Forex trading in Pakistan is not only legal, but also gaining popularity among residents as the economy expands.
Pakistan is part of the Next Eleven list of developing economies, placing it on course to become one of the largest economies in the 21st century.
- FXTM, Best all-around broker with high floating leverage and fast execution.
- Octa, A commission-free broker with a proprietary copy trading service.
- FP Markets, ECN trading with leverage up to 1:500.
- AvaTrade, Highly regulated, choice of fixed or floating spreads.
- Eightcap, Competitive pricing + excellent daily videos.
- BlackBull Markets, Best ECN trading environment, with scalping and hedging.
- ACY Securities, Swap-free trading with the MT5 trading platform.
A Comparison of the Best Forex Brokers in Pakistan
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Regulators | CMA, CySEC, FCA, FSC Mauritius, FSCA | CySEC, FSCA, MWALI International Services Authority | ASIC, CMA, CySEC, FSCA | ASIC, BVI, Central Bank of Ireland, FFAJ, FSCA, KNF, MiFID | ASIC, CySEC, FCA, SCB |
Year Established | 2011 | 2011 | 2005 | 2006 | 2009 |
Execution Type(s) | ECN/STP, Market Maker | Market Maker | ECN/STP | Market Maker | ECN/STP, Market Maker |
Minimum Deposit | |||||
Average Trading Cost EUR/USD | 0.1 pips | 0.9 pips | 1.2 pips | 0.9 pips | 1.0 pips |
Average Trading Cost GBP/USD | 0.2 pips | 1.3 pips | 1.4 pips | 1.5 pips | 1.2 pips |
Average Trading Cost Gold | $0.18 | $0.30 | $0.16 | $0.29 | $0.12 |
Trading Platform(s) | MetaTrader 4, MetaTrader 5, Proprietary platform | MetaTrader 4, MetaTrader 5, Proprietary platform | MetaTrader 4, MetaTrader 5, cTrader, Proprietary platform, Web-based | Other, MetaTrader 4, MetaTrader 5, Proprietary platform, Web-based+ | MetaTrader 4, MetaTrader 5, Trading View |
Islamic Account | |||||
Negative Balance Protection | N/A | ||||
| Visit Website | Visit Website | Visit Website | Visit Website | Visit Website |
FXTM
In Summary Best all-around broker with high floating leverage and fast executionFXTM established itself as a market leader for emerging markets, catering to frontier markets and serving developed markets. Over 2,000,000 traders trade with FXTM, which is owned by Exinity Group, Alpari's parent corporation. Online Forex trading in Pakistan cannot be simpler than with FXTM, where new traders enjoy high maximum leverage, valuable educational content, and excellent trading tools. FXTM has no restrictions on trading strategies, allowing Pakistani traders to take advantage of all possibilities.FXTM is one of a few brokers that supports local transfers in the Pakistani rupee.
Pros & Cons
- Excellent commission-based Forex pricing environment and transparency
- Upgraded MT4/MT5 trading platforms plus proprietary mobile trading app
- Quality market research and educational content for beginner traders
- A highly regulated broker with a tier-1 license
- No cryptocurrencies and limited choice of commodities
Octa
In Summary A commission-free broker with a proprietary copy trading serviceI rank Octa among the best Forex brokers in Pakistan due to its competitively priced commission-free trading environment, offering traders minimum spreads from 0.6 pips or $6.00 per 1.0 standard round lot. The $25 minimum deposit via cryptocurrencies ensures Pakistani-resident traders can easily access the Octa trading environment.
Octa is also an excellent copy trading broker with an active community of 40M+ accounts and its proprietor copy trading service and mobile app. Traders can also use the embedded copy trading services in MT4/MT5. Traders can earn passive income via the high-paying affiliate program, paying up to $12 per lot.
Pros & Cons
- Quick withdrawals and deposits
- 0% commission and no overnight charges
- Space with personalised trading ideas
- Customer Support 24/7
- Mobile copy trading services available only for Android
FP Markets
In Summary ECN trading with leverage up to 1:500fpmarkets is an ASIC-regulated Australian brokerage which launched in 2005. For Pakistan resident traders, the unique selling point of this broker is in the extremely wide range of tradable assets offered, providing the opportunity to trade over ten thousand individual stocks and shares including publicly quoted Hong Kong and Australian companies. fpmarkets also offers 60 Forex pairs and crosses, 11 equity indices, the major commodities, and 5 cryptocurrencies including Bitcoin. fpmarkets offers an unusual hybrid ECN/STP execution model, meaning their clients can choose between ECN style of execution giving a very high level of speed, and a “straight through processing” execution style which allows for more “natural” spreads.
