This episode is also available as a blog post: https://10leaves.ae/publications/difc/difc-category-3a-brokerage-license

The DFSA, for the purposes of authorisation and supervision, categorises brokerage activities under Category 3A. These include forex, commodity and derivatives brokerages.

This license allows for ‘Dealing In Investments as Agent’ and ‘Dealing in Investments as Principal’ , or on a matched Principal basis. Due to the higher risks associated with these activities, the DFSA places higher entry-level requirements, namely the pedigree of the applicants and their regulated background. It also places restrictions on the license itself -professional clients only, lower leverage. Retail endorsement is possible, but requires a high degree of comfort from the regulator.