The rates of buying shares in Bahrain have recorded a significant and noticeable increase in the turnout rates over the past years.
Analysts attributed this to many factors, most notably the doubling of the number of companies for buying and trading shares over the Internet, which operate under official licenses issued by prominent local and scientific regulators, which made them trustworthy.
In addition to the many advantages and facilities offered by these companies, which made them the focus of attention of all those wishing to enter the stock market.
In recent years, the Kingdom of Bahrain has witnessed a state of recovery and economic openness, accompanied by the popularity of many investment sectors and the increase in demand for them.
The purchase of shares in Bahrain comes in an advanced position within these areas. This investment process in the State of Bahrain takes place through one of two options:
- The Official Bahrain Bourse: It is a self-regulating multi-asset market, through which traders have the opportunity to achieve returns by investing a large variety of financial assets at the local, regional, and international levels.
- Trading companies: a group of digital trading platforms - most of which follow international companies: that provide the opportunity to buy shares in Bahrain along with many other investment options, while ensuring easy and safe access to the major Arab and international financial markets, which gives greater flexibility and increases the investment opportunity to the limit maximum.
Foreign companies active in this sector are the most attractive to those wishing to buy shares in Bahrain, due to several factors.
At the forefront of this is the availability of the principle of safety, given that these companies are subject to the supervision of many reliable financial regulators around the world.
Including licensed locally by the Central Bank of Bahrain (CBB), or approved by international bodies such as the British Financial Conduct Authority (FCA) or the Cyprus Authority (CySEC) and the like, in addition, these companies support their customers through distinguished services and special facilities.
What are the best stock trading companies in Bahrain?
Based on what was stated in the article about the criteria for choosing licensed and reliable stock trading companies in Bahrain and others, we show you the best stock trading companies in Bahrain:
- Evest stock broker
- Global trading platform Exness
- Global trading company AvaTrade
- XTB Trading Company in Dubai
These companies are the trusted companies for trading and buying shares and share CFDs from Bahrain.
Criteria for the best stock buying companies in Bahrain
We mentioned earlier that buying shares in Bahrain has become a common and attractive thing for investments.
In the face of the continuous increase in the number of service providers, that is, companies that offer the service of buying and trading shares, it was necessary to find certain criteria to compare them based on and to identify the best.
It has been approved by financial analysts and experts in this field on the following points:
- Ensure that the company is accredited by the most important international regulatory bodies.
- Identify the amount of financial leverage provided by the company.
- Choose companies that offer competitive spreads.
- Find out the amount of fees and commissions imposed on the company.
- Ensure that there are no hidden or undisclosed fees.
- Ensure that the company supports the deposit and withdrawal methods approved in Bahrain.
- The effectiveness of the customer service provided by the company and its support for the Arabic language if you are an Arab.
In addition to all of the above, it is necessary to ensure that the chosen company adopts one of the advanced digital trading platforms such as the global MT4 platform.
This is absolutely necessary as the platform is the channel through which the investor connects to the money markets and through which the entire transaction takes place.
Therefore, it must be simplified, easy to use, and of course, quick to respond to orders, to ensure maximum benefit from any change in the prices of shares or any other financial asset.
Buying and trading shares in Bahrain
The question about the difference between buying shares in Bahrain and trading shares in Bahrain is one of the common questions among investors.
It can be said simply that both things represent a form of investing in the stock market and benefiting from frequent changes and permanent fluctuations in the prices of assets, including shares of companies.
With a fundamental difference between them, which is the type of strategy on which each is based, as follows:
Buying shares in Bahrain
Buying stocks in Bahrain is usually meant to refer to long-term investment strategies.
It means that the investor owns the share - a share of the joint stock company - and keeps it for a certain time, which may be a few weeks and may extend for several years. In this case, he achieves profits by several mechanisms, including:
- Take advantage of periodic stock dividends.
- Reselling the shares if they rise and their value increases.
Stock trading in Bahrain
Online stock trading represents the easiest and most widespread method currently and is preferred by the largest segment of investors around the world.
This pattern is fast and can be completed within the same day.
The secret of his preference is due to the special factors and ingredients that distinguish him from buying shares, the most important of which are - for example only - the following:
- Trading the value of a financial asset (shares) without actually owning it.
- It requires less capital and is suitable for owners of small and medium capital.
- The speed of making deals and, accordingly, a similar speed in making profits.
- Ease of managing trading risks and limiting their effects.
It is worth noting here that the above represents the most important difference between the two investment styles.
However, the difference between long-term investment and speculation in the stock market, of course, expands to more than that.
Therefore, experts always advise the necessity of being familiar with the foundations and advantages of both to be able to decide on the strategy that is most compatible with their experience and investment objectives.
Buying shares in Bahrain through brokerage firms
This option - buying shares - through international brokerage firms is less common than the direct trading option.
However, in the end, it is available and an investment service provided by many companies active in this sector.
It enables its clients to access the local and global markets and then buy the targeted shares and retain their ownership to the extent they desire according to their vision and plan.
Best Bahraini stocks to invest
Companies buying shares in Bahrain - especially international companies - put their dealers in front of an unlimited number of investment options.
It enables them to buy shares in major global markets such as the American stock exchanges or the European stock exchanges, especially the shares listed on the London Stock Exchange.
Some, despite all the advantages of global stock trading, prefer to buy shares of local companies.
Especially since the Bahrain Stock Exchange includes a large number of companies that enjoy stability and enjoy a high market value, the most prominent of which are:
- Bahrain Telecom Shares (Batelco).
- Shares of Bank of Bahrain and Kuwait (BBKB).
- GFH Financial Group shares.
- Shares of Bahrain Duty-Free Shop Complex.
- Ahli United Bank shares.
Frequently asked questions about how to buy shares in Bahrain
Is stock trading licensed in Bahrain?
Yes, stock trading is licensed in Bahrain, and there is no law prohibiting this, but investors should choose licensed and reliable trading companies.
Are there taxes due on buying shares online in Bahrain?
The answer to this question is "yes", but it is not about buying stocks specifically.
Rather, it includes the returns of online trading in its general concept, which includes many types and different classes of financial assets.
The Kingdom of Bahrain is one of the first countries in the Arab region and the Middle East to legalize digital trading.
Accordingly, investors are required to submit annual declarations about their financial activity, and tax is due from them if those profits reach a certain limit.
Is it possible to invest shares through Islamic accounts?
The Bahraini and Arab investor in general is keen that all his financial transactions are by the provisions of Islam.
Therefore, an Islamic trading account is of paramount importance to them, as this type of account is completely exempt from SWAP fees or any other commissions that bear suspicion of usury or contradict Islamic rulings in any way.
Shares in Bahrain can be purchased through Islamic accounts even if transactions are carried out through international companies.
Most of them are keen to provide the option of an Islamic account to their customers in the Arab region and the Middle East.
How can you buy US stocks in Bahrain?
We can summarize the answer to this question in the phrase global trading companies or foreign trading companies.
One of the most prominent advantages it provides is the opportunity to access the most important and largest stock exchanges around the world and benefit from their stocks, funds, and indices.
Of course, this includes US stocks, which are of great interest to stock investors around the world.