A comprehensive guide to understanding online trading in Pakistan. This website is similar to Investopedia.com.
Trade Forex, Bitcoin, CFDs and Stocks in Pakistan
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List of Best Local and International Online Brokers for Pakistanis
Here is the list of best local and foreign brokers for online Forex, Bitcoin, Stocks and CFD Trading for Pakistani nationals:
- Over 10,000 forex and bitcoin traders from Pakistan have accounts there. It is an international broker that gives its clients access to more than 100 different types of financial instruments through its platform.
Additionally, these internet brokers have been ranked by popularity. Certain banks in Pakistan also provide foreign currency brokerage services (mainly for exporters and importers).
ForexBrokers.PK only lists brokers that are legitimate, safe, and reputable for online trading of forex pairs, cryptocurrencies, CFDs, and stocks.
Forex and Cryptocurrency Scams in Pakistan
Remember these important points:
Most investment schemes on the internet are scams - plain and simple
Almost 99 percent of all Forex, Bitcoin, and Ethereum internet investment opportunities in Pakistan, and even outside, are a hoax.[Ref.]
Learning how to trade successfully can take a lot of time and effort
There is no easy method to make money in the foreign exchange or cryptocurrency markets. It takes years to get proficient at it.[Ref.]
Pakistani investors should visit JamaPunji.pk for advice
New investors should go to JamaPunji.pk to study the fundamentals of investing in the financial markets. There is a firm search option that you may use to determine whether a broker is legally permitted to provide online trading services in Pakistan. JamaPunji is a Pakistan Securities and Exchange Commission programme (SECP).[Ref.]
SECP has taken a good step to help new investors
JamaPunji's job is to give the general public of Pakistan with the information and numbers, as well as the adroitness necessary to make educated financial decisions and manage their savings wisely.[Ref.]
Being registered with PMEX does not mean a broker wouldn't cheat its clients
Please be aware that even if a firm is registered with PMEX, SECP, or is searchable on JamaPunji.pk, there is no assurance that it is not a hoax. It is quite simple to establish new firms with the SECP, and PMEX may charge a yearly fee for membership, which is not difficult to get.[Ref.]
Even the best traders and investors can't make more than 10% per year. Consider investing in Mutual Funds.
Avoid text messages and phone conversations from strangers working for brokers who try to get you to deposit big quantities of money and guarantee inconceivable profits, such as more than 20% each month. Even wealthy hedge fund managers in New York can only accomplish a 10 percent consistent Return on Investment (ROI) PER YEAR.[Ref.]
The SECP has always warned the public to be careful with Ponzi investment schemes
The SECP urges the general public to use common sense, and not become victims of financial investment fraud.[Ref.]
Never invest with money you cannot afford to lose. Always use disposable money to put in the financial markets.
Even at international forex and cryptocurrency brokers listed on ForexBrokers.pk, it is typically advised not to deposit more than $1,000 or currency equivalent. And you must never invest money that you cannot afford to lose.[Ref.] Please be extremely cautious.
Scams in Cryptocurrencies are very common
Make use of your common sense. If someone attempts to tell you that sarmaya kari in a new crypto token, forex, or even stocks listed on PSX may yield millions of rupees in profit every month, he or she is lying and distorting the facts.[Ref.] Avoid such people, even if they are close friends or relatives.
Social Media isn't helping reduce the number of fraud investment schemes
Be extremely cautious of Facebook, Telegram, and Whatsapp groups, as well as YouTube videos, that attempt to entice inexperienced and amateurs into spending their life savings in bogus online crypto and FX investment schemes.[Ref.]
The court system in Pakistan is weak and may not help an investor recover his or her lost funds
Even the FIA's Cyber Crime Wing cannot assist an investor if the broker is situated outside of the nation. Furthermore, even local scam brokers and bogus gurus may just bribe themselves free through local District & Sessions Courts or High Courts.[Ref.]
Consider investing in Mutual Funds and Pakistan Investment Bonds for secured returns
The easiest approach to get significant returns in the financial markets is to learn how to trade, or you may simply invest in mutual funds and government bonds (PIBs) handled by Pakistani commercial banks. Profits will be minimal, but you will not be duped out of your hard-earned paisa.[Ref.]
A Broker serves an important role in the financial markets
A broker facilitates the trading of popular financial goods such as forex, cryptocurrencies, CFDs, bonds, and stocks by its customers. It enables transactions between two parties interested in purchasing or selling financial products.[Ref.]
Trading apps are very popular
There are various online brokers that cater to Pakistani investors interested in forex trading, but Olymp Trade is now the most popular, since it is often searched on Google.[Ref.]
Banks play a role in Forex Trading all over the world
Theoretically and practically, forex may be traded via one's bank-held foreign currency accounts.[Ref.] You might just exchange currencies with your bank and keep the difference.[Ref.] And with cryptocurrencies such as Bitcoin and others, you could simply use a peer-to-peer network.[Ref.] Brokers, on the other hand, provide the advantage of margin, which allows them to lend you their own cash to facilitate large deals.[Ref.]
The SBP has banned a lot of offshore forex brokers in Pakistan
The State Bank of Pakistan has banned nearly all reputable international brokers, such as OctaFX, ForexTime, HotForex, Instaforex, FBS, Exness etc., in its circular issued on 18th May 2022.[Ref.]
Investors must register with the SBP and PMEX before offering Futures and Forex Trading in Pakistan
It might be a matter of brokerage licencing. Brokers must register their brand names with both the Pakistan Securities and Exchange Commission and the Pakistan Mercantile Exchange.[Ref.]
Banning of many Trading apps in Pakistan does create problems with their accessibility
While the apps for these brokers may still be accessible on smartphones, nothing is guaranteed to work.[Ref.] Olymp Trade is an excellent alternative broker that has received a great deal of favourable feedback.
Commissions are important to sales agents working in brokerage houses
Forex and bitcoin sales agents are used to harassing clients with false promises of wealth.[Ref.] You cannot fault them since they are compensated on a commission basis.[Ref.] However, never deposit an excessive amount of money or do stupid activities such as taking out a bank loan using your home as collateral - this tends to be a trend when it comes to Bitcoin investment.[Ref.] Bear in mind that Pakistan has no rule of law; if you lose money in bogus investment schemes, you are completely on your own.[Ref.]
Give Demo-Practice Trading Accounts a Try Before Depositing Real Money
The simplest way to get started trading forex, bitcoin, and stocks without making any deposits is to use a demo account supplied by most brokers.[Ref.] Several of them may even provide no-deposit incentives to encourage new traders.[Ref.]
Dozens of Trading Apps are available for Pakistanis on Google Play and App Store
Trading apps are available on the Google Play and Apple App Stores.[Ref.]
Liquidity is key in getting the right fills for your forex, crypto and stock orders
Forex brokers are responsible for processing client orders and ensuring that there is sufficient liquidity for trading.[Ref.]
