| Updated: September 3, 2024Perched on the northern edge of Eastern Arabia, Kuwait is among the most affluent countries in the world in terms of income per capita. The country’s thriving economy is primarily driven by the production and export of petroleum, although the tourism, finance, and technology sectors also contribute significantly to its wealth. Foreign exchange transactions are part of day-to-day life in Kuwait as expatriates account for over 70% of the population.
Forex trading is understandably a popular form of investment in the country, with a growing number of brokerages offering their services to Kuwaiti residents. Most of these companies are licensed and regulated in other jurisdictions, catering to Kuwaitis with Islamic accounts, secure funding options, and websites in the Arabic language. After extensive research, Best Brokers identified the top-ranking sites where Kuwaitis can trade forex with confidence and ease. We tested their services with live accounts to ensure all shortlisted brokers deliver superior trading experience, tight spreads, and excellent order execution.
Fusion Markets74-89% of retail CFD accounts lose money
FP Markets73.85% of retail investor accounts lose money
Pepperstone75.5% of retail investor accounts lose money
Forex.com77.7% of retail investor accounts lose money
BlackBull Markets
easyMarkets71% of retail investor accounts lose money
Spreadex64% of retail investors lose money
Global Prime74-89% of retail CFD accounts lose money
Capital.com75% of retail investor accounts lose money
Tickmill70% of retail investor accounts lose moneyKuwaiti Forex Brokers Ranked by Trustpilot Score
| Forex Broker | Trustpilot Reviews | |
|---|---|---|
| 1. Fusion Markets | 1,862 | 4.9 ⭐ |
| 2. FP Markets | 7,092 | 4.8 ⭐ |
| 3. Pepperstone | 2,789 | 4.7 ⭐ |
| 4. Forex.com | 1,668 | 4.6 ⭐ |
| 5. BlackBull Markets | 808 | 4.6 ⭐ |
| 6. easyMarkets | 1,667 | 4.5 ⭐ |
| 7. Spreadex | 113 | 4.5 ⭐ |
| 8. Global Prime | 161 | 4.4 ⭐ |
| 9. Capital.com | 11,249 | 4.3 ⭐ |
| 10. Tickmill | 835 | 3.7 ⭐ |
Kuwaiti Forex Brokers Ranked by Spread Commission
| Forex Broker | EURUSD | USDJPY | EURGBP | GBPUSD |
|---|---|---|---|---|
| 1. Tickmill | 0.1 | 0.1 | 0.4 | 0.3 |
| 2. BlackBull Markets | 0.1 | 0.2 | 0.7 | 0.4 |
| 3. FP Markets | 1.1 | 0.30 | 0.20 | 1.2 |
| 4. Fusion Markets | 0.07 | 0.13 | 0.23 | 1.01 |
| 5. Global Prime | 0.13 | 0.28 | 0.28 | 1.11 |
| 6. Spreadex | 0.6 | 9 | 0.9 | 0.8 |
| 7. Capital.com | 0.6 | 10 | 2 | 1.3 |
| 8. easyMarkets | 0.7 | 1.0 | 1.0 | 0.9 |
| 9. Pepperstone | 1.00 (min) | 1.0 | 1.2 | 1.00 (min) |
| 10. Forex.com | 1 | 1.2 | 1.3 | 1.3 |
Kuwaiti Forex Brokers Ranked by Commission per Lot
| Forex Broker | Commission per lot |
|---|---|
| 1. easyMarkets | $0 |
| 2. Forex.com | $0 for Standard accounts; $5 per standard lot per side for Raw accounts |
| 3. Spreadex | $0 |
| 4. Capital.com | $0 |
| 5. Fusion Markets | $0 Classic Account, $4.50 round turn on Zero Account |
| 6. FP Markets | $0 Standard Account; $6 round turn on Pro Account |
| 7. Tickmill | $0 on Classic Account; $3 per side on Raw Account |
| 8. BlackBull Markets | $0 Standard; $6 per lot Prime; $4 per lot Institutional |
| 9. Global Prime | $0 Standard Accounts; $7 round turn on Raw Accounts |
| 10. Pepperstone | $0 (Standard Account), $7 round-turn (Razor Account) |
Important Note: Forex brokers must gain approval from the Capital Markets Authority to do business with customers from Kuwait. However, many Kuwaiti traders turn to international brokers authorized in other jurisdictions, as the number of locally approved broking firms remains limited for the time being.
