The exchange of different currencies on a decentralized global market is known as FX trading, also known as foreign exchange trading or forex trading. It is one of the world’s largest and most liquid financial markets. The simultaneous buying and selling of the world’s currencies on the forex market are known as forex trading. The rates at which one currency will be exchanged for another are shown in the foreign exchange rates between different currency pairs. It is essential in international trade and business because products and services purchased in another country must be paid for in that country’s currency.
Forex trading is another name for foreign exchange trading. It allows you to speculate on price fluctuations in the foreign exchange market. The goal of FX trading is to predict whether the value of one currency will rise or fall in relation to the value of another currency. Due to daily news releases, a forex trader will have several trading opportunities each day.
FX traders take advantage of this by becoming hyper-aware of market news releases and trading based on their assumptions about market sentiment. FX is an industry abbreviation for forex that is frequently used in place of forex. Forex, on the other hand, is an abbreviation for foreign exchange.
What is a Forex Broker?
An exchange where buyers and sellers may go to purchase and sell financial products such as currencies is referred to as a broker.
You might think of a forex broker as a middleman who sits between you and the market. That is to say, if you want to locate a buyer or a seller of currencies, you may go to a broker, and the broker will put you in touch with the appropriate seller or buyer for your particular situation.
However, instead of just acting as a go-between for you and another buyer or seller, they also act as a go-between for you and what is known as a “liquidity provider.”
Forex Broker As Liquidity Provider
We’ll start with the fundamental concept of liquidity to describe the liquidity provider. Let’s imagine you wish to swap money or purchase a certain quantity of a specific currency.
Someone must be willing to sell that currency to you in order for you to purchase it. Someone must be willing to purchase the money from you in order for you to sell it.
If a large number of individuals desire to purchase the currency you’re selling, you’ll most likely be able to sell it. It’s more probable that you’ll be able to purchase the amount of money you desire if there are a lot of people selling it. The term “liquid market” refers to a market that has a large number of buyers and sellers.
A market might be liquid in another sense as well. Let’s imagine you want to purchase money, but instead of a vast number of people selling tiny amounts of cash, there are a few merchants offering large sums of currency. The market is still open for business. Because they are providing liquidity in the markets—major banks or financial organizations that trade currencies on a massive scale—these sellers who are selling substantial sums are referred to as liquidity providers.
In other words, they trade such large amounts of currency that if you sell, you’re probably selling to a liquidity provider, and if you purchase, you’re probably purchasing from a liquidity provider. There is always a party to trade with since they are exchanging so much money.
When a broker says they’ll send your transaction on to a liquidity provider, it implies they’ll match your contract with a liquidity provider, such as a bank or another financial institution, who will take the opposite side of your trade.
Top 12 Best Forex Broker in Pakistan
XM comes first on our list of the best forex brokers in Pakistan. They are licensed by a number of reputable organizations, including the IFSC, CySEC, and ASIC, and are well-known for providing a top Islamic trading account. Customer service is also accessible in Urdu, albeit it is not listed as a language on the site.
There are four different sorts of accounts available here. Account types include Micro, Standard, Ultra Low, and Shares. Deposits for the micro and standard accounts start at $5, the ultra-low account at $50, and the share account at $10,000, with fully working demo accounts and Islamic accounts accessible when appropriate.
Deposits may be made through wire transfers, credit cards, and eWallets and are usually fee-free. PKR deposits can be made using a local bank transfer. Trading is accessible in USD, EUR, and GBP base currencies, with more on the way, and spreads start at a low of 0 pips on the MT4 and MT5 platforms.
There is a $30 no deposit bonus available at XM, as well as deposit bonuses of 50% and 20%, and a full loyalty programme with a variety of exciting trading competitions.
LegacyFX was established in 2012, and its parent business, AN All New Investments (VA) Ltd, is licenced by the Vanuatu Financial Services Commission (VFSC). LegacyFX allows customers to trade on more than 200 different financial products, including CFDs on Forex, metals, oil, cryptocurrency, indices, and stocks, and provides four distinct kinds of trading accounts: Silver, Gold, Platinum, and VIP. The first three accounts are swap-free, with fixed or variable spreads available. A demo trading account is also available to users.
Users may trade using the MetaTrader 5 trading platform for desktop and online, which is well-known across the world. Customer service is available via an Instant Chat feature, as well as telephone, email, and an online contact form.