Not all orders are filled by a broker and there are many reasons to it
Additionally, they have the legal authority to reject an incoming buy or sell order if their dealing desk is unable to manage the risk appropriately.[Ref.]
Your Broker is your Market Maker
Forex brokers are authorised by law to act as market makers.[Ref.]
Forex Brokers Making the Market is Legal and Allowed by Law
In actuality, unless a company serves as an introducer or middleman, all brokers are technically engaged in the business of establishing a market in a particular currency.[Ref.]
Learn the concepts around Market Making for a better understanding of the financial markets
The overwhelming majority of retail forex brokers are market makers.[Ref.] This identifies them as being on the other side of the transaction. Their clients execute trades using their own broker. Market Making is a very popular and completely legal activity.[Ref.]
A Few Major Banks Control All of the World's Foreign Exchange Flows
The currency markets are dominated by commercial banks and securities dealers.This market is referred to as the interbank foreign exchange market.[Ref.]
Other FX players include hedge funds, commercial firms, pension funds, and insurance companies. Yes, all investors who trade on exchanges or over the counter (OTC) are theoretically making the market.
However, one organisation, often the lead or prime broker, is responsible for ensuring that all transactions executed or rejected by the dealing desk or trading desk are completed.[Ref.]
Your Broker will nearly always take the other side your trade
A market maker or liquidity provider is someone who acquires and disposes of assets on behalf of traders or investors.[Ref.] Profits are earned on the spread between the bid and ask prices of traded currencies, stocks, bonds, and commodities.[Ref.]
Market maker brokers are responsible for supervising traders who buy and sell securities.[Ref.] If a broker is unable to discover another market player, he or she is legally required to accept the deal's opposing side.[Ref.] It is the market maker's obligation to guarantee that enough liquidity is accessible in the market during periods of distressed selling or inflated asset purchases.[Ref.]
Market makers often enter into agreements with other liquidity providers, such as commercial banks, hedge funds, and dark pools, to maintain asset price stability.[Ref.] The majority of retail traders lack direct access to premium liquidity.[Ref.] This is only possible for the most prominent banks and brokers.
Bid-Ask spreads are an important topic for every beginner trader to learn about
Typically, the ask price exceeds the bid price.[Ref.] In exceptionally liquid interbank markets, bid and ask prices may be identical, enabling massive institutions to trade billions of dollars in currency for free on a regular basis.[Ref.] Forex brokers are divided into two groups based on their focus on speculative currency trading: brokers and market makers/dealers.[Ref.]
Brokers are not immune to losses. Your Win is their Loss.
Brokers accept customer orders and seek the best possible price, while market makers/dealers either take direct risk against the retail consumer or pass it along to a bank or non-bank foreign currency liquidity provider.[Ref.]
There are dozens of foreign forex brokers operating in Pakistan and the SBP does not like it one bit
According to an SECP investigation, Pakistan has hundreds of foreign-registered forex brokers.[Ref.]
"Forex vs. Stock Trading: which one to go for?" is a question that is asked a lot
It is comparable to stock trading in that users use a trading platform to invest in the foreign exchange and bitcoin markets, rather than stocks.[Ref.]
A qualified broker should have a minimum of two years of operational experience, be licenced, and have knowledge managing financial markets.[Ref.]
Additionally, help in Urdu would be useful. Of course, rapid money withdrawal is usually a positive sign. The vast majority of unregulated forex brokers commit fraud on their clients.[Ref.] They do this by freezing their trading platform during a profitable price movement, preventing the consumer from completing a successful transaction.[Ref.]
Do a background check on your broker on Review websites before opening an account
Being a talented trader is irrelevant if you open an account with a dishonest foreign exchange broker. To safeguard yourself, read online reviews of popular brokers. Examine their regulatory licensure and pose difficult technical trading queries to your online broker.[Ref.]
Almost all brokers nowadays provide excellent trading conditions. Spreads on popular currency pairs such as the EUR/USD may be as little as 0.1 pips over zero during the start of the trading week, such as Mondays.[Ref.]
Numerous forex brokers provide competitive or fixed spreads on major currencies.[Ref.] Consider Olymp Trade and CMC Markets as examples.
Your Broker can close or suspend your Trading Account
If a trader breaches the Terms and Conditions, the broker is legally entitled to terminate or suspend the trader's account.[Ref.] Once the problem is resolved, the suspended account may be reactivated. Suspension or closure may be applied as a result of fraudulent trading activity, non-compliance with personal identification profiles, or non-compliance with anti-money laundering regulations.[Ref.]
Super-Fast Withdrawals of Funds is the main reason you should choose a broker
Fast or instant funds withdrawals, the lowest spread commission cost (0.1 pips), the Metatrader 4 mobile app, ECN order executions, social trading (auto-trading robot, PAMM) platform, demo accounts, no-deposit bonuses, trader education, and mentoring are just some of the benefits Forex and cryptocurrency brokers provide Pakistanis.[Ref.]
Trading in the financial markets is growing rapidly in Pakistan
Pakistan is a sizable market for forex brokers and cryptocurrency exchanges online.[Ref.]
Numerous well-known brand names regularly host instructional seminars lasting two to three days in famous hotels around the country.[Ref.]
It might be an ideal place for novice traders in the financial markets to start. All newcomers should participate in such activities when they are offered.
Investing in stocks listed on the PSX has always yielded better results than Forex and Crypto Trading for Pakistanis
Investing in Pakistan Stock Exchange-registered securities and keeping them for numerous years is a more secure and reputable alternative.[Ref.] You might also invest in Pakistan Investment Bonds.[Ref.] Again, you should invest no more than $100 in any foreign forex broker. Regardless of the level of pressure used by their contact centre sales employees.
PMEX offers licenses to those looking to open their own Forex and Futures Trading Brokerage House in Pakistan
Investors may apply to the Pakistan Mercantile Exchange for a licence to conduct forex brokerage services in Pakistan.[Ref.]
What is Forex and why is it important?
Forex, more often referred to as the currency markets, is a decentralised (over-the-counter) worldwide market for currency trading.[Ref.] This market determines the daily exchange rates. One side trades one currency for another in a foreign exchange transaction.[Ref.]
A currency is a kind of money that is used to purchase and sell goods and services.[Ref.]
Each independent state has its own currency.[Ref.]
Currencies may be traded for a variety of purposes, including imports, exports, debt finance, and international payments. These procedures are referred to as foreign exchange transactions.[Ref.]
The Pakistani rupee (PKR) is a currency that is equivalent to rupees, US dollars, British pounds, Australian dollars, European euros.[Ref.] Currency acts as a medium of exchange (bank notes and coins). A banknote (sometimes referred to as paper money) is a promissory note that is payable to the bearer upon demand.[Ref.]
Fiat Money is how the world commerce works nowadays
A coin is a spherical piece of metal minted by the government and used as legal tender for the exchange of goods and services.[Ref.]
