Address
Riyadh, Saudi Arabia
What You Need to Know First
Saudi brokers differ in four main ways when you open a portfolio: trading commission, how easy the account is to open, the markets and products available, and whether the portfolio is tied to your bank account. According to their websites, Derayah Financial offers zero commission on Saudi stocks, Sahm Capital runs a limited-time zero-commission promotion, and SAB Invest and Riyad Capital list a 0.155% commission. Derayah states that you can open an account online in minutes without visiting a branch.
What Should You Compare Before Opening a Portfolio?
Commission alone is not enough to choose a broker. Check the following before you decide:
- Commission and total fees: the broker’s commission, regulatory fees, and VAT.
- Minimum for the account or trade: whether you must deposit a set amount to open.
- How you open the account: fully online, or with a visit to a branch or investment center.
- Bank link: some services require an account with the broker’s affiliated bank.
- Markets and products: Saudi stocks only, or also Gulf and US markets, funds, sukuk, and more.
- App and tools: app speed, analysis tools, and charts.
Check any broker’s license in the Saudi Exchange members directory.
How Do the Brokers Compare on Commission and Account Opening?
The table summarizes what each company states on its official website about Saudi stocks and account opening. Where we found nothing stated, we say so:
| Company | Listed commission on Saudi stocks | Minimum | How to open |
|---|---|---|---|
| Derayah Financial | 0% Derayah commission on main market and Nomu stocks (regulatory fees apply) | The platform page says “Start from 1 SAR” but does not say whether this is a deposit or trade minimum | Online in minutes with no branch visit; residents can verify their identity through Absher; GCC citizens visit a branch |
| Sahm Capital | 0.105%, with a limited-time offer of 0% commission | No minimum account or trade amount, according to the website | “Open account” button on the website or app; the page does not describe the steps |
| SNB Capital (Al Ahli Tadawul) | 0.105% SNB Capital commission plus 0.05% Tadawul commission, 0.155% in total | Not stated on the page | Al Ahli Tadawul requires a current account at SNB, plus an investment account and a portfolio with SNB Capital |
| Riyad Capital | 0.155% plus VAT | Not stated on the page | Online with your Riyad Online credentials, at an investment center, or by phone |
| SAB Invest | 0.155% of the executed trade value; the page does not say whether regulatory fees are included | Not stated on the page | Not described on the commissions page |
| Al Rajhi Capital | We could not read the commission table on its page, so check the official page or contact the company | Not stated on the pages we reviewed | Check the official page |
Does “Zero Commission” Mean Trading With No Costs?
No. A broker’s commission is separate from regulatory fees. Per the Sahm Capital fee schedule, the following fees apply to Saudi stock trades, totaling 0.050%:
| Fee | Share of trade value |
|---|---|
| Capital Market Authority | 0.030% |
| Saudi Exchange (Tadawul) | 0.009% |
| Settlement (Edaa) | 0.005% |
| Custody (Edaa) | 0.001% |
| Clearing | 0.005% |
| Total | 0.050% |
VAT of 15% applies to the broker’s commission and to the Tadawul, settlement, custody, and clearing fees, but not to the Capital Market Authority fee. Sahm notes that these figures are for reference only and that the final cost appears on the client statement. To see the difference in practice, consider a 100,000 SAR trade:
| Case | What you pay (before VAT) | On a 100,000 SAR trade |
|---|---|---|
| Broker with 0.155% commission plus regulatory fees | 0.155% + 0.050% = 0.205% | 205 SAR |
| Broker with zero commission plus regulatory fees | 0.000% + 0.050% = 0.050% | 50 SAR |
The commission alone therefore accounts for a 155 SAR difference on each trade of this size, before VAT. The gap grows with trading frequency, because commission is charged on both the buy and the sell. The example does not apply exactly to SNB Capital, which quotes 0.155% as the total of its own commission and the Tadawul commission, so ask whether other fees are added.
What Does Derayah Say About Its Zero Commission?
Derayah’s fees page says trading in the Saudi market and Nomu is “without commission from Derayah for life,” lists the minimum commission as 0.00 SAR, and states that regulatory fees apply. The same page says US stocks and ETFs are commission-free, but its fee table lists a 1.99 USD minimum for some US markets, so check the table before trading in the US. The page does not detail the offer’s terms and points to the Terms of Service. Read the terms of any offer before opening an account, with Derayah or any other broker, because offers can change.
