UAE's FX and CFDs Trader Population Reaches Record 49,000 in 2023

<p>The year
2023 has marked a notable growth in the retail <a href="https://www.financemagnates.com/terms/l/leverage/">leverage</a> trader population in
the United Arab Emirates (<a href="https://www.financemagnates.com/tag/uae/" target="_blank" rel="follow">UAE</a>). According to a recent report by Investment
Trends, there has been an increase of 9% in the number of foreign exchange (FX) and contracts for difference (CFDs) traders, with 18,500
traders initiating their first trade in the last year.</p><p>The Rising Tide of UAE's
Leverage Trader Population</p><p>The UAE's
leverage trader population now stands at 49,000, surpassing the figures from
<a href="https://www.financemagnates.com/forex/analysis/forex-in-spain-a-small-but-active-market-ready-for-growth/" target="_blank" rel="follow">Spain</a>, Singapore, and France. The surge in new traders was primarily driven by
the appeal of starting trades with smaller amounts and the desire to acquire new
skills.</p><p>"New
traders continue to be attracted by an ability to trade with small amounts and
their desire to learn a new skill. Market <a href="https://www.financemagnates.com/terms/v/volatility/">volatility</a> has also been a more
effective prompt this year," Lorenzo Vignati, the Associate Research
Director at Investment Trends, commented.</p><p>Moreover,
the reactivation of dormant traders has nearly doubled to 7,000, which is up from 4,000
in 2022, further contributing to the market's growth.</p><p>The Number of Traders Declines
Globally, Growing in UAE</p><p>According
to Investment Trends, the UAE stands out as the only market showing growth
among those surveyed in the leverage trading industry in 2023. Although the UAE
market is not the largest, it has only shown positive growth over the past 12
months. The number of traders increased 9% to 49,000. </p><p>At the same
time, it was down 25% to 205,000 in the UK, 24% to 175,000 <a href="https://www.financemagnates.com/forex/175000-retail-traders-traded-forex-in-the-us-in-q2-2022/" target="_blank" rel="follow">in the US</a>, and 19%
to 81,000 <a href="https://www.financemagnates.com/forex/analysis-australia-has-the-largest-fxcfd-market-per-capita-in-the-world/" target="_blank" rel="follow">in Australia</a>. On top of that, the survey by Investment Trends included <a href="https://www.financemagnates.com/forex/analysis-forex-traders-from-singapore-spend-more-than-1743-on-their-first-deposit/" target="_blank" rel="follow">Singapore </a>and <a href="https://www.financemagnates.com/forex/analysis/forex-in-france-a-large-country-but-a-small-number-of-traders/" target="_blank" rel="follow">France</a>, which FX/CFD market Finance Magnates analyzed last year.</p><p>"Across
each region we have surveyed so far in 2023 – in the leverage trading industry
– the UAE is the only market growing," Vignati added.</p><p>A separate Finance
Magnates report published in May 2022 shows that UAE traders are the most
likely to open accounts <a href="https://www.financemagnates.com/forex/united-arab-emirates-why-retail-brokers-are-flocking-to-the-uae/" target="_blank" rel="follow">and spend the most amount of money</a>. The average monthly deposit
in 2021 was nearly $13,000, with the first average deposit of $2,300. Also, UAE is
attracting traders, brokers worldwide, and a growing number of
<a href="https://www.financemagnates.com/cryptocurrency/uaes-emirate-to-launch-oasis-for-crypto-companies/" target="_blank" rel="follow">cryptocurrency companies</a>. The country wants to become a financial hub, cutting
off its economy's dependence on oil.</p><p>Increased Competition and
Shifts in Market Concentration</p><p>The report
highlighted a decrease in market concentration as new entrants and smaller
players strive for a larger market share. As of 2023, the top three providers
control 37% of primary relationships, which is a decrease from 45% in May 2022.</p><p>As the
competition heats up, traders are placing more emphasis on convenience when
selecting their primary provider. Vignati emphasized that brokers have a
significant opportunity to address what factors matter most to traders and
build a proposition that caters to their needs.</p><p>The report
also sheds light on how traders gather information when making investment
decisions. The report revealed that 53% of traders rely on online searches, followed by
37% who use social media. Word-of-mouth recommendations remain an effective way
of prompting account opening with the current provider. Furthermore,
English emerged as the preferred language for receiving educational content
among 86% of traders.</p>

This article was written by Damian Chmiel at www.financemagnates.com.