Forex trading continues to rise in popularity in Kuwait, with the concept of currency exchange remains deeply anchored in this high-income economy with its large expat population. Below I present a shortlist of the most competitive Forex brokers operating in Kuwait and a guide for beginner Forex traders in Kuwait in choosing a broker and getting started.
Best Kuwait Brokers Comparison
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Regulators | CMA, CySEC, FCA, FSC Mauritius, FSCA | ASIC, CySEC, FSCA | ASIC, BVI, Central Bank of Ireland, FFAJ, FSCA, KNF, MiFID | ASIC | ASIC, AUSTRAC, BaFin, BVIFSC, CIMA, CySEC, ESCA, FMA, MAS, TFG, VFSC |
Year Established | 2011 | 2005 | 2006 | 2011 | 2005 |
Execution Type(s) | ECN/STP, Market Maker | ECN/STP | Market Maker | ECN/STP, Market Maker | ECN/STP |
Minimum Deposit | |||||
Average Trading Cost EUR/USD | 0.1 pips | 1.1 pips | 0.9 pips | 1.1 pips ($11.00) | 0.1 pips |
Average Trading Cost GBP/USD | 0.2 pips | 1.4 pips | 1.5 pips | 1.1 pips ($11.00) | 0.5 pips |
Average Trading Cost Gold | $0.18 | $0.21 | $0.29 | $0.15 | $0.02 |
Trading Platform(s) | MetaTrader 4, MetaTrader 5, Proprietary platform | MetaTrader 4, MetaTrader 5, cTrader, Proprietary platform, Web-based | Other, MetaTrader 4, MetaTrader 5, Web-based+ | MetaTrader 4, MetaTrader 5 | MetaTrader 4, MetaTrader 5, cTrader |
Islamic Account | |||||
Negative Balance Protection | N/A | ||||
| Visit Website | Visit Website | Visit Website | Visit Website | Visit Website |
FXTM
In Summary Best all-around broker with high floating leverage and fast executionWe have made FXTM one of our top-rated brokers because in addition to its lengthy track record, it enjoys a very high level of regulation and reputation, and it offers a highly competitive fee structure which tends to keep down the cost of trading.
Pros & Cons
- Excellent commission-based Forex pricing environment and transparency
- Upgraded MT4/MT5 trading platforms plus proprietary mobile trading app
- Quality market research and educational content for beginner traders
- A highly regulated broker with a tier-1 license
- No cryptocurrencies and limited choice of commodities
FP Markets
In Summary ECN trading with leverage up to 1:500fpmarkets is an ASIC-regulated Australian brokerage which launched in 2005. For most traders, the unique selling point of this broker is in the extremely wide range of tradable assets offered, providing the opportunity to trade over ten thousand individual stocks and shares including publicly quoted Hong Kong and Australian companies. Ffpmarkets also offers 60 Forex pairs and crosses, 11 equity indices, the major commodities, and 5 cryptocurrencies including Bitcoin. fpmarkets offers an unusual hybrid ECN/STP execution model, meaning their clients can choose between ECN style of execution giving a very high level of speed, and a “straight through processing” execution style which allows for more “natural” spreads.
Pros & Cons
- Choice of trading platforms and auxiliary trading tools
- Very competitive cost structure and excellent asset selection
- Low minimum deposit requirement and leverage of up to 1:500
- Well-regulated and trustworthy
- Availability of Iress geographically restricted
AvaTrade
In Summary Highly regulated, choice of fixed or floating spreadsAvaTrade is one of the largest Forex / CFD brokers and well-known for offering their clients a choice of fixed or floating spreads. They have a very high and strong level of regulation. AvaTrade is directly regulated in Ireland (and by extension, the European Union), Australia, Japan, South Africa, and the British Virgin Islands. Outside the European Union, Ava offers maximum leverage on Forex currency pairs as high as 400 to 1. AvaTrade offers trading in over 55 different Forex currency pairs, 17 commodities, 20 equity indices, 14 cryptocurrencies, plus 66 individual stocks and shares. 2 bonds and 6 ETFs are also on the menu.
Pros & Cons
- High-quality educational offering via SharpTrader
- Excellent choice of trading platforms catering to various trading needs
- Broad asset selection and cross-asset diversification opportunities
- Well-regulated and trusted broker with oversight from a central bank
- Trading costs competitive but nothing special
ACY Securities
In Summary Swap-free trading with the MT5 trading platformACY Securities upgrades MT4/MT5 with Capitalise AI and 15 quality plugins. Capitalise AI supports algorithmic trading in a code-free environment and is the most advanced trading tool available, making ACY Securities one of the best Forex brokers. Low-latency 24/5 market access exists via VPS hosting. Copy traders may use the embedded MT4/MT5 services or diversify via Signal Start and SoFinX.
