Consistent investing remains the foolproof way to build wealth, irrespective of which part of the world you are in.
Stocks, ETFs, mutual funds, and bonds, among others, are top ways to invest money in the UAE.
Given the prosperity of the US, UAE investors with access to this market can build wealth faster and more consistently.
In this article, we explore 5 investment platforms that provide you access to the US market from the UAE.
Sarwa
Sarwa is a UAE-based trading platform where UAE investors and traders can buy and sell stocks, stock ETFs, stock options, commodity ETFs, and cryptocurrency.
Best known for
Sarwa is best known for being an all-in-one platform that meets the diverse needs of investors and traders – saving, trading, active investing, and passive trading.
Key advantages
- Free AED deposits and withdrawals: Transfers from local AED bank accounts to Sarwa, and vice versa, are free.
- Fractional trading: If you cannot (or don’t want to) buy a full share, you can buy a fraction of it instead.
- Halal and socially responsible investing (SRI) options: There are provisions for passive investors interested in Halal and SRI portfolios.
- Low and transparent fees: Sarwa charges the higher of $1 or 0.25% of the traded value of an order. There are no hidden fees or charges.
- Educational resources: Sarwa’s blog and newsletters provide educational resources that can help you become a better trader and/or investor.
- Local ETF: Sarwa also has an ETF through which you can gain access to the local UAE stock market.
Ideal for
Sarwa is ideal for investors and traders who want to explore multiple assets and strategies (passive, active) without stress.
Interactive Brokers (IBKR)
Interactive Brokers is a global brokerage firm that provides access to a variety of assets (stocks, ETFs, options, futures, and currencies) across global markets.
Best known for
IBKR is best known for providing a single platform that offers multiple assets in up to 150 global markets.
Key advantages
- Tiered pricing: Commission per trade reduces with the number of shares traded in a month. This ranges from 0.0035% for those trading less than 300,000 shares to 0.0005% for those trading more than a hundred million shares.
- Multiple trading platforms matching experience level: IBKR has a GlobalTrader mobile app for less experienced users and a Trader Workstation for institutional investors.
- Multicurrency support: UAE traders and investors can hold and trade in multiple currencies.
Ideal for
IBKR is ideal for advanced and institutional investors who need access to multiple global markets and advanced trading tools.
WIO Bank
WIO Bank is a digital native bank that provides personal banking as well as investment services to individuals.
Best known for
WIO Bank is best known for supporting both active and passive investing.
Key advantages:
- Access to local UAE stocks: You can also trade individual UAE stocks from the WIO Bank platform.
- Competitive fees: Commission is set at 0.20% per order (and a minimum of $0.50) for US assets, 0.15% per order (minimum of AED 0.20) for assets on Abu Dhabi Securities Exchange (ADX), 0.275% per order for assets on Dubai Financial Market (though there is an additional charge of AED10 per order), and 0.5% per order for virtual assets.
- Multi-currency support: Users can hold funds and invest in AED, USD, EUR, GBP, among others.
Ideal for
WIO Bank is ideal for traders and investors who want to integrate trading/investing with other financial activities (saving, spending, budgeting, etc.)
eToro
eToro is a global trading platform that was licensed to support UAE users in 2023. It offers access to stocks, ETFs, cryptocurrencies, forex, and commodities.
eToro was also one of the pioneers of copy or social trading.
Best known for
eToro is still best known for its social trading product. It is also a leader in thematic investing.
Key advantages
- Multiple assets: eToro supports more than 7,000 assets, including stocks, ETFs, crypto, forex, commodities, and indices.
- Sharia-compliant accounts: The platform caters to Halal investors.
- Passive and active investing: Those interested in a passive approach can invest in ready-made portfolios..
Ideal for
eToro is ideal for investors and traders who like social and thematic investing.
Baraka
Baraka is a UAE-based investment platform that offers access to US stocks and ETFs. It is also committed to increasing financial literacy through its educational content.
Best known for
Baraka is best known for promoting thematic investing.
Key advantages
- Fractional trading: Investors can get started with as little as $1.
- Halal screening: The Shariah Screener can help investors identify stocks and ETFs that are Halal.
- Strong focus on financial literacy: Baraka targets young UAE investors (those under 30). Thus, it places a premium on financial education.
Ideal for
Baraka is ideal for investors and traders who want to focus only on stocks and ETFs.
Final Thoughts
Sarwa provides the best of all the worlds.
Like Baraka, it originated in the UAE and has a strong focus on educating investors.
It provides access to a wide range of assets, like Interactive Brokers, WIO Bank, and eToro; yet, the platform is simple enough for beginners.
Furthermore, its commissions are competitive and yet transparent. Unlike WIO Bank, it doesn’t charge more for cryptocurrencies.
Like eToro and Baraka, it provides the option for passive (including Halal) investing while maintaining its posture as a trading-first platform.