Fiat money is a currency that a government has recognised as money but has no intrinsic value.[Ref.]
State and federal banks have the ability to manipulate the quantity of fiat money in the economy by purchasing and selling bonds, printing extra money, and increasing and reducing interest rates.[Ref.]
Commodities are also a form of Money
Commodity money includes gold, silver, copper, salt, peppercorns, tea, Rai stones, ornate belts, shells, alcohol, cigarettes, cannabis, silk, candy, nails, cocoa beans, cowries, and barley.[Ref.] Commodity money may be used as a back-up medium of exchange or investment during financial crises in the modern period.[Ref.]
Forex Market is also traded Over-the-Counter
OTC stands for Over The Counter, and it refers to trades between two parties that take place outside of an exchange's oversight.[Ref.]
A bourse is the main building where stocks, futures and options are traded
A trading exchange, also referred to as a bourse, is a regulated market for the buying and selling of stocks (equities), options, futures, foreign currency, and commodities.[Ref.]
Options are dangerous and mostly meant for professional traders and hedge funds
Options include stock options, bond options, stock market index options, futures options, and callable bull/bear contracts.[Ref.]
Future Commodity Pricing Literally Depends on Futures Contracts
Futures contracts are agreements to buy or sell a securities at a certain price and date in the future. Such contracts include currency futures, interest rate futures, and stock market index futures.
Commodities include sugar, wheat, rice, gold, silver, oil, natural gas, and coal.[Ref.]
Forex and Cryptocurrencies do not have clearing houses
Forex trading is not facilitated by a clearing house.[Ref.]
A clearing house is a financial institution that facilitates the exchange of money, securities, and derivatives transactions (i.e., clearing). Institutional investors include governments, central banks, institutional investors, commercial businesses (commodity traders), and commercial banks.[Ref.]
Large organisations such as Citi, JP Morgan, UBS, Deutsche Bank, Bank of America Merrill Lynch, Barclays, Goldman Sachs, HSBC, XTX Markets, and Morgan Stanley do the bulk of currency trading.[Ref.]
Interbank Trading is What Holds the World Commerce Together
Interbank market is a term that refers to a high-level market where banks trade currencies.[Ref.] They make use of Electronic Broking Services (EBS) and Thomson Reuters as currency trading platforms.[Ref.] Each transaction has the potential to be hundreds of thousands of dollars in value.
Foreign Exchange Trading has a lot of history attached to it
Forex trading as we know it now started in the 1970s.[Ref.]
Initially, currency transactions were tightly regulated under the Bretton Woods system, but many countries have adopted liberal exchange rates during the previous three decades.[Ref.]
Countries use a currency exchange system that has both floating and fixed exchange rates.[Ref.]
The currency markets are open 24 hours a day, except on weekends. Sunday, 22:00 GMT (Sydney time), through Friday, 22:00 GMT (Sydney time) (New York).[Ref.]
Leverage can wipe out small retail trading accounts within minutes
Due to the low profit margins in the forex markets, currency traders use leverage to improve their revenues.[Ref.]
In finance, leverage refers to the use of borrowed funds to trade assets.[Ref.]
Leverage is a term that refers to borrowing money from a broker to trade the markets in forex and bitcoin trading.[Ref.]
Numerous brokers provide leverage of up to 1:200, which indicates that an investor may borrow $200 from the brokerage for every dollar placed.[Ref.]
Using margin is the main pillar of Forex Trading around the world
Without using leverage or margin, large businesses, banks, and hedge funds with tens of millions of dollars may trade foreign currency in the form of Spot, FX options, and Futures.[Ref.]
Currencies are always traded against each other
Currency is traded in pairs, with the base currency trading against the quote currency (counter currency).[Ref.] Among the base currencies are the Euro, the Pound Sterling, the Australian Dollar, the New Zealand Dollar, the US Dollar, the Canadian Dollar, the Swiss Franc, and the Japanese Yen.[Ref.]
Few Major Pairs Dominate The Foreign Exchange Market
The bulk of currency trading occurs between the main currencies EUR/USD, USD/JPY, GBP/USD, AUD/USD, USD/CHF, NZD/USD, and USD/CAD. These major currencies account for 85 percent of all forex transactions.[Ref.] The Spot Price refers to the official rate of the specified currency at a certain point in time.[Ref.]
All Major Currency Pairs have Nicknames
The majority of traded currencies have nicknames, including GBP/USD (Cable), EUR/CHF (Swissy, Euro-Swissy), EUR/GBP (Chunnel), USD/CAD (Loonie, The Funds), AUD/USD (Aussie), USD/JPY (Gopher), GBP/JPY (Guppy), and EUR/JPY (Euro-JPY) (Betty). These names may vary according on your location. For example, in London markets, 'Betty' is cockney slang for Cable (GBP/USD).[Ref.]
Learning the concept of PIP in Forex and Crypto Trading is Important
Review Forex pips: A percentage in point, or price interest point, is the smallest unit of change in a currency pair's exchange rate (pip).[Ref.]
A PIP should not be confused with the smallest change in a stock quotation, which is sometimes referred to as "Tick Size."[Ref.]
If the EUR/USD currency pair trades between 1.3000 and 1.3010, the price has increased by 10 pips. Consider the last two numbers. The JPY uses a slightly different method of calculating pips. The yen is denominated in four decimal places, while dollar currencies are denominated in one hundredth of a cent.
Foreign Exchange Trading is Big Business
Electronic trading systems that supply institutional liquidity in the foreign currency markets provide fractional pip pricing.[Ref.]
Forex trading firms that specialise in prime and prime of prime (PoP) currency pairs may give currency exchange rates in fractional pip increments as small as 1/10 pip. Prime and Prime of Prime foreign currency brokers provide micro-contracts, which enable traders to increase their margin (leverage) but also increasing their risk.[Ref.]
Get the Basics of Forex and Crypto Units before Placing Live Market Orders
Units: A lot is a predefined amount of cash exchanged by traders. A standard lot is 100,000 currency units. Numerous brokers provide trading in Mini Lot (10,000) and Micro Lot (10,000) sizes (1000).[Ref.]
Day trading is extremely hard. Not for most people out there.
Day trading is the practise of acquiring and selling currencies inside a single day.
Historically, day trading was reserved for large institutions and high-net-worth individuals.
Due to the simplicity with which margin trading is offered, day trading has become a popular option for everyday traders to participate in the financial markets. Without a doubt, it is possible, but it will be challenging.[Ref.]
Financial Trading should never replace your regular job or business
Unless you want to acquire an MBA and join a Pakistani bank's dealing desk or treasury department, forex trading should be a hobby, not a primary source of income. You will be on the safe side if you invest just a little amount of money in this venture.[Ref.]
Scalping is where 90% of traders lose money. Don't try it.
Scalping is another popular method of short-term day trading in which traders buy and sell financial goods (forex, bonds, stocks, and options) in less than a minute.[Ref.]