The commission-based trading accounts offer competitive trading fees with raw spreads from 0.0 pips for a commission of $6.00 for ProZero and $5.00 for Bespoke. Traders also benefit from fast order execution under 30ms via 46 liquidity providers.
Pros & Cons
- Large repository of daily analysis and educational content
- Low spreads starting at 0 pips in the Spread Zero account
- 16 payment processors, including cryptocurrencies
- Competitive trading fees in its commission-based accounts
- Only 1 regulator
MultiBank Group
In Summary Deep liquidity with no trading restrictionsMultiBankFX complies with 10 regulators and operates offices in 20 countries, ensuring clients have an unmatched global network with deep liquidity pools across major financial centers and in core emerging markets. Traders get the MT4/MT5 trading platforms, which fully support algorithmic trading, and a proprietary copy trading service. The asset selection consists of 55+ currency pairs and 20,000+ equity CFDs and ETFs, while cryptocurrency traders get eleven highly liquid coins. MAM/PAMM accounts cater to traditional retail account management, VPS hosting to algorithmic traders, and FIX API trading to advanced trading requirements featuring custom solutions. A high-paying partnership program also exists.
Pros & Cons
- 20,000 assets offering broad coverage of financial markets
- Raw spreads from 0 pips and maximum leverage of 1:500
- MAM/PAMM accounts and proprietary copy trading platform
- ECN trading with deep liquidity and no requotes
- Access to raw spreads requires a $5,000 minimum deposit on the ECN account
Is Forex Trading Legal in Kuwait?
Forex trading is legal in Kuwait, and the Central Bank of Kuwait regulates the domestic financial market. Since almost 60% of the population living in Kuwait are foreign nationals on work visas from 100 countries, Forex transactions are part of everyday life. Estimates as recent as 2019 claim tens of thousands of Kuwaiti Forex traders for reasons other than necessity. The young and tech-savvy population continues to embrace the opportunities of Forex trading.
While Kuwait has domestic brokerage houses, there are no legal restrictions on Kuwaiti resident Forex traders opening accounts with international Forex brokers, which is where most conduct their trading. Some have representative offices in the GCC region, and a few offer funding and withdrawal options through domestic payment processors, although most Kuwaiti resident Forex traders use US Dollar-denominated trading accounts
Forex Trading Regulations in Kuwait
The Central Bank of Kuwait (CBK) regulates the domestic financial market, the Kuwaiti stock exchange, the Ministry of Finance, and the Ministry of Commerce and Industry. The CBK enforces a strict currency system and ranks among the most trusted GCC central banks, founded in 1968, with currency reserves exceeding $25 billion.
Some of the CBK’s functions and supervisory roles are:
- Banker and financial advisor to the State of Kuwait
- Managing and maintaining the Kuwaiti Dinar, ensuring free conversion to other currencies
- Supervising, organizing, developing, and improving the banking system
- Conducting inspections of all CBK-regulated entities, ensuring compliance, and enforcing rules and regulations
- Directing monetary policy to enhance economic and social progress
- Analyzing new entrants to the Kuwait financial system
- Supervising mediation processes
Noteworthy:
- Kuwaiti resident Forex traders may opt for a CBK-regulated broker but are free to open trading accounts with international brokers, where trading conditions are often more competitive.
How to Choose a Forex Broker in Kuwait
While Kuwaiti Forex traders can trade with a domestic CBK-regulated broker, they are also free to opt for a well-regulated international alternative.
Here is what to look for when choosing a Forex broker in Kuwait:
1. Regulation and Security – Kuwaiti resident Forex traders should always ensure they trade with a regulated Forex broker with more than ten years of experience and a spotless regulatory record.
2. Islamic Account Fairness - Kuwaiti resident Forex traders wishing to open Islamic trading accounts should make sure the offer does not unfairly increase their trading costs or impose time limits or other unfair measures.
3. Trading Costs - Anything above $7 per standard lot for major currency pairs during the most liquid trading periods indicates above-average trading costs.
4. Asset Selection - The best Forex brokers in Kuwait will offer 60+ currency pairs.
5. Trading Platforms - Algorithmic and copy trading support are essential signs of an innovative trading platform, although every trader will not require them.
6. Deposits & Withdrawals - Online payment processors and cryptocurrencies should provide secure, low-cost options.
What is the Best Trading App in Kuwait?
