The UAE retail leverage trading market is showing resilience and a profusion of opportunities, said leading financial services research firm Investment Trends in its 3rd edition of the 2024 UAE Leverage Trading Report.

The report highlights the resilience of the UAE retail leverage trading market, with a notable increase in the number of reactivated and ongoing CFD/FX traders.

Despite a 6% decline in active traders over the past year, driven primarily by a sharp drop in new-to-market traders and reflecting global trends, the market shows strong signs of stability and commitment from existing traders.

Reactivated traders

Lorenzo Vignati, Associate Research Director at Investment Trends, stated: "The dedication of existing CFD/FX traders reflects the UAE's stable and robust trading environment, and the confidence traders have in it. The increase in reactivated traders suggests a renewed interest and optimism in the market's future potential.”

The report shows that digital assets continue to play a crucial role in CFD/FX trading in the UAE, despite the shrinking pool of new traders due to last year's 'crypto winter'. Cryptocurrency is an important gateway to CFD trading, with 24% of new traders starting their investment journey with crypto.

"The UAE's crypto-friendly environment continues to attract leading players and support market growth," said Vignati. "CFD/FX traders are leveraging these assets to diversify and enhance their trading strategies, highlighting the forward-thinking nature of the UAE trading community," added Vignati.

The report also highlights word-of-mouth (42%) as a uniquely powerful driver for client signups in the UAE's retail CFD/FX market, followed by internet searches (33%) and social media (32%). This is significantly higher than in other regions, particularly Europe. Advocacy is also notably higher in the UAE, with 83% of traders recommending their provider to others, far exceeding the 48% in France and 42% in Germany.

Personal recommendations

“Personal recommendations are a cornerstone of client acquisition in the UAE’s CFD/FX trading market, showcasing an influence that is unmatched globally,” said Vignati. “This is particularly important in the UAE where trust and personal relationships are paramount. Providers who focus on enhancing customer experience and satisfaction will continue to drive brand loyalty and benefit from this powerful referral dynamic," added Viganti.

The 2024 UAE Leverage Trading Report from Investment Trends reveals critical insights into the unique market dynamics and resilience of the UAE trading market. These insights offer a roadmap for trading providers to navigate the evolving market landscape and capitalise on emerging opportunities. 

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