Pros & Cons
- Choice of trading platforms and auxiliary trading tools
- Very competitive cost structure and excellent asset selection
- Low minimum deposit requirement and leverage of up to 1:500
- Well-regulated and trustworthy
- Availability of Iress geographically restricted
AvaTrade
In Summary Highly regulated, choice of fixed or floating spreadsAvaTrade is an excellent choice for those seeking a wide range of trading platform choices, equity, and options trading. Besides the MT4 and MT5 trading platforms with full support for automated trading solutions, three proprietary platforms are available. Manual traders will benefit from WebTrader, options traders have AvaOptions, and AvaTradeGO caters to mobile trading. Social trading is possible via DupliTrade. With an asset selection above 1,250, AvaTrade offers enough products for advanced Pakistani traders. While the minimum deposit of $100 places this broker in reach of all types of traders, the extensive affiliate network with over 70,000 members from 150 countries provides Pakistani traders with an additional income opportunity.
Pros & Cons
- High quality educational offering via AvaAcademy
- Excellent choice of trading platforms catering to various trading needs
- Broad asset selection and cross-asset diversification opportunities
- Well-regulated and trusted broker with oversight from a central bank
- Trading costs competitive but nothing special
Eightcap
In Summary Competitive pricing + excellent daily videosEightcap established itself among the best Forex brokers due to its superb trading infrastructure, excellent order execution amid deep liquidity, competitive fees, and cutting-edge trading tools. Manual traders get a well-designed AI-powered economic calendar, and Eightcap upgrades MT4 via Capitalise AI, which enables algorithmic trading in a code-free environment. MT5 traders benefit from Flash Trader, while the dedicated cryptocurrency solution Crypto Crusher caters to cryptocurrency traders.
Copy traders get the embedded MT4/MT5 services, and Eightcap connects social traders to the active TradingView community. Beginner traders get an outstanding educational and research offering via Eightcap Labs and Eightcap Trade Zone.
Pros & Cons
- Low minimum deposit and high leverage of up to 1:500
- Competitive cost structure
- Excellent technology infrastructure and seasoned management team
- Daily research and quality educational content
- Limited leverage in some areas
BlackBull Markets
In Summary Best ECN trading environment, with scalping and hedgingBlackBull Markets offers traders its own proprietary copy trading tool, BlackBull CopyTrader, which allows traders to copy signal providers from any other MT4 or MT5 broker. Copy traders can also use ZuluTrade, Myfxbook Autotrade, and the embedded MT4/MT5 copy trading services, making Blackbull one of the most competitive choices for Forex traders in Pakistan. Social traders get the TradingView community with 50M+ traders.
The ECN Standard account has no minimum deposit requirement, and traders get 26,000+ trading instruments and a cutting-edge trading environment. BlackBull Markets released its proprietary trading platform BlackBull Trade, available as a web-based option or as a mobile app.
Pros & Cons
- ECN/NDD execution model with deep liquidity
- Institution-grade pricing for retail traders via proprietary price aggregation
- ZuluTrade and Myfxbook for social trading
- Leverage of up to 1:500
- Limited deposit options
ACY Securities
In Summary Swap-free trading with the MT5 trading platformACY Securities upgrades MT4/MT5 with Capitalise AI and 15 quality plugins. Capitalise AI supports algorithmic trading in a code-free environment and is the most advanced trading tool available, making ACY Securities one of the best Forex brokers. Low-latency 24/5 market access exists via VPS hosting. Copy traders may use the embedded MT4/MT5 services or diversify via Signal Start and SoFinX.
The commission-based trading accounts offer competitive trading fees with raw spreads from 0.0 pips for a commission of $6.00 for ProZero and $5.00 for Bespoke. Traders also benefit from fast order execution under 30ms via 46 liquidity providers.
Pros & Cons
- Large repository of daily analysis and educational content
- Low spreads starting at 0 pips in the Spread Zero account
- 16 payment processors, including cryptocurrencies
- Competitive trading fees in its commission-based accounts
- Only 1 regulator
How to Start Trading Forex in Pakistan
While there are no reputable international Pakistani Forex brokers, Pakistani traders are not restricted from opening trading accounts with Forex brokers from other countries. Therefore, there are thousands of choices, as most, if not all, cater to Pakistani Forex traders. There are two facts to consider when searching for a top Forex broker in Pakistan. First, there are unlikely to be any accounts in the Pakistani rupee, the country’s official currency, so currency conversions on transactions may apply. Second, Urdu is the official language, but many international brokers may not offer Forex trading in Pakistan in Urdu.
With a population above 220,000,000, Pakistan represents an enormous growth market. The tech-savvy, young population could well allocate spending power to Forex trading, a sought-after market due to its low capital requirements for starting a portfolio. Our Best Forex Broker in Pakistan list will provide traders with a head start in selecting the right broker and starting their Forex journey.
New Pakistani Forex traders must follow these common steps to successfully master the markets.
