Overview of Derayah
Established in 2009 in Saudi Arabia, Derayah offers a wide range of trading assets, including stocks, bonds, futures contracts, and options.
With competitive trading fees, such as 0.155% on the Saudi Stock Exchange, it provides accessibility with no minimum deposit requirement.
However, its limited international market access and educational resources may hinder comprehensive investment strategies. Notably, Derayah operates without regulatory oversight, potentially raising risks about investor protection.
Despite this, its presence in Saudi Arabia offers local investors opportunities for regional market participation.
Regulatory Status
Derayah operates without regulatory oversight. This lack of supervision means there's no official body ensuring compliance or protecting investors' interests. Without regulation, there's a risk of unchecked practices, potential conflicts of interest. Investors might face uncertainties about the reliability of information, the security of their investments, and avenues for recourse in case of disputes.
Pros and Cons
Pros:
Comprehensive Asset Selection: Derayah offers a wide range of assets, including stocks, bonds, futures contracts, and options, across various markets. For example, investors can access regional markets like Saudi Arabia, the UAE, and Egypt.
Competitive Trading Fees in Regional Markets: Derayah's trading fees in regional markets, such as Saudi Arabia and the UAE, are competitive. For instance, on the Saudi Stock Exchange (TASI), the platform charges 0.155% of the traded value with a minimum fee of 0.01 SAR, ensuring cost-effective trading for investors.
No Minimum Deposit for Trading: Derayah allows investors to start trading without imposing a minimum deposit requirement. This flexibility enables individuals to enter the market with any amount they choose, promoting accessibility to investment opportunities.
Accessible Margin Facilities: Derayah provides margin facilities, including Free Margin and Murabaha Margin, offering leverage to investors. This accessibility allows traders to potentially increase their purchasing power and optimize their investment strategies.
Shariah-Compliant Investment Options: Derayah offers Shariah-compliant investment options, suitable for investors seeking ethical and religiously compliant investment opportunities. These options adhere to Islamic principles, providing a socially responsible investment avenue for interested investors.
Cons:
Limited International Market Access: Derayah's international market access is limited compared to some global brokerage platforms. While investors can trade on major international exchanges like the NYSE and NASDAQ, the platform may not offer access to a comprehensive range of international markets, potentially limiting diversification opportunities.
Limited Educational Resources: Derayah's educational resources are relatively limited. While the platform may offer basic educational materials, such as articles and guides, it may lack comprehensive educational resources, such as webinars or interactive courses, which could hinder investors' ability to enhance their trading knowledge and skills effectively.
Market Instruments
Derayah offers a range of trading assets across various markets, predominantly focusing on the Middle East region.
In Saudi Arabia, investors can access stocks listed on the Saudi Stock Exchange (TASI) and its parallel market, Nomu. Similarly, investors can engage in trading activities in United Arab Emirates, Egypt, Bahrain, Oman, Kuwait, and Qatar, tapping into the respective stock markets of these countries.
Derayah also facilitates trading in Single Stock Options, providing investors with opportunities for diversified portfolio management and risk mitigation. Additionally, the platform offers Sukuk (Islamic bonds) and conventional Bonds for investors seeking fixed-income securities.
For those interested in futures contracts, Derayah provides access to Single Stock Futures Contracts and MT30 Index Futures Contracts, offering exposure to price movements in individual stocks and market indices.
Expanding beyond the Middle East, Derayah connects investors to international markets, including the New York Stock Exchange (NYSE), NASDAQ Exchange, and New York Stock Exchange MKT (NYSE MKT), enabling them to trade a wide range of equities listed on these renowned exchanges.
How to Open an Account？
Visit Derayah's Website: Begin by visiting Derayah's official website to initiate the account opening process. Navigate to the designated section for account registration.
Visit Derayah's Website: Begin by visiting Derayah's official website to initiate the account opening process. Navigate to the designated section for account registration.
Provide Personal Information: Fill out the online registration form with accurate personal details, including your full name, date of birth, contact information, and residential address. Ensure that all information provided is correct and up-to-date.
Submit Required Documents: Prepare and submit the necessary documentation as per Derayah's requirements. This typically includes a valid government-issued ID (such as a passport or national ID card) and proof of address (such as a utility bill or bank statement).
Complete Account Verification: After submitting your documents, Derayah will verify your identity and information provided. This may involve additional verification steps, such as phone verification or uploading additional documents if required.
Agree to Terms and Conditions: Review and agree to Derayah's terms and conditions, as well as any other relevant agreements or disclosures related to account opening and trading activities. Ensure that you understand and agree to all terms before proceeding.