The next Pakistani broker on our list is OctaFX. The FCA and CySEC, two of the most well-known regulatory agencies, are in charge of them once again. They additionally provide a top-notch swap-free account as well as Urdu language support.
Once you’ve set up your account, you’ll have access to a micro account, an ECN account, and a pro account through MT4, cTrader, and MT5, respectively. The minimum deposit is $100 for a normal account and $500 for a pro account, with a complete demo account and Islamic accounts available upon request.
Accounts may be financed via eWallets, Visa, and PKR, as well as local bank transfers, with the majority of deposits being fee-free. The basis currencies are USD, EUR, and GBP, and trading may begin with a 0 pip spread on all platforms. OctaFX also offers a fantastic deposit bonus of 50% on all deposits.
HotForex is the next broker on our list of top Pakistan brokers, and they are fully regulated by the FCA, CySEC, FSCA, DFSA, and FSA. They are also regarded as one of the best brokers in the area, with Urdu-language assistance.
There are a variety of account types to choose from, including micro, premium, and zero spread accounts, as well as auto trading and copy trading accounts. The minimum deposit for a micro account is $5, with a premium account costing $100 and a zero spread and auto account costing $200. Copytrading with HFCopy requires a $100 minimum deposit to copy others and a $300 minimum deposit to be copied. There are full demo and Islamic accounts accessible.
Wire transfers, credit cards, and eWallets are all options for funding your account, and most of them are fee-free, with PKR deposits accessible via local exchangers. USD, EUR, and GBP are accessible as base currencies, with 0 pip spread trading available on both the MT4 and MT5 platforms. HotForex traders may also take advantage of cash rebates, trading competitions, and a 100% credit incentive.
The next top broker to appear is Avatrade, which is regulated internationally by the Central Bank of Ireland, ASIC, the FFAJ, and the FSCA. They are one of the few high-end brokers that solely provide fixed spreads. Unfortunately, there is no support for Urdu.
As a forex trader, you will have the choice of using a retail account, as well as options and spread betting accounts. The AvaTrade minimum deposit on these is $100, and an Islamic account as well as a fully loaded demo account are also readily accessible.
You may fund your account using wire transfers, credit cards, and eWallets, with most of them being fee-free. However, since PKR deposits are not currently enabled, it may be advisable to deposit in one of the USD, EUR, or GBP base currencies.
Trading is done using MetaTrader 4, MetaTrader 5, and Webtrader, with fixed spreads starting at 1.3 pips. A 20% welcome bonus is also available for minimum deposits of $1,000 USD, EUR, GBP, or AUD. This bonus is valid until January 31, 2020, but it may be extended.
Pepperstone is the next best forex broker we’ll talk about, and it’s accessible in Pakistan. They are, once again, well-regulated by the FCA and ASIC, and are widely regarded as a top ECN broker. There is no support for the Urdu language.
There are two swap-free account options available here: normal and ECN razor accounts. Both of them need a minimum deposit of $200 to open, and a complete demo account is accessible for free.
Deposits may be made using credit cards and eWallets, with the majority of them being fee-free. There are no PKR deposits accessible, but EUR, USD, and GBP base currencies are. Trading spreads start at 0 pips and are accessible on the MT4, MT5, and cTrader platforms. While there is no incentive, there is an active trader programme with rebates.
FXTM is yet another well-known Pakistani broker to be included. They are regulated by CySEC, the FCA, the FSCA, and the FSC, and provide Urdu language assistance as well as six different account types.
Three of these account kinds are conventional, and three are ECN, giving you a lot of options. Accounts in cents and shares, as well as a comprehensive demo account and Islamic trading accounts, are all available upon request. The minimum deposits for a cent account are $10, $100 for regular or share accounts, and $500 for an ECN account.
Deposits may be made using credit cards or eWallets, and most of them are fee-free. Deposits in PKR may be made through local bank transfers, and the base currencies of USD, EUR, and GBP are also accessible.
With an ECN account, the spread may start at 0 pips, or 1.3 pips for normal accounts using MT4 or MT5. While no direct incentive is provided, there is a loyalty programme in place.
eToro is one of the most well-known forex brokers in Pakistan. They are regulated by CySEC, the FCA, and ASIC all around the globe, making them a perfect option for social trading.
