Officially the State of Qatar is a country located in Western Asia. This tiny country is home to around 2.7 million people and is a very interesting place for Forex trading. According to the 2016 report of the International Monetary Fund, the country has the fourth-highest GDP per capita worldwide and relies heavily on foreign labor to grow the economy of the country.
The economic growth of the country in recent decades is largely based on the petroleum and natural gas industries, and the country also stands to be the biggest exporter of liquefied natural gas. Qatar was also a member of OPEC for many years but has recently left the organization in January 2019.
Because of the strong economy that the country was able to build, Forex trading in Qatar has developed very fast in the last few years. Some of the studies have shown that around 300,000 people of the country are involved in some type of trading in Qatar, which is a huge number considering the fact that it only has a population of 2.7 million.
There are a huge number of international Forex brokers in Qatar that you can use right now, however, before you start trading Forex in Qatar, there are certain things that you should know. So, follow our guide as we discover everything that there is to know about the country.
Best Forex brokers in Qatar
Finding the best Forex broker is not an easy thing. There actually are many things that traders have to consider before they start trading Forex, and finding a trustworthy Forex broker gets especially hard when someone is new to the market. What happens in many cases for beginners is that they are having a very hard time deciding which Forex broker to trust.
Today, we have decided to do intensive research for you. As a result, we were able to find some of the best Forex brokers in Qatar that you can start trading with today. So, if you are having a hard time finding a trustworthy Forex broker, take a look at our list below.
CySEC, IFSC, ASIC
CySEC, FCA, FSA
Forex trading in Qatar – Quick overview
While trading Forex, your biggest priority should be your safety and security. Because of this, regulations are something that you should always think about. Generally speaking, Forex trading is very much legal in Qatar. The country is also not that strict when it comes to international Forex brokers, since they can offer people of the country their services without having to be registered locally. Over the years, many things have influenced the Forex trading situation in the country.
For example, about 3 years ago, Qatar experienced a severe diplomatic crisis, which leads to economic sanctions from the neighboring countries. This has lead to many problems for Forex traders in Qatar because they were having some difficulties making foreign currency transfers.
Because of this, many local traders were not able to make transfers to overseas Forex brokers. As of now, most of the local Forex traders in the country are making transactions using local currency, because of this, they have to use exchanges. In this process, local traders can use the help of introducing brokers.
These companies serve as representatives of international Forex brokers that are based in the country to help locals become part of this market. Although there are many difficulties in the country regarding trading Forex, many international offshore companies still manage to offer their services to local traders in Qatar.
Regulatory framework of Qatar
The financial sector of the country is regulated and taken care of by several government agencies. One of them, which has the biggest influence on the financial market in Qatar is the Central Bank of Qatar, better known as CBQ. The Qatar Financial Markets Authority, QFMA, and the QFC Regulatory Authority, QFCRA, also regulate the market.
Recently, the QFCRA has announced that it would prohibit companies from facilitating the exchange of cryptocurrencies in the country. The representatives of the agency have said that the main reason for this decision was to fight against money laundering in the country.
All of these regulatory bodies that we have talked about are based in the capital city Doha, and they are responsible to oversee the brokerage firms in the country, insurance companies, stock market companies, banking institutions, and many other financial entities. Since the international offshore companies are not required to get local licenses in the country, finding trustworthy Forex brokers in Qatar gets a little confusing for many traders.
However, keep in mind that most of the internationally well-known Forex brokers are regulated by some of the most trustworthy regulatory bodies around the world. These regulatory agencies are doing their best to make sure that the Forex brokers are doing their job with honesty, keeping the funds of their clients safe and secure.
There are many Forex regulatory bodies that you can trust while trading Forex, such as:
- FCA of the UK
- CySEC of Cyprus
- ASIC of Australia
There are many other regulatory bodies around the world that safeguard the rights of traders, but these three are considered to be some of the most popular ones around the world.
Forex restrictions in the country
When it comes to Forex trading in Qatar it comes with several restrictions. One of them is about leverage. As of today, Forex traders in the country can trade with a maximum leverage of 1:50. For many, this could be a huge disadvantage, but, in reality, it is not. Leverage in Forex trading is very risky, especially when used by beginners.
Although Forex trading with high leverage is something that many might like, at the same time, it can be very dangerous. This is one of the major reasons why the Forex regulator in Qatar, like in many other countries, decided to adopt restrictions regarding leverage.
Thanks to the regulations in the country, Forex brokers are also required to have Negative Balance Protection. With this, even if you use the maximum leverage and end up losing all of your funds, the positions will be closed on its own once your balance on the account nears zero so that you will not end up having a negative balance.
Another restriction that is in place in Qatar is the restriction on crypto. As of now, traders in the country are not able to trade cryptos, because, as the regulatory agencies say, they are trying to fight against money laundering and financial terrorism. This does not mean that you can not use cryptos in the country at all, it actually is very popular among the citizens of the country.
The regulatory bodies of the country require Forex brokers to keep the funds of their clients on segregated bank accounts. This is a very important thing, because, as a result of this, you will be able to always have access to your hard-earned money. Even if the broker goes bankrupt, you will be able to still withdraw your funds from your own segregated bank account.
Getting started in the Qatari Forex trading market
Finding a trustworthy Forex broker is not enough to get started in this market, because there are a few more steps that you will have to take to get started in this market. First of all, you should decide which payment method is the one for you. As you already know, to start trading Forex online in Qatar, you will have to create a live trading account, after which, you will have to make your deposit.
There are many payment methods available in the country, and also, taking into account the fact that you will most probably be using international Forex brokers, you will have a lot of payment methods to choose from. You can use bank wire transfer, American Express, Visa, Mastercard, Discover, Maestro, and many other payment methods.
You can use e-wallet payment methods, such as Skrill, WebMoney, PayPal, Perfect Money, Neteller, and many others. Many traders in the country prefer to use digital payment methods, one of the major reason for it is that digital payment methods are known to be more cost-efficient, while also being faster.
Qatari Riyal is the national currency of the country. The country was used the Indian rupee for many years, until 1966. However, as India devalued the rupee in 1966, many countries, in addition to Qatar, decided to switch to other currencies. The currency is issued and controlled by the Central Bank of the country. When it comes to Forex trading, this currency is not that popular in the market.
Forex trading in Qatar – The Summary
Forex trading in Qatar is very much legal. It has become very popular in recent years thanks to the steps taken by the government. Although there are not so many local Forex brokers, citizens of Qatar can trade Forex with international Forex brokers. As a country with more than 300,000 active Forex traders, Qatar is very active in the Forex trading market.
Because of the fast pace of economical development in the country, Qatar is a very good place for Forex trading. However, keep in mind that for your safety, it is very important to only trade with regulated Forex brokers in Qatar.