Forex Brokers PK

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Review: 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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Review: 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:

  1. Olymp Trade

    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.
  2. Forex.com

    Popular on Google but overall it's about average. There are much better brokers out there nowadays.
  3. Askari Securities

    This broker is owned by Askari Bank, one of the top banking institutions in Pakistan. Located at Office # 512, 5th Floor, ISE Towers 55 B, Jinnah Avenue Islamabad Pakistan. Telephone: + 92 51 2894521 – 3. It is one of the investment houses in Pakistan's capital market that is expanding at one of the quickest rates. They provide a wide variety of investment services to individual and institutional customers.
  4. JS Global Capital

    This brokerage is operated by JS Bank. Located at Room # 634, 6th Floor, Stock Exchange Building, Stock Exchange Road, Karachi. Phone: (+92-21) 32427461. It is one of the largest Securities Broking and Investment Banking organizations in Pakistan. The company acts as a broker for over 8,000 clients both locally and internationally and has 20 equities dealers that are exclusively devoted to the company.
  5. ADSS

    Located in Abu Dhabi and has a license from Central Bank of the UAE. CNBC, Bloomberg, and CNBC Arabiya are among the networks on which it offers analyses of international investment markets.
  6. Dukascopy Bank

    Swiss bank and broker. Usually good for very rich investors. Customers of the bank are able to make purchases of blockchain-based cryptocurrency assets while while keeping their fiat cash secure within their Dukascopy MCA account.
  7. AKD Securities

    This brokerage company is owned by Mr. Aqeel Karim Dhedhi; one of the leading investment gurus in Pakistan. Corporate Office located at 602, Continental Trade Centre, Clifton Block 8, Karachi, Pakistan. UAN: +92 111-253-111. It is a well-known and dynamic business conglomerate that operates in key sectors of Pakistan's economy, including securities brokerage, investment banking, venture capital, private equity, telecoms, real estate development, oil and gas exploration, and asset management. These are just some of the businesses that the AKD Group is involved in.
  8. CMC Markets

    Nothing special about them, other than the fact they are located in London and can take clients from Pakistan.
  9. Arif Habib Commodities

    This broker is also a PMEX market maker, which means it's a leading player in the country. Located at 60, Karachi Stock Exchange Building, Stock Exchange Road, Karachi - 74000 Phone: +92 21 32460734, 32461104, 32462512, 32462598.
  10. Binance

    For crypto-trading lovers. Also serves as a Bitcoin exchange. Promotion for New Users of Binance's P2P Service in Pakistan. In order to be eligible for any benefits, each user is needed to finish going through the KYC process.
  11. KuCoin

    A cryptocurrency exchange and NFT Marketplace that accepts Pakistanis. At least for now. They also got good tutorials on cryptocurrencies.
  12. BIPL Securities

    One of the few brokers that offers interbank forex trading facility and is also a member of PMEX. Located at PSX Karachi, Room No. 93, 94, 95, 2nd Floor, Pakistan Stock Exchange Building, Stock Exchange Road. TEL: +92 21 3241 2910.
  13. Pepperstone

    Australian broker that provides online trading platform to both the newbies and advanced traders.
  14. Topline Securities

    Their analysts are frequently quoted in the print and electronic media. Located at 8th Floor, Horizon Tower, Plot # 2/6 Block-3, Clifton, Karachi +9221-35303330-2.
  15. IC Markets

    From Australia but accept clients from all over the world. They also do a lot of Live Trading Webinars.
  16. IQ Option (IQ Broker)

    One of the popular ones out there but may not very reliable when it comes to withdrawal of funds in Pakistan. Their trading platform is just about OK.
  17. FxPro

    They sponsor a lot of football tournaments to market their trading platform, and have been around a while.
  18. Saxo Bank

    Danish bank that can take forex trading clients from all over the world. You will have deposit large sums of money with them before you can begin trading.
  19. BMA Capital

    Foreign investment companies open accounts at this broker for trading in PSX. So, it's good for high-net-worth Pakistanis as well. Located at Unitower, Level 8, I.I Chundriger Road, Karachi. 74000 Pakistan UAN: (021) 111 262 111.
  20. Tickmill

    They have been around for a while, but only have started expanding around the world in the last 5 years. They can take clients from Pakistan.
  21. AZEE Securities