Top 10 FX Brokers in Kuwait
Fusion Markets Broker Details Supports Arabic No Kuwaiti Currency (KWD) No Regulators ASIC, FSA (Seychelles), VFSC (Vanuatu) Min Deposit $0 Trading Platforms MetaTrader4, MetaTrader5, cTrader, DupliTrade, Fusion+ Copy Trade Trustpilot Rating 4.9 out of 1,862 reviews Number of Forex Pairs to Trade 90+ Leverage Forex & Metals: 1:30 (1:500 for forex and metals via VFSC)
Index CFDs: 1:5
Cryptocurrencies: 1:2 (ASIC), 1:10 (FSA, VFSC)Spread EURUSD: 0.07
USDJPY: 0.13
EURGBP: 0.23
GBPUSD: 1.01Forex Commission per Lot per Trade $0 Classic Account, $4.50 round turn on Zero Account Deposit Methods Visa, Mastercard, PayPal, Skrill, Neteller, Fasapay, Jeton Wallet, Perfect Money, Online Naira, Doku, Bitcoin, Ethereum, Litecoin, USDT, Tether, Ripple, bank wire, ZotaPay, VNPay, DuitNow, XPay, DragonPay, VAPay, FasaPay Withdrawal Methods Visa, Mastercard, Bank Wire, Skrill, Neteller,Bitcoin, Ethereum, Litecoin, Tether, Ripple, MiFinity Key Pros
- Offers some of the lowest spreads
- ASIC clients enjoy a negative balance protection
- Supports popular trading platforms
- Offers two copy trading platforms
- Supports fiat and crypto payment solutions
Key Cons
- Does not offer investor protection
- Traders outside Australia have no negative balance protection
- Cannot set up an account in a minor currency
- Has no FCA license
Global Prime Broker Details Supports Arabic No Kuwaiti Currency (KWD) No Regulators ASIC (No. 385620), VFSC (No. 40256) Min Deposit $0 Trading Platforms MT4 Desktop, MT4 Webtrader, MT4 Android Trustpilot Rating 4.4 out of 161 reviews Number of Forex Pairs to Trade 56 Leverage Forex & Metals: 1:500 (1:30 for ASIC entity)
Index CFDs: 1:100 (1:20 for ASIC entity)
Cryptocurrencies: Up to 1:2 (ASIC); Up to 1:5 (Pro and VFSC)Spread EURUSD: 0.13
USDJPY: 0.28
EURGBP: 0.28
GBPUSD: 1.11Forex Commission per Lot per Trade $0 Standard Accounts; $7 round turn on Raw Accounts Deposit Methods Visa, Mastercard, PayPal, Skrill, Neteller, Gate8, Dragonpay, Fasapay, VNPay, Pagsmile, BPay, POLi, AstroPay, Bank Transfer, Interac, Perfect Money, PayID, Jeton, MiFinity, XPay, Crypto Withdrawal Methods Mastercard, Visa, Local Bank Transfer, Bank Wire Transfer, Skrill, Neteller, AstroPay, PayPal, Dragonpay, Perfect Money, Jeton, Interac, Cryptocurrencies
Key Pros
- Overseen by a top-tier financial regulator (ASIC)
- No fees on deposits and withdrawals
- Low fees for FX trading
- Streamlined sign-up process
- A broad range of currency pairs
Key Cons
- Could use more trading platforms
- A limited range of educational resources
- Does not offer Islamic or cent accounts
FP Markets Broker Details Supports Arabic Yes Kuwaiti Currency (KWD) No Regulators ASIC, CySEC, FSA (Seychelles), FSCA Min Deposit $50 (AU$100) Trading Platforms MetaTrader4, MetaTrader5, WebTrader, IRESS, cTrader, TradingView Trustpilot Rating 4.8 out of 7,092 reviews Number of Forex Pairs to Trade 70+ Leverage Forex & Metals: 1:30
Index CFDs: 1:20
Cryptocurrencies: Up to 1:2 (Retail); Up to 1:5 (Pro)Spread EURUSD: 1.1
USDJPY: 0.30
EURGBP: 0.20
GBPUSD: 1.2Forex Commission per Lot per Trade $0 Standard Account; $6 round turn on Pro Account Deposit Methods Visa, Mastercard, Neteller, Bank Transfer, Skill, Sticpay, Fasapay, Virtual Pay, Perfect Money, Pagsmile, Dragonpay, Crypto, Apple Pay, Google Pay, Online Banking, Broker to Broker Withdrawal Methods Visa, Mastercard, Bank Wire, Neteller, Skrill, Paytrust88, PayPal Key Pros
- Offers plenty of educational trading tools
- Broker with competitive spreads
- Allows easy trading on the go
- Regulated by reputable authorities
- Offers a decent number of currency pairs