What you need to start Forex trading in Pakistan:
- A stable internet connection since trading takes place online.
- A reliable international Forex broker that accepts traders from Pakistan.
- A quiet place to trade, free of distractions.
- Adequate trading capital to reach your trading goals.
Opening a Forex Account in Pakistan
An online application handles the account applications at all brokers and usually takes only a few minutes to complete. Regulated brokers must comply with AML/KYC requirements. A copy of the trader’s ID and one proof of residency document no older than three months generally satisfies them.
Which Trading App is Best in Pakistan?
It comes down to individual preference. Some Forex brokers cater to select trading strategies better than others. Requirements differ between traders, but below are aspects every trading app should provide traders to compete among the best.
Core aspects every trading app must provide traders:
- Cutting edge trading platforms with full support for algorithmic trading
- Forex traders should look for upgrades to the core MT4/MT5 trading platform, as the core version presented by most offers a sub-standard solution
- Low trading costs where 1 standard lot in the EUR/USD costs between $4.00 and $7.00, everything above is expensive, irrelevant of how the Forex broker advertises it
- Business-friendly regulation or membership with the Hong Kong-based Financial Commission, and third-party excess of loss insurance
- Low minimum deposits supporting portfolio building strategies via monthly deposits
- Low-cost online payment processors provide traders with flexibility, while cryptocurrency deposits are a bonus
Noteworthy:
- Beginner traders can benefit from a high-quality educational platform, while research can provide trading ideas for Forex traders without a profitable strategy
- Algorithmic traders should look for API trading and free VPS hosting
- Scalpers require a volume-based cash rebate program
Is Forex Trading Legal in Pakistan?
Despite some confusion in the online Forex trading community, Forex trading is legal in Pakistan. The Securities and Exchange Commission of Pakistan (SECP) regulates the domestic financial markets, including Forex, and international brokers can accept Forex traders from Pakistan without having to obtain a license from the SECP, which therefore does not restrict Pakistani resident Forex traders from opening offshore Forex trading accounts. Some brokers opt not to accept Pakistani Forex traders for undisclosed reasons.
There are no limitations on Forex trading in Pakistan, and the SECP maintains a light regulatory approach but has increased efforts to reduce money laundering. Pakistan belongs to the ‘Next Eleven’ emerging economies, and as the country’s overall prosperity continues to grow, interest in Forex trading rises. It presents a significant growth market for Forex brokers who understand the needs of Pakistani Forex traders, where copy trading and managed account trading rank among the primary strategies.
Forex Regulations in Pakistan
Responsible for regulating Forex trading in Pakistan, the (SECP) operates out of Islamabad and oversees the banking and insurance sectors, together with other sub-sectors of the financial system. International brokers do not require a license from the SECP to accept Pakistani Forex traders unless they have a physical office in Pakistan.
Verifying SECP Authorization
The SECP does not maintain an online database like most regulators, but traders can contact the SECP to verify if a company is authorized.
What Forex Brokers Accept Pakistani Rupee (PKR)?
No international Forex broker offers the Pakistani Rupee (PKR) as an account base currency. Many brokers allow bank wire or credit/card deposits in the Pakistani Rupee and convert them into the chosen account base currency. Currency conversion incurs additional fees, which Pakistani Forex traders should consider when choosing how to deposit.
Pakistan resident Forex traders should opt for a US Dollar base account, as 80%+ of Forex trades involve the US Dollar as a base or quote currency, reducing currency conversions on trading realized profit and loss. Traders can notably decrease currency conversion fees with a multi-currency account from local banks or online providers.
Risks of Forex Trading in Pakistan
The Forex market is the most liquid market globally, and nearly $7 trillion exchange hands daily. Therefore, liquidity remains a risk for all traders, but it also brings opportunities. New retail traders may struggle with the technical terminology, but a glossary will bridge the gap. The most significant risks to trading come from the trader and include lack of discipline and patience, insufficient trading capital, unrealistic expectations, and a lack of attention, focus, and appreciation for Forex trading.
Bottom Line
Pakistan represents a tremendous growth market for Forex trading and improving economic conditions can boost the growth rate of online Forex trading in Pakistan. While the potential attracts many new retail traders, it equally does so with scammers.Finding the best trading platform in Pakistan may be challenging but it is possible.Therefore, if something sounds too good to be true, especially from an unverified or unregulated source, remain cautious. Conduct proper due diligence when selecting a Forex broker or pick one from our Best Forex Broker in Pakistan list.
In case you are unsure about legal aspects, you should consult a professional skilled in Forex trading in Pakistan legal services. Most Forex brokers accept traders resident in Pakistan. Invest in your education, ensure you have sufficient trading capital, and create a deposit plan. Patience and discipline will assist you in your journey to become a profitable Forex trader, but you must leave unrealistic expectations out of your trading strategy.