    They are quite a professional broker and good for trading PSX stocks. Headquarters located at Suite # 208 2nd floor, Business & Finance Centre, Main I.I. Chundrigar Road, Karachi, Pakistan. Phone: 111-293-293.
  22. HYCM

    Known as Henyep Capital Markets; this broker has been in business since 1977, and is regulated by Dubai Financial Services Authority.
  23. Intermarket Securities

    This broker frequently wins the Best Local Brokerage award or ASIAMONEY award for its high quality services. Facility to trade the PSX stocks, institutional sales trading, as well as provision for investments in the international financial markets makes this broker a good choice for both beginner and professional investors living in Pakistan. It currently holds a long-term credit rating of A-, which was raised from BBB+; which means that Intermarket securities has healthy levels of cash holdings in its coffers, with very low chances of defaulting on its coporate debt.
  24. Expert Option (EO Broker)

    I would avoid it even though it seems to be popular in Pakistan. There are many reasons for not signing up with them, but the major is them being basically an Indian-origin company; which means that sooner or later, the SBP and the PTA would block their app and website in the country.

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.

The brokers listed on this web page have also been evaluated by Pakistani Reddit, Quora, and Trustpilot users.

Review: Forex and Cryptocurrency Scams in Pakistan

Remember these important points:

Review: Most investment schemes on the internet are scams - plain and simple

Reports show scammers cashing in on crypto craze

Almost 99 percent of all Forex, Bitcoin, and Ethereum internet investment opportunities in Pakistan, and even outside, are a hoax.[Ref.]

Review: Learning how to trade successfully can take a lot of time and effort

How to Make Money with Cryptocurrency

There is no easy method to make money in the foreign exchange or cryptocurrency markets. It takes years to get proficient at it.[Ref.]

Review: Pakistani investors should visit JamaPunji.pk for advice

The idea behind the creation of Jamapunji is to equip the general public with skills and knowledge to make informed financial decisions

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.]

Review: SECP has taken a good step to help new investors

Jamapunji is an Investor Education initiative of Securities and Exchange Commission of Pakistan

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.]

Review: Being registered with PMEX does not mean a broker wouldn't cheat its clients

PMEX annual fee

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.]

Review: Even the best traders and investors can't make more than 10% per year. Consider investing in Mutual Funds.

What Is the Average Mutual Fund Return on Investment

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.]

Review: The SECP has always warned the public to be careful with Ponzi investment schemes

Update on Action Against Unauthorised and Illegal Activities of so-called Forex and
Brokerage Companies

The SECP urges the general public to use common sense, and not become victims of financial investment fraud.[Ref.]

Review: Never invest with money you cannot afford to lose. Always use disposable money to put in the financial markets.

The Most Important Rule of Investing

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.

Review: Scams in Cryptocurrencies are very common

Common cryptocurrency scams and how to avoid them

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.

Review: Social Media isn't helping reduce the number of fraud investment schemes

Social Media Crypto Scams to Avoid

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.]

Review: The court system in Pakistan is weak and may not help an investor recover his or her lost funds

The Judicial System of Pakistan

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.]

Review: Consider investing in Mutual Funds and Pakistan Investment Bonds for secured returns

Pakistan Investment Bonds

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.]

Review: Broker Basics

A Broker serves an important role in the financial markets

What Is a Broker?

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.]

Review: Trading apps are very popular

Why are trading apps 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.]

Review: Banks play a role in Forex Trading all over the world

What Is Foreign Exchange (Forex)?

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.]

Review: The SBP has banned a lot of offshore forex brokers in Pakistan

Operations of Illegal Offshore Foreign Exchange Trading, Margin Trading, Contract for
Difference (CFD) Trading Websites Apps Platforms Outflow of Foreign Exchange

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.]

Review: Investors must register with the SBP and PMEX before offering Futures and Forex Trading in Pakistan

Brokers must register their brand names with both the Pakistan Securities and Exchange Commission and the Pakistan Mercantile Exchange

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.]

Review: Banning of many Trading apps in Pakistan does create problems with their accessibility

SBP bans trading platforms like OctaFX, Easy Forex

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.

Review: Commissions are important to sales agents working in brokerage houses

Three forms of commission are used by brokers in forex

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.]

