Website Updating - Minor Interruptions Expected

Sign In |
Back to Blog

Why Offshore Brokers Must Rethink UAE-Based Physical Addresses in 2025

Regulatory Compliance

August 23, 2025

6 min read

419 views

Why Offshore Brokers Must Rethink UAE-Based Physical Addresses in 2025

MetaQuotes no longer accepts UAE physical addresses for offshore brokers in 2025. Learn why representative office licenses or proper UAE licenses are now essential for compliance.

For more than a decade, offshore brokers have looked for cost-efficient ways to establish their operations while maintaining credibility with traders and technology providers. A common practice was to incorporate a brokerage in jurisdictions such as Saint Lucia, Seychelles, or SVG, and then use a UAE-based physical office (often in Dubai) as their “operational address.”

Until recently, this practice was tolerated. Brokers would register their company in Saint Lucia and present a UAE physical address (through a sister company or rented space) to satisfy requirements for MetaQuotes, the provider of the world’s most popular trading platforms, MT4 and MT5.

But in 2025, the rules have changed. MetaQuotes no longer accepts UAE physical addresses for offshore brokers, citing risks of fraud, unregulated activities, and reputational damage to the MetaTrader brand. This shift has created both challenges and opportunities for brokers who want to stay compliant while keeping their UAE presence.


The Old Model: Offshore Registration + UAE Address

For many startup brokers, the formula was simple:

  • Incorporate in Saint Lucia (or another offshore jurisdiction): Fast, cost-effective, and flexible.

  • Use a Dubai office address as the “physical office”: Either by registering a local UAE company (marketing, IT, or sales) under the same director, or by renting an office lease agreement.

  • Present this address to MetaQuotes when applying for a trading platform license.

This approach created the appearance of global presence and credibility, without requiring the broker to go through costly UAE licensing processes.

Unfortunately, the model was widely abused. Many unregulated brokers used UAE companies registered for non-financial activities (like IT services or marketing) as a cover for running financial operations, exposing investors to risk.


MetaQuotes’ New Policy: No More UAE Physical Addresses

By 2025, MetaQuotes has tightened its compliance policies. Brokers applying for MT4/MT5 white labels or main labels are now rejected if they attempt to use:

  • UAE-based company addresses (unless properly licensed under SCA or DMCC)

  • Dubai office spaces leased under unrelated activities (like “IT Services” or “Marketing Agency”)

  • Offshore entities paired with UAE offices under the same ownership, where the UAE entity is not licensed for financial activities

The goal is to prevent scams, shell brokers, and regulatory arbitrage, which have hurt MetaTrader’s reputation in recent years.

This means that offshore brokers can no longer rely on UAE-based physical addresses when applying for MetaQuotes licensing.


Why MetaQuotes Changed Its Stance

There are several reasons why this policy shift occurred:

  1. Regulatory Pressure: Global regulators have increased scrutiny of offshore brokers, and MetaQuotes faced pressure to ensure that licensed brokers are not disguising themselves through UAE offices.

  2. Reputation Risks: A wave of unregulated brokers in the Middle East and Asia were using UAE-based offices to appear credible, only to collapse or defraud clients.

  3. Platform Integrity: As the market leader, MetaQuotes needs to ensure that its platforms are not used by unlicensed or non-compliant firms.

  4. Enforcement Ease: Rejecting UAE physical addresses simplifies the compliance process—only brokers with clear licensing and representative offices are approved.


The Risks of Using UAE Physical Offices Today

If a broker still attempts to use a Dubai office address without proper licensing, they face serious risks:

  • Application rejection by MetaQuotes

  • Loss of platform licensing for existing brokers during renewal checks

  • Regulatory flags, especially if authorities identify financial activities outside of the approved license category

  • Reputation damage, making it harder to attract traders and IB partners

In short, the old “workaround” is now a compliance trap.


Representative Office Licenses: The Legal Alternative

Instead of using UAE addresses improperly, brokers can now apply for a Representative Office License in the UAE. This structure is available for foreign companies that are already regulated or licensed in another country.

Key features:

  • No financial activities allowed (cannot accept deposits or execute trades locally)

  • Can perform all operational functions such as marketing, call centers, technology, and staff management

  • Acts as a legally recognized UAE office tied to the offshore or regulated broker entity

  • Improves credibility with partners, regulators, and technology providers

While it doesn’t allow direct financial services in the UAE, it satisfies MetaQuotes’ requirement for a legitimate local presence.


The Other Options: SCA or DMCC Licenses

For brokers with higher budgets, obtaining a full financial license in the UAE is also an option:

  • SCA License (Securities and Commodities Authority): The main regulatory body for financial brokerages in the UAE.

  • DMCC License (Dubai Multi Commodities Centre): A free-zone license that allows certain financial activities.

These licenses are significantly more expensive and complex to obtain compared to offshore structures, but they grant direct authorization to operate in the UAE market.


What About Other Trading Platforms?

It’s important to note that this physical address policy applies only to MetaQuotes (MT4 and MT5).

Other trading platforms such as:

do not currently require brokers to provide a physical office address in the UAE. This makes them attractive alternatives for startups and firms not ready to pursue representative offices or UAE licensing.

Still, compliance is tightening across the industry, so brokers should expect other providers to raise requirements in the future.


How Brokeret Helps Brokers Navigate These Rules

As a global provider of brokerage solutions, Brokeret assists clients in complying with MetaQuotes’ new requirements without risking rejection.

  1. Representative Office Licensing Guidance

    • Assistance in registering representative offices in the UAE for offshore or licensed brokers.

    • Ensures brokers can run marketing, tech, and call center operations legally.

  2. Alternative Trading Platforms

    • For brokers who cannot comply with MetaQuotes’ physical address rules, Brokeret provides cTrader, Match-Trader, and X9Trader white labels.

  3. Physical Address and Lease Agreements

    • Brokeret offers physical addresses and lease agreements at an additional cost for companies incorporated with us in Saint Lucia, Georgia, and other jurisdictions—ensuring compliance without rule-breaking.

    • Get Started with Brokeret

End-to-End Compliance Support

  • From offshore incorporation to CRM and trading platform setup, Brokeret ensures brokers don’t fall into compliance traps that could risk their business.


Conclusion

The days of pairing Saint Lucia incorporation with a Dubai office address are over. MetaQuotes’ stricter compliance policies in 2025 mean that brokers must rethink how they structure their global presence.

  • Using a UAE office as a physical address without proper licensing is now rejected.

  • The Representative Office License is the new compliant path for offshore brokers who want a UAE presence.

  • Alternatively, obtaining SCA or DMCC licenses provides full authorization but at a higher cost.

  • For startups, platforms like cTrader, Match-Trader, and X9Trader remain more flexible at present.

Ultimately, the safest route is to work with a partner who understands these regulatory changes. Brokeret not only provides compliance-ready solutions but also offers physical address services in Saint Lucia, Georgia, and other jurisdictions, ensuring brokers remain credible, scalable, and compliant.

Learn more and secure your compliant brokerage setup here: Brokeret Get Started

Share: