The Covid-19 pandemic has virtually brought the world together. As a matter of fact, it digitally brought everyone to the same stage of survival and earning bread-butter. The result everyone has is seamless interaction across the globe backed by technology which has given people the power to earn from their convenience and knowledge.

Forex trading, to be fair, is nothing new; however, it has gained traction in recent months. For a good cause, one may assume, since the trading charts are only shining greener every day in terms of the number of traders. Per reports, the global market for trading has nearly crossed the mark of $17 trillion, followed by a rise in the number of traders on forex trading platforms – web browsers, mobile applications, or brokes.

Having said that briefly, it is now important to note that since a major portion of forex trading is happening over the internet with no or little involvement of another human, there is a dire need to understand the level to which cybersecurity is required by traders, often referred to as eTraders in the modern era.

Best practices for forex trading can include checking a platform for having regulatory approvals, fulfilling compliance requirements, using strong passwords, and understanding types of attacks that will ultimately result in forex trading profit for traders.

Understanding Cybersecurity Risks In Forex Trading

The key is to be vigilant at all times when trading in forex over the internet. It is hard to imagine another way for forex trading, but words had to be spoken anyway. Some common types of cybersecurity risks in forex trading are stealing funds and/or personal information of the traders. These are then misused to either cause more severe damage or vanish with the fund altogether.

The manner in which these threats come to a forex trader is not surprising at all; the same has been described below for a better understanding of forex traders.

Phishing Scams

Forex traders may be targeted by hackers through an email that appears to be official, but it is not. This could be done by posing as a banker, internet service provider, or in this case, forex broker.

Malware

Software may be notoriously installed to cause disruptions in the practices of forex trading, leading to the loss of millions of dollars of funds. Be it a computer or mobile, anything can be disrupted with malware.

Social Engineering Attacks

Specifically to forex trading, Social Engineering Attacks deal with manipulating the forex trader psychologically so that they perform certain actions even if that means losing money in the future.

Another manner to fool forex traders is the creation of a duplicate website of the broker that looks almost the same as the original one, making forex traders believe that they are actually accessing their forex broker and not a hostile element on the internet.

The manner of executing the attack may differ, but the ultimate objective is always to make the trader suffer. The potential consequence is that traders end up losing their hard-earned money and also their digital identity.

Forex markets, on the other hand, end up losing their reputation since the trading community begins to assume that there are more threats as compared to returns on their investment.

Best Practices For Ensuring Cybersecurity In Forex Trading

Admitting for a moment that forex trading has issues of cybersecurity within the ecosystem cannot be taken as a downside that there is nothing traders can do about it. Forex traders can take a protective approach in practicing forex trading under cybersecurity.

Get the Basics Clear

Meaning, set up a strong password when registering on a platform that is owned by the regulated forex broker. For instance, include special characters and use small-cap alphabets along with numbers. Needless to say, avoid linking passwords to something personal.

Enabling two-factor authentication is one of the best practices a forex trader can look into. Like social media, forex brokers with the facility of 2-FA allow their users to receive a message or an email to approve the sign-in activity. The request is rejected if the trader does not identify the action of sign-in.

Update Regularly

Softwares or mobile applications owned by forex traders often roll out updates. These deal with fixing bugs or patching the loopholes that could otherwise leave the platform along with traders vulnerable. Issues can be reported directly by traders to the developers. Another way, or rather an infamous way, is to know how someone hacked into the system and then fix it to avoid further damage.

This also gives forex traders a chance to refresh their user interface for an enhanced and smooth experience. This cannot be confused with an update always fixing the vulnerabilities. It can also be to integrate several tools and features that have been demanded by traders. All and all, updates should be looked into by traders.

Use VPN

Not to beat around the bush, Virtual Private Networks can help encrypt the data of a trader over unsecured networks. Using VPS can come in handy for forex traders, provided they first gain basic knowledge about it.

Email Communications

People on the other side are not visible while interacting with them over email. There is one way, though, in which forex traders can ensure that they are interacting with an authentic broker. Check for the structure of the email. Most professional forex brokers have a way of introducing themselves in a professional manner instead of saying, Hello, Dear. That is a red signal for every email communication, no matter the situation.

Urgency is created only by those who want you to take quick action without giving it a thought for a single second. Easier to guess such emails should be ignored with no information about trading shared with them.

Avoid Suspicious Elements

Elements here for forex traders refer to links and documents that are sent to them. For instance, an email may ask forex traders to click a link that will redirect them to withdraw their funds. First of all, that rarely happens since the official platforms are the only source for taking all the actions. Second, suspicious links contain the wrong domain or a different misspelled domain. Such links should be avoided by forex traders in South Africa.

