The State of Kuwait is a small country in the Middle East, located at the tip of the Persian Gulf. Although being a very little country, this Islamic state represents one of the richest countries around the world. The economy of the country is mostly based on the petroleum industry, however, it also has a very well-developed financial sector, which is creating a very favorable situation for Forex trading.
The Forex trading market is legal in the country, and, in fact, there are many traders who enjoy the offerings of this market every day in the country of Kuwait. Forex trading in Kuwait has become especially popular among locals of the country in recent years.
Kuwait is known to be the 8th richest country around the world according to 2018 estimates. The GDP per capita in Kuwait is as much as $96,669, which is a huge number. Although not that popular in the Forex world, the Kuwaiti dinar is the highest valued unit of currency in the world, which is very beneficial for the people of the country.
There are many Forex brokers who are offering services in the country, and if you are one of the prospective Forex traders in Kuwait, follow our detailed guide as we learn everything that there is to know about Forex brokers in the country.
The best Forex brokers in Kuwait
Finding the best Forex broker is not an easy thing. Today, the market is full of Forex brokers and every single one of them has very different offerings. Each of them is better than the other, which makes the process of decision-making very hard. It is especially true for beginners in the market.
For many newcomers, it is very hard to understand what to focus on while looking for the Forex broker. Today, we have decided to do very intensive and hard research on our own and we were finally able to come up with a list of the best Forex brokers in Kuwait. Take a look at our list below and start trading Forex today!
CySEC, IFSC, ASIC
CySEC, FCA, FSA
100 currency units
CIMA, FCA, NFA
Local Forex trading regulations in Kuwait
Kuwait is an Islamic state, but there some interesting things about the country that we should discuss. For starters, the country is a member of the Gulf Cooperation Council, but unlike other countries in the council, it largely follows a civil law system. There is a Sharia law in place, however, it applies family law and only those people who are followers of the Islamic faith.
As a result of this, there not as severe restrictions on financial services as we would see in other Islamic countries. Of course, there are Islamic banks for those who are following the Sharia law, however, there also are conventional banks for everyone as well. Also, because of this, local traders can use regular live trading accounts, while those who follow the beliefs of Islam, can use the Islamic, swap-free accounts.
However, before you start trading in the country, you should make sure that you understand the local regulatory framework very well. You should always make sure to only use licensed Forex brokers that are regulated under local agencies. According to local laws in the country, offshore companies are required to also be authorized by the local regulatory bodies in the countries where they are based.
Because of this, many Forex brokers that you will come across while looking for the best Forex broker in Kuwait will be regulated by agencies such as FCA of the UK, CySEC of Cyprus, ASIC of Australia, and many other leading regulatory bodies around the world. The requirements for the Forex brokers in the country are very similar to the regulatory frameworks of other countries as well, however, in the case of Kuwait, the regulations are more liberal.
But, the regulatory agencies of the country are still very active and they are trying to make sure that the market is safe and secure for traders. There are many companies that are being fined for violating local laws and codes of conduct. Illegal activities in the country such as financial fraud, scams, and others are many times penalized in the country very strictly.
Forex regulatory bodies of Kuwait
There are several regulatory authorities in the country that are working to make the market a lot safer. These bodies are taking care of the whole financial market, which includes Forex. Most of the brokers offering their services in the country are licensed and regulated by the Ministry of Commerce and Industry, Kuwait Chamber of Commerce and Industry, and several others. However, the main regulatory body of Forex trading is the Central Bank of Kuwait.
The Central Bank of Kuwait was established in 1969, and since then, it has been very active in fighting financial misconduct in the country. It is also responsible for issuing the national currency of the country and it also serves as a banker for the government of Kuwait. Central Bank of Kuwait also determines the finnacial and credit policy of the country and maintains the local currency stable and convertible to other currencies. The Central Bank of the country has a very large scale of supervisory functions.
The Central Bank of Kuwait is supervising the entire financial sector of the country. It researches and analyzes everything that happens in the financial markets. It also goes through the Forex brokers that wish to offer their services to the citizens of the country. Once the brokers are able to offer services in the country, the Central Bank frequently goes back to the brokers to inspect and check if everything is going smoothly, with a respect to local laws.
How can you make Forex deposits in Kuwait?
There are many payment methods available in Kuwait, however, a huge majority of the payments in the country are made with either traditional bank transfers, or with credit card payments. There also are many other payment methods available in the country, such as PayPal, Skrill, and many others. However, they are not that popular in the country.
Kuwait also has several local payment methods, such as the prepaid card by Paysafe. The Paysafecard is a local card, which was launched in 2015 in the country. Although it has become a little popular in recent years, people of the country still mostly make payments with more traditional options, such as bank transfers and credit cards.
This mostly happens because almost everyone in the country has a bank account and a card linked to it. There are a lot of options when it comes to credit cards in the country, of course, you can own Mastercard and Visa-branded cards in the country, but here are much more available.
The most popular one stands to be KNET cards in Kuwait. It is a local payment service that was created by the Shared Electronic Banking Services Company, which was established in Kuwait in 1992 by eight local banks. The main idea behind this was to create one place which would connect all banking systems in the country to each other. Most of the people in the country are using KNET debit cards. Although there also is a credit card, a debit card stands to be the most popular.
What trading platforms are available in Kuwait?
While trading Forex in Kuwait, one of the most important things that you should keep in mind is the trading platform. It is something that will give you access to the trading platform, so it is very important to use the one that offers access to a variety of trading assets.
As in many other countries, the most popular Forex trading platform in Kuwait is MetaTrader 4. MT4 was developed exactly 15 years ago, in 2005, by a famous Russian company called MetaQuotes. Since then, it has become the most popular trading platform all over the world.
As of now, as much as 90 percent of all Forex brokers are using this trading platform. There also is a newer version of it available in the market, called the MetaTrader 5. However, it is not as popular as the MT4.
Mobile trading in Kuwait
Mobile trading is becoming very popular around the world, and Kuwait is not an exception either. There many local and international Forex brokers in the country that offer traders the ability to trade Forex with their mobile phones. In Kuwait, you can trade Forex with both, Android and iOS devices thanks to special applications created by the Forex brokers.
Forex trading in Kuwait 2020 – Final thoughts
In recent years, Forex trading has become exceptionally popular in Kuwait. Although the country is very little, the successful economy that it has creates a perfect atmosphere for Forex trading. There are many well known international and local Forex brokers in Kuwait that traders can use right now.
The Forex trading market is developing very fast in the country, offering traders secure and safe services. The market is mostly regulated by the Central Bank of the country, which makes sure that every single broker is doing their job with honesty, guaranteeing the safety of local Forex traders.