Find the Best Forex Broker in Kuwait
Forex trading Kuwait – Forex trading is the choice of today’s traders all over the world. In Kuwait, the ex-pat investors and Kuwaiti investors are doing very well with Forex trading. That’s the reason why several Forex brokers have now opened their offices in Kuwait. The idea behind the popularity of Forex trading in Kuwait is the risk appetite of the investors. The Kuwaiti traders and ex-pat traders can use a part of their portfolio for high-risk monetary trading like Forex. Forex is the newest marketplace among all financial markets. It is incredibly dynamic and always moving. Hence Forex trading in Kuwait provides an opportunity to make money from the currency fluctuations.
The forex traders exploit the tiniest price fluctuation in currencies to earn a profit, and sometimes a loss. The Forex brokers give the leverage of up to 100 to 500 times the deposited capital, and that means you can trade with $50,000 by depositing $100. Using leverage increases your profits by many times. Nonetheless, it does increase your losses many times as well, and you might lose your capital fast if the price moves against your trade. Therefore you need to use the leverage carefully, and always with a stop-loss to limit your losses.
Best Forex Brokers in Kuwait
MT4, MT5, Web
MT4, MT5, ECN
Social trading, MT4
AVA Trade Review
ECN, MT4, MT5
Forex Brokers Kuwait – How to select the best Forex broker in Kuwait?
While looking for a Forex Broker in Kuwait, you need to select the one with an excellent track record, advanced trading features, and low charges. We’ve shortlisted a few Forex Brokers in Kuwait keeping in mind the quality of services and lowest fees. You can always depend on these Forex Brokers in Kuwait when the security and safety of your money are concerned.
There’re a few of the best Forex brokers in Kuwait who can help you to get started in Forex trading. Their support team gives you support in the Arabic language and offers local telephonic support. While looking for ‘Forex Brokers Kuwait,’ search for a well-founded broker with an excellent service record in the industry. The new brokers in the market may pose a risk when it comes to safety, protection of your funds, and transparency in trading.
Is Forex trading legal in Kuwait?
Yes, Forex trading is legal in Kuwait. In fact, it is quite popular in the GCC countries. There are a number of renowned Forex brokers offering their services in Kuwait. FBS, IQ Option, easyTrade, AVATrade, and ForexTime are a few among the leading brokers accepting traders from Kuwait. Be sure about your requirement from the Forex broker. You must choose an Islamic Forex trading account if you want to trade while complying with your religious beliefs.
Always check with the Forex broker and ensure it complies with regulators and has an excellent track record before investing your money with them. Additionally, keep an eye on the Financial Regulator’s latest rules that may affect the legal status of Forex trading in Kuwait.
There is another type of trading that is related to Forex trading but relatively easy to understand, it is Binary Options trading. Check out Binary Options trading and Binary Options Brokers in Kuwait.
Is Forex trading halal in Kuwait?
Many traders from Kuwait ask the same question before entering into Forex trading market. Is Forex trading Halal as per Islamic principles? To be frank, different scholars have different views about this question. Some of them argue that Forex trading is Halal as long as it obeys certain rules like No Swap or No Interest Charging in the Account. For this purpose, the Forex brokers have come up with Swap-Free Forex Accounts or Islamic Forex Accounts so that the traders belonging Islamic faith can trade without any problem.
However, if the swap-free accounts or Islamic trading accounts don’t satisfy you and you are not sure yourself that it may not be Halal to trade Forex, then you may avoid Forex trading totally. The Forex brokers have exclusive Islamic Account Managers who speak in Arabic language and have good knowledge of Islamic Forex Accounts can guide you and clear your doubts.
Islamic Forex Brokers in Kuwait?
Most of the native Forex traders in Kuwait look forward to trading Forex while complying with their religious beliefs. Hence they search for the Islamic Forex brokers in Kuwait. Fortunately, there are many Forex brokers offering Islamic trading accounts exclusively to traders from Kuwait. These accounts don’t incur interest for positions help overnight. This account is also called Swap-Free Account. However, there are a few restrictions while trading in such accounts, like you can not hold a position during the weekend. Islamic accounts conditions vary from broker to broker while keeping one condition the same in all, i.e no interest is charged in such accounts. Always discuss with your account manager about terms and conditions before starting trading in your Islamic Forex trading account.
Forex trading Kuwait – What is Forex trading?
When you trade Forex, you buy one currency and sell the other. Therefore, in Forex trading the price is always quoted in pairs, an example EUR/USD, GBP/USD, etc. The first currency mentioned in the Quote is called the base currency, and the second one is the quote currency. The price quoted indicates how much of the quote currency, the trader can buy with one unit of the base currency.
An example, if the currency pair EUR/USD is quoted at 1.0123, then you can buy 1 EURO for 1.0123 US Dollars. While trading Forex, there will always be quoted two prices for any currency pair. They are Bid price and Ask price or Offer price. The Bid price is the price if you want to SELL the currency pair, and the Ask price is the price if you’re going to BUY the pair. For example, EUR/USD is quoted at a Bid price of 1.0123 and an Ask price of 1.0125. The difference between the two is known as the spread. Forex traders can make a profit by buying a currency pair at a low cost, and then selling it at a higher price. Alternatively, selling the pair high, then buying it at a low price.
The example of EURUSD :
When the US Dollar gets weak, the EURO gets stronger (to Dollar). Therefore, if the US is facing a higher unemployment rate, the USD is likely to weaken. If you want to generate profit in this scenario, you need to BUY the EURO (at aks price – 1.0123 ), expecting it to get stronger against the USD. Buying an asset is also called a LONG position.
In the alternate scenario of the lower unemployment rate, you should have sold the EUR/USD at the Bid price of 1.0125, anticipating that EURO would get weaker and USD stronger. Selling an asset is called creating a SHORT position.
Can I make a profit by trading Forex in Kuwait?
It is interesting that everyone trading Forex wants to make money. However, only a few traders make a profit while trading Forex. The majority of the traders lose money. Just a few traders who trade responsibly using proper Money Management, Risk management, and adequate market analysis become successful.
However, the fresh entrants to Forex trading face a complex scenario – Forex brokers, Trading Platforms, and terminology. They must know every aspect of Forex trading before investing. Interestingly, several traders in Kuwait are making a profit that is outperforming the returns from stock markets. The success in Forex trading depends on interpreting the currency price variation along with global economic news and happenings.