Forex trading continues to rise in popularity in Kuwait, with the concept of currency exchange remains deeply anchored in this high-income economy with its large expat population.
Below I present a shortlist of the most competitive Forex brokers operating in Kuwait and a guide for beginner Forex traders in Kuwait in choosing a broker and getting started.
Best Kuwait Brokers Comparison
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Regulators | CMA, CySEC, FCA, FSC Mauritius, FSCA | ASIC, CMA, CySEC, FSCA | ASIC, BVI, Central Bank of Ireland, FFAJ, FSCA, KNF, MiFID | ASIC |
Year Established | 2011 | 2005 | 2006 | 2011 |
Execution Type(s) | ECN/STP, Market Maker | ECN/STP | Market Maker | ECN/STP, Market Maker |
Minimum Deposit | ||||
Average Trading Cost EUR/USD | 0.1 pips | 1.2 pips | 0.9 pips | 1.1 pips ($11.00) |
Average Trading Cost GBP/USD | 0.2 pips | 1.4 pips | 1.5 pips | 1.1 pips ($11.00) |
Average Trading Cost Gold | $0.18 | $0.16 | $0.29 | $0.15 |
Trading Platform(s) | MetaTrader 4, MetaTrader 5, Proprietary platform | MetaTrader 4, MetaTrader 5, cTrader, Proprietary platform, Web-based | Other, MetaTrader 4, MetaTrader 5, Proprietary platform, Web-based+ | MetaTrader 4, MetaTrader 5 |
Islamic Account | ||||
Negative Balance Protection | N/A | |||
| Visit Website | Visit Website | Visit Website | Visit Website |
FXTM
In Summary Best all-around broker with high floating leverage and fast executionFXTM ranks among the best Forex brokers in Kuwait as traders get ultra-low trading fees featuring raw spread trading from 0.0 pips for a commission of $0.80 and $4.00 per 1.0 standard round lot in the Advantage account. The cutting-edge price improvement technology decreases trading fees by an average of $3.00 per round lot, applicable on 97.18% of all trades.
VPS hosting ensures 24/5 low-latency trading and excellent order execution with an average order execution time of 0.071 seconds. It makes FXTM an ideal choice for algorithmic traders and scalpers. FXTM upgrades MT4 with its Pivot Point Strategy plugin.
Pros & Cons
- Excellent commission-based Forex pricing environment and transparency
- Upgraded MT4/MT5 trading platforms plus proprietary mobile trading app
- Quality market research and educational content for beginner traders
- A highly regulated broker with a tier-1 license
- No cryptocurrencies and limited choice of commodities
FP Markets
In Summary ECN trading with leverage up to 1:500fpmarkets is an ASIC-regulated Australian brokerage which launched in 2005. For most traders, the unique selling point of this broker is in the extremely wide range of tradable assets offered, providing the opportunity to trade over ten thousand individual stocks and shares including publicly quoted Hong Kong and Australian companies. Ffpmarkets also offers 60 Forex pairs and crosses, 11 equity indices, the major commodities, and 5 cryptocurrencies including Bitcoin. fpmarkets offers an unusual hybrid ECN/STP execution model, meaning their clients can choose between ECN style of execution giving a very high level of speed, and a “straight through processing” execution style which allows for more “natural” spreads.
Pros & Cons
- Choice of trading platforms and auxiliary trading tools
- Very competitive cost structure and excellent asset selection
- Low minimum deposit requirement and leverage of up to 1:500
- Well-regulated and trustworthy
- Availability of Iress geographically restricted
AvaTrade
In Summary Highly regulated, choice of fixed or floating spreadsI consider AvaTrade among the best Forex brokers in Kuwait, as it offers a well-balanced asset selection, including options, ETFs, and cryptocurrencies. Traders also get reasonable commission-free Forex costs from 0.9 pips or $9.00 per standard lot. AvaTrade offers its AvaTrade WebTrader, MT4, MT5, Ava Option, Ava Social, DupliTrade, and ZuluTrade. The high-paying partnership program has 70,000+ registered partners from 150+ countries with $250,000,000+ commission payouts.
AvaTrade provides industry-leading education via the spun-out Ava Academy and on-site content. The MT4 Guardian Angel plugin and the fee-based Ava Protect insurance policy protecting against trading losses are additional beginner trading tools.
