FP Trading has secured a Category 5 licence from the UAE’s Capital Market Authority, giving the international forex and CFD broker its first onshore regulatory approval in the country.
The licence allows FP Trading’s UAE entity to conduct specified marketing, promotional and client introduction activities within the local market.
Trade execution and the handling of client funds will continue to be carried out by FP Trading’s existing regulated brokerage entities outside the UAE, according to the company.
Category 5 Licence Gives FP Trading an Onshore UAE Presence
The approval marks an important change in how FP Trading can operate commercially in the UAE.
Rather than serving the market exclusively through offshore or international entities, the company now has a locally regulated structure through which it can promote its services and introduce clients.
That gives FP Trading a more direct presence in a market that has become increasingly important to international brokers, fintech companies and financial services providers.
Regulatory Takeaway
What the UAE Licence Covers
According to FP Trading, the Category 5 approval covers activities including:
- Marketing financial services within the UAE
- Promotional activities
- Introducing prospective clients
- Closer engagement with regional partners
The licence therefore strengthens the company’s local commercial presence without moving core brokerage functions such as execution and custody into the UAE entity.
| Function | FP Trading UAE Structure |
| Marketing | Permitted under the Category 5 licence |
| Promotion | Permitted within the licensed scope |
| Client Introductions | Handled through the UAE entity |
| Trade Execution | Remains with FP Trading’s regulated brokerage entities outside the UAE |
| Client Fund Handling | Remains with the relevant regulated brokerage entities |
FP Trading Moves From Remote Access to Local Regulation
FP Trading described the approval as part of a wider strategy to establish direct regulated operations in the markets where it is seeking growth.
For international brokers, this approach can provide closer access to local clients, affiliates and introducing brokers while also giving the brand a regulated local presence.
It contrasts with a purely cross-border model in which clients may interact with a broker that has no locally licensed commercial entity.
FP Trading said the UAE licence forms part of a long-term regional strategy rather than a short-term marketing initiative.
“Having this licence in place lets us work far more closely with our clients and partners in the UAE. It’s a long-term commitment to the region, not a short-term move, and it fits into how we’re building out our regulatory presence more broadly.”
— Narayan Joshi, General Manager, FP Trading
Business Takeaway
UAE Continues to Attract International Brokers
The licence comes as the UAE continues to strengthen its position as a regional financial centre for brokers, fintech companies, asset managers and other financial services firms.
International trading firms have increasingly sought local regulatory approval rather than relying entirely on offshore entities to develop business in the country.
An onshore presence can provide several advantages, including closer proximity to clients, greater visibility with local partners and a clearer framework for marketing financial services.
For brokers, the UAE also offers access to a market with a significant expatriate population, high levels of financial activity and strong demand for digital investment and trading services.
Regional Partners Become a Bigger Part of the Strategy
FP Trading said the Category 5 approval should also strengthen relationships with introducing brokers and affiliates operating in the region.
Partner networks remain an important client acquisition channel for many retail brokers, particularly across markets where local language, relationships and regional knowledge influence customer acquisition.
A regulated local entity can make those partnerships easier to structure and support, provided activities remain within the licence’s permitted scope.
Partner Takeaway
Clients Still Need to Know Which Entity Holds Their Account
The distinction between the UAE entity and FP Trading’s executing entities is important for clients.
A customer may interact with the locally licensed business for marketing or introduction purposes while ultimately opening a trading account with a different regulated legal entity.
That means clients should verify:
- The exact legal entity opening their trading account
- The regulator supervising that entity
- Where client funds are held
- Which entity executes trades
- Which dispute-resolution framework applies
- Which investor or client protections are available
These details can differ materially between jurisdictions even when the customer-facing brand remains the same.
Category 5 Does Not Equal Full Brokerage Authorisation
A Category 5 licence provides a defined regulatory scope, but it should not be confused with a broader authorisation to operate all parts of a brokerage business locally.
FP Trading itself has stated that trade execution and client fund handling will remain outside the UAE entity.
That makes the approval primarily relevant to financial marketing, promotion, consultation or introduction functions covered by the applicable licence rather than direct execution of retail CFD transactions.
Regulatory Takeaway
FP Trading Plans More Regulatory Expansion
The UAE approval is not expected to be the final step in FP Trading’s licensing strategy.
The company said it intends to continue expanding its regulatory footprint in other markets and expects to provide further updates regarding licences and infrastructure investment in the coming months.
This suggests FP Trading is moving toward a multi-jurisdictional model in which local or regional entities support client acquisition while execution remains within appropriately authorised brokerage operations.
Why Brokers Are Building More Local Entities
The shift toward local regulatory structures reflects a broader trend in the online trading industry.
As regulators pay closer attention to cross-border financial promotion, brokers increasingly need clearer legal structures for marketing services in individual markets.
A local licence can provide greater regulatory certainty around advertising and client acquisition while also improving a company’s credibility with banks, payment providers, partners and institutional counterparties.
At the same time, multiple entities can make broker structures more complex for clients, which increases the importance of transparent disclosures about which company is responsible for each part of the service.
What Comes Next?
FP Trading’s Category 5 licence gives the broker its first onshore regulatory foothold in the UAE and establishes a formal platform for regional marketing and client introductions.
The company is now expected to deepen relationships with UAE clients, introducing brokers and affiliates while continuing to rely on its existing regulated entities for trade execution and client asset handling.
FP Trading has also indicated that further regulatory approvals and infrastructure investments are planned.
For the wider brokerage industry, the move is another sign that the UAE is becoming an increasingly important regulatory and commercial base for international forex and CFD firms.
Risk Warning: Forex and CFD trading involves significant risk and may not be suitable for all investors. Leveraged products can magnify both gains and losses. Clients should verify which legal entity provides their account and understand the applicable regulatory protections before trading.
Disclaimer: This article is for informational purposes only and does not constitute financial, legal, regulatory or investment advice. The Category 5 licence described applies to specified activities of FP Trading’s UAE entity and should not be interpreted as authorisation for that entity to execute trades or hold client funds unless separately authorised.
About FP Trading
FP Trading is an international forex and CFD brokerage providing access to financial markets through regulated entities in multiple jurisdictions. The company is expanding its regulatory footprint as part of a strategy focused on building more direct operations and partnerships in key regional markets.