Dubai is a global hub for people from all over the world with exciting job opportunities, security and well-being. The city offers a favorable environment for investors with excellent infrastructure, quality hospitality and many attractions. In addition to real estate and commodity investment opportunities, Dubai also has a good stock market. Below we are going to discuss how to do stock trading in Dubai.
Stock Trading In Dubai
The trading of the shares is managed and moderated by the Dubai Financial Market, a stock exchange in accordance with Sharia law administered and regulated by the United Arab Emirates Securities and Commodities Office (SCA). It provides an effective trading platform that provides investors with the information and resources they need to make the right investment decisions.
Now, DFM gives you the option and freedom to carry out security, bonds and Sukuk trading in Dubai. (A sukuk is an Islamic financial certificate, which works on a similar concept to stocks but is compliant with Sharia Law.) There are some simple steps that you must complete in order to be able to perform trading in Dubai Stock Exchange. You can learn all about these steps in the next section.
Guide to Stocks Trading in Dubai
Dubai Financial Market first merged its operations with Nasdaq Dubai in 2010, giving investors access to a wider range of securities and investment opportunities. It also gives them access to DFM and Nasdaq Dubai listed securities with an investor number such as NIN.
Applying for an Investor Number
The Investor Number, or NIN, is your account identification number that allows you to sell DFM and Nasdaq shares. To apply for an investor number, you will need to complete an investor number application form and submit it with your signature, stamp and required documentation. It is open to people of all nationalities, anywhere in the world.
You can register and fill out the online form via the eServices on the Dubai Financial Market website. Alternatively, you can visit the DFM Business Services Office, which is open from 08:00 to 14:00, Sunday to Thursday. This is the easiest way to get your investor number because it will be processed the same day. The third option is to hire a real estate agent and send him your form and the required documents. They will get your investor number from DFM.
Appointing a Broker
If you have already obtained your investor number from the Dubai Financial Market, the next step is to hire a broker who can open a trading account for you. There are many licensed brokers and you can easily choose among the best traders in Dubai by checking their portfolios and ratings.
If you designate a licensed broker, it will provide all the necessary documentation to open a securities trading account in Dubai. After creating an account, you can instruct your broker to buy and sell shares on your behalf. It is wise to choose a broker who is also listed on the Dubai Financial Market and Nasdaq Dubai so that you can focus on a more diverse portfolio.
Now, with your investor number and broker handling all your transactions, you can start tracking trading performance through the trading screens on the DFM trading floor or on the DFM website.
Together, DFM and Nasdaq Dubai bring you a wide range of investment instruments to choose from. These include securities, stocks, bonds and Sukuk. There is a certain trading period during which you, as a broker, can conduct trading transactions. The trading period is divided into three slots:
- Before the start (09:30 – 10:00)
- Ongoing trading sessions (10:00 – 1:50)
- Deadline (01: 50-02: 00)
If you want to trade online, Dubai Financial Market and Nasdaq Dubai also have online trading platforms through Dubai trading companies. These companies bring all the real-time data and valuable information to your screens so that you can easily trade and also monitor your trading performance. Before trading it is necessary that you must learn all the basics of trading and living in Dubai you can join the Moneytize stock trading course.
Tracking Your Portfolio
By following the steps above, you are well on your way to becoming a licensed investor. However, buying and selling stocks is not what trading is. Rather, it has to do with what stocks to buy and when to buy or sell them, so it is important for you to monitor your portfolio from time to time.
Dubai Financial Market and Nasdaq Dubai have a comprehensive range of services tailored to provide you with all the real-time data and relevant information you need about your portfolio and business performance. By applying on the DFM website, you can gain 24-hour unrestricted access to your portfolio as well as real-time data on securities listed on the DFM and Nasdaq Dubai. And that’s all we have on how to sell stocks in Dubai. With this information, you can maintain your trading account and become a full-fledged investor in no time. You can also check the leading banks in Dubai to organize your finances and seek expert advice.