Pros & Cons
- High quality educational offering via AvaAcademy
- Excellent choice of trading platforms catering to various trading needs
- Broad asset selection and cross-asset diversification opportunities
- Well-regulated and trusted broker with oversight from a central bank
- Trading costs competitive but nothing special
ACY Securities
In Summary Swap-free trading with the MT5 trading platformACY Securities ranks among the best Forex brokers in Kuwait, as it offers Capitalise AI, allowing algorithmic trading in a code-free environment. It creates a competitive advantage few brokers can match. A swap-free Islamic account exists for the Standard account on MT4/MT5, offering five days of swap-free trading before a daily administrative fee applies.
Beginner education consists of trading courses, webinars, seminars, and e-books. Traders also get a Forex trading how-to snapshot. A seven-member team adds additional educational value via in-house market commentary. Copy traders get embedded MT4/MT5 copy trading services, fee-based Signal Start, or upstart SoFinX Copy Trading.
Pros & Cons
- Large repository of daily analysis and educational content
- Low spreads starting at 0 pips in the Spread Zero account
- 16 payment processors, including cryptocurrencies
- Competitive trading fees in its commission-based accounts
- Only 1 regulator
Is Forex Trading Legal in Kuwait?
Forex trading is legal in Kuwait, and the Central Bank of Kuwait regulates the domestic financial market. Since almost 60% of the population living in Kuwait are foreign nationals on work visas from 100 countries, Forex transactions are part of everyday life. Estimates as recent as 2019 claim tens of thousands of Kuwaiti Forex traders for reasons other than necessity. The young and tech-savvy population continues to embrace the opportunities of Forex trading.
While Kuwait has domestic brokerage houses, there are no legal restrictions on Kuwaiti resident Forex traders opening accounts with international Forex brokers, which is where most conduct their trading. Some have representative offices in the GCC region, and a few offer funding and withdrawal options through domestic payment processors, although most Kuwaiti resident Forex traders use US Dollar-denominated trading accounts
Forex Trading Regulations in Kuwait
The Central Bank of Kuwait (CBK) regulates the domestic financial market, the Kuwaiti stock exchange, the Ministry of Finance, and the Ministry of Commerce and Industry. The CBK enforces a strict currency system and ranks among the most trusted GCC central banks, founded in 1968, with currency reserves exceeding $25 billion.
Some of the CBK’s functions and supervisory roles are:
- Banker and financial advisor to the State of Kuwait
- Managing and maintaining the Kuwaiti Dinar, ensuring free conversion to other currencies
- Supervising, organizing, developing, and improving the banking system
- Conducting inspections of all CBK-regulated entities, ensuring compliance, and enforcing rules and regulations
- Directing monetary policy to enhance economic and social progress
- Analyzing new entrants to the Kuwait financial system
- Supervising mediation processes
Noteworthy:
- Kuwaiti resident Forex traders may opt for a CBK-regulated broker but are free to open trading accounts with international brokers, where trading conditions are often more competitive.
How to Choose a Forex Broker in Kuwait
While Kuwaiti Forex traders can trade with a domestic CBK-regulated broker, they are also free to opt for a well-regulated international alternative.
Here is what to look for when choosing a Forex broker in Kuwait:
1. Regulation and Security – Kuwaiti resident Forex traders should always ensure they trade with a regulated Forex broker with more than ten years of experience and a spotless regulatory record.
2. Islamic Account Fairness - Kuwaiti resident Forex traders wishing to open Islamic trading accounts should make sure the offer does not unfairly increase their trading costs or impose time limits or other unfair measures.
3. Trading Costs - Anything above $7 per standard lot for major currency pairs during the most liquid trading periods indicates above-average trading costs.
4. Asset Selection - The best Forex brokers in Kuwait will offer 60+ currency pairs.
5. Trading Platforms - Algorithmic and copy trading support are essential signs of an innovative trading platform, although every trader will not require them.
6. Deposits & Withdrawals - Online payment processors and cryptocurrencies should provide secure, low-cost options.
What is the Best Trading App in Kuwait?
Kuwaiti resident Forex traders should look for the below functions and services to find the best trading app in Kuwait.
