Should you trade with a DFSA regulated Forex broker?

What does it mean to be a DFSA regulated Forex broker?

Trading through a DFSA regulated forex broker offers the trader an element of security. DFSA regulated forex brokers are expected to follow the DFSA directive.

The DFSA stands for the Dubai Financial Services Authority. Like other regulators around the globe, they are there to oversee and regulate financial institutions and businesses within their jurisdiction.

With Dubai being one of the fastest growing financial centres in the world, the DFSA was established in 2004 to oversee the 100-acre Dubai International Financial Centre (DIFC).

It should be noted that the DIFC is a federal area that is completely separated from the rest of the country. It has its own courts and legal system.

Standards that apply to DFSA regulated Forex brokers

In July 2017, the CEO of the DFSA, set out new standards for brokers wishing to offer financial services to retail clients.

For DFSA regulated forex brokers, these rules included new margin requirements, the banning of using credit cards to fund trading accounts, and to ensure that all marketing and educational material was clear, fair, and not misleading.

While the DFSA is a fairly new regulatory body, it maintains global standards, in line with those of the FCA and ASIC.

When did Pepperstone obtain their license and why?

Pepperstone secured their DFSA license in Dubai in June 2020.

Tamas Szabo, Group CEO at Pepperstone, told Finance Magnates, “Thanks to our presence in Dubai, Pepperstone can establish even closer ties with our clients in the Middle East. Dubai is a significant global financial hub, and we look forward to bringing our expertise and technology to the local investors."

Figure 1 DFSA headquarters

Pepperstone’s other subsidiaries hold financial licenses from the UK FCA and the Australian ASIC, and has several representative offices in other countries.

For more information on Pepperstone’s regulations, click here.