Three largest brokerages such as CMC Markets, LCG and Pepperstone and two more major companies have applied for getting the Dubai Financial Services Authority license. These companies want to acquire an operating license in Dubai.
The Dubai Financial Services Authority (DFSA) is the financial regulatory agency of the special economic zone, the Dubai International Financial Centre (DIFC) based in Dubai, United Arab Emirates. The DFSA’s works with asset management, custody and trust services, banking and credit services, collective investment funds, securities, commodities futures trading, Islamic finance and an international exchange.
This move was caused by the increase of the regulatory pressure in European areas. Brokerage companies are actively searching for the options to become more diverse at the European market. The expansion into the Middle East is considered to be a smart decision because of the location of the most populous countries there.
What are the perks of getting the Dubai License? The interest for a Dubai license has increased since the EU authorities break down the brokers who offer their services in countries where they are not authorized. Also Mastercard has announced about checking and indicating all the high risk transactions from the service providers to retail traders.
The Dubai Financial Services Authority has a strong and solid reputation throughout the world. Although the process if gaining the a license from Dubai regulator is quite stringent. Such companies as Amana Capital, FxPro and AxoCorp have recently set up operations in the Middle East.