5 Best Forex Brokers in Pakistan for 2024

List of Top Brokers in Pakistan

Forex Trading in Pakistan

Forex trading is legal in Pakistan and is regulated by the Securities and Exchange Commission of Pakistan (SECP). Securities brokers must be licensed with the SECP to offer brokerage services to the public.

However, traders in Pakistan are not restricted to domestic brokers. Internationally-regulated brokers are allowed to offer forex and CFD trading to the citizens of Pakistan. In some cases, these brokers may even provide more safety and security of your funds.

Our analysts have identified the best forex brokers accepting clients from Pakistan, and I have listed the pros and cons of trading with each one below.

How Did FX Empire Select the Best Brokers in Pakistan?

• We only selected brokers with a high overall score from our proprietary rating system.
• We evaluated each broker’s regulations and licenses to ensure they are authorized by a financial authority to provide investment services.
• We checked that each broker accepts clients from Pakistani residents.
• We checked the availability of an Islamic trading account.
• We tested each trading platform for its usability, ease of access, and useful trading features.
• We investigated whether the broker has localized resources such as a website and customer support in Urdu.
• We explored the different payment methods to identify if the broker allows deposits and withdrawals in Pakistani Rupees (PKR).
• We assessed the number of tradable instruments to check if a diverse range of markets is available, including Pakistani ones.
• We opened a live trading account to view the broker’s live spreads and determine their competitiveness compared to the industry average.

Applying FX Empire’s comprehensive methodology, our team of experts has identified the best forex brokers in Norway for this year. Here’s how we test.

Now let’s explore the selected brokers.

How to Choose a Forex Broker in Pakistan?

Here is a quick guide on how to choose the best forex broker in Pakistan.

Why is it important to trade with a regulated broker?

Trading with a broker overseen by a financial authority ensures the broker is abiding by strict rules and regulations regarding the safety of your capital. While the Securities and Exchange Commission of Pakistan licenses domestic brokers, few CFD brokers base their operations in Pakistan. However, the country’s financial authorities allow international-regulated brokers to provide investment services to their residents.

It is important to note that not all regulators are equal. In our broker rating reviews, we categorize regulators into three tiers:

• Tier-1 regulators are typically situated in well-established financial hubs and include institutions like the Cyprus Securities and Exchange Commission (CySEC) and the UK Financial Conduct Authority (FCA).
• Tier-2 regulators operate in reputable yet smaller financial centers, such as the Financial Markets Authority (FMA) of New Zealand.
• Tier-3 regulators, such as Belize’s Financial Services Commission (FSC), typically function in offshore jurisdictions.

The highest level of investor protection and fund security typically stems from Tier-1 regulators. Brokers regulated by entities such as the UK FCA, IIROC, CySEC, and ASIC are legally mandated to segregate client funds from their own and offer negative balance protection to prevent accounts from plunging into negative territory.

Find Best FCA-regulated brokers and Best CySEC-regulated brokers.

Furthermore, regulatory bodies like the UK FCA, IIROC, and CySEC require brokers under their oversight to participate in compensation schemes, providing additional safeguards in cases of broker insolvency. You can ascertain a broker’s regulatory standing and authorizations by examining their legal terms and conditions and consulting the regulator’s register in their operational jurisdiction.

It is advisable to steer clear of unregulated brokers. They operate without adhering to stringent rules governing fund management, exposing you to significant risks. In the unfortunate event of theft, limited legal avenues are available for fund recovery.

Read more about Best regulated forex brokers.

What fees should you consider when choosing a broker?

Evaluating the trading fees associated with a broker’s service is crucial, as they can significantly impact your overall profitability. Here are some fees to take note of:

• Spread: The difference between the buy and sell prices. See our guides on the best zero spread and best lowest spread forex brokers.
• Commission: A fee charged for executing a trade.
• Overnight/Swaps: Charges for holding leveraged or margined positions overnight. Find the list of the lowest swap brokers in our detailed guide.
• Payments: Fees related to depositing or withdrawing funds.
• Inactivity: A fee is applied to inactive accounts.
• Conversion fee is charged for converting Pakistani Rupees (PKR) into the base currency of your account if it differs.

To evaluate a broker’s fees, examine their website’s fees section, scrutinize the legal terms and conditions, and communicate with customer support. If the fee structure is unclear or lacks transparency, it is a warning sign to avoid that particular broker.

How to choose the best account type?

As the brokerage industry becomes more competitive, many brokers are diversifying their offerings with various account types to cater to different traders. While elements like minimum deposits and trading services may vary among these accounts, the primary distinction lies in the trading fees.

Brokers typically offer two main types of trading accounts: commission-free and commission-based.

In a commission-free trading account, no fees are charged for buying or selling. Instead, the broker is remunerated by inflating the spread. This type of account may be preferable for novice traders, as most costs are integrated into the spread, resulting in fewer decisions regarding risk management.

On the other hand, a commission-based trading account entails a fee for buying or selling, as the broker refrains from marking up the spread received from their liquidity providers. This type of account may be more suitable for short-term traders, as it offers lower spreads, which is crucial when trading small price movements.

Discover Best STP forex accounts and Best ECN forex accounts.

