Seychelles offers a fast, affordable, and flexible licensing option for forex brokers. With low capital requirements, simplified compliance, and global client access, it’s an ideal choice for startups and growing brokerages.
UAE SCA Category 5 License
This license grants full regulatory approval to operate a Forex and CFD brokerage legally in the UAE, including servicing both retail and institutional clients.
SCA Category 5 Introduction
The UAE SCA Category 5 license is designed for companies that provide:
Spot forex and CFD trading
Leveraged financial products
Execution of client orders
Brokerage intermediation services
This license is issued by the Securities and Commodities Authority (SCA) in collaboration with local free zones such as ADGM (Abu Dhabi Global Market) or Dubai World Trade Centre (DWTC).
Unlike offshore setups (e.g., SVG, Seychelles), this license is fully regulated and recognized, offering legitimacy and trust for serious retail and institutional traders in the region.
Advantages of UAE SCA Cat 5 License
✅ Full Regulatory Status
Operate a regulated forex brokerage under UAE law with high market credibility.
✅ Access to Local and International Clients
Offer services in the UAE and expand globally under a recognized license.
✅ UAE Banking & Payment Support
Easier access to local bank accounts, EMI providers, and payment processors.
✅ Stable and Reputable Jurisdiction
UAE is politically and economically stable, with no income tax on individuals.
✅ MENA Market Potential
Tap into a fast-growing, high-income, and tech-savvy trading population.
✅ Premium Brand Image
Being an SCA-regulated firm significantly enhances your brand image and trustworthiness.
✅ Visa Sponsorships & Offices
License allows you to sponsor employee visas and operate physical offices in the UAE.
Requirements for SCA Category 5 Forex License
To qualify for a SCA Category 5 License in UAE, you must fulfill the following:
Local Presence & Legal Entity
• Must set up in a designated Free Zone (e.g., ADGM, DWTC, DIFC)
• UAE-based entity is required to apply for the license
Capital Requirements
• AED 1 million – AED 4 million, depending on the exact scope of services
• Capital must be deposited in a local bank before final approval
Qualified Team
• At least 2–3 directors/officers with proven financial services experience
• Local compliance officer, AML officer, risk manager, and finance officer required
• Certain roles must be UAE residents
Office Setup
• Physical office in the UAE is mandatory
• Can be within the chosen Free Zone jurisdiction
Robust Infrastructure
• Must have systems for trade monitoring, reporting, risk control, and cybersecurity
• SetupFX helps with full infrastructure: MT5, CRM, and reporting tools
Compliance Framework
• Comprehensive internal policies:
• AML & CFT policy
• Risk Management framework
• Business Continuity plan
• KYC & Onboarding procedures
• Data protection policy (GDPR equivalent)
Audit & Reporting
• Regular audits and compliance reporting to the SCA
• Financial statements and internal controls must meet UAE standards
Process to Obtain the UAE SCA Category 5 License
1. Consultation & Strategy
• Assess your goals, capital readiness, and operational needs
• Select appropriate Free Zone and company structure
2. Legal Entity Setup
• Incorporate your company in the chosen UAE Free Zone
• Assist with trade name reservation, license issuance, and bank account opening
3. Initial Application to SCA
• Submit application outlining business model, management, and operations
• Prepare and file required KYC and corporate documents
4. Compliance & Infrastructure Setup
• Draft compliance manuals and internal policies
• Setup of trading platform, CRM, and back office
5. Team Hiring & Office Setup
• Hire qualified personnel and establish a physical office
• SetupFX provides support for visa processing and HR
6. SCA Review & Approval
• SCA conducts thorough due diligence and interviews
• Upon final approval, license is issued and operations can begin
Important Considerations
Timeframe:
Full licensing process can take 4 to 6 months, depending on SCA and Free Zone responsiveness.
Cost:
Higher cost compared to offshore jurisdictions, but justified by regulatory standing and market access.
Ongoing Compliance:
Post-license compliance is ongoing with regular filings, audits, and potential inspections.
Why Choose SetupFX for Cyprus Licensing?
Founded in 2010, SetupFX delivers seamless financial solutions for businesses. Our team of experts is committed to transparency, integrity, and excellence.
- 01 Local partnerships with legal, compliance, and free zone experts
- 02 100% support from company setup to license acquisition and staffing
- 03 Experience in launching regulated brokers, prop firms, and fintechs in UAE
- 04 Full tech integration: MT5, client area, CRM, compliance tools
- 05 Transparent pricing, timelines, and lifetime support
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It’s a regulatory license issued by the Securities and Commodities Authority (SCA) that authorizes companies to legally operate as a broker-dealer offering Forex, CFD, and securities trading services in the UAE.
This license is ideal for:
Forex & CFD brokers targeting UAE-based and global clients
Financial institutions offering trading or dealing services
Firms looking to establish regulated presence in the UAE
Preparation & documentation: 1–2 months
SCA review & approval: 4–6 months
Total time frame: 5–8 months, depending on completeness of documentation
Setup Stage: Approx. USD 37,225
Annual renewal (from second year onward): Approx. USD 29,000
Additional services (like bank account opening, compliance, bookkeeping) are priced separately.
SetupFX provides end-to-end services including:
UAE mainland company incorporation
License application drafting & submission
Regulatory business plan
SCA documentation support
Platform & CRM setup (MT5, client portal)
Ongoing renewal support
50% upfront upon engagement
25% after submission of Regulatory Business Plan
25% upon receipt of initial SCA approval
Yes. Annual compliance, audit reports, and financial statements are required.
SetupFX can assist with bookkeeping, financial reporting, and regulatory compliance as add-on services.
Yes. The Category 5 license enables onboarding of both retail and institutional clients, subject to SCA regulations.
Yes, SetupFX supports UAE corporate bank account opening, which is easier under a regulated structure.
Excluded services include:
Legal document drafting (agreements, terms, etc.)
Courier, bank charges, official company seal (disbursements)
VAT (5% applicable on all fees as per UAE law)
The Category 5 license is strictly for securities and commodities trading. For crypto or proprietary trading models, a different regulatory route may be needed. Speak to SetupFX for jurisdictional guidance.
Yes. You’ll need to establish a UAE mainland company with a local office and qualified team, including compliance and operations personnel.