Review: Give Demo-Practice Trading Accounts a Try Before Depositing Real Money

Are Demo Accounts an Indicator of Investing Skills?

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.]

Review: Dozens of Trading Apps are available for Pakistanis on Google Play and App Store

Most Popular Finance iPad Apps Ranking in Pakistan Similarweb

Trading apps are available on the Google Play and Apple App Stores.[Ref.]

Review: Liquidity is key in getting the right fills for your forex, crypto and stock orders

How FX brokers work - behind the scenes of order execution

Forex brokers are responsible for processing client orders and ensuring that there is sufficient liquidity for trading.[Ref.]

Review: Not all orders are filled by a broker and there are many reasons to it

Trading Order Rejection Reasons

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.]

Review: Your Broker is your Market Maker

Who Are Forex Market Makers

Forex brokers are authorised by law to act as market makers.[Ref.]

Review: Forex Brokers Making the Market is Legal and Allowed by Law

What Is a Market Maker?

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.]

Review: Learn the concepts around Market Making for a better understanding of the financial markets

What Is it to Make a Market?

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.]

Review: A Few Major Banks Control All of the World's Foreign Exchange Flows

Most of the total forex volume is transacted through about 10 banks

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.]

Review: Your Broker will nearly always take the other side your trade

Broker vs. Market Maker An Overview

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.]

Review: 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.

Review: Bid-Ask spreads are an important topic for every beginner trader to learn about

Bid-Ask Spread

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.]

Review: Brokers are not immune to losses. Your Win is their Loss.

How trading as a service unlocks opportunities for banks

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.]

Review: There are dozens of foreign forex brokers operating in Pakistan and the SBP does not like it one bit

SBP slams illegal forex trading platforms

According to an SECP investigation, Pakistan has hundreds of foreign-registered forex brokers.[Ref.]

Review: "Forex vs. Stock Trading: which one to go for?" is a question that is asked a lot

Forex Versus the Stock Market

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.]

Review: 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.]

Review: Do a background check on your broker on Review websites before opening an account

Brokers can be helpful, but make sure your money will be safe

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.]

Review: 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.

Review: Your Broker can close or suspend your Trading Account

ANTI-MONEY LAUNDERING AND COMBATING THE
FINANCING OF TERRORISM (AML CFT) REGULATIONS FOR BANKS & DFIs

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.]

Review: Super-Fast Withdrawals of Funds is the main reason you should choose a broker

Qualities That Make a Good Forex 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.]

Review: Trading in the financial markets is growing rapidly in Pakistan

UNREGULATED AND FORBIDDEN, CRYPTO STILL THRIVES IN PAKISTAN

Pakistan is a sizable market for forex brokers and cryptocurrency exchanges online.[Ref.]

Review: 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.

Review: Investing in stocks listed on the PSX has always yielded better results than Forex and Crypto Trading for Pakistanis

Pakistan Stock Exchange’s (PSX) commitment to make investing in the stock market a convenient process

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.

Review: PMEX offers licenses to those looking to open their own Forex and Futures Trading Brokerage House in Pakistan

Securities broker is a regulated securities activity under the Securities Act, 2015 and all securities brokers are required to be licensed with the SECP for offering brokerage services to the general public

Investors may apply to the Pakistan Mercantile Exchange for a licence to conduct forex brokerage services in Pakistan.[Ref.]

Review: Forex Meaning

What is Forex and why is it important?

Forex Trading: A Beginner’s Guide

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.]

Review: A currency is a kind of money that is used to purchase and sell goods and services.[Ref.]

Review: 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.]

Pakistani Rupee Exchange Rates Table

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.]

Review: Fiat Money is how the world commerce works nowadays

Fiat money

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.]

Review: 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.]

Review: Commodities are also a form of Money

Commodity Backed Money vs Fiat 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.]

Review: Forex Market is also traded Over-the-Counter

Over-the-Counter (OTC)

OTC stands for Over The Counter, and it refers to trades between two parties that take place outside of an exchange's oversight.[Ref.]

Review: A bourse is the main building where stocks, futures and options are traded

What Is a Bourse?

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.]

Review: Options are dangerous and mostly meant for professional traders and hedge funds

What Is a Call Option?

