Important: this is general information, not legal or regulatory advice, and requirements and figures change. Confirm the current position directly with the SCA or a licensed UAE advisor before making any decisions.
Who the SCA regulates
The SCA regulates securities and commodities activity in the onshore UAE — the mainland and the emirates. It does not regulate the two financial free zones, which have their own regulators: the DFSA in the Dubai International Financial Centre (DIFC) and the FSRA in the Abu Dhabi Global Market (ADGM). So a broker's first choice in the UAE is where to be based — onshore under the SCA, or in a free zone under the DFSA or FSRA. This page covers the SCA route.
The five SCA licence categories
The SCA divides licensed financial activities into five categories. A firm is licensed for the category (or categories) matching what it does:
- Category 1 — Dealing in securities: dealing, brokerage and arranging in securities and derivatives, typically including client-money/asset permissions. This is the category most relevant to a forex/CFD broker that intermediates trades or deals on its own account.
- Category 2 — Dealing in investments: investment-dealing activities.
- Category 3 — Custody, clearing and registration: holding client assets, clearing and registry functions.
- Category 4 — Credit rating: credit-rating agencies.
- Category 5 — Arrangement and advice: financial advisory, consultations, introduction services and listing advisory — the lightest category, often used by advisers and introducers rather than brokers holding client money.
For a broker offering forex/CFD trading to clients, Category 1 is generally the relevant licence; introducing or advisory-only businesses may fall under Category 5.
Capital and key requirements
- Paid-up capital — varies by category and activity; indicatively from around AED 500,000, with forex brokerage typically requiring higher paid-up capital (commonly cited in the AED 1,000,000–5,000,000 range depending on scale and permissions).
- Directors — a minimum of three qualified directors is generally required.
- Local presence — a UAE-incorporated company, office and appropriate local substance.
- Compliance — capital-adequacy, AML/CFT systems, client-money safeguarding, qualified compliance and risk personnel, and transparent reporting to the SCA.
These figures are indicative and change — confirm current category requirements and capital with the SCA before relying on them.
Step-by-step: how to obtain an SCA licence
- Decide onshore vs free zone — SCA (onshore) versus DFSA (DIFC) or FSRA (ADGM), based on your target clients and model.
- Choose the category — identify the licence category that matches your activity (Category 1 for brokerage/dealing).
- Incorporate the company — set up the UAE entity and structure, with the required directors and shareholders.
- Prepare the application — business plan, financial projections, capital evidence, AML/CFT and risk policies, and fit-and-proper documentation for owners and managers.
- Submit to the SCA — file the application and respond to the regulator's questions and conditions.
- Meet pre-licence conditions — capital deposit, office, systems and key personnel in place.
- Authorisation and launch — on approval, complete final conditions and begin operating, with the Baxance platform ready behind you.
Who the SCA route suits
An SCA licence suits brokers who want to serve UAE onshore clients from a UAE base with a recognised regional regulator. Brokers targeting international clients or wanting a specific free-zone framework may prefer the DIFC (DFSA) or ADGM (FSRA), or an offshore route like Mauritius. Compare all options on the licensing hub.
How Baxance helps
Baxance is an information and technology partner, not a licence provider. We help you understand the SCA categories and process, plan your structure and capital, and connect you with licensed UAE advisors who prepare and submit the application. In parallel we deliver the brokerage technology — CRM, trader's room, back office, MT5 and risk — so you're ready to operate the moment you're licensed. Our forex CRM is already localized for the UAE; see forex CRM in the UAE.
Frequently asked questions
Which SCA category does a forex broker need?
Generally Category 1 (dealing in securities), which covers dealing, brokerage and arranging in securities and derivatives with client-money permissions. Advisory or introducing-only firms may fall under Category 5.
Does the SCA regulate DIFC and ADGM?
No. The SCA regulates onshore UAE. The DIFC is regulated by the DFSA and the ADGM by the FSRA — separate frameworks with their own licences.
How much capital does an SCA licence need?
It depends on the category and activity — indicatively from around AED 500,000, with forex brokerage commonly requiring more (often cited AED 1–5 million). Confirm current figures with the SCA.
Does Baxance obtain the SCA licence for me?
No. Baxance provides information and technology and connects you with licensed advisors who handle the application; the licence is granted by the SCA.
How many directors are required?
Generally a minimum of three qualified directors, alongside appropriate local presence and compliance personnel.