As investors have become more frustrated with the failure of active managers to beat their benchmark indices, passive investing through ETFs has become more popular.
ETFs are not just cost-effective; they are also more transparent, liquid, diversified, and tax-effective than mutual funds, making them a popular choice among investors who don’t have the time and skills to select individual stocks on their own.
In what follows, we consider five of the best ETF trading platforms in the UAE, where you can buy and sell thousands of ETFs across different asset classes.
1.Sarwa
Sarwa is a UAE-based platform where you can buy and sell US stock, bond, and REIT ETFs, as well as silver and gold exchange-traded commodities. You can also trade or invest in an ETF that tracks local stocks in the UAE market.
Best known for
Sarwa is best known for being an all-in-one platform where you can trade and invest in a wide range of assets, including ETFs and ETCs.
Key advantages
- Free transfers: Transfers between local UAE bank accounts and Sarwa brokerage accounts are free.
- Low commissions: You can buy ETFs of various assets with commissions as low as $1 or 0.25% of the total traded value.
- Secure platform: Sarwa protects its all-in-one platform with 256-bit, bank-level encryption.
- Managed investment: You can fully embrace passive investing by signing up for Sarwa Invest. With this, Sarwa’s wealth advisors will create a customized portfolio of ETFs for you that matches your risk tolerance, time horizon, and financial goals.
- Easy-to-navigate platform: Sarwa’s platform is easy to use for beginner investors and traders.
- Educational resources: If you want to learn more about what an ETF is or why they have become popular, Sarwa’s educational resources will provide you with all the latest insights.
Ideal for
Sarwa is ideal for those who want to manage their investment and trading portfolio on a single platform.
2.Saxo Bank
Saxo Bank is a Danish company that operates in the UAE. It offers more than 7,000 ETFs of various asset classes across 30 global exchanges.
Best known for
Saxo Bank is best known for providing investors and traders with access to global exchanges.
Key advantages
- ETF screening tools: Users can screen ETFs based on certain fundamental factors like expense ratio, risk rating, and historical performance.
- Customized reports: Users can also review their performance and investment strategy with customized and comprehensive reports.
- Low commissions: Commission ranges from 0.05% to 0.3% of traded value, depending on the stock exchange.
- Educational resources: Saxo Bank provides expert analysis through webinars, blogs, and podcasts.
Ideal for
Saxo Bank is ideal for investors who want exposure to ETFs from various global exchanges.
3.Interactive Brokers (IBKR)
Interactive Brokers is a global brokerage firm with a presence in the UAE. It offers access to thousands of ETFs across more than 90 market centers.
Best known for
Interactive Brokers is known for providing access to the global market.
Key advantages
- Commission-free ETF trading: ETF trading is free.
- Advanced tools: Sophisticated traders and investors can use advanced research tools to make buying and selling decisions.
- Real-time data: Interactive Brokers provides real-time data so users can efficiently execute trades.
Ideal for
Interactive Brokers is best known for its advanced market research tools.
4.Trading 212
Trading 212 is a British company with a presence in the UAE. It offers access to ETFs across various European exchanges.
Best known for
Trading 212 is best known for its zero commission trading.
Key advantages
- User-friendly platforms: Its mobile and desktop platforms are easy to use.
- Accessibility: Users can start trading or investing with just a dollar.
- Zero commissions: ETF trades are commission-free.
Ideal for
Trading 212 is ideal for investors and traders with a preference for European ETFs.
5.eToro
eToro is a global trading platform with a license to operate in the UAE. It provides access to more than 900 ETFs traded on US exchanges.
Best known for
eToro is best known for its copy/social trading products.
Key advantages
- Advanced charts: Advanced traders can carry out more detailed analysis with their Trading View integration.
- Managed investment: Users can go fully passive with eToro’s managed investment platform.
- Thematic investing: Users can invest in ETFs that focus on selected themes (artificial intelligence, renewable energy, climate change, etc.).
- Community engagement: eToro has a thriving community of investors and traders where users can learn from one another.
Ideal for
eToro is ideal for investors and traders who are interested in social investing.