Forex trading in Saudi Arabia has seen steady growth, fueled by increasing interest from both retail and institutional traders. As the Kingdom modernizes its financial sector, access to global markets has expanded, making forex trading more appealing than ever. However, the Saudi market is unique, governed by strict regulations that ensure transparency and investor protection. Understanding the legal landscape, restrictions, and compliance requirements is essential for anyone looking to trade forex in Saudi Arabia. This guide will walk you through everything you need to know to trade safely and successfully.
Top 11 Forex Brokers in Saudi Arabia
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Fusion Markets
- Australia regulated broker
- MT4, MT5, TradingView, Ctrader
- Leverage up to 500
Trading InstrumentsDeposit Methods- Commodities CFDs
- Crypto CFDs
- Forex CFDs
- Indices CFDs
- Metals CFDs
- Stock CFDs
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FP Markets
- Australia and CySEC regulated broker
- MT4/MT5, TradingView, Ctrader, Iress
- EUR/USD spread from 0.0 pips
Trading InstrumentsDeposit Methods- Commodities CFDs
- Crypto CFDs
- Energy CFDs
- Forex CFDs
- Indices CFDs
- Metals CFDs
- Stock CFDs
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ActivTrades
- Winner of 20+ Global Awards
- MT4/MT5, TradingView
- Leverage up to 1:400
Trading InstrumentsDeposit Methods- Bonds CFDs
- Commodities CFDs
- Crypto CFDs
- ETF CFDs
- Forex CFDs
- Indices CFDs
- Share CFDs
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FxPro
- NDD broker offering deep liquidity and ultra-fast execution
- Over 99% instant order executions with no requotes
- Supports MT4, MT5, cTrader, and a proprietary platform
Trading InstrumentsDeposit Methods- Commodities CFDs
- Crypto CFDs
- Energy CFDs
- Forex CFDs
- Indices CFDs
- Metals CFDs
- Stock CFDs
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Iron FX
- IronFX offers more than 300 trading instruments.
- Access to MetaTrader 4 (MT4), along with proprietary features and trading tools to enhance user experience.
- Multiple instruments available for trading, including Forex, Indices, Commodities.
Trading InstrumentsDeposit Methods- Commodities CFDs
- Commodity Futures
- Crypto CFDs
- Currency Futures
- Forex CFDs
- Indices CFDs
- Metal Futures
- Metals CFDs
- Share CFDs
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Axi
- Raw spreads start from 0.0 pips
- Offers order execution faster than standard ECN model
- Axi Select Funded Trader Program offers funding up to $1 million
Trading InstrumentsDeposit Methods- Commodities CFDs
- Crypto CFDs
- Forex CFDs
- Indices CFDs
- Metals CFDs
- Stock CFDs
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HFM
- Up to 1:2000 leverage in specific countries
- Supports trading in micro lots (1,000 units)
- A $6 round-turn commission per standard lot for Zero accounts
Trading InstrumentsDeposit Methods- Commodities CFDs
- Crypto CFDs
- Forex CFDs
- Indices CFDs
- Metals CFDs
- Share CFDs
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Exness
- Exness supports MetaTrader 4 (MT4) and MetaTrader 5 (MT5).
- Traders have access to several markets including Forex, Stocks, Commodities, Cryptocurrencies, and Indices.
- Exness offers tight spreads and flexible leverage, up to 2000:1, depending on the account type.
Trading InstrumentsDeposit Methods- Commodities CFDs
- Crypto CFDs
- Forex CFDs
- Indices CFDs
- Metals CFDs
- Stock CFDs
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FXTM
- Established brokerage company regulated by UK FCA, Kenya CMA, and Mauritius FSC
- MT4, MT5, Mobile Trading Platform
- $1M Lloyd’s of London account insurance
Trading InstrumentsDeposit Methods- Commodities CFDs
- Crypto CFDs
- Forex CFDs
- Indices CFDs
- Metals CFDs
- Stock CFDs
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Tickmill
- Classic and Raw accounts available to suit various trading needs and requirements.
- Popular trading platforms, such as MT4 and MT5.
- Regulated by reputable authorities: ASIC and CySEC.