Front Running is popular among high-frequency trading hedge funds
Front running is a kind of trading in which financial assets are purchased and sold within milliseconds.[Ref.]
Swing Trading is a little easier than Day Trading
Swing trading, also known as medium-term trading, is the practise of holding currencies, options, stocks, bonds, and other financial assets for a period of up to two weeks (overnight hold). Traders often profit from medium-term trend following strategies.[Ref.]
It's generally a good idea to hold good stocks for longer periods of time
Long-term trading comprises the acquisition of stocks, currencies, options, and other assets with the intention of keeping them for months or even years. It is classified as a long-term investment. Long-term trend following and value investing tactics may provide investors with an edge in the financial markets.[Ref.]
Momentum investing is also another good method to place trades in the financial markets
Trading momentum breakouts is a straightforward technique. Await news or a technical event that will cause the price of the asset to climb or decrease.[Ref.]
It requires a lot of experience to get used to your trade entries and exits
You may exit a trade in minutes, at the end of the day, week, or month, depending on your trading style and experience.[Ref.]
RSI is used a lot by thousands of traders and investors for optimum trading entries
The relative strength index (RSI) is a common indicator for intraday charting. To initiate a trade, traders look for oversold or overbought conditions.[Ref.]
Bitcoin just like many other cryptocurrencies is digital i.e., stored in computers
Bitcoin is a digital currency.[Ref.] It functions by maintaining ledger records of all buy and sale transactions - referred to as mining - that occur on its network, also referred to as the blockchain.[Ref.]
Pakistan is hesitant to bring in cryptocurrency laws
Regrettably, the Pakistani government does not recognise the purchase, sale, or online trade of bitcoin (including Bitcoin).[Ref.]
It is not illegal since Pakistan does not have any laws forbidding the sale, purchase, or trade of cryptocurrencies.[Ref.]
The government is now working on a complete cryptocurrency policy, which is a positive development.
Mining is what creates new cryptocurrencies
Individuals that contribute to the mining of blockchain transactions have the potential to earn money. Bitcoin miners are people who carry out this activity.[Ref.]
An online Exchange is required for buying and selling of cryptocurrencies
Bitcoin may be exchanged on a cryptocurrency exchange or between people through a trading platform. BTC is the currency's symbol.[Ref.]
Bitcoin and other cryptocurrencies, such as Tether, Ripple, and Ethereum, may be stored in electronic wallets, mobile applications, and desktop computers.[Ref.]
Each crypto wallet has its own address.[Ref.]
Consider utilising Electrum for desktop storage of your Bitcoin.[Ref.]
Easypaisa, a platform that enables clients to purchase and sell Bitcoins online, should be approved by firms such as Paxful.[Ref.]
Bitcoin and other cryptocurrencies may be exchanged via Forex brokers and cryptocurrency exchanges.[Ref.]
Cryptocurrency may be traded on margin (leverage) online by opening an account with a broker.[Ref.]
Bitcoin leads the cryptocurrency market in terms of daily trading volume.[Ref.]
Bitcoin and other cryptocurrencies should be traded using any reputable currency broker.[Ref.]
The rapid price changes (volatility) of Bitcoin make everyday trading even more challenging.[Ref.]
Only very adept day traders and hedge fund managers with decades of expertise may make between 1% and 2% in crypto trading.[Ref.]
Forex firms seldom provide leverage of 100:1 to 200:1 on cryptocurrencies. Thus, the bulk of bitcoin forex brokers unquestionably provide good leverage. Bitcoin, on average, attracts the highest leveraged liquidity.[Ref.]
Cryptocurrency apps may be downloaded via Google Play and the Apple App Store. Be careful as many trading apps aren't safe.[Ref.]
There is no official measurement,[Ref.] but based on the number of people who trade currencies online in Pakistan, the number of cryptocurrency investors in Pakistan is well over 2 lakh.
Bitcoin has been a strong buy and hold investment in recent years.[Ref.]
While numerous cryptocurrency exchanges initially allow Pakistani customers, almost all of them "deny" verification when it comes to processing client withdrawals. This is because their banks have enacted anti-money laundering regulations, discouraging them from doing business with Pakistan.[Ref.]
- Pakistani citizens will have verification challenges with the bulk of bitcoin exchanges situated in the United States and the United Kingdom. The next natural step is to open an account with a Hong Kong or Russian-based cryptocurrency exchange. You may also acquire cryptocurrencies directly from other Pakistanis and credit them using local banks, cash, or face-to-face meetings.
- Utilise Paxful[Ref.] (which is somewhat more expensive, but allows for the buying and sale of BTC through Easypaisa and bank transfer). To be really honest, any reputable peer-to-peer bitcoin website should perform.
The State Bank of Pakistan has urged commercial banks in the country to follow the FATF's anti-money laundering rules when it comes to bitcoin.[Ref.]
As a consequence, cryptocurrency exchanges such as Binance may not accept your Visa or Mastercard debit card.[Ref.] To fund your Binance account, you may either use a different payment method or open an account with another cryptocurrency trading business.
Pakistan has been added to the list of countries with limited or no-service by LocalBitcoins.com.[Ref.]
- Even if they allow you to enrol using their website form, there is a minimal possibility you will be granted an exception to their nonsensical verification methods. LocalBitcoins.com is headquartered in Finland, a country with severe money-transfer regulations, which makes this service inaccessible to Pakistan and other like countries. The government is already in the process of establishing a cryptocurrency regulatory framework in the nation. It is legal to purchase and trade bitcoins and other virtual currencies.
According to the State Bank of Pakistan's Circular No. 03 of 2018, issued on April 6, 2018, Virtual Currencies (VCs) such as Bitcoin, Litecoin, Pakcoin, OneCoin, DasCoin, and Pay Diamond, as well as Initial Coin Offerings (ICO) tokens, are not legal tender and thus are not guaranteed by the government.[Ref.]
Former State Bank governor, Reza Baqir, claimed in an April 2021 interview with CNN that the SBP was researching digital currencies (including Bitcoin) and carefully tracking China's actions in this area.[Ref.] Yes, efforts are being undertaken to provide a framework for Bitcoin and other digital currencies to be integrated into Pakistan's financial system.
The Sindh High Court (SHC) has also ordered the Pakistani government to legalise cryptocurrency.[Ref.]
In recent years, a few instances of the FIA harassing or arresting Pakistani individuals interested in acquiring, selling, or mining Bitcoin have been published in local periodicals. This has now come to an end, with the Sindh High Court ordering the FIA to discontinue its pursuit of Bitcoin and other digital currency miners.[Ref.]
Banks in Pakistan are prohibited from acquiring or selling Bitcoin or other cryptocurrencies until the government establishes a comprehensive regulatory framework.[Ref.] Pakistan's government is working on a cryptocurrency legislation that would make virtual currencies completely legal in the country.[Ref.] At the moment, no date has been set for the implementation of this policy.