Kuwaiti resident Forex traders should look for the below functions and services to find the best trading app in Kuwait.
The best trading app in Kuwait will offer:
- Algorithmic trading support
- Copy trading functions
- Fast order execution
- Deep liquidity
- Low trading costs
- Volume-based rebate programs
How to Open a Forex Trading Account in Kuwait
Opening a Forex trading account in Kuwait requires the below steps:
1. Select one of the best Forex brokers in Kuwait from our list.
2. Get access to the back office by completing the online registration form.
3. Upload a copy of the ID and one proof of residency document to pass mandatory AML/KYC requirements, which verifies the account holder, and activates the account, including the ability to deposit and withdraw.
4. Funding the account completes the Forex account registration and enables Kuwaiti resident Forex traders to buy and sell currency pairs using leverage. The minimum deposit depends on the broker, but Kuwaiti traders should ideally deposit at least 500 KWD and consider additional monthly deposits if possible.
What is the minimum deposit amount at Kuwait Forex Brokers?
Although the minimum deposit amount at competitive Forex brokers in Kuwait ranges between $50 and $500, or roughly 15 KWD to 150KWD, trading with such small amounts usually leads to worse outcomes than using better-funded account sizes.
While Forex traders can benefit from leverage and require less capital to open a portfolio, Forex traders should have well-funded accounts to support leveraged traded and diversify their portfolios. There is no magic number, but a Forex account below $5,000 or 1,650 KWD can only support transaction sizes that generate small profits, not warranting the effort necessary to achieve them, which generally leads to excessive risk-taking to compensate.
Successful Forex traders understand the importance of building portfolios, and they invest years into it, combining organic profits with follow-on deposits before considering withdrawals. Profitable Forex trading relies on scale, leverage, risk management, and profit sustainability.
What Is the Best Time to Trade Forex in Kuwait?
While the Forex market operates 24/5, some periods offer more liquidity, which usually results in tighter spreads, and, therefore, lower trading costs.
The best times to trade Forex in Kuwait are:
- 3 a.m. - 4 a.m. (First hour of the Tokyo trading session)
- 8 a.m. - 9 a.m. (Last hour of the Sydney trading session)
- 10 a.m. - Noon (The first two hours of the London trading session and the last hour of the Tokyo trading session)
- 5 p.m. - 7 p.m. (First two hours of the New York trading session and the last two hours of the London trading session)
- 9 p.m. - 12 p.m. (The last two hours of the New York trading session and the first hour of the Sydney trading session)
Most traders will miss the first two periods but would be able to actively participate in the third and fourth, which are prime Forex trading periods. The fifth period can also provide Kuwaiti resident Forex traders with attractive opportunities.
What Are the Advantages and Disadvantages of Forex Trading in Kuwait?
Before trading Forex in Kuwait, first-time traders should weigh the advantages and disadvantages of Forex trading in Kuwait, allowing them to make an informed decision. Kuwait heavily depends on oil exports for economic health and stability, and any potential issue can have severe ripple effects, impacting trading decisions related to Forex.
The advantages of Forex trading in Kuwait:
- High-income economy
- The Kuwaiti Dinar is one of the strongest global currencies
- Oil revenues counter the negative impacts of imports, ensuring a fiscally stable economy
- Low capital entry requirements
- A trustworthy regulator maintains a competitive trading environment
- No restrictions on opening trading accounts with international brokers
- Almost 60% of the Kuwaiti population are foreigners with work visas, embedding the concept of currency exchange
The disadvantages of Forex trading in Kuwait:
- Frauds and scams can target beginner traders
- Underfunded accounts nurture risky portfolios
- Absence of risk management results in trading losses
- Beginners underestimate the importance of psychological factors
Bottom Line
Our analysis of Forex trading in Kuwait confirmed the growing trend of the retail Forex market in Kuwait, where a young and tech-savvy crowd favors algorithmic trading, copy trading, and account management services. The local regulator, the Central Bank of Kuwait (CBK), maintains strict oversight and ranks among the most trusted ones in the GCC and the Middle East but does not restrict competitiveness. Kuwaiti resident Forex traders are free to open trading accounts with international brokers. More brokers open representative offices in the GCC, employ introducing brokers, or rely on affiliates to grow their market share.
Beginner traders should begin with education, as it should help develop a realistic and profitable approach to trading, and an effective avoidance of low-quality brokerages. Kuwaiti Forex traders should ensure their Forex brokers offers genuine Islamic accounts, if required. They should look to trade with one of the best Forex brokers in Kuwait, offering deep liquidity, fast order execution, negative balance protection, and low trading costs.
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