Key Cons
- Supported trading platforms are a tad outdated
- Could expand selection of products
- No negative balance and investor protection for clients under ASIC
easyMarkets Broker Details Supports Arabic Yes Kuwaiti Currency (KWD) No Regulators CySEC (license no. 079/07), ASIC (license no. 246566), FSA (license no. SD056), and FSC (license no. SIBA/L/20/1135). Min Deposit $100 Trading Platforms easyMarkets, MetaTrader 4, MetaTrader 5, TradingView Trustpilot Rating 4.5 out of 1,667 reviews Number of Forex Pairs to Trade 60+ Leverage Forex & Metals: 1:30
Index CFDs: 1:20
Cryptocurrencies: 1:2Spread EURUSD: 0.7
USDJPY: 1.0
EURGBP: 1.0
GBPUSD: 0.9Forex Commission per Lot per Trade $0 Deposit Methods Visa, Mastercard, JCB, Amex, Skrill, Neteller, Fasapay, Sofort, iDEAL, Web Money, BPay, Bank Transfer Withdrawal Methods Visa, Mastercard, JCB, Amex, Skrill, Neteller, Fasapay, Sofort, iDEAL, Web Money, BPay, Bank Transfer Key Pros
- Offers tight spreads and low fees
- Supports trading of over 60 currency pairs
- Regulated by several reputable authorities
- Supports a wide range of payment methods
- Offers a proprietary platform
Key Cons
- Number of supported products is somewhat limited
- Does not offer copy trading platform
- Traders from certain countries may have access to fewer payment methods
Pepperstone Broker Details Supports Arabic No Kuwaiti Currency (KWD) No Regulators UK FCA (No.684312), CySEC (No. 388/20), ASIC (No. 414530), BaFin (No.151148), DFSA, CMA Min Deposit $0 Trading Platforms TradingView, MT5, MT4, cTrader Trustpilot Rating 4.7 out of 2,789 reviews Number of Forex Pairs to Trade 90+ Leverage Forex & Metals: 1:30
Index CFDs: 1:20
Cryptocurrencies: 1:2Spread EURUSD: 1.00 (min)
USDJPY: 1.0
EURGBP: 1.2
GBPUSD: 1.00 (min)Forex Commission per Lot per Trade $0 (Standard Account), $7 round-turn (Razor Account) Deposit Methods Visa, Mastercard, PayPal, Bank Transfer, BPay, Neteller, Skrill Withdrawal Methods Visa, Mastercard, PayPal, Bank Transfer, BPay, Neteller, Skrill Key Pros
- Winner of multiple industry awards
- Commission-free FX trades via standard accounts
- Over 1,200 instruments across all major asset classes
- Competitive spreads on FX trades via Razor accounts
- Seamless withdrawals within 1 to 3 workdays
Key Cons
- A somewhat limited range of deposit and withdrawal options
- High swap rates on overnight positions
Tickmill Broker Details Supports Arabic Yes Kuwaiti Currency (KWD) No Regulators CySEC (No. 278/15), FCA (733772), CONSOB (No.4310), BaFin (No.146511), ACPR (No.75473), CNVM (No.4082), FSA Seychelles (SD 008), FSCA (FSP 49464) Min Deposit $100 Trading Platforms MT4, MT5, WebTrader, ZuluTrade Trustpilot Rating 3.7 out of 835 reviews Number of Forex Pairs to Trade 62 Leverage Forex & Metals: 1:30
Index CFDs: 1:20
Cryptocurrencies: 1:2Spread EURUSD: 0.1
USDJPY: 0.1
EURGBP: 0.4
GBPUSD: 0.3Forex Commission per Lot per Trade $0 on Classic Account; $3 per side on Raw Account Deposit Methods Bank Transfer, Skrill, Mastercard, Visa, PayPal, Przelewy24, Neteller, Trustly Withdrawal Methods Mastercard, Visa, Skrill, Neteller, Przelewy24, PayPal, Bank Transfer Key Pros
- Offers swap-free accounts for Islamic customers
- No commissions on FX trades via Classic accounts
- Global presence in over 180 countries
- FX spreads from zero pips on Raw accounts
- Swift order execution with no requotes
Key Cons
- Could use more base account currencies
- Bank-transfer deposits below $5,000 incur extra fees