Trading InstrumentsDeposit Methods- Bonds CFDs
- Commodities CFDs
- Crypto CFDs
- Forex CFDs
- Indices CFDs
- Stock CFDs
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OctaFX
- OctaFX offers zero commission fees on deposits and withdrawals, with tight spreads and competitive pricing.
- Traders can use advanced, user-friendly trading platforms, such as MT4 and MT5 to match their trading needs.
- A wide range of trading instruments available – Forex, Indices, Commodities and Crypto.
Trading InstrumentsDeposit Methods- Commodities CFDs
- Crypto CFDs
- Forex CFDs
- Indices CFDs
- Stock CFDs
Brokers Compared by Spread
FX Brokers Deposit Method Comparison
| Brand | Minimum deposit | |
|---|---|---|
| Fusion Markets |  |
$0 |
| FP Markets | |
$50 (AU$100) |
| ActivTrades | |
$0 |
| FxPro | |
$100 |
| Iron FX |  |
$100 |
| Axi | |
$0 |
| HFM | |
$0 (Zero, Premium, Cent), $5,000 (Premium Pro), €100 (Pro) |
| Exness | |
$10 (Standard, Standard Cent); $200 (Pro, Raw Spread, Zero) |
| FXTM | |
$200 |
| Tickmill | |
$100 |
| OctaFX | |
$25 |
Brokers by Regulator
| Brand | Maximum leverage | |
|---|---|---|
| Fusion Markets | |
1:500 (ASIC | Pro Account), 1:30 (ASIC | Retail Account), 1:500 (VFSC | Retail Account) |
| FP Markets | |
1:500 (CySEC | Pro Account), 1:30 (ASIC | Retail Account), 1:30 (CySEC | Retail Account), 1:500 (FSAS | Retail Account) |
| ActivTrades | |
1:400 (CMVM | Pro Account), 1:30 (CMVM | Retail Account), 1:1000 (FSC), 1:200 (SCB) |
| FxPro | |
1:30 (CySEC | Retail Account), 1:30 (FCA | Retail Account), 1:10000 (SCB | Retail Account) |
| Iron FX | |
1:30 (CySEC), 1:30 (FCA), 1:1000 (FSCA) |
| Axi | |
1:500 (Elite Account), 1:400 (Pro Account), 1:30 (ASIC | Retail Account), 1:30 (CySEC | Retail Account), 1:30 (DFSA | Retail Account), 1:30 (FCA | Retail Account), 1:500 (SVGFSA) |
| HFM | |
1:400 (FCA | Premium Pro), 1:30 (FCA | Retail Account), 1:2000 (FSCA), 1:2000 (SVGFSA) |
| Exness | |
1:400 (CMA), 1:2000 (FSAS) |
| FXTM | |
1:30 (FCA | Retail Account), 1:400 (CMA), 1:3000 (FSCA) |
| Tickmill | |
1:500 (CySEC | Pro Account), 1:500 (FCA | Pro Account), 1:30 (CySEC | Retail Account), 1:30 (FCA | Retail Account), 1:1000 (FSAS) |
| OctaFX | |
1:1000 (ISA) |
Forex Brokers Platform Availability
| Brand | FX pairs to trade | |
|---|---|---|
| Fusion Markets | |
cTrader, MetaTrader 4, MetaTrader 5, TradingView |
| FP Markets | |
cTrader, TradingView |
| ActivTrades | |
MetaTrader 4, MetaTrader 5, Proprietary Web, TradingView |
| FxPro | |
cTrader, MetaTrader 4, MetaTrader 5 |
| Iron FX | |
MetaTrader 4 |
| Axi | |
MetaTrader 4 |
| HFM | |
MetaTrader 4, MetaTrader 5, Proprietary Mobile |
| Exness | |
MetaTrader 4, MetaTrader 5, Proprietary Mobile |
| FXTM | |
MetaTrader 4, MetaTrader 5 |
| Tickmill | |
MetaTrader 4, MetaTrader 5, Proprietary Mobile, Proprietary Web |
| OctaFX | |
MetaTrader 5, Proprietary Mobile, Proprietary Web |
Comprehensive Comparison of the Best Saudi Arabian Forex Brokers
| Brand | Min. Deposit | Trading Platforms | Spread | Regulation | Trustpilot |
|---|---|---|---|---|---|
 |
$0 |
|
AVG 0.93 pips |
|
|
 |
$50 (AU$100) |
|
AVG 1.2 pips |
|
|
 |
$0 |
|
AVG 0.5 pips |
|
|
 |
$100 |
|
AVG 0.5 pips |
|
|
 |
$100 |
|
AVG 1.2 pips |
|
|
 |
$0 |
|
AVG 0.1 pips |
|
|
 |
$0 (Zero, Premium, Cent), $5,000 (Premium Pro), €100 (Pro) |
|
AVG 1.3 pips |
|
|
 |
$10 (Standard, Standard Cent); $200 (Pro, Raw Spread, Zero) |
|
AVG 0.9 pips |
|
|
 |
$200 |
|
AVG 0.4 pips |
|
|
 |
$100 |
|
AVG 1.7 pips |
|
|
 |
$25 |
|
AVG 0.9 pips |
|
Legal Forms of Forex Trading in Saudi Arabia
In Saudi Arabia, forex trading encompasses various financial instruments, each with distinct characteristics and regulatory considerations. The primary forms include spot trading, contracts for difference (CFDs), and options.
