The online trading site Robinhood and the part that it has played during recent price rises in companies such as GameStop have put the spotlight on trading online.

In the past few weeks, the app has come under the scrutiny of the top US financial regulators who have accused the company of employing “aggressive strategies” to attract investors new to the market. Although the incident has led some to question the regulatory structure of these apps it highlights one key fact: the increasing popularity of these apps.

What was the first time online trading began?

In 1984, the financial services firm Charles Schwab launched the industry’s first portfolio management tool based on DOS. It was the first DOS-based trading tool. Then, the company went on to introduce TeleBroker, the first phone-based keypad-based trading application for the phone in 1989, as well as StreetSmart which was a Windows-based investment software application for the PC in 1993.

However, online trading was initially developed outside the traditional discount brokerage companies. E*Trade was founded in 1992 as an early brokerage service that was offered online. E*Trade, which originally was a provider of back-office processing services online quickly shifted to a direct-to consumer strategy.

A few of the most popular platforms for trading stocks in the UAE

IQ Option

With over 48 million users who have registered, IQ Option follows the most recent financial regulations, allowing users to trade in a variety of financial instruments like stocks, forex Binary options, stocks, and cryptocurrencies.

Customers have described their trading experience as easy. Its top-quality capabilities make it a great choice for professionals however, due to its simple interface, anyone are able to start trading from the beginning.

The application was upgraded to ensure that UAE customers have access to the latest tools and platforms that are accessible to all customers from around the world.

AvaTrade

AvaTrade is a company based in Ireland. AvaTrade is an international CFD as well as FX brokerage that was established in the year 2006. The company is licensed by a variety of financial institutions, including The Central Bank of Ireland. AvaTrade provides a variety of withdrawal and deposit options that are completely free. AvaTrade also offers a variety of user-friendly tools for researching.

On the other hand however, the portfolio of products is rather limited, as it provides only CFDs for stocks, forex commodities, cryptos and commodities. Inactivity charges are extremely high. The fees for trading in forex aren’t lower than average.

Concerning charges for non-trading, and, on the other hand, AvaTrade has an inactivity cost that is 50 dollars (Dh183) every quarter, after three month of non-activity.

In addition the 12 consecutive months without use the annual administration fee that is $100 (Dh367) is deducted. The fees associated with inactivity are higher than AvaTrade’s rivals.

If you’re a seasoned trader, you may request AvaTrade to establish the Professional Trading account, where the leverage is more than that of the Standard account. It requires knowledge of the financial industry as well as a significant amount of trading activity within the last 12 months, and a portfolio worth at the minimum of 500 000 euro (Dh2.2 millions).

What is the reason why some apps work in UAE while others do not?

The most important thing to keep to be aware of is the fact that there aren’t all trading platforms, including TD Ameritrade and Interactive Brokers are available to investors from the UAE. In the UAE there is an approved list of operators.

Regulations in the UAE

Dubai Financial Market (DFM) provides a comprehensive listing of brokers that are online via their web site.

DFM also offers a frequently updated list of the best brokers within the region. For customers from the UAE although ADSS (online broker) doesn’t charge a commission when trading and buying stocks however, several platforms such as Plus500, Forex.com and Oanda have fees that are comparatively lower.

Other government entities like those of Dubai Financial Services Authority, Abu Dhabi Securities Exchange (ADX) as well as the Central Bank of the United Arab Emirates are also regulated online brokers.