Kuwait is a small Islamic country, but it is also one of the richest countries in the world, and foreign exchange transactions are completely legal.。According to 2018 estimates, Kuwait's per capita GDP was $69,669, making it the eighth richest country in the world.。

Kuwait's foreign exchange market is one of the most attractive ways to invest money。The Kuwaiti dinar may not be traded on the foreign exchange market, but it is the most valuable currency unit in the world.。Traders in the country prefer major currency pairs such as EUR / USD, GBP / USD and AUD / USD。

Kuwait Foreign Exchange Legislation

Kuwait is an Islamic state, but unlike other Gulf Cooperation Council (GCC) countries, it largely follows a civil law system, while Sharia, which governs family law and applies only to Muslim residents, does not impose the same severe restrictions on financial services as other Islamic countries.。Of course, there are Islamic banks in Kuwait, but there are also traditional banks。In addition, traders can take advantage of regular trading accounts offered by forex brokers instead of just sticking to Islamic accounts。

Kuwaiti brokers offer Islamic accounts to religious Muslims。Islamic accounts, also known as swap-free accounts, have no rollover interest on overnight positions in compliance with the Muslim faith.。However, holders of Islamic trading accounts may be charged other fees and commissions。Of course, before registering with an online forex broker, traders need to make sure they understand the local laws and consider Kuwait's financial legislation。In addition, they should only open accounts with regulated licensed brokers in the country, which are local brokers or foreign companies that need to be registered as financial and monetary intermediaries in the country.。

However, current legislation requires all offshore brokers to be licensed and authorized in their home country, so many local online forex brokers also hold licenses from institutions such as the UK Financial Conduct Authority, CySEK in Cyprus, ASIC in Australia, etc.。Although local regulators appear to be very lenient, they will also severely punish those who violate any law or code of conduct。

In addition to foreign exchange, Kuwaiti brokers often offer a variety of other financial instruments to their clients, including futures and contracts for difference.。These are financial derivatives that allow investors to trade on price movements of different assets without actually owning them, such as currency pairs, indices, commodities, energy products, stocks, etc.。

Kuwait's financial regulator

There are several institutions in Kuwait that oversee and regulate the financial sector, brokers that provide services in the country are authorized and regulated by the Ministry of Industry and Commerce, and another important institution that controls the sector is the Kuwait Chamber of Commerce and Industry (KCCI).。

However, the main regulator is the Central Bank of Kuwait, which was established in 1969.。It issues the national currency on behalf of the State and acts as a bank for the Government of Kuwait。It is responsible for determining the country's financial and credit policy and keeping the dinar stable and convertible into other currencies.。However, central banks also have a large number of regulatory functions。

The bank oversees the country's entire financial sector。It researches and analyzes all new entrants who wish to operate in Kuwait, including foreign forex brokers.。The bank also conducts inspections of all regulated institutions and companies.。

Kuwait Foreign Exchange Payment Methods

The vast majority of Forex brokers in Kuwait process payments through traditional bank transfers and credit cards。Traders in the country can also use many other options when depositing or withdrawing money from a trading account, including e-wallets such as PayPal, Neteller, Skrill, and more, although digital wallets have yet to catch on in Kuwait.。

Another good alternative is to use Paysafe's prepaid solutions, including Paysafecard, which was launched in Kuwait in 2015.。Despite this, local investors prefer more traditional payment methods because almost everyone has a bank account and a card associated with it.。So it's not surprising that debit cards are still the most popular payment method in Kuwait。

Local traders can use a variety of cards, including MasterCard and Visa brand cards, however most people have KNET cards。KNET is a payment service and gateway in Kuwait, operated by the Shared Electronic Banking Service (K.S.C.C.) provided, the company was established in 1992 by eight Kuwaiti banks。The idea is to connect all banking systems in the country to provide customers with faster, safer and more efficient payments.。

Today, most Kuwaiti residents have KNET debit cards that can be used for digital and in-store payments almost anywhere in the country.。Kuwaiti Forex Broker also accepts KNET payments。Traders should also consider the currencies available on the broker's website - allowing Kuwaiti dinars as the basic account currency is a clear advantage。

Popular trading software in Kuwait

When it comes to the different types and brands of trading software available, there are dozens of options。Often, it is difficult for traders to choose a trading platform because they all look so similar。In fact, today, trading platforms are more or less standardized。However, what forex traders should be concerned about is whether the software they are reviewing offers forex trading.。

Some platforms are designed to give traders analysis and access to stock exchanges, which trade very differently from the forex market。Forex is a globally decentralized market where trading takes place 24 hours a day on the websites of hundreds of brokers - to access it, retail traders need to use a specific type of software。In general, the difference between the long-term success and failure of a transaction depends on the effectiveness and overall performance of the platform。

A good trading platform provides fast, real-time order execution, excellent charting tools, market analysis and education functions, and also provides customers with economic news, expert advice and various professional functions。Kuwaiti traders in particular should look for software that offers Arabic - of course, Islamic accounts are mandatory。

The most popular Forex trading platform MetaTrader 4 is also available to Kuwaiti investors。It can be opened in Arabic, although many local traders also prefer the English version。The main advantage of MT 4 is its user-friendliness-it is very suitable for novices and provides various technical indicators, automated trading, a large number of tutorials and customization options。Of course, MT 4 and MT5 for stock traders are also available for mobile devices。

Other platforms for Forex include cTrader, ZuluTrade and NinjaTrader。On the other hand, one of the very few Arab platforms is the AX1 in Dubai.。It is offered by several Kuwaiti brokers and also supports mobile trading.。

Mobile deals in Kuwait

Most traders in Kuwait also tend to open trading accounts via their mobile device, whether it's an iPhone, iPad or Android device.。What's more, the vast majority of forex brokers in the country also offer mobile trading through native apps developed specifically for their products, downloaded for free directly from the broker's website or Apple's App Store or Google Play.。

However, it is worth noting that Kuwait still does not have a modern infrastructure in place to provide fast internet access to its residents.。There are four major service providers paying to use the fixed broadband infrastructure of the Ministry of Communications, which is quite slow。However, this slow connection is often the basis for newer 4G and 5G networks.。As you may have guessed, these mobile connections are also quite slow。

FAQs

1.What financial instruments can be traded in Kuwait？

Traders located in Kuwait can trade directly on the stock market and invest in stocks, bonds and various other securities, as well as profit from price fluctuations in the foreign exchange market or from different financial derivatives, including futures and CFDs.。

2.Is Forex Trading Legal in Kuwait?？

Yes, foreign exchange market transactions are legal and fully regulated by several different institutions in the State of Kuwait。Despite strict market regulation, traders can easily enter the market free of charge。

3.How to trade via mobile phone？

Most forex brokers in Kuwait offer free trading apps that can be downloaded immediately from the App Store and Google Play。Traders can open new accounts or log in with their credentials。

4.Does the Forex broker offer demo accounts？

Forex trading is a risky investment。It is recommended that novices in the Forex market start their trading experience by opening a demo account。Almost all brokers offer demo accounts with simulated credit lines up to $50,000 or $100,000。

5.How to open a forex trading account？

To open a trading account, Kuwaiti investors need to find a good, reliable forex broker。They then need to provide the broker with accurate personal data - a Kuwaiti or resident identity card, email and proof of address。