(MENAFN – MENAFN Authors) Never before has it been so easy for traders from all over the world to open an account with an online broker and start trading forex. Thanks to strict regulation and strong international brands, most of the top brokers on the market are available everywhere.
Better yet, many of them offer special Islamic accounts that make it possible for people from the Middle East to trade.
To help you get started on your trading journey, we’ve collected fives basic tips that you should consider before you start. So without further ado, here are five crucial tips for forex trading in the Middle East.
1. Open an Islamic Account with a Top Broker
As you probably already know, it’s not as straightforward for Muslims to start trading as it is for most others due to religious limitations. Luckily, several of the world’s leading brokers understands this and offers unique Islamic trading accounts according to Sharia Law.
Not all brokers do so yet, but if you follow the link above you’ll be presented with several options. For example, the British broker IG Markets as well as the Ireland-based broker AvaTrade has Islamic accounts. Both of these brokers are also tightly regulated by the FCA and the Bank of Ireland, meaning they’re safe to use.
Also, never use an unregulated broker, regardless of what they offer you. The forex market is strictly regulated and there is no need for you to subject yourself to unnecessary risk.
2. Trade Local Currencies
The Middle East happens to be the home of the world’s highest-valued currencies. In fact, the four most expensive currencies in the world – Kuwaiti Dinar, Bahraini Dinar, Oman Rial, and the Jordan Dinar – are all middle eastern currencies.
Moreover, the Middle East and the Islamic World in general, are home to some of the most traded currencies on the international forex market, including the Singapore Dollar, Turkish Lira, UAE Dirham, Saudi Riyal, etc.
Our point is that there are many currencies that you, in one way or another, have a connection to, that are considered great assets for trading. And there is no reason why you shouldn’t be trading local currency.
3. Take Advantage of CFDs Offered By Your Broker
One of the main benefits of today’s forex brokers is that they rarely limit themselves to only offering forex trading. Instead, many of them also provide access to derivatives markets such as CFDs.
CFDs, which is short for Contract for Difference, is a derivative that allows you to trade pretty much any other instrument. However, you never have to invest in the said instrument but rather speculate on its value.
That means that you can open a trading account with an online forex broker in the Middle East and trade everything from currencies to stocks and commodities, on the same platform.
4. Use Demo Accounts to Maximize Your Opportunities
If you’ve never traded before you’ll need some practice. Naturally, you have to study the market you’re looking to trade on as well as learn all the skills you need to open and close profitable positions.
According to us, the best way to do so is a demo account. A demo account is a replica of a regular trading account but instead of trading with real money, you use virtual money. In turn, this removes all related risks meaning you can’t lose any money or make a profit, making it perfect for practice.
Today, most of the top brokers offer demo accounts so we suggest you open one with the broker you’re planning to use for your real trading as well.
5. Start with Baby Steps
As with most things in life, you must start off slowly and work yourself up when you first get into trading.
You see, trading is difficult and it can take years to master all the skills needed to make a profit. Therefore, it’s advisable that you limit the amount of money you deposit when first getting started and that you don’t rush into anything.
If you take your time and follow a strict pattern regarding how you analyze and trade assets, you’ll be on your way to becoming profitable in no time.
Lastly, don’t forget to never invest money you can’t afford to lose and never chase your losses. Retail forex trading is associated with risk and the only one that can lower the risk, are you and your skills.