Forex.com Broker Details Supports Arabic No Kuwaiti Currency (KWD) No Regulators ASIC, MAS, FCA, CIRO, JFSA, CFTC , MiFID, CySEC Min Deposit $100 Trading Platforms MetaTrader 4, MetaTrader 5, TradingView, WebTrader Trustpilot Rating 4.6 out of 1,668 reviews Number of Forex Pairs to Trade 80+ Leverage Forex & Metals: 1:30
Index CFDs: 1:20
Cryptocurrencies: 1:2Spread EURUSD: 1
USDJPY: 1.2
EURGBP: 1.3
GBPUSD: 1.3Forex Commission per Lot per Trade $0 for Standard accounts; $5 per standard lot per side for Raw accounts Deposit Methods Visa, Mastercard, Skrill, Neteller, Bank Transfer Withdrawal Methods Visa, Mastercard, Skrill, Neteller, Bank Transfer Key Pros
- Supports a great selection of trading platforms
- Enables easy mobile trading
- Offers over 80 currency pairs
- Provides a vast variety of products
- Forex spreads can be very competitive
Key Cons
- Navigating platforms can be difficult for beginners
- Instruments on MT4 platforms are significantly fewer than other platforms
- Charges monthly fee after 12 months of inactivity
BlackBull Markets Broker Details Supports Arabic Yes Kuwaiti Currency (KWD) No Regulators SFSA (No. SD045), FMA (No. FSP403326), FSA Min Deposit $0 (Standard)$2,000 (Prime)$20,000 (Institutional) Trading Platforms MT4, MT5, TradingView, cTrader, MT WebTrader, BlackBull Shares, BlackBull CopyTrader, BlackBull Trade Trustpilot Rating 4.6 out of 808 reviews Number of Forex Pairs to Trade 70+ Leverage Forex & Metals: 1:500
Index CFDs: 1:500
Cryptocurrencies: 1:500Spread EURUSD: 0.1
USDJPY: 0.2
EURGBP: 0.7
GBPUSD: 0.4Forex Commission per Lot per Trade $0 Standard; $6 per lot Prime; $4 per lot Institutional Deposit Methods Visa, Mastercard, Neteller, Airtm, Skrill, Bank Transfer, HexoPay, American Express, POLi, Payment Asia, Help2Pay, FXPay, Fasapay, China Union Pay, Boleto, AstroPay, Beeteller, Bitcoin, Ethereum, Tether, Ripple, Litecoin, Bitcoin Cash, Chainlink, USD Coin, Stellar Withdrawal Methods Visa, Mastercard, Bank Transfer, Airtm, Skrill, Neteller, American Express, POLi, HexoPay, Payment Asia, Help2Pay, FXPay, China Union Pay, Boleto, Fasapay, Beeteller, AstroPay, Bitcoin, Litecoin, Bitcoin Cash, Tether, Ripple, Stellar, Chainlink, Ethereum, USD Coin Key Pros
- Uses proprietary copy-trading platform
- Swap-free trading via ECN Standard and Prime accounts
- Multi-platform support
- Provides a 24/7 customer support service
- Great Education Hub for traders looking to hone their skills
Key Cons
- High commissions per lot on Prime and Institutional accounts
- Charges a $5 fee on withdrawals
Spreadex Broker Details Supports Arabic No Kuwaiti Currency (KWD) No Regulators FCA (No. 190941) Min Deposit $0 Trading Platforms TradingView, proprietary software Trustpilot Rating 4.5 out of 113 reviews Number of Forex Pairs to Trade 60+ Leverage Forex & Metals: 1:30
Index CFDs: 1:20
Cryptocurrencies: 1:2Spread EURUSD: 0.6
USDJPY: 9
EURGBP: 0.9
GBPUSD: 0.8Forex Commission per Lot per Trade $0 Deposit Methods Mastercard, Visa, Maestro, Direct Debit, Check, Bank Transfer Withdrawal Methods Visa, Maestro, Mastercard, Bank Transfer, Check Key Pros
- Provides access to over 10,000 tradable symbols
- Well-designed and intuitive mobile trading app
- Offers spread betting on FX pairs
- Commission-free FX trading with tight spreads
- Seamless registration process
Key Cons
- No support for MetaTrader 4 or 5
- Licensed by a single financial regulator (FCA)
- Deposits under $/£50 may incur additional charges
Capital.com Broker Details Supports Arabic Yes Kuwaiti Currency (KWD) No Regulators ASIC, FCA, CySEC, SCB, MiFID Min Deposit $20 Trading Platforms MetaTrader 4, TradingView Trustpilot Rating 4.3 out of 11,249 reviews Number of Forex Pairs to Trade 125+ Leverage Forex & Metals: 1:30
