The Dubai Financial Services Authority (DFSA) has issued an official warning against CFDs broker Souq Capital. The regulator states that the firm falsely claims DFSA authorisation and uses a fake DFSA registration number on its website.
According to the DFSA, Souq Capital operates through souqcapital.com but is not, and has never been, authorised by the authority. The regulator urges traders and the wider public to exercise extreme caution and to avoid responding to any communication from the firm.
The warning highlights a recurring problem in the retail trading industry. Unregulated or offshore brokers often misrepresent their regulatory status to gain credibility. In this case, Souq Capital appears to focus primarily on Arabic-speaking markets, raising concerns about transparency and investor protection.
The DFSA advises traders to verify a firm’s regulatory status before opening an account or transferring funds. Investors can do this through the DFSA Public Register, which lists all authorised firms and individuals operating within the Dubai International Financial Centre (DIFC).
The regulator also directs consumers to its educational resources on identifying and avoiding common financial scams. These materials outline typical red flags, including fake licences, misleading claims, and unsolicited contact.
This case serves as a reminder that regulatory due diligence remains critical, particularly in the CFDs and forex space. Traders should always confirm licensing directly with the relevant authority rather than relying on claims made by a broker.