- Spot Trading
This involves the immediate exchange of one currency for another at the current market rate. It’s the most straightforward form of forex trading and is widely practiced within the Kingdom. - Contracts for Difference (CFDs)
CFDs allow traders to speculate on the price movements of currency pairs without owning the underlying assets. While CFDs are popular globally, in Saudi Arabia, they are subject to specific regulations to ensure compliance with Islamic financial principles. - Options
These financial derivatives provide traders with the right, but not the obligation, to exchange currencies at a predetermined rate before a specified date. Options can be used for hedging or speculative purposes and are available through licensed brokers operating under the oversight of the Capital Market Authority (CMA).
It’s important to note that certain trading forms, such as spread betting and binary options, are either restricted or prohibited in Saudi Arabia due to their speculative nature, which conflicts with Islamic finance principles. Traders are advised to engage only in trading activities that comply with local regulations and Sharia law.
Restrictions on Forex Trading in Saudi Arabia
Forex trading in Saudi Arabia is subject to several restrictions to ensure compliance with local regulations and Islamic financial principles. Below are the key limitations traders should be aware of:
- Prohibition of Cryptocurrency CFDs
- The Saudi Central Bank (SAMA) does not recognize cryptocurrencies as legal tender.
- Trading cryptocurrency CFDs (such as Bitcoin or Ethereum pairs) is not regulated and is considered high-risk.
- The government has issued multiple warnings about fraud and scams in the crypto trading space.
- Ban on Binary Options
- Binary options are prohibited in Saudi Arabia due to their speculative nature.
- These financial instruments are considered akin to gambling, which goes against Islamic finance principles.
- Unlicensed Forex Platforms Are Illegal
- Any forex broker operating without a license from the Capital Market Authority (CMA) is illegal.
- Many fraudulent platforms use fake endorsements or misleading advertisements to attract Saudi traders.
- Traders should verify broker legitimacy before opening an account.
- Leverage Limits for Retail Traders
- While forex trading is permitted, leverage restrictions may apply to reduce excessive risk.
- Regulations are in place to protect traders from high-risk exposure and margin losses.
Saudi traders should always check regulatory guidelines and only trade with licensed brokers to ensure compliance with local laws and investor protections.
Regulations on Forex Trading in Saudi Arabia
Forex trading in Saudi Arabia is strictly regulated to ensure transparency, investor protection, and compliance with Islamic financial principles. Two key regulatory bodies oversee forex activities in the Kingdom:
- Saudi Central Bank (SAMA)
The Saudi Central Bank (SAMA) is the primary financial regulator responsible for maintaining monetary stability and overseeing banking and financial institutions. While SAMA does not directly regulate forex brokers, it plays a crucial role in enforcing financial laws and preventing unauthorized trading activities. SAMA has issued multiple warnings against unlicensed forex brokers and cryptocurrency trading, emphasizing the risks involved in speculative investments. - Capital Market Authority (CMA)
The Capital Market Authority (CMA) is the main regulatory body overseeing forex trading and securities markets in Saudi Arabia. Its responsibilities include:
- Licensing and supervising authorized forex brokers.
