INTERVIEW: Dubai plays the numbers game
Even as the global economic climate heats up, Dubai is attracting financial traders from the world over. Kipp speaks to Jamie Lear, CEO, Dubai's Professional Trading Group DMCC, for some insights into the high octane world of financial trading.
July 25, 2012 10:24 by Priyanka Pradhan
How long does it take for an aspirant to become a ‘pro’ and be able to sustain himself as an independent trader?
This really depends literally from person to person, but the common denominator is perseverance. There are some who click within 3-4 months, other take longer to become regularly profitable. The learning curve in this industry is very steep in the beginning, while later things go much more smoothly, and understanding grows. This is because an effective financial trader develops a keen sense of intuition for the financial markets he/she specializes in, subconsciously internalising all the aspects of the market traded. There is a need to experience all kinds of days and then learn how to deal with each type. Slowly but surely the trader gets used to the swings and learns how to deal with them and make profitable trading decisions.
What advantage do trading professionals have, to do business from Dubai?
Financial trading from this city has a great geographical timing advantage: traders here are in the sweet spot in terms of being available for Indian, European and US markets during normal hours of the day.Thus, a lot of traders at DPTG operate globally. An arcade like ours is purpose built taking the global, dynamic trader into consideration. Also, the tax free status of Dubai is huge plus, not to mention the ease of doing business here – and its well-earned reputation as a fun place to be. DPTG is a licensed trading arcade and has received huge support from DMCC since its inception, so we have the ability to quickly and easily set up DMCC-incorporated trading companies for our professional traders.
Is there also a lot of interest from the youth in the region in financial trading arcades?
The youth is our primary market for trading education and we get literally hundreds of emails per week inquiring about prospects of a professional trading career with us. Trading is portrayed as glamorous job, and traders are shown to be earning large sums of money. It’s understandable for young minds to get influenced and rightly so as there is not better job in the world. BUT we also provide a good dose of reality and instill discipline in all our candidates and traders as discipline is key to being successful in this business. Our recent Inter-University Trading competition amongst Dubai’s top universities turned out to be great success, especially in terms of connecting with various students from the colleges who have interest in trading. We plan to hold many more, and will span the entire UAE for contestants in our next competition.
Graduates from our training programs are a key source for our pipeline of new professional traders so we have a strong interest in their development and long-term success as DPTG traders. It is for this reason that we heavily subsidise our courses to ensure a wide range of participants.
Are there any challenges you face as a trading arcade to do business in this region- In terms of laws or regulations? Are there any suggestions or recommendations from you?
This is a very business friendly region for a company like ours and we have been consistently supported and encouraged by the DMCC throughout our time here.
We pay particular attention to controlling certain aspects of our business. The first relates to the prevention of money laundering where we have strong controls to know and approve of the origins of all capital introduced into out traders’ accounts, the nature of the transactions passing through these accounts and the destination of funds transferred out. The second is to ensure that DPTGs traders trade only their own capital – not that of third parties. Our business welcomes a strong regulatory environment and as a member of the International Compliance Association myself I understand the public need to be fully confident in all dealings throughout the financial industry. We are committed to work alongside our regulators to ensure total compliance.
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