Documents are sent only if required, most of them also being available on the platform. Forex traders should avoid downloading unidentified documents – zipped in a folder – so that the probability of unknowingly downloading malware goes down.

Information Storage

Information is unlimited mostly because there is a lot to store and analyze for the future. A lot of forex brokers design their platforms dedicated to the way in which traders can revisit their strategies in terms of hours or even months. That is the safer way, but forex traders may choose to store other types of information – payment or customer ID – someplace where no one else gets access.

Simply put, a print can be taken when a bank shares the certificate of a savings product instead of going around and keeping it in the draft. Hardcopies may not always be possible except that the core remains certain of how information should be stored by forex traders.

Online Exposure

Participation in online forums or online discussions on different social media platforms is now common. Irrespective of how the market performs, everyone wants to showcase the level of intelligence they possess on the internet. This comes out as a nice sign if points are productive; however, it could ruin everything if forex traders are not careful while talking with others.

Limiting the exposure is the best thing forex traders can do if the capacity to hold on to their social urges is pretty high. Anything said on the internet can end up coming to harm forex traders in unexpected ways.

All these practices for a safer forex trading experience are subject to updates depending on what kind of cybersecurity threat comes up in the future.

Choosing A Secure Forex Broker

Choosing a secure forex broker is important to make sure that the cybersecurity threats are reduced, funds are safe, and data is not shared with a hostile third party. All the regulated forex brokers in South Africa operate under the Financial Sector Conduct Authority. Similarly, forex brokers in other regions are regulated by the respective regulatory authorities of the region.

This sets up a reputable tone for their functions and guarantees the security of forex traders.

Other pointers that can be considered to know if a forex broker is secure or not are:

• Commissions – Spreads
• Leverage – Margin
• Ease & speed of deposit/withdrawal

Every reputable forex broker in South Africa would be registered under the FSCA, following all the legal compliance and keeping sufficient margins for their traders.

Conclusion

Cybersecurity in forex trading is important to make sure that the funds are invested in a safe environment and that all the personal information of forex traders is securely encrypted to avoid any kind of theft. Measures to implement cybersecurity should therefore be taken as they serve benefits not just to traders but also to the market at a macro level by preserving its reputation. Forex traders are also recommended to take all measures possible to avoid falling into the trap.

The Dubai forex market is truly the best destination not only for its locales but also for worldwide foreign investors due to the ultimate safety and cost-effectiveness the emirate city features. That is why the Dubai forex market has become the leading hub for a legion of global traders interested in entering it. It is all a breeze to start trading in the Dubai Forex market: all you need to do is create a Dubai Forex account and fund it using Bitcoins or any other cryptocurrency you choose.

Although the Dubai forex market is relatively young, yet is attaining prominence fast with time. The Dubai forex market emerged after the UAE recognized foreign exchange trading in 1989. Before all this took place, no trading involving speculation or buying and selling foreign currencies existed. Considering the evolution of foreign currencies universally, several wholesale individuals and trading companies opened stores in Dubai to provide brokerage services for business people and traders interested in buying and selling various currency pairs.

Dubai is the best destination for forex trading for investors worldwide. As a new trader excited to start your forex trading but are on the fence about it, continue reading this article.

Overview of Dubai’s Forex Market

The Dubai forex market is teeming with several banks offering customers multiple global currencies. The market size is so vast that it takes up most of the international trading volume. Dubai is also a burgeoning banking hub, which is accessible to its citizens and is drawn to the world’s most liquid markets. This makes it a perfect hub for inbound and outbound foreign exchange trading due to its proximity to international shipping hubs and its accessibility for worldwide visitors traveling for business or leisure. For example, currency trading in Dubai is thriving so rapidly that it has become the sixth busiest exchange in the world. Therefore, if you are looking to start trading in Dubai, it is up to you to decide what type of forex trading account will fit your needs.

The forex market in Dubai is almost similar to the forex markets in other countries in terms of functionality. The Dubai forex market is so thriving that investors from far and wide consider preferring the country over others for trading. Forex trading in Dubai is regulated and managed by the DFSA or the Dubai Financial Services Authority. Therefore, the currency pairs traded in Dubai are the USD, Euros, GBP, etc., the most significant currencies in the world.

When it comes to instruments traded there, the DFM or DMA is the most common. The DFM or Dubai Financial Market refers to a bid/ask quote system about the service related to the foreign exchange markets. It implies that traders can place bids and ask for each available currency pair. DMA or Dubai Market Access refers to forex markets and stock markets.