The best trading app in Kuwait will offer:
- Algorithmic trading support
- Copy trading functions
- Fast order execution
- Deep liquidity
- Low trading costs
- Volume-based rebate programs
How to Open a Forex Trading Account in Kuwait
Opening a Forex trading account in Kuwait requires the below steps:
1. Select one of the best Forex brokers in Kuwait from our list.
2. Get access to the back office by completing the online registration form.
3. Upload a copy of the ID and one proof of residency document to pass mandatory AML/KYC requirements, which verifies the account holder, and activates the account, including the ability to deposit and withdraw.
4. Funding the account completes the Forex account registration and enables Kuwaiti resident Forex traders to buy and sell currency pairs using leverage. The minimum deposit depends on the broker, but Kuwaiti traders should ideally deposit at least 500 KWD and consider additional monthly deposits if possible.
What is the minimum deposit amount at Kuwait Forex Brokers?
Although the minimum deposit amount at competitive Forex brokers in Kuwait ranges between $50 and $500, or roughly 15 KWD to 150KWD, trading with such small amounts usually leads to worse outcomes than using better-funded account sizes.
While Forex traders can benefit from leverage and require less capital to open a portfolio, Forex traders should have well-funded accounts to support leveraged traded and diversify their portfolios. There is no magic number, but a Forex account below $5,000 or 1,650 KWD can only support transaction sizes that generate small profits, not warranting the effort necessary to achieve them, which generally leads to excessive risk-taking to compensate.
Successful Forex traders understand the importance of building portfolios, and they invest years into it, combining organic profits with follow-on deposits before considering withdrawals. Profitable Forex trading relies on scale, leverage, risk management, and profit sustainability.
What Is the Best Time to Trade Forex in Kuwait?
While the Forex market operates 24/5, some periods offer more liquidity, which usually results in tighter spreads, and, therefore, lower trading costs.
The best times to trade Forex in Kuwait are:
- 3 a.m. - 4 a.m. (First hour of the Tokyo trading session)
- 8 a.m. - 9 a.m. (Last hour of the Sydney trading session)
- 10 a.m. - Noon (The first two hours of the London trading session and the last hour of the Tokyo trading session)
- 5 p.m. - 7 p.m. (First two hours of the New York trading session and the last two hours of the London trading session)
- 9 p.m. - 12 p.m. (The last two hours of the New York trading session and the first hour of the Sydney trading session)
Most traders will miss the first two periods but would be able to actively participate in the third and fourth, which are prime Forex trading periods. The fifth period can also provide Kuwaiti resident Forex traders with attractive opportunities.
What Are the Advantages and Disadvantages of Forex Trading in Kuwait?
Before trading Forex in Kuwait, first-time traders should weigh the advantages and disadvantages of Forex trading in Kuwait, allowing them to make an informed decision. Kuwait heavily depends on oil exports for economic health and stability, and any potential issue can have severe ripple effects, impacting trading decisions related to Forex.
The advantages of Forex trading in Kuwait:
- High-income economy
- The Kuwaiti Dinar is one of the strongest global currencies
- Oil revenues counter the negative impacts of imports, ensuring a fiscally stable economy
- Low capital entry requirements
- A trustworthy regulator maintains a competitive trading environment
- No restrictions on opening trading accounts with international brokers
- Almost 60% of the Kuwaiti population are foreigners with work visas, embedding the concept of currency exchange
The disadvantages of Forex trading in Kuwait:
- Frauds and scams can target beginner traders
- Underfunded accounts nurture risky portfolios
- Absence of risk management results in trading losses
- Beginners underestimate the importance of psychological factors
Bottom Line
Our analysis of Forex trading in Kuwait confirmed the growing trend of the retail Forex market in Kuwait, where a young and tech-savvy crowd favors algorithmic trading, copy trading, and account management services. The local regulator, the Central Bank of Kuwait (CBK), maintains strict oversight and ranks among the most trusted ones in the GCC and the Middle East but does not restrict competitiveness. Kuwaiti resident Forex traders are free to open trading accounts with international brokers. More brokers open representative offices in the GCC, employ introducing brokers, or rely on affiliates to grow their market share.
Beginner traders should begin with education, as it should help develop a realistic and profitable approach to trading, and an effective avoidance of low-quality brokerages. Kuwaiti Forex traders should ensure their Forex brokers offers genuine Islamic accounts, if required. They should look to trade with one of the best Forex brokers in Kuwait, offering deep liquidity, fast order execution, negative balance protection, and low trading costs.
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