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Tier 2
Dubai Financial Services Authority (DFSA)
UAE (DIFC Only) Regulator
"The DFSA regulates the Dubai International Financial Centre (DIFC), a financial free zone with independent English Common Law courts. Note: DFSA is distinct from the UAE's mainland regulator (SCA)."
About DFSA
The Dubai Financial Services Authority (DFSA) is the independent regulator of financial services conducted in or from the Dubai International Financial Centre (DIFC), a purpose-built financial free zone in Dubai, UAE. It was established in 2004 and operates to international standards.
Key Investor Protections
- International Standards: Modeled after UK and US regulations; English Common Law jurisdiction.
- Strict Licensing: Difficult to obtain. Retail clients face high barriers (often requiring 'Professional Client' status with >$500k assets).
- Segregated Accounts: Mandatory client money rules.
- Crypto Regulation: Specific regime for 'Recognised Crypto Tokens' (distinct from VARA in mainland Dubai).
Max Leverage
Generally follows international best practices (often 30:1 or 50:1 for retail). Risk disclosure is mandatory; bonuses are prohibited.
Safety Rating
Moderate
Pros
- High regulatory standards within the MENA region.
- Independent DIFC Courts provide strong legal recourse.
- Clear rule of law within the DIFC jurisdiction.
Cons
- Focus is primarily on the DIFC free zone, not the wider UAE (SCA/VARA).
- No official compensation fund (like FSCS/ICF); relies on insurance and segregation.
- High entry barrier for retail traders.
Top Brokers Regulated by DFSA
M4
6.54
M4Markets
Seychelles
Min Deposit$5
SQ
7.11
Swissquote
Switzerland
Min Deposit$1000
XM
9.32
XM
Cyprus
Min Deposit$5
PS
7.77
Pepperstone
Australia
Min Deposit$0
IG
8.26
IG
UK
Min Deposit$250
HF
8.33
HFM
Cyprus
Min Deposit$0
PL
7.99
Plus500
Israel
Min Deposit$100
AX
8.12
Axi
Australia
Min Deposit$0
HY
7.20
HYCM
UK
Min Deposit$100
M4
6.54
M4Markets
Seychelles
Min Deposit$5
SQ
7.11
Swissquote
Switzerland
Min Deposit$1000
XM
9.32
XM
Cyprus
Min Deposit$5
PS
7.77
Pepperstone
Australia
Min Deposit$0
IG
8.26
IG
UK
Min Deposit$250
HF
8.33
HFM
Cyprus
Min Deposit$0
PL
7.99
Plus500
Israel
Min Deposit$100
AX
8.12
Axi
Australia
Min Deposit$0
HY
7.20
HYCM
UK
Min Deposit$100
M4
6.54
M4Markets
Seychelles
Min Deposit$5
SQ
7.11
Swissquote
Switzerland
Min Deposit$1000
XM
9.32
XM
Cyprus
Min Deposit$5
PS
7.77
Pepperstone
Australia
Min Deposit$0
IG
8.26
IG
UK
Min Deposit$250
HF
8.33
HFM
Cyprus
Min Deposit$0
PL
7.99
Plus500
Israel
Min Deposit$100
AX
8.12
Axi
Australia
Min Deposit$0
HY
7.20
HYCM
UK
Min Deposit$100