Index CFDs: 1:20
Cryptocurrencies: 1:2Spread EURUSD: 0.6
USDJPY: 10
EURGBP: 2
GBPUSD: 1.3Forex Commission per Lot per Trade $0 Deposit Methods Bank transfers, VISA, MasterCard, Maestro, Apple Pay, PayPal, Neteller, Skrill, Sofort, Przelewy, TrueLayer, iDEAL, Trustly, SPEI Withdrawal Methods Bank transfers, bank cards, Apple Pay, PayPal, Neteller, Skrill, Sofort, Trustly Key Pros
- Trusted by 580K+ traders across the globe
- Trading guides for beginner, intermediate, and advanced traders
- Mobile apps for Android and iOS devices
- Low FX fees built into the spread
- Negative balance protection
Key Cons
- There is an inactivity fee after 1 year
- No two-step login
- No price alerts on the web platform
Is Forex Trading Legal in Kuwait?
Trading forex and other securities is legal and regulated under the provisions of Law No. 7 of 2010. The legislation stipulates that securities brokers, market makers, and investment advisors must gain authorization from Kuwait’s Capital Markets Authority (CMA) to operate legally in the country. Brokers interested in serving the local market must cover specific requirements as per Article 66 to obtain licenses from the CMA.
Licensed entities must maintain sufficient operating capital and segregate the funds and assets of their clients to prevent mismanagement. They must be transparent about the financial risks involved in securities trading and actively work to ensure the best results for their clients. Licensees must charge reasonable commissions and are prohibited from offering excessive discounts and similar marketing incentives to Kuwaiti customers.
Brokers seeking CMA authorization must also set up offices in the country to receive licenses. Approved candidates must regularly submit financial reports to the regulator. Kuwait is a predominantly Muslim country, so it makes sense that locally regulated brokers must operate in accordance with the Islamic Shariah law, a set of religious principles prohibiting earning or paying interest. This results in restrictions on investing in specific asset classes and more limited options for Kuwaiti traders doing business with CMA-approved brokers.
Forex Trading Regulators in Kuwait
The country has two primary financial regulators, starting with the Central Bank of Kuwait (CBK). Established in 1968, the CBK oversees the operations of all conventional and Sharia-compliant banks, electronic services providers, and credit, and investment companies based in the country. The stock exchange market and Boursa Kuwait also fall under the regulatory scope of this entity.
The CBK is the sole entity responsible for the issuing of the local currency, the Kuwaiti dinar (KWD). The regulatory body actively works to maintain the stability of the dinar and ensure it is freely convertible to foreign currencies. It develops and proposes monetary policies to the local government to promote economic growth and social welfare. Last but not least, the CBK provides residents of the country with a robust system for initiating complaints and legal proceedings against locally regulated banks, investment and exchange companies.
Kuwait’s Capital Markets Authority (CMA) commenced operations in early 2010 after the approval of Law No. 7 the same year. The CMA oversees all participants in the local securities market, observing for their efficient, transparent, and ethical operations. It monitors trading in derivatives issued in the country and ensures local brokerages comply with the law. The CMA is additionally tasked with improving consumer protection and raising public awareness of the risks involved in securities trading.