There are no restrictions on acquiring and storing Bitcoin (BTC) or other cryptocurrencies on your computer.[Ref.] Everything is a fabrication of one's mind. If you are a prudent investor who understands your investment strategy, the government is unconcerned.
In Pakistan, the Khyber Pakhtunkhwa government is even planning to establish two hydroelectric-powered bitcoin mining farms.[Ref.] As a consequence, the opportunity to benefit from cryptocurrencies is tremendous.
If you reside in Pakistan, you should be able to trade all popular crypto pairings using Binance's trading platform, including BTC/USD, ETH/USD, LTC/USD, and XRP/USD.[Ref.]
At the time, Coinbase does not accept customers from Pakistan.[Ref.]
- They do accept Indian consumers, though, and it is only a matter of time until they admit Pakistani clients.
- Pakistan is on the FATF's grey list due to heightened concerns about money laundering activities, which prevents American Bitcoin Exchanges from selling bitcoin services in the country.
Forex Market Size
Forex is the largest market in terms of volume.[Ref.]
Foreign currency trading activity averages $5.09 trillion per day, according to the Triennial Central Bank Survey of Foreign Exchange and OTC Derivatives Market Activity.[Ref.]
The scope of trading forex online in Pakistan
- The Foreign Exchange Market determines currency exchange rates.[Ref.] Pakistanis who do business on these platforms do so in monetary terms. Before trading in the financial markets, a brokerage account must be opened.
- Forex trading is more challenging than stock trading because currency prices vary considerably more quickly and widely than stock prices.[Ref.] Equities are recommended for long-term rewards spread over five to ten years.[Ref.]
- Between 2 p.m. and 2 a.m., when Asian, European, and American markets open, is the optimal period to trade forex in Pakistan.[Ref.]
- While there are a few forex training institutes in Lahore, Karachi, Islamabad, and Multan, the majority of forex trading classes are available online and for free at sites such as Babypips.com.
- Another fantastic source for in-depth information is ForexFactory.com. Numerous websites and YouTube videos about forex trading are accessible in Urdu. Please Google the term "Forex Trading in Urdu" to have a better understanding of this subject.[Ref.]
Numerous Pakistanis do research and pose queries on websites such as Quora and Reddit on forex and bitcoin trading.[Ref.]
Trading in every market, whether forex, bonds, stocks, CFDs, or even cryptocurrencies such as bitcoin, requires the mastery of specific competencies. To enable the counterparty to earn a substantial profit, the majority of market participants must lose money.[Ref.]
While online trading may be advantageous, it requires a person to go in daily and trade a "live real account" for at least two months before expecting to gain money. With patience and work, anybody can become a skilled forex and bitcoin trader and increase their forex and bitcoin profits.[Ref.] Experts advise against the use of demo accounts,[Ref.] as they do not accurately reflect the forex and bitcoin markets' dynamics.
Trading the financial markets is usually associated with gambling, due to the volatile nature of price movements, especially on news days.[Ref.]
If you withdraw your earnings from forex, bitcoin, or stock trading by international bank wire transfer from outside the country, you will not be taxed, since overseas remittances are tax-free.[Ref.]
However, withdrawals made inside Pakistan in PKR are subject to a 5% Capital Gains Tax (CGT) rate for Active Taxpayer List (ATL) investors and a 10% CGT rate for non-ATL investors.[Ref.]
Lahore, Karachi, and Islamabad are home to the lion's share of Pakistan's merchants and investors. Other cities in Punjab, KPK, Sindh, and Baluchistan (Quetta) are growing quickly, though. Forex trading is very popular in Faisalabad, Rawalpindi, Gujranwala, Peshawar, Multan, and Hyderabad, as well as in Attock, Abbottabad, Murree, Bahawalpur, Sargodha, Sialkot, Sukkur, Jhang, Larkana, Dera Ghazi Khan, Shekhupura, Kasur, Rahim Yar Khan, Gujrat, Mardan, Sahiwal, Okara, Up to Rs. 50,000 should be sufficient for the majority of trading platforms. Simply choose a currency pair or Bitcoin, choose the position size, and trade.
Regulation of Forex Trading in Pakistan
According to State Bank of Pakistan rules, foreign currency may be physically transferred and transacted by banks and money changers.[Ref.]
Pakistanis are not prohibited by law from participating in online foreign exchange trading.[Ref.]
The State Bank of Pakistan monitors physical currency transactions; however, because to the OTC nature of foreign exchange investment, there is no structure in place to oversee FX investment-related activities.[Ref.]
The Pakistan Mercantile Exchange Limited regulates futures trading in Pakistan (PMEX). Members of the PMEX are now legally authorised to provide trading products in gold, silver, crude oil WTI, commodities, American index futures (S&P 500, NASDAQ 100), and currencies (CHF/PKR, EUR/PKR, GBP/PKR, and JPY/PKR).[Ref.]
Forex Trading in Islam
Forex trading is totally permitted (Halal) in Islam (in both Sunni and Shia sects). Online forex trading is not forbidden.[Ref.]
There is no fatwa that prohibits cash transactions or foreign exchange trading. Islam permits currency trading.
Transferring money through banks is comparable to FX trading.[Ref.]
Thousands of Pakistanis working in the Middle East (Saudi Arabia, the United Arab Emirates, Qatar, Kuwait, Bahrain, and Oman) send millions of Dirhams and Riyals home each year.[Ref.] They are all physically involved in forex trading through foreign exchange dealers (who are really brokers) and banks. Over 500,000 of the country's approximately 220 million citizens are estimated to have an online trading account or to have traded online in the preceding year, either independently or via investment managers.
Forex Trading Types
Foreign exchange trading may be carried out in a number of methods, including the following:
Spot: The most common kind of cash transaction, which settles in two days or less (save for US dollars, Canadian dollars, Turkish liras, euros, and Russian rubles, which settle the following business day).[Ref.] This is a two-party transaction in which there is generally no interest charged. A broker charges a fee for arranging deals between parties. When a foreign exchange position is kept overnight, the broker initiates a similar transaction and assesses a swap fee. The majority of MT4 brokers provide spot FX and bitcoin trading platforms.
A forward contract[Ref.] is a kind of forex trading that is often employed by big investors. It involves agreeing on an exchange rate and then swapping currencies at a later date. This allows investors to get a currency at a discounted rate or to save money on other transactional fees.
Non-deliverable forward contracts (NDFs)[Ref.]: Forex brokers, banks, ECNs, and prime brokers all employ NDF contracts. Except for its future value, the money is not conveyed in this manner. To save money on interest, two parties may temporarily switch currencies with the purpose of undoing the transaction at a later date. These forms of currency trading operations are typically conducted by large importers and exporters.