The range of Forex trading in Dubai is vast. The country is today a prominent hub of several financial banks and brokers who offer their services to foreign exchange traders. Some of Dubai’s most prominent financial banks are HSBC, Barclays, Lloyds, and Standard Chartered. In addition to these banks, there are brokers like Forex, FXCM, and FXPIG, which offer forex trading tools, currency trading strategies, and diverse financial resources all in one place.

Regulatory Framework 

Forex trading in Dubai is governed by The Dubai Financial Services Authority (DFSA), which regulates the Dubai financial market and oversees international transactions for all non-Dubai entities. The DFSA connects with the more comprehensive global network of financial markets, institutions, and traders. It monitors trading activity to identify any potential risk or illegal activity and undertakes surveillance activities, for example, anti-money laundering efforts.

Trading in Dubai is mainly conducted over the phone and electronic platforms rather than through the traditional exchange model. This has several advantages for Dubai’s forex market; firstly, it reduces costs and increases liquidity. The availability of other financial products is also crucial since Dubai forex brokers provide them for traders so that they can also trade in derivatives and spot forex or CFDs.

Measures that the DFSA has taken to ensure investor protection and market stability:

• The DFSA has accepted several steps to ensure the protection of traders and the strength of the UAE financial market. These include:
• They provide continuous surveillance of all market activity to protect investors and eliminate fraudulent practices from the market. Supervision is carried out on orders placed, trade settlements, money transfers, and customer complaints. The central objective is to protect investors by eliminating fraudulent practices and ensuring fair competition between domestic and international financial institutions for investor business.
• The establishment of an industry-backed clearing house. This is overseen by the UAE Central Bank and ensures a smooth, reliable mechanism for dealing with cross-border money.
• The creation of several committees overseeing the regulations and rules regarding forex trading in Dubai. Emirati experts, including financial experts from other member states, chair these committees.
• The establishment of a forex ombudsman committee that deals with disputes. This committee comprises local, international, and professional experts and has the power to hear complaints settle disputes and award compensation to investors.

Advantages of Dubai’s Forex Market

Dubai is a perfect destination for getting a business started. If forex trading in Dubai is what you plan to embark on, it is good to learn the advantages of doing so in advance. So let us look at some key advantages of investing in Dubai’s forex market:

1. Tax benefits: There is not much to hash out when considering tax benefits. However, new traders should note importantly that traders need not pay any wealth tax in the UAE.
2. Low barriers to entry: To start forex trading in Dubai, having a substantial amount of money is not required. Traders can start trading with fewer funds.
3. Access to a wide range of currencies: The forex market in Dubai is highly cost-effective and, therefore, undoubtedly worth entering. You can start trading by accessing various currencies, for example, the US Dollar, Euro, British Pound, and UAE Dirhams.

For new traders, it is essential to note that Dubai’s location and burgeoning economy have made it an influential hub for business.

Over the last few recent years, Dubai has become the premier choice for multinationals relocating to a managerial destination.

Dubai is politically neutral in the Middle East and, therefore, not vulnerable to war or imbalance.

All these factors importantly grab the attention of an increasing legion of multinational individuals and companies looking for new markets and opportunities outside of Europe and ready to start investing in Dubai’s thriving market, known for offering outstanding cost-effectiveness to its traders.

Challenges and Risks

A forex market is a hub for trading various global currencies, for example, GBP, USD, AED, etc. The market helps traders profit by purchasing these currencies during deflation and selling them during inflation. Many individuals and companies make their fortune by investing in this market and making a quick profit. However, those who are planning to start trading in Dubai Forex should know the various potential risks and challenges related to it. So here are a few key risks and challenges that new traders must look at: 

1. Unpredictability: Forex markets are highly volatile in general. That is why it is wise not to wager your money randomly until you know the ropes of it, and sidestepping it will only bring about the financial loss to you always. You can enhance the chances of your success in trading by choosing a forex broker who will help you at every step.
2. Regulatory changes: Dubai’s forex market is marginally regulated. The laws regulating forex trading are not as hard and fast as those implemented for other financial needs, such as stock or share marketing. Some traders misuse regulatory oversight during transactions and get around the rules about high-risk investments.
3. Currency fluctuations: Different currencies of global countries fluctuate depending on the performance of their underlying economies. So, for example, if you plan to invest in the Dubai Forex market and its national currency AED goes into recession, the value of your currency will also drop.