Options include stock options, bond options, stock market index options, futures options, and callable bull/bear contracts.[Ref.]

Review: Future Commodity Pricing Literally Depends on Futures Contracts

Commodity Markets

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.]

Review: Forex and Cryptocurrencies do not have clearing houses

What Is a Clearing House?

Forex trading is not facilitated by a clearing house.[Ref.]

Review: 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.]

Review: Interbank Trading is What Holds the World Commerce Together

Interbank Market

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.

Review: Foreign Exchange Trading has a lot of history attached to it

HISTORY OF FOREX TRADING: WHERE IT ALL BEGAN

Forex trading as we know it now started in the 1970s.[Ref.]

Review: 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.]

Review: 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.]

Review: Leverage can wipe out small retail trading accounts within minutes

How Leverage Works in the Forex Market

Due to the low profit margins in the forex markets, currency traders use leverage to improve their revenues.[Ref.]

Review: In finance, leverage refers to the use of borrowed funds to trade assets.[Ref.]

Review: 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.]

Review: Using margin is the main pillar of Forex Trading around the world

FX execution algorithms and market functioning

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.]

Review: Currencies are always traded against each other

Currency Pair

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.]

Review: Few Major Pairs Dominate The Foreign Exchange Market

What Are Major Pairs?

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.]

Review: All Major Currency Pairs have Nicknames

Currency Pair Nicknames Used by Pro Traders

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.]

Review: Learning the concept of PIP in Forex and Crypto Trading is Important

What Is a Pip?

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.]

Review: 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.

Review: Foreign Exchange Trading is Big Business

GLobal FX turnover

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.]

Review: Get the Basics of Forex and Crypto Units before Placing Live Market Orders

Lot Sizes Differences

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.]

Review: Day trading is extremely hard. Not for most people out there.

Day trading can turn out to be a lucrative career

Day trading is the practise of acquiring and selling currencies inside a single day.

Review: 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.]

Review: Financial Trading should never replace your regular job or business

Ways to Avoid Losing Money in Forex

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.]

Review: Scalping is where 90% of traders lose money. Don't try it.

Scalping is a trading style that specializes in profiting off of small price changes

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.]

Review: Front Running is popular among high-frequency trading hedge funds

What Is Front-Running?

Front running is a kind of trading in which financial assets are purchased and sold within milliseconds.[Ref.]

Review: Swing Trading is a little easier than Day Trading

What Is Swing 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.]

Review: It's generally a good idea to hold good stocks for longer periods of time

Value investing is a strategy where investors actively look to add stocks they believe have been undervalued by the market

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.]

Review: Momentum investing is also another good method to place trades in the financial markets

Spotting the trend and momentum comes in handy for a scalper who can even enter and exit briefly to repeat a pattern

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.]

Review: It requires a lot of experience to get used to your trade entries and exits

Many traders design strong exit strategies, but then don't follow through when the time comes to take action; the results can be devastating

You may exit a trade in minutes, at the end of the day, week, or month, depending on your trading style and experience.[Ref.]

Review: RSI is used a lot by thousands of traders and investors for optimum trading entries

The relative strength index (RSI) is a momentum indicator that evaluates overbought or oversold conditions by measuring the magnitude of recent price changes for various assets

The relative strength index (RSI) is a common indicator for intraday charting. To initiate a trade, traders look for oversold or overbought conditions.[Ref.]

Review: Cryptocurrency Trading

Bitcoin just like many other cryptocurrencies is digital i.e., stored in computers

What is bitcoin and how does it work?

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.]

Review: Pakistan is hesitant to bring in cryptocurrency laws

notice of Securities and Exchange Commission of Pakistan (SECP) that some persons, companies or entities are offering investment in cryptocurrencies such as Bitcoin

Regrettably, the Pakistani government does not recognise the purchase, sale, or online trade of bitcoin (including Bitcoin).[Ref.]

Review: 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.

Review: Mining is what creates new cryptocurrencies

How Does Bitcoin Mining Work?

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.]

Review: An online Exchange is required for buying and selling of cryptocurrencies

What Is a Bitcoin Exchange?

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.]

Review: Each crypto wallet has its own address.[Ref.]

Review: Bitcoin and other cryptocurrencies should be traded using any reputable currency broker.[Ref.]