Currency options are used to protect against or speculate on foreign exchange risks.[Ref.] FX options are derivatives in which the owner has the choice, but not the obligation, to convert money denominated in one currency into another currency at a pre-agreed exchange rate on a certain date. While they are risky, FX options offer the highest liquidity when compared to other typical stock option markets.[Ref.]
Binary options are all-or-nothing bets that may be used for market trading.[Ref.]
- Numerous companies provide online trading using a binary options platform. There is always a risk of losing money in the financial markets. This is true for all asset classes, including binary options.[Ref.] If this is your first time trading this sort of stock, you should get direct counsel from your brokerage company.
Numerous forex and bitcoin brokers offer deposits as little as $1; however, for significant returns, a minimum investment of $100 is recommended.[Ref.]
Numerous brokers have comparable minimums in place for traders from India, Pakistan, and Bangladesh. Pakistani forex dealers trade the EURUSD currency pair the most often. Forex and bitcoin forums are wonderful resources for gaining knowledge about trading and investing.
Forex Factory[Ref.] is a pretty well-known in Pakistan. Because the majority of Forex Factory forum members are inexperienced forex and cryptocurrency traders, blindly trusting them is not a wise move. It is a community of individuals who benefit from one another by exchanging ideas, the latest forex robots and signals, and sharing information on news breakouts and popular trading strategies.
Forex Trading Account Types
Forex broker accounts come in a range of forms and sizes.[Ref.]
- Customers may trade and invest in key currency pairs such as EURUSD, GBPUSD, USDJPY, and USDCHF, as well as cryptocurrencies such as Bitcoin, XRP, and Ethereum, using these FX accounts.
- Through transactions with top-tier banks, dark pools, and other middlemen, these accounts allow direct access to prime liquidity.[Ref.] Furthermore, there is no commission. Everything is considerably better now that the majority of brokers provide ECN accounts.
Direct Dealing Desk Accounts[Ref.]: Large banks and high-touch prime brokers utilise direct dealing desk accounts to manually process currency orders. A number of brokers, foreign currency exchanges, and banks provide dealing desk order executions.
Straight-Through Processing (STP) Accounts[Ref.]: Orders placed via these accounts bypass the currency dealing rooms and are directed straight to the bank without human intervention.
Standard Accounts[Ref.]: The majority of brokers provide standard accounts that need a minimum order of 100,000 units of a currency.
Mini Accounts[Ref.]: These account types enable traders to place orders for a currency in increments of 10,000 units.
Micro Accounts[Ref.]: Traders may use this kind of account to purchase and sell currencies in increments of 1000. Cent Accounts: Traders may use this kind of account to buy and sell currencies in 100-unit increments.
The Zero Account[Ref.] should not be confused with an ECN account[Ref.], which normally charges a pip fee of about 0.1 pips. A zero balance account incurs no commission fees. The broker adjusts its fee based on the total value of the currency order. On a zero account, each forex transaction costs 0 pip.
PAMM Accounts[Ref.]: These broker accounts allow customers to connect their deposited funds to another trader on the network, who then manages both his or her own funds and the funds of the investors. Foreign exchange (FX) brokers often use PAMM accounts. PAMM is an abbreviation that refers to a module for managing percent allocations. At times, it is referred to as % allocation money management. These accounts are considered as a more cost-effective alternative to hedge funds, which may accept only very wealthy individuals and institutions as customers.
- Forex traders and investors who utilise PAMM accounts have the option of deactivating and reactivating PAMM managers, as well as allocating various amounts to different management providers, in order to get better control over their overall portfolio and exposure in the foreign exchange markets.[Ref.]
- In contrast to hedge funds, PAMM accounts keep the money in the broker's legal possession. Investors have real-time access to their account balances, which show the total number of transactions done in their accounts as well as their wins and losses; this is an attractive feature that is not available when investing in conventional hedge funds, mutual funds, or index funds.
- Online forex or bitcoin trading accounts may be opened for as little as $10, $25, $100, $250, $1000, or $5,000, depending on the broker.
- VIP account holders may deposit $50,000 USD or more.
- While the majority of people begin with a $25 deposit (Rs. 4000 PKR At Rs.160 per dollar), the average three-month (90-day) deposit from Pakistan is Rs. 2 lakhs per person.
Best Websites for Cryptocurrency Price Charts, Market Cap and News
- Coinmarketcap.com, Coindesk.com, Cointelegraph.com, CCN.com, FXStreet.com, TradingView.com, Bitcoinist.com, Bitcoinprice.com, and Smartereum.com are good websites to check for the latest quoted prices (value of cryptocurrency), interactive technical charts, total market capitalization data, and latest breaking news.
Online Trading Books Guide
Here is the list (download their PDF online) of good books on online trading:[Ref.]
- Infographical Forex: Complex Forex Concepts and Strategies Simplified with ... Book by Salman Shariff
- The Currency Trader's Handbook Book by Rob Booker
- International finance Textbook by Piet Sercu
- FX Options and Structured Products Book by Uwe Wystup
- Getting Started in Currency Trading Book by Michael Archer
- Forex Conquered: High Probability Systems and Strategies for Active Traders Book by John L. Person
- Technical Analysis of the Currency Market: Classic Techniques for Profiting ... Book by Boris Schlossberg
- Forex Made Easy Book by James Dicks
- Turning Losing Forex Trades Into Winners: Proven Techniques to Reverse ...Book by Gerald E. Greene
- Inside the Currency Market: Mechanics, Valuation and Strategies Book by Brian Twomey
- Among the pioneers of analytical approaches were Charles Dow, Ralph Nelson Elliott, William Delbert Gann, and Richard Wyckoff.[Ref.]
Forex indicators are not the only tool available for profiting in the market. They may, however, aid a trader in determining whether or not to initiate a trade based on the prior price performance of the presented asset on the chart. Forex indicators should be used in combination with price action trading approaches to produce the best results.[Ref.]
Head and shoulders, double top/bottom, technical indicators, moving averages, flags, pennants, balance days, and cup and handle are all popular trading patterns.[Ref.] Forex and Bitcoin traders may utilise these price patterns to begin and exit transactions. To develop proficiency in forex day trading, novices must comprehend the breakout, moving average crossover, range, and trend trading strategies.
Numerous popular technical analysis-based forex trading strategies use moving averages, relative strength indices, and MACD, as well as put/call ratios, bull/bear ratios, short interest, and implied volatility.[Ref.]
Elliott wave theory may be used to foreign exchange trading by traders with considerable competence.[Ref.] This is crucial to understand because even the best trading systems may fail if a trader fails to monitor position size and trade entry time.
All technical ideas include the average real range, breakout, chart pattern, cycles, dead cat bounce, Elliott wave theory and the golden ratio, momentum, point and figure analysis, resistance, support, and trends.
Candlestick charts, line charts, open-high-low-close charts, OHLC charts, and point-and-figure charts are all examples of chart types.[Ref.]
