Forex trading in Pakistan – Is Forex trading legal?
Forex Brokers in Pakistan – Is Forex trading legal?
The Forex traders in Pakistan are doing remarkably well in Forex trading. Online “Forex trading in Pakistan” has become very popular among the young traders with higher risk capacity. That is the reason that many Forex Brokers have now registered and started providing Forex trading to Pakistan traders. Another reason for the popularity of Forex trading is the success rate of Pakistan investors. It is a well-known fact in the financial industry that Forex traders from Pakistan do well compared to any other country. The serious trading attitude and excellent analytical skills of Pakistan Forex traders bring them more success. A successful Forex trader in Pakistan also helps earn Foreign currencies for the country as most of the profits are paid in USD $.
Interestingly, a large number of investors are making more profit from the Forex market than equity markets in Pakistan. The key to succeeding in Forex trading lies in interpreting the currency price actions. The currency price (EUR/USD) keeps changing along with global financial news and political developments. The Forex traders must monitor the events that affect currency valuation and Economic data releases from different central banks affecting the currency price. One thing is clear, many Pakistan Forex traders have multiplied their investments of $100 into thousands of Dollars, and they earn tens of thousand US Dollars every month. So, Forex trading is undoubtedly something that can not be ignored by serious traders.
But the new entrants to the Forex market in Pakistan face difficulties in understanding the terminology, options, platforms, so here’s a quick explanation to help you understand Forex trading.
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Forex Brokers in Pakistan
Few Forex brokers are offering exclusive Forex trading services in Pakistan. FBS Pakistan is one such financial company having a dedicated website for Pakistan Forex traders. Additionally, the site offers its content in the Urdu Language, which help traders to understand Forex trading in Urdu. Pakistan Forex traders have the freedom the choose from several brokers available in the industry. However, you must check the broker’s reputation, funding methods, and regulations before trading with them.
Best Forex Brokers in Pakistan 2020
The following Forex Brokers are preferred in Pakistan. These brokers have more than ten years of well-established trust in the market. If you are looking for the best Forex brokers in Pakistan in 2020, this list of brokers may help. You can also do research online to find the best Forex broker in Pakistan.
- Arabic language support
- Low spread and leverages to suit your trading style
- Copy trading through ZuluTrade
- MT4 and MT5 trading Platform
- Islamic Account – Yes
- A minimum deposit of $1
- Maximum leverage 1:1000
- Five different accounts types
- ECN account – Low spreads
- Bonus deposit – Yes
- Islamic Account – Yes
- MT4 Platform
- $100 minimum deposit
- Web and MT4
- VIP account
- 37 international awards
- Free market analysis
- Islamic Account – Yes
- Fixed spreads – fairly low
- Minimum deposit of $1
- Leverage of up to 1:3000
- Five different types Of accounts
- Low spread
- MT4 & MT5 Trading Platform
- Islamic Account – Yes
Frequently Asked Questions on Forex trading in Pakistan
Who’s trading Forex in Pakistan?
Many traders are currently trading Forex in Pakistan. Not only that, most of them are trading Forex successfully to make money. Forex trading is also known as Foreign exchange trading. Forex market is the world’s biggest financial market with a turnover of trillions of dollars every day. According to estimations, there’s an average turnover above US$6 trillion Dollars every single day.
People from different backgrounds are trading Forex, from large companies to part-time small traders operating from their home. In Pakistan, it has got accessible to many traders from remote areas with the proliferation of the internet. Now, many traders trade from the comfort of their home and make some additional income. Forex trading in Karachi and Islamabad has become quite popular among today’s smart traders. Hence, Online trading brokers are opening their regional offices to cater to Forex traders in Pakistan. When we talk about forex trading – maximum traders are from Karachi and Islamabad. Karachi being the capital and financial hub, Forex trading in Karachi has become an attraction among traders.
Is Forex trading legal in Pakistan?