Review: 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.

Review: 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.

Review: 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.

Review: The Sindh High Court (SHC) has also ordered the Pakistani government to legalise cryptocurrency.[Ref.]

Review: 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.

Review: Forex Market Size

Forex is the largest market in terms of volume.[Ref.]

Review: 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.]

  • When individuals and corporations may buy and sell assets without altering their values considerably, the market is considered to be liquid.[Ref.]
  • In terms of value, the most traded currencies are the US Dollar USD, the Euro EUR, the Japanese Yen JPY, and the Pound Sterling GBP.[Ref.]

Review: 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.]

Review: Numerous Pakistanis do research and pose queries on websites such as Quora and Reddit on forex and bitcoin trading.[Ref.]

Review: Trading the financial markets is usually associated with gambling, due to the volatile nature of price movements, especially on news days.[Ref.]

Review: Regulation of Forex Trading in Pakistan

Review: 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.]

Review: There is no fatwa that prohibits cash transactions or foreign exchange trading. Islam permits currency trading.

Review: Forex Trading Types

Foreign exchange trading may be carried out in a number of methods, including the following:

Review: Forex Trading Account Types

  • 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.

Review: Best Websites for Cryptocurrency Price Charts, Market Cap and News

Review: Online Trading Books Guide

Here is the list (download their PDF online) of good books on online trading:[Ref.]

  1. Infographical Forex: Complex Forex Concepts and Strategies Simplified with ... Book by Salman Shariff
  2. The Currency Trader's Handbook Book by Rob Booker
  3. International finance Textbook by Piet Sercu
  4. FX Options and Structured Products Book by Uwe Wystup
  5. Getting Started in Currency Trading Book by Michael Archer
  6. Forex Conquered: High Probability Systems and Strategies for Active Traders Book by John L. Person
  7. Technical Analysis of the Currency Market: Classic Techniques for Profiting ... Book by Boris Schlossberg
  8. Forex Made Easy Book by James Dicks
  9. Turning Losing Forex Trades Into Winners: Proven Techniques to Reverse ...Book by Gerald E. Greene
  10. Inside the Currency Market: Mechanics, Valuation and Strategies Book by Brian Twomey

Review: Technical Analysis

Review: Fundamental Analysis

Review: Auto Trading

  • 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).

Review: Social Trading

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:

Review: Trading Signals and Forecasts

Review: 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:

Review: Trading Software Platforms

Review: 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.]

Here is the list of a few popular trading platforms:

Review: Speculation in Forex Trading

Review: 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.

Review: 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.]

Review: Market Psychology

Review: 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.

Review: 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.]

Review: 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.]

Review: 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.

Review: Forex Trading Account Verification

Review: 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.

Review: 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.]

Review: 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.]

Review: Richest and the Most Successful Traders

In Pakistan; Mr. Aqeel Karim Dhedhi, the head of AKD Group (AKD Securities) is considered the richest and the one of the most successful stock investors.[Ref.]

Review: Contracts for Difference CFDs

Here is the list of CFD brokers that can accept Pakistani clients:

Review: 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.

CFD trading is akin to stock and currency trading and is not prohibited (haram) under Islam's (Sharia law) Sunni and Shia sects.

Review: Forex Brokerage Industry News and Opinions

This section lists the best websites to read news about forex and crypto brokers:

Review: 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.

Review: PMEX operates out of three locations in Pakistan: Karachi, Lahore, and Islamabad. Their operating hours are Monday through Friday from 9:00 a.m. to 5:00 p.m. (Saturday and Sunday are off).

  • Karachi Head Office: 3B, 3rd Floor, Bahria Complex IV, Ch. Khalique-uz-Zaman Road, Gizri, Karachi – 75600, Pakistan. UAN: 111-623-623
  • Islamabad Branch Office: Office No. G-9(B), ISE Towers, Jinnah Avenue, Blue Area, Islamabad, Pakistan. Contact No: +92 –311-2796059.
  • Lahore Branch Office: Office # 01, P2 Floor Ali Tower,105- B2, M.M Alam Road, Gulberg 3, Lahore, Pakistan. Contact No: +92–311-2796018.

Review: International Regulatory Bodies

 

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Written by Arishfa Khan

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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.
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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.

 

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