The options market in Dubai is small, yet with ambitious plans to grow. How does this affect your trading?
The options market in Dubai has not had a pretty start, with most options brokers folding within months of their launch.
It was due to poor management and no regulation leading to frauds left, right and centre. However, those that lasted are still standing strong, carrying all the lessons learned from their mistakes alongside their even more substantial ambitions.
With six active brokers, three local (as is the law), and three international names, we find ourselves today facing new challenges as many traders are interested in learning about options trading.
We’ve chosen to look at two distinct real-life examples of investors who want help dealing with the difficulties in Dubai’s options market.
We will first look at an investor who needs help understanding how to navigate the plethora of brokers, all offering different commission rates and packages.
Second, we present a trader who has been engaging with an investment company over SMS texting for over four months now but remains unsure if there is any actual interest or not.
Brokers whom you should consider in Dubai
All European investors, this brokerage should be a desirable option listed as one of our top broker choices for 2015.
It offers zero commissions on all trades along with competitive pricing across all asset classes, including options trading.
There are no restrictions on your account regarding the amount you can deposit or trade, so it’s easy to get started.
This broker is top-rated among Dubai options traders, offering several advantages over their competitors, including low commissions and fees, making them one of our top picks for 2015.
The brokers are located across several countries, which enables traders worldwide to benefit from their services.
They also offer multiple mini and Micro accounts catering for different needs and budgets.
A big plus with this brokerage is that they accept any investor (Self-Managed, Proprietary or Discretionary).
Magnum provides an incredible platform for expats and professionals alike with no restrictions on minimum balance.
If you feel like taking a walk on the wild side and want to engage in American Style Options Trading, Magnum is your best bet.
His brokerage, AAP Capital Markets (APM), has zero commissions and charges only $2 per contract for options with 1-30days expiry. With such fees, APM is one of our top choices for 2015.
However, one negative is that APM does not accept any investors from Pakistan or other countries in the middle east besides UAE and Oman.
Global Investor Center
This broker accepting foreign investors offers competitive prices across all asset classes, including its option spreads which can even decrease to 1 dollar according to their website.
Their mobile application is also highly user-friendly, making them one of our top broker choices for 2015.
Now that we’ve looked at five brokers, how do you choose?
Three simple steps to help you choose
- Determine your needs and the amount of risk you want to take on.
- Determine your options trading type (Long or Short).
- Contact each broker directly with your requirements and ask them any specific questions not covered in this article.
Share with them the size of deposit you are willing to make, your timeframe and your desired level of risk.
It will give you a thoughtful idea about their response time, indicating their professionalism. Also, check out their exchange rate fees for different types of traders.
With that said, all five brokers should be able to cater for your needs and address any questions you might have regarding the specific services and tools they offer.
However, we do find that some brokers are more proactive than others in dealing with queries and concerns from individual clients, making them a better choice if you want an easy entry point into Options Trading.
Suppose none of the above mentioned brokers suits your needs. In that case, you may wish to look into other options such as Interactive Option or GO Markets which both offer quality services at competitive rates.
If you’re interested, click for more info.