JEDDAH — New traders in Saudi Arabia and the UAE are predisposed to invest more in gold and oil, HFX.com, a world leader in online foreign exchange, said Wednesday in an annual "Trader Habits" survey.

The survey results, based on over 5,000 Middle Eastern traders, provides insight to Middle Eastern trading habits and correlates between geographical location and trading preferences.

"We found that the Middle Easter trader — primarily from Saudi Arabia and the Gulf — knows exactly what he wants, he is a sophisticated trader, in large volumes and is not afraid to try new products," said Philip S. Martin, HFX.com Chief Executive Officer. "The average trader is a married male, over the age of 28, with 3 children, full time employee and not concerned by online trading in large volumes"

"We noticed, that unlike the European trader that tends to trade in currencies such as euro, GBP and USD, the Middle Eastern trader likes to trade in commodities such as ’gold’ and ’oil’. The Middle Eastern traders know and understand these markets and also know how to profit from it," Martin added.

When reviewing geographical discrepancies, the survey results show that traders from Saudi Arabia are slightly more cautious upon entering the foreign exchange market, with an average of SR7,500 ($2,000) as the initial deposit. Once this trader sees profits, they will invest up to $50,000.

On the other hand, traders from the Emirates prefer starting with an investment of AED10,200 ($2,800). These traders are more aggressive, which means that they make more deals in a shorter amount of time and are also more open to experimenting with euro/USD, the survey said.

This as opposed to the Saudi trader who likes to "play it safe" and enjoy the profits from commodities such as gold and oil. The average portfolio of a trader from the Emirates is valued at $24,000.

Another trend that the survey results showed is that new and inexperienced traders are joining online trading more than ever before. If 3-4 years ago, most of the traders were experienced traders with a financial background, today new traders are willing to learn, and join this lucrative market. New traders start off with a smaller investment of about SR3,500 and start building a diverse portfolio. They perceive online trading as safer. — SG