# Does an independent stock trader need a trading licence in the UAE?



## mtrade (Nov 24, 2014)

I am employed in The UAE and hold a residence visa. I would like to trade on the US options market on a daily basis on my own personal account with my own funds held in a local bank. This activity may produce more income than my employment income.

I have noticed that some countries distinguish between trading and investing; I believe mainly for tax purposes. For example; 'trading' can be considered a profession and fall under the self-employment category, as opposed to 'investing'. The difference being whether it is the main/only source of income and if the activity is speculative in nature (frequent trading).

-Is this trading/investment activity considered as a 'business' or 'profession' in the UAE, and would it require a trading licence?

Your input would be very appreciated!
Thank you.


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## nite (Apr 11, 2012)

no, trading options in your personal account is a personal investment like buying or trading bonds, stocks, ETF's, etc. There are no taxes here anyways. However, your our home country may have a capital gains tax or may classify any gains as income that may be taxable or visa-versa, losses may offset other capital gains. Bottom line, you should consult with an accountant that has an expertise in Expat taxes.


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## mtrade (Nov 24, 2014)

Thank you for your reply nite!

Do you think my local bank might find it irregular that investment income, larger than my low salary, would arise from time to time?


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## nite (Apr 11, 2012)

No, Dubai has been a trading city for millenniums (pearls, gold, goods) and so many millions go in and out frequently due to investments (property, plant, equipment) that no one would notice or care about gains in your account. If your trading account is held at the broker (Interactive Brokers, Fidelity, ADS, etc) then you can hold your funds there and not your bank. If you are trading through your bank, then most likely your trading funds would be segregated in an investment account where these gains and losses on your P&L would be expected. In other words, you should be fine.


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## Thomas67 (Feb 2, 2021)

Hello, 

May I ask if the previous answers are still up to date? In particular, I'd like to know if:

- it is allowed to invest/trade (securities/shares, forex, cryptos) as a self-employed/private person without license (unique source of revenue) in UAE

- crypto trading/investing is allowed for private persons in UAE (own capital, no clients/service, excluding regulated security/commodity tokens)

Feel of course free to suggest any appropriate lawyer contact of course. 

Thanks!


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## XDoodlebugger (Jan 24, 2012)

Thomas67 said:


> Hello,
> 
> May I ask if the previous answers are still up to date? In particular, I'd like to know if:
> 
> ...


I invest in the US stock markets and bitcoin here in the UAE, there is no issue. I could see it being a problem if you were doing it for others.


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## Thomas67 (Feb 2, 2021)

XDoodlebugger said:


> I invest in the US stock markets and bitcoin here in the UAE, there is no issue. I could see it being a problem if you were doing it for others.


Thanks XDoodlebugger. May I ask if you operate as a retail investor/trader (main activity) and if the crypto regulation (11/2020, SCA) has changed something?


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## XDoodlebugger (Jan 24, 2012)

Thomas67 said:


> Thanks XDoodlebugger. May I ask if you operate as a retail investor/trader (main activity) and if the crypto regulation (11/2020, SCA) has changed something?


No, it is secondary for me.


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## Mormanlegacy (Jun 10, 2021)

Can i trade as a full time job , and what about the residency visa if i want to work as a trader and don't have a resident visa yet


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