Forex trading has continued its rise in popularity in Saudi Arabia, as the economy has continued its post-coronavirus rebound continues to expand across the kingdom, home to a young and tech-savvy population looking for alternate or additional sources of income.
Below I present a shortlist of the most competitive Forex brokers operating in Saudi Arabia and a guide for beginner Forex traders in Saudi Arabia in choosing a broker and getting started.
- FP Markets, ECN trading with leverage up to 1:500.
- Eightcap, Competitive pricing + excellent daily videos.
- XM, Exception range of assets + negative balance protection.
- AvaTrade, Highly regulated, choice of fixed or floating spreads.
- Pepperstone, Great ECN execution on MT4/5, cTader, TradingView and Pepperstone proprietary platform.
Best Saudi Arabia Brokers Comparison
| | | | | |
Regulators | ASIC, CMA, CySEC, FSCA | ASIC, CySEC, FCA, SCB | ASIC, CySEC, DFSA, FSC Belize | ASIC, BVI, Central Bank of Ireland, FFAJ, FSCA, KNF, MiFID | ASIC, BaFin, CMA, CySEC, DFSA, FCA, SCB |
Year Established | 2005 | 2009 | 2009 | 2006 | 2010 |
Execution Type(s) | ECN/STP | ECN/STP, Market Maker | Market Maker | Market Maker | No Dealing Desk, NDD |
Minimum Deposit | |||||
Average Trading Cost EUR/USD | 1.2 pips | 1.0 pips | 0.1 pips | 0.9 pips | 1.1 pips |
Average Trading Cost GBP/USD | 1.4 pips | 1.2 pips | 0.2 pips | 1.5 pips | 1.4 pips |
Average Trading Cost Gold | $0.16 | $0.12 | $0.19 | $0.29 | $0.15 |
Trading Platform(s) | MetaTrader 4, MetaTrader 5, cTrader, Proprietary platform, Web-based | MetaTrader 4, MetaTrader 5, Trading View | MetaTrader 4, MetaTrader 5, Proprietary platform | Other, MetaTrader 4, MetaTrader 5, Proprietary platform, Web-based+ | Other, MetaTrader 4, MetaTrader 5, cTrader, Proprietary platform, Trading View+ |
Islamic Account | |||||
Negative Balance Protection | N/A | N/A | |||
| Visit Website | Visit Website | Visit Website | Visit Website | Get Started Visit Website75-95% of traders on margin lose |
FP Markets
In Summary ECN trading with leverage up to 1:500FP Markets upgrades the MT4/MT5 trading platforms with its 12-plugin enhancement and Autochartist, creating one of the most competitive trading environments among Forex brokers in Saudi Arabia. For a minimum deposit of $100, Saudi Arabian Forex traders get a competitive cost structure of raw spreads for a commission of $6.00 per round lot. FP Markets also offers Islamic accounts, but if the faith is not mentioned on the ID traders submit, FP Markets may ask for a letter from a mosque confirming Muslim faith.
Besides the integrated MT4/MT5 copy trading services, FP Markets offers its proprietary solution and Myfxbook Autotrade. MAM/PAMM accounts enable account management. High leverage, deep liquidity, and fast order execution complete the core features.
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
Eightcap
In Summary Competitive pricing + excellent daily videosEightcap established itself among the best Forex brokers due to its superb trading infrastructure, excellent order execution amid deep liquidity, competitive fees, and cutting-edge trading tools. Manual traders get a well-designed AI-powered economic calendar, and Eightcap upgrades MT4 via Capitalise AI, which enables algorithmic trading in a code-free environment. MT5 traders benefit from Flash Trader, while the dedicated cryptocurrency solution Crypto Crusher caters to cryptocurrency traders.
Copy traders get the embedded MT4/MT5 services, and Eightcap connects social traders to the active TradingView community. Beginner traders get an outstanding educational and research offering via Eightcap Labs and Eightcap Trade Zone.
Pros & Cons
- Low minimum deposit and high leverage of up to 1:500
- Competitive cost structure
- Excellent technology infrastructure and seasoned management team
- Daily research and quality educational content
- Limited leverage in some areas
XM
In Summary Exception range of assets + negative balance protectionI rank XM among the best Forex brokers for beginners as it provides exceptional education, with the live education room available Monday through Friday between 06:00 and 15:00 GMT at its core. Beginners also receive actionable trading recommendations, and the $5 minimum deposit ensures accessibility to all traders, boosted by deposit bonuses.
