Oman is yet another example of how the country with oil-based economies realizes that the resources are not limitless and invest a lot into the diversification and development of other segments and industries. As for now, the richness of crude oil means that with a population of 5 million, the country enjoys a GDP of 79 billion USD.
Oman’s geographical location on the shore of the Indian Ocean makes it is easier for the country to expand its economy and maintain the relatively high standards of living for its citizens. Forex trading is not illegal in Oman, and, although not necessarily large, the marker is sufficiently well regulated.
The Omani FX market is very unique and is definitely worth exploring further. In the guide that you are about to read we will have a closer look at the state of the national economy, some of the best Forex brokers in Oman, the way in which Forex trading co-exists with the Sharia laws, as well as the main trading platforms and the payment methods available.
This guide will be useful to both the beginners and the experienced traders, however, the former would definitely find it more useful in navigating through the Omani Forex market.
When looking for the brokerage to join, there are a number of things that one has to consider: your broker has to make sure that your funds are safe at all times, as well as provide you with a variety of trading tools and instruments that will ultimately be making your sessions worth the hassle.
On top of that, you have to keep in mind that even the most regulated market is still full of scams, and you have to be extra careful and not just blindly trust the information that the brokerage claims. Finally, your broker has to operate in a way that aligns with the specifics of the local market, for example, by accepting the payments in local currency and prevent you from spending a lot on commission fees.
Since the entire procedure of incorporating all of the aforementioned features into your search for the best Forex broker in Oman can be very time-consuming and complex, we decided to create our own list of the best brokerages there. All of those on this list have been verified by our team experts and can easily be trusted with your hard-earned funds.
CySEC, IFSC, ASIC
CySEC, FCA, FSA
100 currency units
CIMA, FCA, NFA
The main regulatory body in Oman was introduced in 1999 and was tasked to oversee the functioning of various segments of the country’s financial sector. The Capital Markets Authority (CMA) makes it is the sole goal to ensure that that financial sector is both developing and expanding, but does so in a way that favors the security, transparency, and safety of its customers.
The common misconception about trading Forex in Oman is that it is both unsafe and not regulated properly. Whether this is an unfortunate stereotype attached to the region or a mere lack of understanding of how the local market works, we can easily assure you that this is definitely not the case.
If a broker wishes to offer its services in Oman, it needs to obtain an official license from the CMA. There are a number of standards that the broker will have to meet to do that, and the overall process is far from being easy.
However, with an official license successfully obtained, the broker will enjoy being viewed as a sufficiently qualified and prestigious service provider sought by an extensive client base. In turn, by joining an official licensee of the CMA, the trader will be assured that the government will step in on their behalf, should any dispute or illicit activity occur.
Moreover, it is necessary to mention that not all of the best Omani Forex brokers are not actually physically based or licensed in the country. This does not mean that one should abstain from joining them, as the reputable bodies such as the CySEC or the FCA are very demanding to their official licensees, and the brokerages that managed to satisfy their demands are definitely worth trusting with your funds.
We will now discuss, in a bit more detail, what are the main security regulations that the Forex trading brokers need to comply with in Oman.
This is a common requirement among the regulatory bodies across the world and a great way of providing traders with an extra layer of security. By keeping the trader’s funds separate from the operational funds of the broker, the CMA ensures that the former do not get misused, whether on purpose or otherwise.
Moreover, the segregation of funds is an additional security measure that will come in handy if something happens to your broker. With your account being safe away, you are almost guaranteed that your money does not get frozen or lost altogether, should the brokerage go bankrupt. The majority of the regulated Forex brokers in Oman offer this measure, and we do suggest that you seek it when looking for one to join.
There is currently no overarching cap on the leverage in Oman, which means that you can find anything between 1:1000 to 1:20 or even less. The leverage available to the trader will also depend heavily on the instrument that they will end up choosing to trade with. Usually, the more volatile the asset is, the less leverage it will have available.
There is no common agreement about whether or not leverage should be banned altogether, limited, or left alone for good. While it can truly elevate your profits, it can also result in you losing more than you have originally invested. If you are a beginner, we recommend that you avoid using leverage, until you get enough experience to use it to your own benefit.
As an extension of the previous measure, the CMA takes an extra repercussion in making sure that traders in Oman are well aware of the risks that this financial endeavor can potentially hold. For that reason, every single one of the Omani Forex brokers in 2020 is required to issue a full disclaimer to the potentially risky instruments and tools of trading, especially leverage and CFDs.
Since a lot of losses in trading Forex result directly from the lack of understanding and sources of information available, having accurate statistics of the success rates and the potential risks of trading a certain asset or using a certain tool can make all the difference, especially to those who are new to the FX market.
As mentioned earlier, the Omani national economy is mostly based on oil exports that make up for over 77% of the countries overall export revenue. While this is great news for those interested in trading this commodity, the situation is drastically different for others. The country also exports iron, steel, plastic, fertilizers, gems, and precious metals, ships, salt, sulfur, aluminum slag, ash, stone, and cement.
While seemingly diverse, the portion of exports other than crude oil is significantly smaller, although it could also be an interesting field for the Omani traders to explore. When it comes to other segments of the national economy, there too one can witness the government’s efforts to develop and diversify them, however, there is still a long way to go until this can be reached.
The national currency of the country is the Omani Rial, coded as OMR. Since 1974, the currency is regulated by the Central Bank of Oman that has replaced the outdated Oman Currency Board. The currency is considered exotic, although it is still widely offered by the top Forex brokers in Oman.
In Oman, you will have quite an extensive choice of payment methods, ranging from various online payment solutions to the more traditional credit and debit cards, as well as wire transfers. As always, you should decide which method works best for you and seek it when choosing a broker to join.
Similarly, there is a variety to be found in the trading software available in the country. Among the best online trading platforms in Oman are popular MetaTrader4 and its newest and enhanced version – MetaTrader5, as well as cTrader and the software that was specifically developed for the broker upon its request.
Forex trading in Oman is definitely full of opportunities – from a variety of commodities to the more traditional currency pairs, a trader of any level of experience is bound to find something that will best meet their demands.
The market is well regulated, and the brokers offering their services are required to issue a number of measures to provide their traders with as much security as possible. Moreover, if you are a Muslim trader, you will definitely benefit from the availability of the so-called Islamic accounts, that do not charge interest for the overnight swaps.
All things considered, our verdict of the Omani Forex market is definitely a positive one, and we would definitely recommend considering joining the best Forex brokers in 2020.