broker. Although there are a few Islamic scholars who don’t accept Forex trading under Islamic guidelines, most Forex traders consider that Islamic Forex trading accounts are compliant with Islamic principles. Hence the existence of the Islamic Forex account came to cater to the trading requirement of the Islamic population.
Forex Trading in Saudi Arabia – Conclusion
Forex trading has become so popular nowadays that everybody wants to do trading. majority of the traders don’t make a profit because of their lack of knowledge or experience. While trading Forex in Saudi Arabia, keeping a few things in mind will help you to avoid a bad trading experience.
- Always use risk management.
- Never risk more than 1 to 5 percent in any trade.
- Don’t trade when you don’t find the best opportunity.
- Always have Stoploss in place.
- Don’t invest any money you can’t afford to lose.
- Learn when not to trade.
- Have patience while trading, don’t jump into trades in a hurry.
You can always open a Demo Account and have enough practice before investing. Give your demo account the same importance as your live account to get the feel and knowledge of trading in a Live Account. Open a Free FBS Demo Account or easyMarkets Free Demo Account.