Activate Your Account: Upon successful verification and agreement to terms, Derayah will activate your account. You will receive confirmation via email or SMS, along with any necessary account details and login credentials. Once activated, you can fund your account and start trading on the platform.
Margin
Derayah provides three types of margin facilities for different investment strategies.
The Free Margin option targets active traders with short-term investment goals, offering flexibility in share selection and no financing costs. It's Shariah-approved and suitable for daily or weekly trading.
The Murabaha Margin, with an annual financing contract, targets long-term investors or infrequent traders, requiring a minimum deposit of SAR 10,000.
Lastly, Free Margin Trading offers free trading with no minimum trading volume requirements, allowing flexibility in portfolio turnover.
Commissions & Fees
Derayah imposes various commissions and fees for its trading services.
For instance, on the Saudi Stock Exchange (TASI) and Nomu, the platform charges 0.155% of the traded value, with a minimum fee of 0.01 SAR. Similarly, for Single Stock Options, the fee is 6.50 SAR per contract, with a minimum charge of 6.50 SAR. Sukuk and Bonds transactions incur a fee of 0.08%, with a minimum charge of 100 SAR.
Comparing these fees with popular brokers, Derayah's charges appear competitive in some areas but may be relatively higher in others. For instance, while its fees for trading on the Saudi Stock Exchange are in line with industry standards, the minimum charge for Single Stock Options is notably higher compared to some international brokers. Investors who frequently trade in smaller volumes may find these minimum charges relatively burdensome.
In terms of account suitability based on fees, Derayah's account types may be more suitable for investors who engage in larger volume trades, especially in regional markets like Saudi Arabia and the UAE, where the platform's fees are more competitive. However, for investors primarily interested in trading international stocks listed on exchanges like the NYSE or NASDAQ, Derayah's fees might be less competitive compared to other brokerage options that offer lower minimum charges per trade.
Trading Platform
Derayah offers two trading platforms: Derayah Platform and Derayah Global Platform.
The Derayah Platform boasts swift state-of-the-art systems designed to optimize efficiency for active traders, with every button and function tailored to save time and effort. It enables trading across various markets without the need for separate agreements or multiple accounts, consolidating purchasing power into a single account.
It also provides advanced reporting features, including profit and loss tracking for closed positions, and offers margin trading facilities to active traders to increase their purchasing power.
On the other hand, the Derayah Global Platform enhances trading experiences further. It offers four types of order validity, giving traders control over the lifespan of their orders, and enables instant trading in international markets with real-time access. The platform prioritizes execution at the best available prices across multiple international exchanges, providing clients with a wide range of order types for increased flexibility.
Deposit & Withdrawal
Upon activating your Derayah account, users receive comprehensive details via SMS, including their IBAN number for the Arab National Bank portfolio. This IBAN facilitates money transfers to the Derayah portfolio from any bank account via bank transfer.
Notably, there is no minimum deposit requirement, allowing users to commence trading with any amount they deem fit. This flexibility eliminates financial barriers for aspiring investors, enabling them to enter the market at their preferred investment level without constraints.
Customer Support
Derayah provides accessible customer support services for clients both locally and internationally.
Inside Saudi Arabia, clients can reach customer support by dialing 920024433, while international clients can contact them at 00966920024433.
Additionally, they offer fax support at 0112998071 and can be reached via email at support@derayah.com. These contact options ensure that clients can easily reach out for assistance with their inquiries, fostering a supportive and responsive environment for all users.
Conclusion
In conclusion, Derayah offers investors a range of market instruments and competitive trading fees, alongside accessibility with no minimum deposit requirement.
However, its unregulated status may pose risks regarding investor protection. Limited international market access and educational resources may hinder comprehensive investment strategies.
Despite this, Derayah's presence in Saudi Arabia provides local investors with opportunities for regional market participation.
FAQs
Question: What market instruments can I trade with Derayah？
Answer: You can trade stocks, bonds, futures contracts, and options with Derayah.
Question: Is there a minimum deposit requirement to open an account with Derayah？
Answer: No, there is no minimum deposit requirement to open an account with Derayah.
Question: How can I contact customer support at Derayah？
Answer: You can contact customer support via phone, email, or fax for assistance with your inquiries.
Question: Does Derayah offer margin trading facilities？
Answer: Yes, Derayah provides margin trading facilities to eligible traders, allowing them to potentially increase their purchasing power.
Question: What trading platforms are available with Derayah？
Answer: Derayah offers the Derayah Platform and Derayah Global Platform for trading across various markets.
Question: Is Derayah regulated by any authority？
Answer: No, Derayah operates without regulatory oversight.
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