- Ensuring compliance with investor protection laws and financial transparency.
- Enforcing measures against fraudulent or high-risk trading activities.
- Regulatory Measures in Place
To protect Saudi investors, the CMA and SAMA have implemented strict regulations, including:- Prohibition of unlicensed forex brokers from operating in the Kingdom.
- Banning of binary options and cryptocurrency CFDs due to their speculative nature.
- Requiring licensed brokers to adhere to risk management policies such as fund segregation and negative balance protection.
By following these regulations, Saudi authorities ensure that forex trading remains a controlled and secure financial activity. Traders are advised to verify broker licensing and adhere to local laws before engaging in forex trading.
- Requirements for Forex Brokers in Saudi Arabia
Forex brokers operating in Saudi Arabia must adhere to stringent regulatory standards to ensure investor protection and market integrity. Key requirements include: - Licensing and Regulation
Brokers must obtain authorization from reputable international regulatory bodies, as the Capital Market Authority (CMA) does not directly license forex brokers. - Islamic (Swap-Free) Accounts
To comply with Islamic finance principles, brokers should offer swap-free accounts that do not incur interest on overnight positions. - Negative Balance Protection
Brokers are expected to implement measures ensuring clients cannot lose more than their account balance, safeguarding against volatile market movements. - Fund Segregation
Client funds must be held in separate accounts from the broker’s operational funds to protect client assets in case of broker insolvency. - Risk Disclosures
Transparent communication regarding the risks associated with forex trading is mandatory, enabling clients to make informed decisions. - Leverage Restrictions
Brokers should offer leverage ratios that align with international best practices to prevent excessive risk exposure for retail traders. - Automatic Margin Closeouts
To prevent negative balances, brokers must have systems in place to automatically close positions when margin requirements are not met.
By adhering to these requirements, forex brokers can provide a secure and compliant trading environment for clients in Saudi Arabia.
Taxes on Forex Trading Profits in Saudi Arabia
Saudi Arabia has a unique taxation system that differs significantly from many Western countries. Forex traders, whether individuals or businesses, should understand how their trading profits may be subject to taxation under Saudi law. Below is an overview of key tax considerations as of January 2025.
No Personal Income Tax
- Saudi Arabia does not impose personal income tax on individuals.
- This means that profits from forex trading are not taxed for individual traders.
- Residents and Saudi nationals do not need to report or pay taxes on their forex earnings.
Corporate Income Tax
- If forex trading is conducted through a registered company, corporate taxes may apply.
- Non-Saudi or foreign-owned entities are subject to a 20% corporate tax on net profits.
- Companies engaging in forex trading must maintain proper financial records to comply with tax regulations.
Capital Gains Tax
- Non-resident traders are subject to a 20% capital gains tax on profits made within Saudi Arabia.
- Saudi residents and GCC nationals may be exempt from capital gains tax in certain situations.
- Selling shares in a resident company may also attract capital gains tax unless specific exemptions apply.
Zakat Obligations
- Saudi nationals and GCC-owned companies are required to pay Zakat, an Islamic wealth tax.
- Zakat is typically 2.5% of qualifying assets, including business revenue and investments.
- Individual forex traders may need to account for Zakat on their profits, depending on their financial circumstances.
Key Takeaways
- Individual traders do not pay income tax on forex profits.
- Corporate forex traders may owe a 20% tax on net earnings.
- Non-residents may be subject to capital gains tax.
- Saudi nationals and GCC traders may need to pay Zakat on their forex earnings.
For specific tax obligations, it is advisable to consult a tax expert familiar with Saudi regulations.
How to Identify a Reliable Forex Broker in Saudi Arabia
Selecting a reliable forex broker is crucial for traders in Saudi Arabia to ensure a secure and compliant trading environment. Here are key factors to consider when choosing a broker:
- Regulatory Compliance
- International Licensing: Look for brokers regulated by reputable international authorities such as the UK’s Financial Conduct Authority (FCA), Australia’s ASIC, or the Seychelles Financial Services Authority (FSA). These licenses indicate adherence to stringent financial standards.
