# ADGM FSRA Forex Licence: Capital, Fees, Requirements

> An ADGM forex or CFD broker needs an FSRA Financial Services Permission. Dealing as principal is Category 2 with USD 2 million base capital; matched-principal or agency brokers are Category 3A at USD 500,000, or USD 2 million if they deal in OTC derivatives with retail clients. FSRA fees run USD 25,000–40,000 per activity a year, plus about USD 17,000 to register the company. Checked 12 Oct 2026; ask a UAE lawyer.

- Source: https://pipvalley.com/guides/adgm-fsra-forex-license
- Publisher: PipValley - web design studio for prop trading firms
- Updated: 2026-10-12

**Short answer:** An ADGM forex or CFD broker needs an FSRA Financial Services Permission. Dealing as principal is Category 2 with USD 2 million base capital; matched-principal or agency brokers are Category 3A at USD 500,000, or USD 2 million if they deal in OTC derivatives with retail clients. FSRA fees run USD 25,000–40,000 per activity a year, plus about USD 17,000 to register the company. Checked 12 Oct 2026; ask a UAE lawyer.

Abu Dhabi Global Market (ADGM) is a financial free zone with its own regulator, the Financial Services Regulatory Authority (FSRA). Founders compare it with Dubai's DIFC and the federal regulator when they want a recognised UAE licence for a brokerage. This guide sets out what the FSRA publishes about categories, capital, fees, people and timelines, checked on 12 October 2026, and what it means for a prop firm. For the mainland and Dubai free zones, see our [Dubai licence page](/jurisdictions/dubai) and [Dubai company formation guide](/guides/dubai-company-formation-for-prop-firms).

> This guide explains how things generally work and what we have seen running prop firms. It isn't legal, tax or financial advice, and it doesn't create a lawyer–client relationship. Rules differ by country and change often, so speak to a qualified lawyer (and a tax adviser) in the jurisdiction concerned before you act.

## Which FSRA category does a forex broker fall into?

The FSRA is "an activities-based regulator": a firm applies for a Financial Services Permission (FSP) covering only the regulated activities it will carry on, and the activities set its prudential category. For a forex or CFD broker the key question is whether it takes the other side of client trades.

- A market-making (B-book) broker is, on our reading, Category 2 at USD 2 million; an agency or matched-principal broker is Category 3A, at USD 2 million if it serves retail clients in OTC derivatives. Confirm your category with the FSRA or a lawyer.
- Firms must also meet an expenditure-based minimum: 18/52nds of annual audited expenditure where they hold client assets or money.
- An introducing or referral business that only arranges deals sits in Category 4, at USD 50,000.

**FSRA prudential categories and base capital (FSRA Getting Started Guide, 2025; checked 12 October 2026)**

| Category | Typical activities | Base capital requirement |
|---|---|---|
| Category 1 | Accepting deposits | USD 10 million |
| Category 2 | Dealing in investments as principal (not as a matched principal); providing credit | USD 2 million |
| Category 3A | Dealing as matched principal; dealing as agent | USD 500,000, or USD 2 million for applicants dealing (as matched principal) in OTC derivatives with retail clients |
| Category 3B | Custody for funds; trustee of an investment trust | USD 4 million |
| Category 3C | Managing assets; custody other than for a fund | USD 250,000 |
| Category 4 | Arranging deals, advising, arranging custody | USD 50,000 |

## What does an ADGM licence cost?

Two sets of fees: the FSRA's for the permission and ADGM's Registration Authority for the company. The FSRA charges an application fee and an annual supervision fee per activity. Where a firm applies for several, it pays the highest application fee plus the lesser of USD 10,000 or the application fee for each additional activity. Each individual applying for a controlled function costs USD 500.

- Company registration (financial "Category A" entity): about USD 17,000 in the first year, including a USD 16,000 business activity fee, and about USD 16,500 a year to renew, per ADGM's 2025 fee schedule.
- Category A entities must apply to the FSRA before incorporating with the Registration Authority, and every entity needs a registered office in ADGM.
- Salvus Funds' May 2026 guide matches these figures; consultants' fees, office fit-out and staff are extra.

**FSRA application and supervision fees, standalone activity (FSRA Getting Started Guide, 2025; checked 12 October 2026)**

| Activity | Application fee | Annual supervision fee |
|---|---|---|
| Dealing in investments as principal | USD 40,000 | USD 50,000 |
| Dealing as matched principal | USD 25,000 | USD 25,000 |
| Dealing as agent | USD 25,000 | USD 25,000 |
| Arranging deals in investments | USD 15,000 | USD 15,000 |
| OTC leveraged products, retail clients (agent, matched principal or principal) | USD 40,000 | USD 40,000 |
| OTC leveraged products, other clients | USD 5,000 | USD 5,000 |

## Who must you hire, and where must they live?

The FSRA requires a Senior Executive Officer, a Finance Officer, a Compliance Officer and a Money Laundering Reporting Officer. The SEO, Compliance Officer and MLRO "must be resident in UAE"; the Finance Officer can sit in a group entity or be outsourced. The SEO cannot also be the Compliance Officer or MLRO, though one person can hold both of those roles. The FSRA says it "does not require a minimum headcount".

Retail CFD brokers face a higher bar. In its 2022 proposals on OTC leveraged products, the FSRA said it was "not minded to grant relevant approvals to start-up operations seeking to provide OTC Leveraged Products to Retail Clients, given their lack of a track record", and proposed minimum experience of 10 years for the SEO and 5 years for the compliance officer and MLRO. We could not open the final rule text, so check the current Conduct of Business rules with your lawyer.