Most forex brokers offer Islamic or swap-free accounts to Muslim countries, including Pakistan, to cater to traders who must comply with Sharia law, which prohibits interest. These accounts differ from standard forex trading accounts in that they do not involve any swap or rollover interest on overnight positions, which is considered a form of riba (usury) and thus forbidden under Islamic finance principles.

How much leverage should I use?

Leverage enables traders to open larger positions using a small deposit. For instance, with a leverage ratio of 1:30 provided by a broker, you can control a position size of $30 with only $1.

Leading financial regulators like the UK FCA, CySEC, ASIC, FSA Japan, and IIROC enforce retail trading leverage limits for forex pairs at 1:30. Although lower-tiered and offshore regulated brokers may extend higher leverage, occasionally up to 1:3000, it’s advisable to approach them with caution.

It’s essential to remember that leverage can magnify both profits and losses. Your profit or loss is calculated based on the total trade value, not solely the margin you invest. If your account lacks sufficient capital to manage your trade value, the broker may issue a margin call, leading to the automatic closure of your trades and resulting in unforeseen losses.

For traders seeking high-leverage options, FX Empire offers a list of the best forex brokers with high leverage, carefully selected to suit specialized trading needs.

How to choose a trading platform?

Selecting the appropriate trading platform for your level and style of trading is crucial. It should offer user-friendly accessibility along with a robust array of charting tools and market research capabilities. Here are some of the most common trading platforms offered by brokers:

• MetaTrader 4 offers a reliable platform featuring real-time charts, advanced order tickets, diverse timeframes, integrated technical analysis indicators, and drawing tools. Explore Best MT4 brokers.
• MetaTrader 5 represents an upgraded version of MT4, providing a broader range of execution styles, order types, timeframes, and indicators. Discover Best MT5 brokers.
• cTrader, designed for high-frequency trading and scalpers, is a platform tailored specifically for algorithmic traders. Read more about Best cTrader forex brokers.
• TradingView is a web-based social trading platform equipped with advanced charting and research features spanning global asset classes. Check out our picks of Best TradingView forex brokers.
• NinjaTrader is a platform designed exclusively for futures trading and offers a fully customizable setup.
• In-House Proprietary Software: Some brokers create their own custom platforms, incorporating additional features that are different from third-party platforms.

Most brokers typically offer the option to test each platform through a demo account, allowing you to assess and identify the most suitable platform for your trading requirements.

Check out our dedicated guide on best forex trading platforms.

What to avoid when choosing a forex broker in Pakistan?

Here are some things to avoid when choosing a forex broker in Pakistan:

• Unregulated Brokers: In the absence of any oversight, rules, or governing laws regarding the handling of your trading capital, there are no protections available to recover your funds in case of theft or bankruptcy.
• Lack of Transparency: Difficulty in finding a broker’s regulatory status or trading fees represents a significant warning sign. Reputable, well-regulated brokers offering fair trading fees will readily provide this information.
• No Physical Presence: Brokers lacking offices in established regions or live customer support might not be the most trustworthy choice.
• Unrealistic Profit Promises: Brokers making grand promises of substantial profits are likely operating without honesty and potentially lack regulation.

How to avoid forex and CFD scams?

Unfortunately, there are many forex and CFD scams targeting Pakistani traders. Here are some guidelines to steer clear of such situations:

• Only trade with brokers regulated by reputable financial authorities and verify their licenses on the regulator’s official website.
• Ensure the broker operates from a physical office situated in a jurisdiction with a robust and respected regulatory framework.
• Ensure there is live customer support available to assist you with any queries or concerns.
• Conduct thorough background research by examining online news articles and broker reviews.
• Utilize payment methods for deposits and withdrawals that you are familiar and comfortable with.
• Carefully scrutinize the broker’s terms and conditions before making any commitments.

Our Methodology

We utilize a proprietary rating system to evaluate brokers, which entails analyzing 250 data points across nine fundamental categories:

• Trustworthiness: We verify the licenses of each broker with the regulator in the jurisdiction they operate in.
• Fees: We open a live trading account to view the broker’s trading fees and test them to the industry average.
• Trading platform and tools: We test the features and user-friendliness of each trading platform.
• Tradable instruments: We examine the number of tradable instruments to ensure there is a diverse range of markets available.
• Customer support: We interact with the customer support team to test their knowledge and helpfulness.
• Payment methods: We explore the different deposit and withdrawal methods to identify their fees and processing times.
• Account types: We examine each account type and check for execution methods, minimum deposits, and other available features.
• Research and education: We assess the quality of the broker’s research and educational materials.

You can read more about our review process here.

For this guide, we verified that each broker accepts clients from Pakistan and checked for any localized resources available in Pakistan and in Urdu, such as the broker’s website and customer support in Urdu. We also assessed the availability of payment options in Pakistani Rupees (PKR) and the general trading fees applicable to traders in Pakistan.

Meet Our Writers

The team of forex and CFD writers and editors at FX Empire is composed of trading industry professionals and seasoned financial journalists. Our writers have been published on leading financial websites such as Investopedia and Forbes. In addition, they all have extensive trading experience.

Related Broker Guides

• Best Forex Brokers
• Best CFD Brokers
• Best Crypto Trading Brokers
• Best Forex Brokers for Beginners
• Best Forex Brokers for Professional Traders
• Best Copy and Social Trading Platforms

FAQ