XM rewards active traders with a four-tier loyalty program and supports algorithmic traders with VPS hosting. The well-balanced asset selection exceeds 1,000 assets, and the proprietary copy trading service pays signal providers up to 50% profit share. Swap-free trading and low trading fees ensure a competitive edge.
Pros & Cons
- Outstanding trading tools and loyalty program
- Low minimum deposit, high leverage*, and competitive trading cost
- Excellent research and education
- Trustworthy and transparent with generous bonuses and incentives
- Inactivity fee
AvaTrade
In Summary Highly regulated, choice of fixed or floating spreadsBesides Trading Central upgraded MT4/MT5 trading platforms, AvaTrade maintains its proprietary web based AvaTrade WebTrader, AvaOptions, and AvaTradeGO, placing it at the top of Forex brokers in Saudi Arabia with the most trading platform choices. AvaTrade supports social trading via Ava Social, ZuluTrade, or DupliTrade. It is also home to one of the most lucrative partnership programs with 70,000+ partners from 150+ counties and 250M+ commission payouts.
AvaTrade offers commission-free trading with acceptable costs, and one of the most trusted trading environments. One of the best features at AvaTrade is education, especially its spun-out SharpTrader unit. The Guardian Angel plug-in for MT4 helps traders manage risk, post-trade analysis, and issues alerts, and VPS hosting supports algorithmic traders.
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
Pepperstone
In Summary Great ECN execution on MT4/5, cTader, TradingView and Pepperstone proprietary platformAlgorithmic trading and scalping strategies require high leverage, deep liquidity, fast order execution, and low trading costs, which Pepperstone delivers, placing them among the most competitive Forex brokers in Saudi Arabia. It upgrades the out-of-the-box MT4/MT5 platforms with its Smart Trader suite, consisting of 28 plug-ins. It also offers cTrader and supports social traders via Signal Start, cTrader Copy, MetaTrader Signals, and DupliTrade, and proprietary Pepperstone Platform, as well as Copy Trading by Pepperstone.
Traders get raw spreads for a commission from $6.00 per lot, and high-frequency traders benefit from the Active Trader Program and the VIP client service. Beginners get quality education, in-house market research, and 24/5 multilingual support.
Pros & Cons
- Excellent choice of trading platforms consisting of MT4/MT5, cTrader, TreadingView and Pepperstone Platform
- Market-leading MT4/MT5 upgrade package, Autochartist, and API trading
- Social trading support via Signal Start, MetaTrader Signals, Copy Trading by Pepperstone, DupliTrade
- Leverage of up to 1:400 depends on jurisdiction and superb trade execution
- Demo accounts have 60-day time limits
Top Forex Brokers & Trading Apps in Saudi Arabia
Our Rating | 5.0 | 4.5 | 4.5 | 4.5 |
Full Review | ||||
Retail Loss Rate | 77.0% | 70.70% | 71.0% | 78.6% |
CMARegulation | No | No | No | No |
Minimum Raw Spreads | 0.0 pips | 0.0 pips | Not Applicable | 0.0 pips |
Minimum Standard Spreads | 1.5 pips | 1.0 pips | 0.9 pips | 0.6 pips |
Minimum Commission for Forex | $0.80 perround lot | $6.00 per round lot | Commission-free | $6.00 per round lot |
Commission for CFDs/DMA | Commission-free | 0.10% or $0.03 per share | Commission-free | 0.07% |
Commission Rebates | No | No | Not Applicable | Yes |
Minimum Deposit | $500 | $100 | $100 | $200 |
Demo Account | Yes | Yes | Yes | Yes |
Managed Account | Yes | Yes | No | Yes |
Islamic Account | No | Yes | Yes | Yes |
Inactivity Fee | $5 monthly after six months | No | $50 monthly after three months | No |
Deposit Fee | Third-Party | Third-Party | Third-Party | Third-Party |
Withdrawal Fee | Yes + Third-Party | Third-Party | Third-Party | Third-Party |
Funding Methods | 47 | 19 | 5 | 8 |
Is Forex Trading Legal in Saudi Arabia?
Forex trading is legal in Saudi Arabia. The Saudi Central Bank (previously known as the Saudi Arabian Monetary Authority or SAMA, an acronym it has continued to use after the name change), and the Capital Markets Authority (CMA) regulate capital markets in the kingdom.
When Saudi Arabia opened Forex trading to the retail sector, both regulators warned against Forex trading, primarily trading with unregulated entities. Fraud and scams targeting Saudi Arabian resident Forex traders prompted the warning. SAMA instructed Saudi banks to prevent citizens and entities from opening online accounts.
Many Forex brokers offering Islamic accounts add additional fees to compensate for the lack of swap rates or impose other limitations. Saudi Arabian Forex traders should check with their broker on this issue when opening an Islamic account to ensure fair treatment.