The regulatory body publishes regular circulars warning residents to exercise due caution when trading with unlicensed brokerages. The regulator maintains a database of companies and individuals prohibited from offering securities trading on Kuwaiti soil. Entities featured on the list have suffered disciplinary action for non-compliance in the form of license revocation, cancelation, or delisting.
How to Identify Forex Brokers Authorized in Kuwait
Choosing a locally approved broker overseen by the CMA is the best course of action for Kuwaitis looking to trade forex currency pairs. The capital markets watchdog has published an up-to-date list of all companies licensed in the country, allowing residents to conveniently check the regulatory status of the firms they are interested in.
Many Kuwaitis prefer to trade forex with international companies regulated in offshore jurisdictions since the number of locally registered brokers is quite limited at the moment. Residents who opt for this alternative have no reasons for concern as long as they confirm their chosen brokers are properly regulated by the respective financial watchdogs of the jurisdictions they originate from. Kuwaitis should always go for forex brokers with proven track records of compliance and no penalties for regulatory violations.
Security at Forex Brokers in Kuwait
The best brokers catering to Kuwaiti traders conform to strict regulatory rules of conduct, ensuring fair trading conditions and high levels of consumer protection for all customers from the Arab country. Such companies typically act in the best interests of their customers and offer the most competitive price quotes as they have access to deep liquidity pools. Kuwaiti clients will benefit from customer support and trading platforms in their local Arabic language, which improves communication and makes for a more comfortable trading experience.
Regulated brokers ensure bank-level security by safeguarding their clients’ transactions and sensitive information with sophisticated encryptions and the latest security protocols. They are transparent about the regulatory bodies overseeing their operations and always publish their license numbers in their website footers for traders to verify the licensing status.
Reliable broking firms welcoming Kuwaiti traders comply with strict fund segregation rules. They separate client assets and deposits from company funds, storing them in designated accounts at accredited financial institutions. Mandated by the CMA and other strict financial watchdogs, this practice prevents brokers from mismanaging client funds and using them for operating expenses. It guarantees the prompt return of customers’ money if a broker is forced into liquidation.
While there are no clear-cut CFD regulations in Kuwait, trusted offshore brokers normally provide extensive information about the financial risks resulting from investing in such complex instruments. Kuwaiti retail traders must pass tests at CFD brokers to confirm they are proficient enough in dealing with high-risk derivatives.
Each new retail client from Kuwait must also submit documentation to verify their identity, residency, and source of funds. Many Kuwait-friendly brokers require new traders to submit selfies, along with photos of their identity documents. This is a standard procedure at all regulated brokers aiming to curb terrorism financing, money laundering, and identity theft, among other illegal practices.
Negative Balance Protection at Kuwaiti Forex Brokers
The CMA warns on its official website that its regulatory powers extend only to derivative products issued and traded in the country. Kuwaitis intending to engage in margin trading with leverage must ascertain their chosen offshore brokers offer negative balance protection. This safeguard is essential for all leverage users as it prevents them from sustaining losses exceeding their initial investments.
All brokers regulated by first-tier financial watchdogs offer this feature to guarantee the balance in retail accounts never goes negative. With this safety net in place, Kuwaiti CFD traders will never end up owing money to their brokers when trading conditions change abruptly for the worse or the currency markets gap. The mechanism normally goes hand in hand with margin closeouts whereby trusted brokers automatically close leveraged positions when their losses start mounting and customers lack sufficient balance to maintain them.
Taxes on Forex Trading Profits in Kuwait
The Kuwait government does not levy taxes on the personal income of permanent residents and expatriates. The country derives most of its revenue from petroleum and taxes on foreign corporations doing business on local soil. Such corporations are subject to a flat 15% corporate income tax. Companies with foreign ownership are also liable for paying 11.5% in social security contributions provided they employ qualifying permanent residents of the country.
These contributions are payable monthly and apply to eligible employee salaries, with a cap of 2,750 KWD. Corporate profits from selling assets and stocks are liable for a 15% capital gains tax. However, certain exemptions are made for earnings obtained from dealing in securities on Boursa Kuwait.
