Qatar is a middle-eastern country, also a part of the Gulf Cooperation Council. The country was declared as one of the richest economies in the world by the World Bank and IMF. It derives its maximum GDP from exporting natural gas and petroleum. It has one of the largest reserves of natural gas in the world.
Qatari Riyal is the national currency of Qatar which is maintained by the Qatar Central Bank. The bank is responsible for dispensing stability in the financial market and to regulate the exchange rate of Qatari Riyal (QR) in terms of other currencies.
The financial market of Qatar has a lot to offer to the traders. The market is very active and completely equipped with online brokers who can help you trade in Forex, commodities, stocks, and other securities.
Qatar brokers are regulated by the Qatar Financial Markets Authority (QFMA) regulatory body. Forex brokers who promote brokers in Qatar usually offer Islamic accounts.
Qatar Stock Exchange
Founded as Doha Securities Market in 1995, it was renamed Qatar Stock Exchange (QSE) after signing a strategic partnership with NYSE Euronext. The QSE is the principal stock market of Qatar and it aims at providing a platform to all the Qatari companies to raise capital. This will in turn provide support to the economy. Also, QSE is transparent with all the information of the financial and capital market while dispensing it to the public and investors.
Top Qatar Brokers
There are 3 main regulatory bodies that are responsible to keep in check the working of all the financial and banking institutions, stock market, and brokerage firms. Even after the presence of more than one regulatory body, most forex Qatar brokers are not regulated. This is because of the Islamic Sharia Law that the country follows. But, Forex traders have the option to look for the regulated forex brokers out of the territory. Qatar allows international brokerage houses to provide trading assistance to Qatari nationals or foreign investors to trade in the QSE.
Below are top regulated brokers in Qatar:
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Securities and Accounts
There is a wide range of investment opportunities available for individuals and companies in the QSE. It provides access to market securities to both international and domestic investors. To accommodate the smooth trading of these securities, there are different types of accounts that the trader can choose from.
Types of securities:
Forex trading is active and legal but not entirely regulated in Qatar. This due to many reasons, one of them being the strong foundation of the financial market that is based on sharia law. As the accumulation of interest is prohibited in Islamic law, the QSE imposes very little or no restrictions for the forex brokers to be regulated. But the need for forex trading is there to bring in foreign investment. However, the offshore forex brokerage is welcomed for the traders who wish to have a sense of security with the investment. These offshore forex companies are regulated by their own national law. Some of the examples of these offshore forex companies are the Cyprus Securities and Exchange (CySEK), the Caymen Islands Monetary Authority (CIMA), the UK Financial Conduct Authority (FCA), and the Australian Securities and Investments Commission (ASIC).
Bitcoin or cryptocurrency or blockchain is declared illegal by the Qatar Central Bank. The QCB has made it clear to all the banks in the country that anyone found conducting such trading will have to face penalties. This is in view to protect the interest of the traders and secure the functioning of the banking sector. Also, there are incidents of cyber fraud and financial crimes associated with cryptocurrency. Although the country is working towards digitizing the transactions, it does not support cryptocurrency trading in any form.
- CFD (Contract For Difference)
CFD is a better option for those who do not want to invest a large chunk of their capital. In the case CFD, the trader does not get the ownership of the asset (stocks, commodities, indices, futures, etc) but gets into a contract with the owner of the asset or the bank. The profit or loss made by the investor is the difference between the current market price and the market price at the time of entering the contract. The difference between these two prices is paid and received depending upon the loss or profit made by the trader. Qatar also offers CFD day trading which has attracted many traders due to its underlying benefits.
- Commodity Trading
Qatar’s commodity market is pretty much active. A large part of the commodity trading in Qatar is taken by natural gas.
Qatar brokers also provide a wide range of account types like VIP accounts, gold accounts, demo accounts, starters accounts, and Islamic accounts. Traders can choose from the many options available and start trading with the Qatar broker in the stock market.
For a very long time, Qatar has attracted many investors and traders. Being one of the richest economies, traders invest in its market for suitable returns. However, the market forces are unpredictable and one must look out for them. The presence of more than one regulatory body safeguards the trader’s interest and provides a smooth and legalized trading environment. As a part of the Gulf Cooperation Council, traders can also get access to these markets without facing any barrier.
Due to political disturbances between Qatar and neighboring countries like Saudi Arabia and UAE, liberal trading has been disturbed. But the Qatar government is working towards getting back the previously established relationship with these countries and bringing back more investment opportunities for the traders and more foreign investment.
Selecting the Best Qatar Broker
If you compare the present trading time with that of the past, there is a much wider range of options available in securities as well as brokers. Once you have decided on the type(s) of securities you want to trade, according to your capital availability and your return expectations, the next step is to look for the best Qatar broker. You cannot just pick a random broker from the market and start trading. Selecting a broker requires expert analysis. Different brokers have different aspects and trading style. The trader must choose the one that is most suitable for his/her planned portfolio.
The following are some viewpoints of traders that they look for in a broker or brokerage house.
- Research Analysis
Many Qatar brokers provide traders with detailed research work to educate the trader. This helps the trader to understand how the particular market works? What securities are traded in that market? How can the trader enter the market? What are the rules and regulations of trading? And many more. If your broker is able to give the proper research analysis, you will be able to trade efficiently with all the information in your hand.
- Transaction Speed
Movement of funds happens every now and then during trading. Be it opening an account, selling and buying securities, paying off fees and charges, etc. Make sure your Qatar broker is efficient enough to be quick in moving such transactions. The trader can consider a broker, who can get done with these transactions within a span of 2 or 3 days, as a skilled broker.
- Experience Level
All the brokers in the market do not start trading at the same time. Different brokers enter the market at different times. The time spent in the market determines the level of experience of the broker. The level of assistance an experienced broker can provide you cannot be compared to a new broker. His experience level will ascertain how aware he is of the market and how quickly he can respond to any movement in the market.
- International Sources
Since trading is done on an international level, having only local sources is not sufficient. You Qatar broker must also have sources in the international market to provide you with facilities like communication, understanding the market trends, getting aware of the international laws of trading, and many more.
The involvement of a regulatory body is a must while trading. The regulatory body makes sure that the trader’s funds are put into a separate account from that of the broker. And that these funds are invested in legal securities and in a legal way. There should not be any misuse of trader’s funds and that the trader’s interest is kept safe.
- History of the Broker
It is always advised to check the working history of the Qatar brokers you have shortlisted. Check how long they have been working in the industry?
If they were ever a part of any misconduct? How their customers would define their experience of working with the broker? Apart from these questions, one can also look for the brokers turnover, his growth in the market, active customers, and many more.