Page Summary
This guide helps to compare and find the best forex options brokers in UAE. FX options trading is a popular investment for advanced traders in UAE to achieve short-term (quick) profits. However, with 66 local and offshore online brokers available in UAE offering different trading conditions, selecting the ideal option for individual needs is challenging.
To help options traders make the optimal choice, the services of available providers have been assessed considering: the number of forex options, spreads & commissions, accessibility, options trading tools, research & education materials, Islamic accounts availability, and customer support.
This guide compares 66 providers for users to review and find the ideal forex broker for their needs. To help them make an informed decision, a list of the best forex options brokers in UAE is shared below, followed by in-depth reviews and comparisons.
You can trade forex options through Multilateral Trading Facilities (MTFs) and via the OTC Markets.
Best Forex Options Brokers in UAE
- IQ Option – Best Forex & Digital Options Broker for UAE Traders
- Saxo Bank – Best OTC Options Broker for UAE Traders
- Interactive Brokers – Top U.S. Forex Options Broker for UAE Traders
- AvaTrade – Ideal Options Trading App
- Pocket Option – Best CFD Options Broker
Top Forex Options Brokers in UAE Reviewed
The best forex options brokers in UAE are reviewed below including pros and cons.
1. IQ Option – Best Forex & Digital Options Broker for UAE Traders
Min Deposit: $10
Fees: 3.3
Assets available: 2.0
Total Fees:
IQ Option is a regulated forex and digital options broker where you can trade forex, digital and binary options, stock CFDs, cryptocurrencies, ETFs, and commodities. On correct predictions, IQ Option pays out up to 91%. You can open an account from $10 and their minimum trade size is $1. For Muslim traders, they offer Islamic swap-free accounts. You can also practice forex options trading with a demo account first.
Pros
- Payout up to 91%
- Offers Islamic and demo accounts
- Low minimum deposit
Cons
- Trading platform can be difficult to understand for beginners
“RISK WARNING: YOUR CAPITAL MIGHT BE AT RISK”
2. Saxo Bank – Best OTC and ETF Options Broker for UAE Traders
Min Deposit: $5000
Fees: 4.7
Assets available: 4.9
Total Fees:
69% of retail investor accounts lose money when trading CFDs with this provider.
With Saxo Bank, you can trade options from 20 exchanges on stocks, indices, interest rates, futures, and commodities. Saxo Bank offers advanced option trading tools like option chain, strategy builder, roll option, and integrated risk data. You pay a fixed commission of $1,25 per option contract opened. Saxo Bank requires a minimum deposit of $10,000 to open an options trading account with them. You can choose to open a swap-free options trading account.
Pros
- Low fixed fee per options contract
- Options on multiple asset classes available
- Offers swap-free accounts
Cons
- Cons
69% of retail investor accounts lose money when trading CFDs with this provider.
3. Interactive Brokers – Best Forex Options Broker for UAE Traders
Min Deposit: $0
Fees: 4.9
Assets available: 4.9
Total Fees:
All trading involves risk. More than 80% of investors lose in spread bet and CFD trading. As these complex instruments allow for the use of leverage, there is a high risk of losing more money than you have deposited. Before attempting to participate in spread bets and CFDs, consider how well you understand them and if you can afford to lose your money.
Interactive Brokers is the best broker to trade U.S. forex options as a United Arab Emirates-based trader. You can trade U.S. options from $0,15 to $0,65 per contract with them globally on 30+ exchanges. Interactive Brokers offers professional trading platforms and advanced options trading tools like Options Analytics, Options Portfolio, and the Options Strategy Builder. Beginner traders have access to Interactive Brokers’ Traders’ Academy educational material.
Pros
- Low fixed fee per options contract
- Advanced options trading tools available
- Educational material for beginners
Cons
- Trading platform overwhelming for beginners
All trading involves risk. More than 80% of investors lose in spread bet and CFD trading. As these complex instruments allow for the use of leverage, there is a high risk of losing more money than you have deposited. Before attempting to participate in spread bets and CFDs, consider how well you understand them and if you can afford to lose your money.
