If you’re planning to start a Forex brokerage in Dubai or anywhere in the UAE, the most important step is obtaining your SCA license issued by the Securities and Commodities Authority (SCA).
Having an SCA license means your business is officially recognized, trusted, and compliant with UAE’s financial regulations. In this complete guide, we’ll walk you through everything you need to know from eligibility to documentation and ongoing compliance to secure your SCA license the right way.
What Is an SCA License?
An SCA license is a legal authorization issued by the Securities and Commodities Authority that allows companies to operate as Forex or financial brokerage firms in the UAE.
Without an SCA license, no Forex broker is legally permitted to offer trading or investment services within the UAE. It’s your company’s proof of credibility, safety, and regulatory compliance.
Before applying, make sure you understand what the SCA is and why it matters. Read our previous blog [Understanding the Securities and Commodities Authority (SCA): A Complete Guide for Forex Brokers].
Why You Need an SCA License in Dubai
Dubai has positioned itself as a global hub for Forex and fintech innovation. The UAE’s strong financial infrastructure, tax benefits, and business-friendly laws attract investors from around the world.
However, to operate within this framework legally, you must hold an SCA license.
Here’s why it’s essential:
- ✅ Builds trust and credibility among investors and traders.
- ✅ Grants access to local banks, liquidity providers, and payment gateways.
- ✅ Ensures compliance with anti-money laundering (AML) and KYC laws.
- ✅ Protects your brokerage from penalties and reputational damage.
- ✅ Makes you eligible for Forex advertising under SCA’s marketing rules.
Types of SCA Licenses in the UAE
The Securities and Commodities Authority issues different types of licenses depending on your brokerage activities. The main categories include:
- Securities Brokerage License – For firms trading stocks and financial securities.
- Commodities Brokerage License – For companies dealing in commodities and futures.
- Forex Brokerage License (SCA License for Forex) – For firms offering currency trading and Forex services.
- Financial Consultancy License – For advisory and portfolio management services.
As a Forex broker, you’ll specifically need the Forex Brokerage SCA license, which authorizes you to offer leveraged currency trading services under UAE law.
Step-by-Step Process to Get an SCA License in Dubai
Getting your SCA license can seem complex, but if you follow the right steps, the process becomes manageable and predictable. Here’s a simplified breakdown:
Step 1: Choose the Right Business Structure
You’ll need to register your brokerage as a Limited Liability Company (LLC) or a Free Zone Entity, depending on your target clients and operational needs.
Step 2: Prepare a Detailed Business Plan
The Securities and Commodities Authority requires a complete business plan covering:
- Trading services offered
- Risk management framework
- Technology and trading platform details
- Target markets and financial projections
Step 3: Meet Capital Requirements
The minimum capital requirement depends on your license type. For Forex brokers, you typically need AED 1 million to AED 5 million in paid-up capital.
Step 4: Submit Required Documents
Common documents include:
- Company incorporation certificate
- Shareholder passports and IDs
- Office lease agreement in the UAE
- Bank reference letters
- Compliance and AML policies
Step 5: Appoint Qualified Key Staff
The SCA requires key positions such as:
- Compliance Officer
- Risk Manager
- Operations Head
Each must have relevant qualifications and financial market experience.
Step 6: File Application with the SCA
Once your documents and structure are ready, you’ll file your official application with the Securities and Commodities Authority for review.
Step 7: SCA Review and Approval
The authority may request clarifications or additional documents. After successful review, you’ll receive your SCA license certificate, authorizing your brokerage to operate legally.
Estimated Timeline and Costs
- Approval Time: 3–6 months (depending on application completeness)
- Setup Costs: AED 100,000 – AED 250,000 (including license, compliance, and office costs)
- Annual Renewal: Required to maintain validity and compliance
Maintaining Compliance After Getting Your SCA License
Once you’ve obtained your SCA license, your responsibilities don’t end there. You must continue to comply with SCA regulations, including:
- Submitting quarterly and annual reports
- Ensuring data security and client fund protection
- Following AML and KYC standards
- Seeking SCA approval for new products or services
- Avoiding unapproved Forex advertising or misleading promotions
Read our next blog [SCA Regulations Explained: Building a Compliant Forex Brokerage in the UAE] for a full compliance checklist.
Benefits of Having an SCA License
Holding an SCA license gives your Forex brokerage several advantages:
- Operate legally across the UAE
- Gain trust from local and global traders
- Build brand credibility
- Access institutional investors
- Expand into regional markets with confidence
FAQs on SCA License for Forex Brokers
1. What is an SCA license?
An SCA license is a legal approval from the Securities and Commodities Authority that allows Forex brokers to operate in Dubai and the UAE.
2. Who needs an SCA license?
Any company offering Forex, securities, or commodity trading in the UAE must hold an SCA license.
3. How long does it take to get an SCA license?
Typically, it takes 3 to 6 months, depending on the completeness of your application and compliance readiness.
4. What are the financial requirements for an SCA license?
Forex brokerages usually need a paid-up capital of AED 1 million to AED 5 million, depending on their size and scope.
5. Can a foreign investor apply for an SCA license?
Yes, foreign investors can apply through a UAE-registered entity or in partnership with a local sponsor.
6. What happens if I operate without an SCA license?
Operating without an SCA license is illegal and can lead to heavy fines, legal action, or permanent business closure.
7. Is the SCA license renewable?
Yes, it must be renewed annually with updated compliance documentation.
8. Can I use my SCA license for Forex advertising?
Yes, but your ads must follow SCA-approved marketing regulations.
9. Does an SCA license cover online trading platforms?
Yes, but your technology and security protocols must be reviewed and approved by the Securities and Commodities Authority.
10. Where can I get help with my SCA license application?
At ItsRotex, we guide Forex brokers through the full process from documentation and compliance to SCA approval and business launch.
Final Thoughts
Getting your SCA license in Dubai is more than a legal formality; it’s your entry ticket into one of the world’s fastest-growing Forex markets.
By meeting the Securities and Commodities Authority’s requirements, you not only protect your business from risks but also build long-term credibility in a highly competitive landscape.
If you’re serious about launching your Forex brokerage in the UAE, ItsRotex can help you every step of the way from application to operational setup and SCA compliance.