## What retail CFD rules apply in ADGM?

The FSRA's 2022 consultation set minimum initial margins for retail clients of 3.33% on major currency pairs, 5% on non-major pairs, gold and major indices, 10% on other commodities and indices, 20% on single equities and 50% on virtual assets, with negative balance protection and a 50% margin close-out. It also proposed banning paid referrals from unregulated third parties and funding by credit card. Those are close to the EU limits described in our [European forex licence guide](/guides/european-forex-license), and they shape what a broker's website may promise.

## How long does it take?

The FSRA process runs from a full application to fee payment and an In-Principle Approval (IPA), whose conditions can include share capital, staffing, incorporation with the Registration Authority and fitting out premises. Salvus Funds estimated in May 2026 that the FSRA "typically takes 6 to 10 weeks" to issue an IPA, then up to three months to meet the conditions; that is a consultant estimate for a well-prepared file. Bank onboarding in the UAE often takes longer than founders expect.

## Does a prop firm need an ADGM licence?

We found no FSRA statement about prop firms or funded-trader programmes as of 12 October 2026. Most UAE-based evaluation firms operate as free zone companies with a trade licence and no financial services permission, because they sell simulated evaluations and do not deal with clients' money. ADGM becomes relevant if a group wants a regulated brokerage arm or wants to deal with real client accounts, and then USD 2 million of capital and resident senior staff are the realistic starting point. Compare the cost with other places in our [forex licence cost comparison](/guides/forex-license-cost), and read [do prop firms need a licence](/guides/do-prop-firms-need-a-license).

UAE corporate tax is 9% on taxable income above AED 375,000, and a Qualifying Free Zone Person can pay 0% on qualifying income, according to the Ministry of Finance and RAKEZ; whether a broker's income qualifies is a question for a UAE tax adviser.

## What should the website show?

An ADGM-licensed firm's website states its legal name, FSP number and FSRA regulation, the permitted activities, risk warnings for leveraged products and its complaints process. If the group also runs an evaluation brand, keep it in a separate entity and section and never present simulated products as FSRA-regulated; our [regulated prop firms guide](/guides/regulated-prop-firms) explains the wording. PipValley builds multi-entity sites with a [trust center](/features/trust-center) from the $3,500 Signature tier, and the [white label vs own platform page](/start-a-prop-firm/white-label-vs-own-platform) helps you decide the platform side.

## Questions

### How much capital does an ADGM forex broker need?

It depends on the category. Dealing as principal is Category 2 with USD 2 million base capital. Matched-principal or agency dealing is Category 3A at USD 500,000, rising to USD 2 million for OTC derivatives with retail clients. An expenditure-based minimum also applies.

### What are the FSRA licence fees?

Per standalone activity, USD 40,000 to apply and USD 50,000 a year for dealing as principal, or USD 25,000 each for matched principal or agency dealing, and USD 40,000 each for retail OTC leveraged products. Company registration adds about USD 17,000 in year one.

### How long does an ADGM FSRA licence take?

A consultant estimated in May 2026 that the FSRA takes 6 to 10 weeks to issue an In-Principle Approval, then up to three months to meet its conditions. Preparing the application, hiring resident officers and banking add time.

### Is ADGM or DIFC better for a forex broker?

They are separate regimes: the FSRA in ADGM and the DFSA in the DIFC, each with its own rules and fees. Compare categories, capital, staff requirements and the retail CFD rules with a UAE lawyer for your model.

### Can a prop firm get an ADGM licence?

A group can apply for a financial services permission for a brokerage arm. We found no FSRA statement treating simulated evaluations as a regulated activity as of October 2026, so most UAE prop firms use free zone trade licences instead. Ask a UAE lawyer.

## Sources

- [ADGM FSRA: Getting started guide (2025)](https://assets.adgm.com/download/assets/Getting+Started+Guide+with+FSRA.pdf/a8c5b07a589a11efa1111ed8b674bcd6)
- [Salvus Funds: Establishing an FSP under FSRA in ADGM in 2026 (18 May 2026)](https://salvusfunds.com/?p=23086)
- [ADGM Registration Authority: Overview of fees 2025 (Jan 2025)](https://assets.adgm.com/download/assets/Schedule+of+Fees+2025.pdf/6f25a452823d11ef808c3e0446867bce)
- [ADGM FSRA Consultation Paper No. 5 of 2022: Dealing in OTC leveraged products with retail clients (26 Sep 2022)](https://assets.adgm.com/download/assets/Consultation+Paper+No+5+of+2022+OTCLPs+20220923.pdf/1a2593067a4d11efa1c4c2c75df3d68e)
- [ADGM FSRA: OTC leveraged products, proposed supplementary guidance (23 Sep 2022)](https://assets.adgm.com/download/assets/Attachment+1+OTCLPs+Proposed+Supplementary+Guidance+20220923.pdf/1a2307447a4d11efa1f966d77f802a62)
- [UAE Ministry of Finance: Corporate tax](https://mof.gov.ae/en/public-finance/tax/corporate-tax/)
- [RAKEZ: A comprehensive guide to corporate tax in the UAE](https://rakez.com/en/blog/details/article/122/a-comprehensive-guide-to-corporate-tax-in-the-uae)
- [Norton Rose Fulbright (Regulation Tomorrow): UAE SCA renamed CMA (Jan 2026)](https://www.regulationtomorrow.com/2026/01/uae-sca-renamed-cma-and-other-landmark-legislations/)