What Markets and Products Does Each Broker Offer?
If you want to start with Saudi stocks and expand later, ask which markets and products the same portfolio can reach. The table shows what the official company pages state:
| Company | Listed markets and products |
|---|---|
| Derayah Financial | Saudi stocks (TASI and Nomu); Gulf markets (UAE, Egypt, Oman, Kuwait, Qatar, and Bahrain); US markets through Derayah Global; sukuk and bonds, ETFs, IPOs, margin financing, options and futures; family sub-portfolios at no charge |
| Sahm Capital | Saudi stocks; US stocks, ETFs, and stock options, with listed US fees (0.015 USD per share, with a minimum of 0.49 USD for prices up to 5 USD and 1.99 USD above that) |
| Riyad Capital | Stocks, sukuk, bonds, and ETFs in the Saudi market, plus stock options |
| Al Rajhi Capital | Saudi, Gulf, and international markets through the website, app, and phone |
Which Broker Fits Which Type of Investor?
No single broker suits everyone. The table matches common needs with what the companies state:
| If you want… | The closest fit | Why |
|---|---|---|
| The lowest listed commission on Saudi stocks | Derayah Financial, or Sahm Capital during its offer | 0% broker commission in both cases, with regulatory fees still applying |
| To open a portfolio without visiting a branch | Derayah Financial, or Riyad Capital for Riyad Online customers | Both pages describe online opening |
| One portfolio covering Saudi, Gulf, and US stocks plus sukuk | Derayah Financial | Its page lists a wider set of markets and products on one platform |
| Trading linked to an account at a specific bank | SNB Capital for Al Ahli Tadawul, or Riyad Capital | The service is tied to the account or login credentials at the affiliated bank |
| US stocks at listed fees | Sahm Capital or Derayah Global | Each lists US fees, so compare the two tables before opening |
What Mistakes Do Beginners Make When Choosing a Broker?
- Comparing on commission alone. Compare the total cost, including fees and VAT.
- Ignoring the terms of offers. A zero commission may be limited to certain clients, channels, or products, and it can end at any time.
- Opening an account without checking the license. Confirm that the company is licensed and a member of the Saudi Exchange.
- Choosing a broker only because it is your bank’s brokerage arm. Easy transfers are a plus, but they do not replace comparing commission and products.
- Not trying the app. Test the app’s interface and speed before you transfer a large amount.
Frequently Asked Questions About Opening an Investment Portfolio
Is there a minimum to open an investment portfolio?
It varies by company. Sahm Capital says there is no minimum account or trade amount. Derayah’s platform page says “Start from 1 SAR” without saying whether that is a deposit or trade minimum. The other companies did not state a minimum on the pages we reviewed. Ask the broker you choose before you transfer money.
How long does it take to open a portfolio?
Derayah says opening an account online takes “minutes” with no branch visit. It takes longer at companies that require documents or a visit to an investment center. Check the opening requirements on the page of the company you choose.
Does “zero commission” mean I will pay nothing when I trade?
No. Regulatory fees from the Capital Market Authority, Tadawul, Edaa, and the clearing house apply to every trade, and VAT is added on the broker’s commission and on some of these fees.
Can a non-Saudi resident open an investment portfolio?
Yes, if you are a registered resident of the Kingdom, as the Saudi Exchange explains on its How to become an investor page. People living outside the Kingdom follow a different route, which we explain in our article on trading Saudi stocks as a non-Saudi.
How do I check that a broker is licensed?
Look up the company in the Saudi Exchange members directory, and verify its license with the Capital Market Authority.
Conclusion
Compare brokers on total cost rather than commission alone, read the terms of any offer, and choose the company that fits how you trade and the markets you plan to enter. Based on what the companies state today, Derayah Financial combines zero commission on Saudi stocks, online account opening, and several products on one platform, strengths you can verify on its page before you decide. If you are also choosing an app, see our guide to choosing the best trading platform or app.
Sources
- Derayah Financial: Prices and fees
- Derayah Financial: Derayah platform
- Sahm Capital: Pricing
- Sahm Capital: Saudi stock fee schedule
- Al Ahli Tadawul: FAQ
- Riyad Capital: Local trading
- SAB Invest: Local equity commissions
- Al Rajhi Capital: Fees and commissions
- Al Rajhi Capital: FAQs
- Saudi Exchange: How to become an investor
- Saudi Exchange: Members directory
- Capital Market Authority
