Yes, if you reside in Dubai, you can legally trade forex with brokers that are properly licensed and regulated by the DFSA (according to Regulatory Law 2004 as enacted by the ruler of Dubai). Forex brokers (and other financial institutions) that operate outside of the DIFC (i.e. outside of Dubai) are regulated by the Securities and Commodities Authority (SCA). It’s also worth noting that the Central Bank of the UAE regulates the foreign exchange markets and supervises banks and payment providers. Brokers authorized by the CBUAE hold a monetary intermediary license, whereas exchange-traded forex products are regulated by the Securities & Commodities Authority (SCA) The UAE’S financial markets Forex traders may recognize the dirham (AED) as the national currency of the United Arab Emirates. Though comprised of seven separate emirates, the main financial centers of the UAE are undisputedly Abu Dhabi and Dubai. As such, the UAE features two primary financial securities exchanges: the Abu Dhabi Securities Exchange (ADX), and the Dubai Financial Market (DFM). The ADX, based in Abu Dhabi, was established in the year 2000 and operates as a market for trading securities while also being vested with certain supervisory powers. One of the largest markets in the Arab world, the ADX offers shares, bonds, exchange-traded funds (ETFs), and other SCA-approved financial instruments. The DFM, based in Dubai, functions as a secondary market for trading securities, bonds, mutual funds, as well as other local or foreign DFM-approved financial instruments. Excluding the city of Dubai, the Central Bank of the UAE (CBUAE) is the primary national regulator for all financial services firms in the UAE, including banks and forex brokers. The Securities and Commodities Authority (SCA) is the governmental agency that oversees the local stock and commodity exchanges in Dubai. Within Dubai exists a unique special economic zone known as the Dubai International Financial Center (DIFC). The primary regulator for the financial services industry within the DIFC is the Dubai Financial Services Authority (DFSA), which enforces licensing and membership compliance for forex brokers in Dubai, and regulates the trading of securities, commodities, investment funds, and derivatives. securityWhy regulation is important Choosing a well-regulated forex broker is important for avoiding forex scams. Check out my popular educational series that teaches you how to identify common forex scams and provides helpful information about what to do if you've been scammed. For crypto traders, I explain how you can spot common crypto scams.