Several Qatari citizens and expatriates were investing in online forex trading through certain brokerage companies that are not registered in Qatar or do not fall under the scrutiny of the Qatar Central Bank (QCB), said stock market expert Abdullah Abd Tawab.
Forex trading, he said, was the biggest market in the world, which amounted to daily trading value of $4.3 trillion, and allows banks and individuals to trade online in foreign currencies and metals.
A Qatari investor at Qatar Stock Exchange, Mohamd Hadas, said he had been avoiding trading in forex because of the lack of legislations covering this segment in Qatar. Also, he said he was not sure if Sharia permited trading currencies.
"Those who wish to enter this area should be aware of all the details, including how online trading works, how they can conduct electronic communication over the network and how they can withdraw money or collect profits. For all of these issues, I find trading in the stock exchange easier as it is more secure for Qatari investors," he noted.
Another Qatari investor in the stock market, Rashid Saidi, said he traded in forex, and he got a small profit, but he did not prefer it because of the absence of a legal umbrella to protect investors like him. He cautioned that some of the global brokerage firms, which dominate the electronic currency market in the world, could fool Qatari investors.
"We should have registered Qatari companies to act as brokerage firms in order to offer advice and assistance to Qatari investors in the field of trade over the Internet.
"The latest forex report shows that few individuals, companies and institutions in Qatar are trading currencies, commodities and minerals because there is no legislative base or legal system in Qatar regulating this investment. However, every person who wishes to enter the field of currency trading electronically, should be careful to follow all the information that positively or negatively affect the price, and be a good observer of global economic and political events," he explained.
Qatar tribune newspaper
source: https://www.qatar-tribune.com/news-details/id/39175
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