“Is Forex trading legal”, is one of the frequently asked questions by the traders in Pakistan. Every trader wants to know about the legal aspect of Forex trading. “Is Forex trading legal?” The answer is – Yes, It is legal to trade Forex in Pakistan.” However, you must take care of your tax liabilities. Several Forex trading companies have offices in Karachi and operate while complying with Pakistan regulators. Since the government’s rules keep changing, you should consult a local Financial Advisor for detailed advice on the legal aspects of trading Forex in Pakistan. The Forex brokers accepting Pakistan traders are HotForex, FBS, and IQ Option. Sign up with any of these brokers to start trading Forex in Pakistan.
Is Forex Trading Halal in Pakistan?
Yes, Forex trading is Halal in Pakistan, Forex brokers are offering Islamic Forex Trading Account to Pakistan traders. These are special Forex trading accounts that do not charge any interest or Ribba and comply with Islamic principles. It is also known as Swap-Free Forex accounts. You can ask your account manager or support team to offer you a Halal Forex account or Islamic Forex Account.
What causes currency movements?
As you know that the values of currencies keep changing, so the exchange rates vary. The changes in those rates are determined by thousands of traders buying currencies with other currencies. It determines what each currency is worth in relation to the other.
Currency prices can sometimes change very fast in response to news and global events. Forex traders look at some essential factors like – political and economic stability, monetary policy, currency intervention, major political events, and natural disasters. Forex traders in Pakistan take advantage of these factors, and trade currencies to make money.
Forex trading Pakistan – How does Forex trading work?
While trading Forex, you buy in pairs like EURUSD. The trader predicts how the exchange rate between the two currencies will change. So, if the trader believes that the EURO (EURO) will strengthen against the USD (US Dollar), then they buy EURO, which means they are also ditching their Dollars. If they are right then the value of their currency increases and they can sell it for a profit. If their decision was wrong, then they lose.
For example, the EUR/USD rate shows the number of dollars one Euro can buy. If a trader believes the Euro will increase in value against the dollar, then they use dollars to buy Euros. If the exchange rate rises, then they can sell the Euros back for a profit. One of the reasons Forex trading is so popular with hobbyist investors is that the markets are open pretty much 24 hours a day, following the different countries’ time zones.
Will I make any money?
That’s a tricky question now! Forex trading is highly risky. It’s so risky that many experts believe that there is a significant possibility for amateur traders to lose their capital. It is tough for individual traders to understand and determine the direction of the currency market with his limited understanding and knowledge of the Forex market. The idea that an individual can reliably predict the movements of currencies is quite rare. Hence, individual traders need proper education and training in the Forex market.
There are many trading platforms and guides and books and investment tutorials available to help new traders learn. The brokers in Pakistan also provide Webinars and one to one training to their clients. The brokers in Pakistan who care for their clients to learn, provide Free Demo Trading account to get some hands-on practice without risking any real money. If you are not sure of your knowledge level and trading skills, you must practice a lot in the demo trading account. You can learn Forex trading with a free demo trading account with FBS and make use of their useful training resources.
Hence, would-be traders must understand the risks involved in Forex trading. It’s essential that would-be traders should not invest money they can’t afford to lose.
What next? Can I start trading Forex in Pakistan?
By now, you must have understood that Forex trading is full of risk and a complex area to master. But it is not impossible to learn and make a profit from trading. Hence you must get extensive training and acquire some hands-on experience in a demo account. Interestingly, many traders from Pakistan are good at Forex trading because of their analytical skills.
You must discuss with your online broker and financial advisers to understand the degrees of risk. The individual traders usually get to know more by trading in demo accounts and getting more and more studies. Before undertaking any online trading, it’s a good idea to spend time reading more and talking to other investors.
Finally, Forex trading in Pakistan is not a Get Rich Quickly type of thing. You can not get rich overnight by trading Forex. If you trade with the right knowledge and discipline and stay profitable, you will become rich by trading Forex. Don’t just jump in and start trading, rather jump in and start learning first. After you learn, you must trade Forex in a demo account for a few months. Then, you may switch to a real Forex trading account if you feel confident of trading with real money.
You should start trading in a real account with real money only after getting enough experience in the demo account.