Some of the overlays are Bollinger bands, Channel, Ichimoku kinko hyo, Moving average, Parabolic SAR Wilder's, Pivot point, Resistance, Support, Trend line, and Zig Zag.[Ref.]
Similarly, some traders combine MACD and the Average Directional Index, MACD and the Super Trend, MACD and the Moving Average, MACD and the RSI, and MACD and Moving Averages.[Ref.]
Three breadth indicators are the advance decline line, the McClellan Oscillator, and the McClellan Summation Index.[Ref.]
The Average Directional Index (ADX), the Commodity Channel Index (CCI), the MACD moving average convergence/divergence (MACD) indicator, Momentum, the Relative Strength Index (RSI) oscillator, the Relative Vigor Index (RVI), the Stochastic oscillator, and Trix are all price-based indicators.[Ref.]
Volume-based indicators include the accumulation/distribution index, money flow, and on-balance volume.[Ref.]
Forex traders should also familiarise themselves with issues such as algorithmic trading[Ref.], behavioural finance, Chartered Market Technician, financial signal processing, market research and timing, mathematical finance, overfitting, price action trading, and the Texas sharpshooter fallacy.
This enables a more passive approach to currency research via the examination of GDP, retail sales, monetary policy, interest rates, and employment data.
Financial papers such as balance sheets, income statements, and cash flows are critical for basic stock market analysis.[Ref.]
Forex traders that are successful use a blend of fundamental and technical analysis.[Ref.]
Traders interested in gaining a better understanding of fundamental analysis should read about the following topics: balance of trade, currency codes, currency strength, foreign currency mortgage, foreign exchange controls, foreign exchange hedge, foreign exchange reserves, foreign exchange derivative, money market, nonfarm payrolls, and Tobin tax.
Derivatives, Leads and lags (derivative of credit) Futures exchange-traded fund (hybrid security) Value of a bond, corporate bond, government bond Contingent income High-yield debt Municipal responsibilities, Securitization.[Ref.] The words currency band and exchange rate are sometimes used interchangeably.
Auto trading (Auto Trading Robots) is a term that refers to when a computer programme automatically trades on an investor's behalf.[Ref.]
The words "auto trading scripts" and "auto trading robots" refer to the same thing. Numerous internet brokers provide automated trading. Another word for trading robots is expert advisors (EA). Investors may download and activate forex EAs using the MetaTrader 4 (MT4 EA) and MetaTrader 5 (MT5 EA) trading platforms to automate order executions based on recognised technical or proprietary trading approaches. MQL4 and MQL5 are the programming languages used to develop Expert Advisors for MetaQuotes' MT4 and MT5 platforms, respectively.[Ref.]
MQL4 and MQL5 are programming languages for creating trading robots, technical market indicators, scripts, and function libraries in MetaTrader.[Ref.]
- EAs for MetaTrader 4 or MetaTrader 5 may be built online for free or for a fee (MT4 Programming Service).
List: Popular websites for creating MT4 Expert Advisors include:
Numerous brokers have their own custom-built trading platform and provide free auto trading robots to their customers.
Algorithmic trading is similar to automated trading in that the forex software uses techniques to break large orders into smaller chunks to account for time, price, and volume. To keep markets lucrative, high frequency traders (HFT) depend on complicated algorithms.[Ref.]
Forex trading robots are capable of trading both conventional currencies (such as EUR/USD, GBP/USD, and others) and e-currencies (Bitcoin, Ethereum etc.). While the majority of forex EAs and auto trading robots promise to generate profits immediately for home traders, the majority of these auto trading scripts really lose money over time (six months to a year).
Social trading, sometimes referred to as copy trading/mirror trading, allows investors to automatically follow, share, and replicate the trading techniques of professional traders.[Ref.]
They are ideal for newcomers to forex trading or those who want a managed FX account.
Here is the list of best social trading sites on the internet:
Trading Signals and Forecasts
Trading signals are recommendations and predictions for buy and sell positions issued by expert traders or automated trading programmes.[Ref.]
Subscribers to trading groups on whatsapp, instagram, facebook, twitter, telegram, and linkedin may get buy and sell signals. To receive live forex and bitcoin trading signals programmes for iPhone and Android, please explore and search the app store and play store.
Here is the list of best free and paid forex and crypto signal providers:
Trading Software Platforms
Forex and bitcoin are traded on a trading platform that may be accessed by desktop software, a web-based terminal, or a mobile application.[Ref.]
Numerous well-known brokers have their own proprietary trading software platform built inside their platform. Forex and bitcoin retail traders use platforms such as MetaTrader 4, MetaTrader 5, and cTrader.
- The Metatrader platform is well-known since it was the first company to provide software capable of trading the foreign exchange market without needing brokers to make significant software development investments. Thousands of forex traders rapidly adopted it, and it eventually became an industry standard.
MetaQuotes has formed a strategic partnership with the Pakistan Mercantile Exchange.[Ref.] This means that PMEX-licensed brokers may also provide the MetaTrader 4 and MetaTrader 5 trading platforms.
- Please pay a visit to the offices of PMEX-member brokers to verify their identity. MetaQuotes operates in the following countries: Russia, Cyprus, China, Singapore, Australia, Turkey, the United Arab Emirates, Pakistan, Thailand, and Japan. Russia was the starting point.[Ref.]
A trading platform is necessary for order execution, technical and fundamental analysis, deposits and withdrawals, historical price charts, interactive charting, and other financial instruments.
Here is the list of a few popular trading platforms:
Speculation in Forex Trading
Speculators may have a positive or negative effect on currency markets.[Ref.]
- Their helpful function in financial markets includes liquidity provision. Speculators may worsen market bubbles.[Ref.]
- Excessive purchase of a financial instrument may result in erroneous price movements, which can result in market crashes and financial losses for novice investors.
Currency Market Mechanics
Forex market volatility may occur for a number of causes, including monetary outflows, GDP growth, inflation fears, and black swan occurrences.[Ref.]
Market psychology is a subfield of behavioural economics that has the potential to have a substantial effect on currency prices.[Ref.]
Flight to quality; business cycles; purchase the rumour, sell the truth; economic data; and even short-term technical trading conducted by millions of day traders worldwide all play a role.
Forex Trading Regulators
In Pakistan; the SECP and PMEX are responsible for local brokers, and no foreign forex broker is generally allowed to offer services to Pakistanis, without first registering with the government.[Ref.] The banks are regulated by the State Bank of Pakistan.[Ref.]
Forex Trading Account Deposits and Withdrawals
Numerous deposit and withdrawal methods are available through a broker, including Visa, Mastercard, Neteller, Skrill (Moneybookers), Cryptocurrencies (Bitcoin BTC), UnionPay Debit Card, Perfect Money PM, and Bank Transfer.[Ref.]
Numerous online trading brokers accept Jazz cash, Easypaisa, UPaisa, and UBL Omini.
- Click on the withdraw funds button inside your trading account control panel.
- Enter banking or ewallet details and press process.