- Verification: Always verify the broker’s regulatory status through the official websites of these regulatory bodies to ensure legitimacy.
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Trading Platforms and Tools
- Platform Availability: Ensure the broker offers user-friendly platforms like MetaTrader 4 (MT4), MetaTrader 5 (MT5), or cTrader, which are popular among traders for their functionality and reliability.
- Educational Resources: Access to educational materials and market analysis can enhance trading skills and decision-making.
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Account Types and Conditions
- Islamic Accounts: For compliance with Islamic finance principles, look for brokers offering swap-free (Islamic) accounts. These accounts do not incur interest charges on overnight positions.
- Leverage Options: Consider brokers that offer leverage ratios suitable for your trading strategy, keeping in mind that higher leverage increases both potential profits and risks.
-
Customer Support
- Local Support: Look for brokers that provide customer support in Arabic and are available during Saudi Arabian business hours to facilitate effective communication.
- Support Channels: Multiple support channels, including phone, email, and live chat, can enhance accessibility and responsiveness.
-
Payment Methods
- Local Payment Options: Brokers that accept local payment methods such as bank transfers, credit/debit cards, and e-wallets like PayPal, Neteller, and Skrill can simplify deposit and withdrawal processes.
- Transaction Fees: Be aware of any fees associated with deposits and withdrawals, as these can impact overall trading costs.
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Reviews and Reputation
- Independent Reviews: Consult independent review platforms and forums to gauge the broker’s reputation and reliability based on other traders’ experiences.
- Regulatory Warnings: Check for any regulatory warnings or sanctions against the broker to avoid potential risks.
FAQs
Can I use leverage when trading forex in Saudi Arabia?
Yes, leverage is available through licensed brokers, but there are restrictions to protect retail traders from excessive risk exposure. It is essential to ensure that the leverage ratio provided by the broker complies with local and international guidelines.
How can I choose a reliable forex broker in Saudi Arabia?
To select a reliable broker, ensure they are regulated by a reputable authority such as the UK’s FCA or Australia’s ASIC. Look for brokers offering Islamic accounts, transparent pricing, negative balance protection, and accessible customer support in Arabic.
Do forex brokers in Saudi Arabia offer Islamic accounts?
Yes, many licensed brokers offer Islamic (swap-free) accounts, which are designed to comply with Islamic finance principles by eliminating interest charges on overnight positions.
Are there any fees associated with forex trading in Saudi Arabia?
Fees may vary depending on the broker, including spreads, commissions, and withdrawal fees. It’s essential to review the broker’s fee structure to understand potential costs and avoid unexpected charges.
Can I trade forex using a mobile phone in Saudi Arabia?
Yes, most forex brokers provide mobile trading platforms compatible with smartphones and tablets. These platforms offer the same functionality as desktop versions, allowing traders to access the market, monitor trades, and execute orders on the go.
Are there any risks involved in forex trading in Saudi Arabia?
As with any financial market, forex trading involves risks, such as market volatility, leverage-related losses, and the potential for fraud from unregulated brokers. Traders should ensure they use licensed platforms, apply risk management strategies, and only trade amounts they can afford to lose.
Why You Should Trust RationalFX
When it comes to making informed decisions about forex brokers, it's essential to rely on trustworthy sources. RationalFX, a company with over 20 years of experience since its founding in 2005, has established itself as a credible authority in the industry. With an impressive collection of over 2500 reviews on Trustpilot, boasting a score of 4.2, it's clear that Rational FX has built a reputation for providing reliable and unbiased information.
What sets Rational FX apart is its rigorous evaluation process, which considers over 30 different criteria when selecting forex brokers. This comprehensive approach ensures that every aspect of a broker's service is taken in consideration, including regulation, forex spreads, trading platforms, deposit methods, and reputation. With its wealth of experience, transparent review process, and outstanding customer feedback, Rational FX is a trusted source for anyone seeking reliable information on forex brokers. You can reach us via e-mail at feedback@rationalfx.com or contact us through our social media accounts here: Facebook, YouTube, or leave a feedback here.