4. AVAtrade – OTC Options Broker with the Best Options Trading App for UAE Traders
Min Deposit: $100
Fees: 4.9
Assets available: 4.9
Total Fees: 0.9 pip
AvaTrade is the forex options broker with the best options trading app available for UAE traders. AvaTrade is regulated by the FSRA of the Abu Dhabi Global Market and offers OTC options trading on over 40 currency pairs and gold. With their options trading app, you can trade on the go, use advanced options trading tools like volatility visualizations, risk management tools, and fully customize the trading interface. AvaTrade offers managed account services for professionals and Muslim traders can open Islamic swap-free accounts. You can practice forex options trading with the AvaTrade demo account.
Pros
- Regulated by the FSRA
- Advanced trading and risk management tools
- Demo, managed, and swap-free accounts available
Cons
- Charges inactivity fees
71% of retail CFD accounts lose money
5. Pocket Option – Best CFD Options Broker for UAE Traders
Pocket Option is the best CFD options broker that offers UAE traders up to 218% payouts on correct predictions. You can trade digital and express options on forex, stocks, commodities, and crypto on their MT5 compatible trading platform. The minimum trade size is $1 and you can participate in options trading contests. Pocket Option offers its users a weekly cashback, indicators, and signals. You can practice options trading with Pocket Option’s demo account. Read the full Pocket Option review.
Pros
- High payouts
- MT5 compatible
- Demo account available
Cons
- Not regulated by top-tier regulator
How To Find The Ideal Broker and Forex Options Trading Platform in UAE?
Criteria for selecting the ideal forex broker and forex options trading platform in UAE are listed below.
- Availability of forex options
- Spreads and Commission
- Forex Options Trading Platforms and Third Party Integrations
- Broker Reputation (number of reviews and users feedback)
- Traders Experience level
- Traders Personal Preferences
- Islamic Account Availability
Top Forex Options Brokers Compared
Key features of the top rated forex options brokers in UAE are compared in the table below.
| Broker | Number of Forex Options | Spreads on EUR/USD | Max Leverage | Trading Platforms | Deposit & Withdrawal Methods | Customer Support Options | Regulators |
|---|---|---|---|---|---|---|---|
| IQ Option | 50 pairs | from 0.6 pips | Up to 1:1000 (region-specific) | Proprietary IQ Option platform, Mobile Apps | Credit/Debit Card, Wire Transfer, e-wallets | Live Chat, Email, Phone | CySEC |
| Saxo Bank | Over 180 pairs | from 0.4 pips | Up to 1:30 | SaxoTraderGO, SaxoTraderPRO | Credit/Debit Card, Wire Transfer | Live Chat, Email, Phone | FCA, ASIC, SFC, JFSA, MAS, FINMA |
| Interactive Brokers | Over 100 pairs | from 0.1 pips | Up to 1:40 | Trader Workstation (TWS), Client Portal, Mobile Apps | Wire Transfer, ACH, Check | Live Chat, Email, Phone | SEC, FINRA, FCA |
| AvaTrade | Over 50 pairs | from 0.9 pips | Up to 1:400 (region-specific) | MetaTrader 4, MetaTrader 5, AvaTradeGo, AvaOptions | Credit/Debit Card, Wire Transfer, e-wallets | Live Chat, Email, Phone | Central Bank of Ireland, ASIC, JFSA, FSCA, ADGM, FRSA, BVI |
| Pocket Option | 50 | N/A | Up to 1:100 (region-specific) | Proprietary Pocket Option platform, Mobile Apps | Credit/Debit Card, Cryptocurrencies, e-wallets | Live Chat, Email | IFMRRC |
What are Forex Options?
Forex options are put or call options on forex positions. With a put option, you have the right to sell the underlying asset and with a call option, you have the right to buy the underlying asset at a specified price and on or before a certain date. This specified price is called the strike price. A put option becomes profitable when the price of the underlying asset decreases. With a call option, you profit when the price of the underlying asset increases.
Forex Option Terminology
The terms you have to know when you want to start trading forex options are strike price, time value, spot price, premium, break-even level, and intrinsic value.
