How to invest in stocks in the UAE: everything you need to know

How to invest in stocks

You’ll pay zero commission on US shares up to 50 trades per month¹ when you invest with us, and from £8 on UK share trades.

Stock trading costs

How much should I invest?

How much you should invest is completely up to you. There’s no minimum amount you’re required to invest with us, but there may be certain deposit requirements. You should only ever invest an amount that you’re willing to risk, as the markets could move against you.

Find out how to manage your risk before investing in any shares.

Why invest in shares with us?

• Access extended hours on US shares: we offer out-of-hours share dealing on over 70 key US shares, when the normal market hours have ended
• Get started within minutes: you can open your stock trading account quickly and easily, and use a funding method that suits you
• Reach us 24 hours a day: get dedicated help and support from our team 24 hrs a day, 7 days a week, except for Saturday from 1am to 11am. (Dubai time)

Other investment products

If you don’t want to invest in individual stocks, we also offer exchange trade funds (ETFs) .

What are the risks of investing in stocks?

There are different types of risks when investing in stocks. Some shares are riskier or more volatile than others. But one thing is certain – no matter the type of investment – there will always be a degree of risk involved.

Investment risk

This is the most general type of risk when you own shares. The price of the underlying asset can fluctuate based on supply and demand. This means the value of your investment can go down, and you could get back less than you put in. If you want to invest in stocks, consider how much you’re willing to risk before you place your deal.

Market risk

As the name suggests, this type of risk affects the entire market, and not specific stocks. So, even if you have a diverse portfolio of shares, you could be exposed to market risk. It can be linked to general economic turmoil, natural disasters, interest rate changes, etc.

Other risks

Some of the other risks to be aware of when investing include currency risk, liquidity risk and business risk. With currency risk, you’re at the mercy of the exchange rate between countries. Liquidity risk comes into play when there is low demand for (or supply of) a certain asset. Lastly, business risk is the risk that a company won’t generate a profit or stay afloat.

Note that this isn’t an exhaustive list– make sure you conduct thorough research on all possible risks before investing.

How to manage your risk when investing

Here are a few ways you can manage your risk when investing in stocks:

• Learn as much as you can about investing on IG Academy
• Create a trading plan
• Do technical and fundamental analysis
• Set stop orders to cap your losses
• Hedge your positions

Remember, while buying and owning shares can be risky, there are also possible rewards if the market moves in your favour.

Learn more about the basics of stock investing

1. What is a stock?
2. Why do companies issue shares?
3. What is a stock exchange?
4. What is the stock market?
5. What are dividends?
6. Why invest in stocks?

1. What is a stock?

It’s important to note that ‘stocks’ and ‘shares’ are related, but not entirely the same. A stock is a security that represents a collection of shares listed on an exchange. A share is a single unit of ownership.

Think about it this way – if Vodafone lists all its available shares on the LSE, it has listed its ‘stock’. Post-listing, the public can then invest in Vodafone shares.

2. Why do companies issue shares?

Companies will issue shares for different reasons. Some may simply want to raise their public profile. Others might want to raise money to fund business expansion, pay debts, attract talent or monetise its assets.

3. What is a stock exchange?

A stock exchange is a marketplace where financial instruments, like shares, are bought and sold. The LSE is a popular example of a stock exchange. For a company’s shares to be listed on a stock exchange, it has to go through an initial public offering (IPO).

A stock exchange’s opening hours will depend on where in the world it’s located. We offer extended hours on over 70 US shares, even when the market is closed.

4. What is the stock market?

The stock market is a slightly more abstract concept than a stock exchange, as it’s not a specific place. Rather, it represents every exchange, and the space where all buyers and sellers participate in the financial markets.

So, as an example, if you hear news terms like ‘stock market crash’, it means that practically all financial assets and markets are facing a serious downturn.

5. What are dividends?

Dividends are payments made to shareholders by the companies in which they’re invested. If a company makes a profit, and they choose to pay dividends, shareholders will receive a portion of the profit. Not all companies pay dividends.

You can reinvest your dividends – ie use the money to buy more shares in the company – or withdraw it as cash. With us, dividends received from your investments are paid directly into your stock trading account.

6. Why invest in stocks?

Many people choose to invest in stocks because it’s a way to own a portion of the brands you value. If you invest in shares, you can make a profit if you sell them for a higher price. You can also earn a passive income from dividends (if paid) and receive voting rights, enabling you to have a say in company matters.

When you invest in shares with us, you’ll get:

• Low dealing costs: You will pay zero commission on US share trades up to 50 trades per month¹, and from £8 on UK share trades
• A huge choice of investments: choose from 10,000+ shares and ETFs
• Longer market hours: access over 70 key US stocks outside of normal market times