Forex and CFD trading in Kuwait – Top brokers to choose from

The State of Kuwait is a small country in the Middle East, located at the tip of the Persian Gulf. Although being a very small 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 and CFD (Contracts for Difference) trading.

The Forex trading is fully legal in the country. Forex trading in Kuwait has become especially popular among locals in recent years. Kuwait is known to be the 8th richest country around the world according to 2018 estimates. Although not that popular in the Forex world, the Kuwaiti dinar is one of the highest valued unit of currency in the world, which is very beneficial for the people of 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. In addition, it should be mentioned that every trader is different and to find the best broker that suits their interest, traders go thought the energy and time-consuming process of checking every broker and comparing them. To aid you in the process, we have checked various brokers and came up with the top brokers list that will satisfy the needs of various trader types.

Local Forex trading regulations in Kuwait

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. It is widely known that according to Sharia law, it is prohibited to use interest. To enable traders to open accounts without going against their beliefs, brokers offer interest free accounts that are better known as swap free accounts or Islamic accounts.

It should be mentioned that there are not a lot of local brokers that are licensed by local regulators. On the upside, residents of Kuwait can open accounts with international brokers that are regulated by agencies such as FCA of the UK, CySEC of Cyprus, ASIC of Australia, and many other leading regulatory bodies around the world.

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. In addition, the Central Bank of Kuwait determines the financial and credit policy of the country and maintains the local currency stable, regarding the inflation. The Central Bank of the country has a very large scale of supervisory functions.

Popular payment options 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. Moreover, there are many other payment methods available in the country, such as PayPal, Skrill, and other online payment options. 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.

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. It’s best to make sure that your broker accepts your favorite funding option before opening a live account. Most brokers offer live chat option that you can use.

Popular trading platforms in Kuwait

While trading Forex, one of the most important decisions you have to make is choosing a trading platform. Trading platform is a software that is used for conducting a technical analysis, strategy building, back-testing, demo and live trading.

As in many other countries, the most popular Forex trading platform in Kuwait is MetaTrader 4 (MT4). MT4 was developed in 2005, by a famous Russian company called MetaQuotes. Since then, it has become the most popular Forex trading platform all over the world.

As for the most popular multi asset platform, it’s MetaTrader 5 (MT5). The platform was released in 2010, and it enables traders to trade various asset classes in addition to currencies, such as bonds, stocks, and futures.

Both MT4 and MT5 are highly reliable, support algorithmic trading, and are the most popular platforms. As a result, there are many strategies and custom-made indicators available for these platforms.

Summary

In recent years, Forex trading has become exceptionally popular in Kuwait. The central bank of the country regulates trading, however, there are not many local brokers that have license from the central bank of Kuwait. Which is why we recommend you check international brokers. In our top brokers list, you will find brokers with great trading conditions and good reputation.

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