- Strike Price – The price at which an option contract can be concluded
- Time Value – The premium on the option related to the time remaining before it expires
- Spot Price – The current price of the underlying asset of the option contract
- Premium – The value of the time remaining on an option contract plus any profit made between the spot and strike price
- Break-Even Level – The difference between the spot price and the time value of an option contract
- Intrinsic Value – The positive difference between the strike price and spot price of an options contract
- Extrinsic Value – The negative difference between the strike price and spot price of an options contract
Forex Options Types
Apart from standard options, there are average rate options, barrier options, swaptions, currency warrants, binary options, and countdowns. These are called exotic forex options.
- Average Rate Options (ARO) – With these options, the strike price is set at expiry by taking the average spot rates during the lifespan of the option contract.
- Barrier Options – are options of which the payout depends on if the underlying asset breaches a certain price barrier during the lifespan of the option contract.
- Swaptions – are options that can be converted to a swap in return for premium.
- Currency Warrants – are long-term call options that allow you to open a forex position at a certain strike price.
- Binary Options – are options that payout when the underlying asset reaches or doesn’t reach a predetermined price. These are all-or-nothing options that either pay a high premium or become worthless. Check out best platforms for options trading
- Countdowns – are similar to binary options, but become profitable when the mid-price of an underlying asset reaches or stays below the expiry price.
Why You Should Trade Forex Options
You should trade forex options because they have a pre-defined risk, cannot be liquidated and are cash-settled, you cannot receive a margin call, you can hedge existing positions, and they have a pre-defined expiry time. It can be risky to sell options with undefined risks and you should know how options trading works before doing it.
The Four Different Levels of Forex Options Trading
The four different levels of forex options trading are default level, which includes protective puts and covered calls, level 2, which is buying put and call options, level 3, which are credit and debit spreads, and level 4, which is naked options trading.
What are the Best Forex Options Trading Strategies?
Some of the best forex options trading strategies are opening combination positions, straddles, and spread positions. A combination position is a series of options in a single options contract. A straddle or strangle is when you buy a call and put option at the same strike price and expiration date. A spread position is when you buy and sell the same option contract, but when the strike price and expiry dates differ.
How do Forex Options Differ Between Brokers?
Forex Options differ between brokers in execution policies, contract sizes, type of options, and trading symbols for the underlying currency.
Exotic Forex Options
Exotic forex options lose value when the underlying currency’s spot price touches, falls below, or increases above a certain price level.
Can I Trade Forex Options?
Most brokers offer forex options trading to professional clients only, but the ones mentioned in this guide also offer forex options trading to retail clients.
Conclusion
It is time intensive and challenging to compare and evaluate the services of different brokers in the UAE to find the ideal provider. Users must collect and evaluate relevant information to make the optimal choice for their needs.
This guide does the hard work for you, comparing and evaluating the top choices for different types of traders and trading goals. The results of our analysis of the best forex options brokers in UAE are summed up in the table below.
| RANK | BROKER | PLATFORM SCORE | BEST FOR | WEBSITE |
|---|---|---|---|---|
| #1 | IQ Option | 3,3/5 | Digital Options | Official website |
| #2 | Saxo Bank | 4,9/5 | OTC options | Official website |
| #3 | Interactive Brokers | 4,9/5 | U.S. Forex Options | Official website |
| #4 | AVAtrade | 4,9/5 | Options Trading App | Official website |
| #5 | Pocket Option | 3,0/5 | CFD Options | Official website |
Disclaimer
eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs.
Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 51% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money
This communication is intended for information and educational purposes only and should not be considered investment advice or investment recommendation. Past performance is not an indication of future results.
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eToro USA LLC does not offer CFDs and makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared by our partner utilizing publicly available non-entity specific information about eToro.
Stefan Grasic is the owner of Business24-7 and has considerable experience in the financial and investment niche, but also enjoys writing articles for the general readership. Stefan is an active stock, CFD, crypto and general investment researcher, advising blockchain companies such as Blockbird, GoCrypto, Hive Terminal at their start up level.