With a minimum deposit of $1000, you may create a normal Islamic account, and one account type is widely accessible, as is a complete demo account to test out first. Fee-free wire transfers, credit cards, and eWallets are all options for funding accounts, with most of them being fee-free. There are no PKR deposits or bonuses available, so you’ll have to deposit in the eToro base currency of USD to trade on the eToro unique and user-friendly trading platform, where spreads start at 2-3 pips.
Oinvest is a CFD broker that allows customers to trade in a variety of asset classes, including Forex, stocks, indices, commodities, and cryptocurrencies, using the MetaTrader 4 trading platform for Windows, Android, and iOS. Oinvest claims to be regulated by the Seychelles Financial Services Authority (SFSA) via Aronex Corporation Ltd, although neither firm is listed on the regulator’s record as an authorised business, despite having a licence number and certificate.
Clients may trade CFDs on 47 currencies, 33 cryptocurrencies, 15 indices, 17 commodities, 79 US stocks, 76 European stocks, and 78 Australian stocks via a straightforward account opening procedure with three account tiers: Silver, Gold, and Platinum. Islamic Accounts are also available via customer service.
Customer service is accessible through Live Chat, Phone, Email, and a Web Contact Form from 3 a.m. to 2 p.m. GMT Monday through Friday.
FBS is a well-known worldwide brand and is a leading Pakistan forex broker. They are licenced by both CySEC and the Belizean Financial Services Commission, and are well-known as a leading broker for beginning traders. There are also Urdu-language services available.
The Cent, Standard, and ECN accounts are the four major account kinds available. The minimum deposit for these accounts is $1 for a cent account, $100 for a regular account, and $1,000 for an ECN account. For $500, a fixed zero spread account is also offered, with demo and Islamic accounts accessible.
Fee-free wire transfers, credit cards, and eWallets are all options for financing your account, and most of them are fee-free. Deposits in Pakistani rupees are accepted through local bank transfers and swaps. Accessible currencies like USD, EUR, GBP, and other base currencies are accessible, with trading taking place on MT4, MT5, or Webtrader, as well as a proprietary copy trading platform.
Spreads may start at 0 pips, but most traders start at 0.5 pips. To attract you as a forex trader, you can get a 100% deposit bonus, rebates, and more.
CMC Markets completes our top five list of the finest Pakistani forex brokers. They are licenced by ASIC, FCA, and MAS in Singapore and have a large trading portfolio of over 9500 assets to choose from, including 26 forex currency pairs.
You may pick between a normal or business account, as well as a fully functional demo account to test out first and an Islamic account if necessary. CMC does not have a minimum deposit requirement.
Deposits may be made by wire transfer or credit/debit cards, both of which are usually free of charge. Deposits in PKR may be made through local bank transfers, using EUR, USD, and GBP as base currencies.
On key currency pairings, spreads start at 0.3 pips, and all trading takes place on the well-known MT4 trading platform. While there are no perks available, there is a rebate programme that offers returns of up to $10 for each lot exchanged.
FXPro is the next top worldwide forex broker to be featured. They’re regulated by the FCA, CySEC, FSCA, and SCB, and they’ve won more than 60 accolades throughout the globe, despite the fact that Urdu language support isn’t accessible.
There are three account options to select from, each having a $200 minimum deposit and a fully functional sample account that is simple to set up. Naturally, Islamic trade is also well-served. Although there are no PKR deposit alternatives, you may fill your account for free via wire transfers, credit cards, or eWallets in one of the three basic currencies: USD, EUR, or GBP. Trading takes place on your choice of MT4, MT5, or cTrader platforms, and although there is no bonus, the spread starts at a reasonable 0 pips.
Is Forex Trading Legal In Pakistan?
Yes, forex trading is legal in Pakistan, and it is regulated by the Securities and Exchange Commission of the country (SECP). Furthermore, there are no hard limitations. There are a number of online forex brokers operating in Pakistan, each with its own web presence.
Is Forex Halal Or Haram?
Forex trading may be both halal and haram, depending on the aim and behavior of the particular investor, and thus is not recommended. Trading with a sound plan and an Islamic account is permissible. However, trading with a standard interest-charging account and no method is deemed gambling and haram, according to Islamic principles.
Which Bank Broker Is Best?
HBL, MCB, UBL, and NPB all Banks are providing brokerage accounts and services. Investor Account Services (IAS) by CDC-Central Depository Company enables retail investors to create and manage accounts directly with CDC in the Central Depository System for secure and safe holding.
Can I Trade On Forex From Home In Pakistan?
Yes, You Can By Using your broker’s given Application logins.