Traders can overcome the trading risk mainly by following the tips mentioned below:

1. Survey: Traders, relatively or entirely new to the forex market, find it hard to decide which currencies to invest in. Therefore, to enhance the odds of maximum success in the market, such traders should survey currencies thoroughly.
2. Diversify your investment: Many traders commit the mistake of investing in one currency and incur losses sooner or later. After all, predicting which currency will deliver the best ROI and which one not is too hard for anyone. Therefore, rather than investing your hard-earned money in one currency, consider diversifying your investment in various currencies, and you will succeed.
3. Exercise caution: Although forex trading is a great way to earn maximum profits, for new traders especially, doing so seems hard owing to their lack of knowledge. They do not know which currencies are worthy of investment and which ones are not. Therefore, it is wise to exercise caution and follow in the footsteps of a professional forex broker.

Conclusion

Dubai is considered among the top destinations in the world for foreign investors interested in forex trading due to its very safe and cost-effective forex market. The DFAS regulates the emirate’s financial system, providing investors with seamless protection against scams and other financial risks and challenges. Additionally, the Dubai government runs the extra mile for its investors by installing multiple measures to ensure that all transactions are made crystal-clear and safe.

The Dubai forex market is genuinely beneficial for its investors. The market allows traders to choose from various worldwide currencies to carry out trading. Also, the market enables them to branch out their portfolios and make the most of global opportunities. Moreover, the market is rife with an extreme level of liquidity, allowing traders to conduct trading immediately without concerning liquidity issues. All this quickly makes Dubai a perfect destination for foreign investors looking for a safe hub for making investments. So any foreign investor looking to invest in the forex market should consider Dubai once and for all. Do it, and you will see how cost-effective and secure the market is.

If you are of the opinion that simply copying and pasting the forex signal into your forex trading account can make you rake in booming profits, then you can think again. Read on to find out more about the reasons why a trader needs more than mere forex signal services from the best forex signal service provider to make profits.

Besides the forex signal, what more does the forex trader need from the forex signal service provider?

Trust

A trader needs to be able to trust the forex signal service provider. He invests his fortune with the service provider with the hope of extracting profits by trading the forex market. But what if the service provider is fraudulent? If you continue to dwell on such doubts, then you will end up never taking part in trading at all. But if you do not give much thought to it, then you will run the risk of incurring tremendous losses. The only way to resolve the dilemma is to build a relationship of trust by conducting demo trading during the free trial period. Register for the free trial period and assess every aspect of the best forex signal service provider along with testing the signal.

Schedule

If your time zone differs from that of the forex signal service provider, then you will miss out on every signal, and end up making no profits at all. Not only your time zone, but also your daily schedule should match the signal service provider. You must not miss out on any signal if you seek to extract profits from the forex market.

Account size

The best forex signal service provider should be able to advise the trader on account size and draw-down, apart from generating the forex signal for trading. The forex signals providers and professional forex traders conduct trading with significant account sizes and go through the period of draw-down as well. However, several traders prefer to conduct trading with a small account size, which fails to withstand the draw-down period and consequently collapses. Therefore, the forex signal service provider should advise about the account size to the trader.

Psychology

Psychology is highly important when it comes to forex trading. A trader cannot afford to let emotions take the upper hand while making swift trading decisions. The best forex signal service providers have mastered the art of trading dexterously with stern psychology. Examine the psychology of the forex signal service provider during the trial period before signing up for the services.

What should you check about the forex signal service organization before subscribing to the services?

1. Transparent

It is of utmost importance to verify that the best forex signal service provider is honest and transparent. A guaranteed way of ensuring that is the availability of detailed information and services during the free trial period. The service provider should not charge any hidden charges, either.

2. Accurate

The signaling service should be accurate; otherwise, there will be no profitability. Automated forex signal service is highly accurate as it can operate 24×7 and conduct an advanced technical analysis of the market. However, manual forex signal service is accurate, too, as the service provider is highly professional and can stay updated on news events that affect the forex market. You can assess the accuracy by verifying the track record of the best forex signal service provider.

3. Honest

Honesty is indeed the best policy when it comes to forex signal services. Conduct demo trading during the free trial period to check if you can extract maximum profits. Read the unbiased reviews of the service provider on authentic websites to confirm your opinion of the service provider’s honesty.

4. Good customer service

The quality of the best forex signal service provider depends upon the customer service. The customer service help-desk should be highly responsive, reachable at any hour, and capable of a resolution of any query regarding forex trading. There are numbers of best forex trading software available, which brings efficiency to the work of forex traders.

5. Understand which currency signals you are interested in the most

Not every currency signal is profitable for the trader. And so, the best forex signal service provider must furnish the trader with detailed information regarding the currency pair, prior to trading. Conduct demo trading during the trial period to know more about currency signals.

Conclusion

Assess every aspect of the forex signal service provider before subscribing to the services. Establish a relationship of faith and trust and make the best use of the free trial period to ensure the quality of the service provider.