Leverage Caps at Kuwait Brokers
Kuwaiti forex traders commonly have access to leverage, which allows them to trade larger volumes with less capital. The local financial watchdog, the CMA, is yet to introduce specific restrictions on the maximum leverage available to retail traders in the country. Brokers regulated in offshore jurisdictions like Vanuatu and Belize cater to Kuwaiti customers with high leverage capped at 1:100, 1:500, or even 1:1000 for major currency pairs like EUR/USD. Kuwaiti clients can, thus, tap into the forex markets with small initial deposits and significantly increase their market exposure but such high leverage caps can be both a blessing and a curse.
High leverage has the potential to considerably boost your profits from successful trades but the same is also true for your losses. Kuwaiti traders should refrain from leveraging their positions at such unreasonably high rates, even more so if they lack proficiency in dealing with CFDs and other high-risk derivatives. If you still insist on taking your chances, you must ensure your broker offers negative balance protection to safeguard you from running into debt.
Islamic Forex Trading Accounts in Kuwait
Islam is the official religion in Kuwait, with over 99% of the local population professing it. Banks, brokerages, and other financial institutions operating in the country adhere to religious principles known as the Shariah laws. These are moral guidelines for all Muslim residents and prohibit them from trading with businesses that collect or pay interest. The prohibition extends only to citizens and expatriates practicing Islam. No restrictions on interest are in place for non-Muslim residents and foreigners.
Forex brokers doing business with Kuwaitis are Shariah-compliant, allowing them to trade forex via “Islamic” accounts where there are no swap fees on overnight positions. New traders usually have to verify their accounts and fund them to gain access to swap-free trading. The process involves supplying the broker with relevant documentation to confirm your religious status.
A broker requires several business days to evaluate the applications. It is worth mentioning customers with Islamic accounts have access to a more limited range of tradable forex pairs, as certain currencies are unavailable on Islamic accounts. Clients looking to trade such currencies can only do so if they forfeit their swap-free privileges.
Forex Trading Platforms in Kuwait
The top-rated Kuwait brokers highlighted in this article share one common trait – they all rely on state-of-the-art software to deliver a seamless and hopefully profitable forex trading experience to their customers. Some broking firms achieve this by developing proprietary software, while others run on well-known platforms designed by third-party companies.
Algorithmic trading is enjoying increasing popularity among Kuwaiti forex traders, especially those with more extensive experience. The good news is most brokers offer popular options like MetaTrader 4 (MT4) and MetaTrader 5 (MT5), both of which are ideal for algorithmic trading. Which one you choose depends on your experience, style, and the trading strategies you intend to implement. MT4 allows for easier coding and navigation, not to mention it is geared specifically toward the needs of forex traders.
MetaTrader 5 boasts a superior programming language and has more timeframes, technical indicators, and graphical objects. It comes with a great in-built economic calendar that will also appeal to traders relying on fundamental analysis. Both platforms have a multilingual interface and support Arabic as a language option. Kuwaiti traders can download and install them on their desktop computers or opt for the browser-based WebTrader versions.
Searching for additional information on forex trading regulations in Kuwait? You will find it in this section where we have included some useful links for Kuwaiti traders looking to broaden their knowledge of the local regulatory landscape. Also featured are links leading to the CMA licensee database, complaint policies, and contact details.
- The Central Bank of Kuwait (CBK) monitors the operations of conventional and Shariah-compliant banks and investment and credit companies based in the Arabic country. Kuwaitis can initiate legal proceedings or lodge complaints against regulated financial institutions with the CBK Consumers’ Protection Unit.
- The Capital Markets Authority (CMA) regulates forex brokers catering to Kuwaiti citizens and residents. The watchdog publishes regular circulars and press releases to keep the public up to date with its latest resolutions.
- The CMA’s official website features a list of licensed companies. Kuwaitis can use it to verify the regulatory status of their brokers and other financial companies.
- Kuwait traders can also check the CMA’s list of unlicensed companies upon suspicion they are dealing with a fraudulent broker. The regulatory body additionally lists all firms and individuals that have had their permits withdrawn or were prohibited from providing financial services for one reason or another.
- Use this contact form to get in touch with the CMA if experiencing issues with a forex broker or a financial company.