Only one fully licensed domestic option exists for Saudi Arabian Forex traders, who are allowed to trade with international brokers. Some have a representative office in the GCC region catering to Saudi Arabia.
How to choose a Forex Broker in Saudi Arabia
When considering Forex trading in Saudi Arabia, traders should opt for a regulated, trustworthy broker offering a competitive trading environment.
Saudi Arabian resident Forex traders should evaluate the following:
1. Regulation and Security - Saudi Arabian traders who prefer a localized presence can opt for an international Forex broker with an office in the GCC region. Other options are off-shore regulated brokers with membership with the Hong Kong-based Financial Commission, more than ten years of experience, or third-party liability insurance.
2. Islamic Account - Many Forex brokers advertise Islamic accounts but increase trading costs, apply time limits, or take other potentially unfair measures. Therefore, Saudi Arabian resident Forex traders should ensure they trade with a Forex broker offering genuine Islamic accounts.
3. Trading Costs - Trading costs for major currency pairs should not exceed $7 per standard lot during the most liquid trading periods.
4. Asset Selection - A competitive Forex selection exceeds 60 currency pairs.
5. Trading Platforms - A cutting-edge trading platform will support algorithmic and copy trading. However, if you do not need these features, there is nothing wrong with a broker which does not provide them.
6. Deposits & Withdrawals - Flexible online deposit methods and cryptocurrencies should ensure smooth, low-cost, and secure transactions.
What is the Best Trading App in Saudi Arabia?
It depends on individual preferences, but any trading app should offer certain core functions to qualify, and traders should evaluate its existence.
The best trading app in Saudi Arabia will offer:
- Algorithmic trading support
- Copy trading functions
- Fast order execution
- Deep liquidity
- Low trading costs
- Volume-based rebate programs
Opening a Forex Account in Saudi Arabia
Forex trading in Saudi Arabia brokers offer a hassle-free online application process. Most new clients will complete the initial registration process in less than 20 seconds and have their accounts verified within one business day if they upload the correct documents.
Saudi Arabian Forex traders can open an account by following the below steps:
1. Select one of the most competitive Forex brokers in Saudi Arabia from our list based upon which one best fits your individual needs.
2. Complete the online registration form, which grants access to the back office.
3. Regulated brokers will ask for account verification, a mandatory step to activate the account. Sending a copy of their ID and one proof of residency document usually satisfies AML/KYC requirements.
4. The final step is funding the account. While the minimum deposit depends on Forex brokers and payment processors, Saudi resident Forex traders should consider an initial deposit of at least $500 and consider adding to it with monthly follow-on deposits.
What is the Minimum Deposit for Saudi Arabia Forex Brokers?
Forex has significantly smaller capital requirements than other asset classes due to high leverage offered of up to 1:500, meaning for each $1, a trader could control up to $500. Most Forex brokers offer accounts from $200 or less, but such low minimum deposits are challenging to manage Forex portfolios effectively and with an acceptable risk profile.
Trading with an underfunded account poses an avoidable risk and can result in a complete loss of capital. Beginner traders in Saudi Arabia should consider a minimum initial deposit between $500 and $5,000, followed by small monthly add-on deposits to assist their portfolio growth.
Successful Forex traders spend years building their portfolios before considering withdrawals. They also understand the importance of scale, leverage, risk management, and sustainability of profits.
Forex Market Hours in Saudi Arabia
Although the Forex market operates 24/5, some periods offer higher liquidity, which usually results in tighter spreads, and, therefore, lower trading costs.
The best times to trade Forex in Saudi Arabia 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 above but will be able to actively participate during the third and fourth, which are prime Forex trading periods. The fifth period can also provide Saudi Arabian resident Forex traders with attractive opportunities.
Bottom Line
Forex trading Saudi Arabia is open to retail traders and offers exciting and sustainable long-term opportunities. A recent wave of fraud and scams resulted in the Saudi Central Bank and the Capital Markets Authority issuing a joint warning against Forex trading with unregulated entities. You can avoid unregulated brokers by checking their regulatory status on their website and cross-checking it will the regulators they are claiming to be regulated by.
Deep liquidity, fast order execution, high leverage, negative balance protection, and low trading costs are primary core trading requirements. Competitive Forex brokers will support algorithmic and copy trading. Saudi Arabian resident Forex traders should watch out for fair treatment when they apply for Islamic accounts.
Beginner traders will secure their highest chance of success in trading by educating themselves about risk management and trading psychology and not only trading strategies and methods.
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