- The broker would then send your funds into your bank account or an ewallet.
Before funds may be withdrawn, brokers need an account to be validated (scan of ID card, proof of address).[Ref.]
Some forex and bitcoin brokers may provide the option to send money straight to your debit or credit card. The money may then be withdrawn immediately from your card using an ATM.
Forex Trading Account Verification
The majority of brokers, or at least those that are regulated, demand identification from all customers.[Ref.]
- While some online brokers may allow customers to open accounts without verification, they will still need proof of identification when cashing out. Simply said, it is quite rare to find an online broker willing to open an account for forex or cryptocurrency trading without first verifying your personal identification.
To verify an account, a client must submit a scanned copy of his or her NADRA National Identification Card or Passport, as well as proof of address (Bank Statement, Utility Bill).
There are few licenced, reputable forex brokers that will give no-verification free deposit bonuses on new accounts; for example, a legitimate phone number or email address will still be required to activate the bonus.
Managed Forex Trading Accounts
- A managed forex account is a kind of foreign exchange (FX) account in which professional money managers trade the client's deposited monies.[Ref.]
- Forex Hedge Funds are a popular sort of money management service that trading experts provide.
- These money managers charge a fee ranging from 20% to 50% of total earnings, which is determined on a high-water mark, guaranteeing that the fee is paid on profits only.
Managed forex funds attract a high incidence of fraud.[Ref.] Investors should only trust their money to recognised and licenced trading professionals.
- Due to the fact that managed foreign exchange funds are unregulated in Pakistan, investors must take care (background checks, references).
- Investing in such funds should be avoided unless they are regulated by the State Bank of Pakistan or the Securities and Exchange Commission of Pakistan (SECP).
- To get a full list of Pakistan's regulated investment funds, see the Mutual Funds Association of Pakistan's website (MUFAP).[Ref.]
Best Sites for Daily Forex Trading Rates in Pakistan
- Forex.com.pk and Forex.pk are two good options to check the latest daily open market forex trading rates in Pakistan.
- Nowadays, Tresmark's[Ref.] treasury markets platform and their Google Playstore and Appstore apps are another good alternative for getting the daily PKR/USD interbank rates; considering this company is frequently quoted in the news media.[Ref.]
Richest and the Most Successful Traders
Contracts for Difference CFDs
Contracts for Difference (CFDs) are offered by all forex brokers online (CFDs).[Ref.]
CFDs vs. Forex: CFDs are used to trade a variety of financial markets, including corporate stocks, indices, energy (oil, gas), and metals (gold, silver), while forex is used only to trade currencies.[Ref.]
For 80% of ordinary investor accounts, trading CFDs results in a loss of cash.[Ref.]
Here is the list of CFD brokers that can accept Pakistani clients:
CFD vs Stock Trading[Ref.]: The primary contrast is that when an investor trades a CFD, he or she does not own the underlying asset but only wagers on its direction, while in a traditional stock purchase transaction, the trader entirely owns the underlying asset.
Forex Brokerage Industry News and Opinions
This section lists the best websites to read news about forex and crypto brokers:
Pakistan Mercantile Exchange Limited (PMEX)
PMEX commenced its operations in 2007 after being founded in 2002.[Ref.]
- It is Pakistan's first demutualized commodities futures exchange and is regulated by the Pakistan Securities and Exchange Commission (SECP).
- PMEX is owned by the National Bank of Pakistan Limited (33.98 percent), the Pakistan Stock Exchange Limited (28.41 percent), ISE Towers REIT Management Limited (17.76 percent), the London Stock Exchange Financial Services Limited (7.25 percent), Pak Brunei Investment Company Limited (6.80 percent), Zarai Taraqiati Bank Limited (2.90 percent), and Individuals (0.0001 percent).
- It is a member of the Association of Futures Markets (AFM) and the Futures Industry Association (FIA), and has strategic relationships with Borsa Istanbul, the Izmir Commodity Exchange (ICE), the Dubai Gold & Commodities Exchange (DGCX), the Iran Mercantile Exchange (IME), the Dalian Commodity Exchange (DCE), and the Belarusian Universal Commodity Exchange (BUCX).
Review: PMEX's MetaTrader MT4 and MT5 trading platforms are Shariah-compliant.
- Most PMEX brokers need a minimum deposit of Rs. 25,000 to open a new account.
- Entrepreneurs interested in starting a commodities brokerage company in Pakistan that will be regulated by the PMEX may contact them through email. You may discover an up-to-date list of all regulated PMEX brokers operating in Pakistan on their official website.
International Regulatory Bodies
Numerous Forex, cryptocurrency, CFDs, and stock brokers are licenced by regulatory authorities in various nations.[Ref.]
- For instance, a forex broker with a physical presence in Cyprus may be regulated by the Financial Services Commission (FSC), which oversees financial service firms both inside and outside Mauritius. This is perfectly natural and lawful.
The following is a comprehensive list of all known regulatory bodies that regulate trading and investing operations in Forex, Crypto, CFDs, and Stocks for both domestic and international brokers:
- ASIC – Australian Securities and Investments Commission
- BaFIN – The Bundesanstalt für Finanzdienstleistungsaufsicht Germany
- CFTC – Commodities and Futures Trading Commission United States
- CySec – Cyprus Securities and Exchange Commission - Majority of online forex brokers are regulated by the CySec
- FCA – Financial Conduct Authority United Kingdom
- FINMA – Swiss Financial Market Supervisory Authority
- FMA – Financial Market Authority Austria
- FSA – Financial Services Agency Japan
- FSB – Financial Services Board South Africa
- Financial Services Commission BVI
- Financial Services Commission (FSC) Mauritius
- IFSC – International Financial Services Commission Belize
- FSP NZ – New Zealand Financial Service Provider
- ISA – Israel Securities Authority
- MFSA – Malta Financial Services Authority
- SEBI – Securities and Exchange Board of India
- VFSC – Vanuatu Financial Services Commission
- UAE – Abu Dhabi Central Bank
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Written by Arishfa Khan
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About Forex Brokers Pakistan
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- This website is self-contained and is not affiliated with organisations such as the PSX, PMEX, SECP, or SBP, either directly or indirectly.
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- This website does provide sponsored evaluations of prominent brokers for which it is rewarded financially, and as such, may favour one firm over another.
- Forex Brokers PK disclaims all explicit or implied liability for losses incurred as a result of trading and investment products provided by brokers mentioned on this website. Investors and traders are urged to seek legal representation in incidents involving forex and cryptocurrency scams.
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Investment Disclaimer: Forex, stocks, cryptocurrencies, contracts for difference (CFDs), real estate investment trusts (REITs), notes, and bonds, as well as derivatives such as futures, forwards, options, and swaps - all involve inherent risks. Trading online is not for everyone. A full loss of invested funds is not uncommon, particularly in short-term trading. It is strongly advised that you use your discretionary money.