Learn More About Forex.
Forex, also known as foreign exchange or FX, is a decentralized global market for the trading of currencies. It is the largest financial market in the world, with an average daily trading volume of over $5 trillion. In forex, individuals, businesses, and financial institutions can buy and sell currencies for both investment and transactional purposes.

The forex market operates 24 hours a day, five days a week, because there is always at least one financial center in the world that is open for business. The major currency pairs traded in the forex market include the US dollar, euro, Japanese yen, British pound, Swiss franc, and the Australian dollar.

Forex trading involves speculation on the price movements of currencies and the profits are made when a currency is bought at a lower price and sold at a higher price. However, forex trading is highly speculative and comes with a high level of risk. It is important for traders to have a solid understanding of the market and to employ risk management strategies to minimize losses.

Forex traders can participate in the market through a broker or a financial institution, and can trade using a variety of financial instruments such as currency pairs, options, futures, and exchange-traded funds (ETFs). It is also important for forex traders to stay informed about economic and geopolitical events that can impact currency prices.

Best Brokers for Online Trading.
Most of the brokers listed in this area offer true ECN accounts with free access to MT4 and MT5, as well as true ECN accounts. For quick access to the trading platform, traders can download apps to their Android and iOS (iPhone) devices. The required minimum opening deposit is 10$.
Click Here for the Top Brokers for Online Trading.

Meaning of a Forex Broker.
To help their clients turn a profit, a forex broker gives them the option to trade well-known currencies including the US dollar, British pound, Japanese yen, and the euro. Similar to stock trading, except with consumers using a trading software to invest in the currency markets rather than stocks.

The following characteristics define a good forex broker:
  • a minimum ten-year operational history.
  • background experience of management with actual FX trading.
  • a call centre for customer service that is reasonably big and has at least 20 employees.
  • Ability to employ individuals from different parts of the world who are better able to communicate with clients in their native tongue; comprehensive support for the Urdu language is crucial here.
  • Regulation from a country that has the power to hold a broker accountable for their errors, or at the very least, act as an arbitrator in more serious disputes.
  • Ability to handle deposits and withdrawals in under three days; this is especially true for fund withdrawals.
  • international reach throughout many nations, including sporadic local seminar presentations.
  • In essence, the following is a need for Forex Brokers wishing to onboard Pakistanis.
  • Employing Pakistani nationals who can communicate with locals directly can be advantageous, although it is not crucial
  • withdrawals and deposits in local Pakistani banks
  • using Visa and MasterCard (debit and credit cards) to deposit and withdraw money.

Pakistani Forex Trading Online.
There are dozens of forex brokers operating in Pakistan, according to a recent study report by the SECP (Securities and Exchange Commission of Pakistan). List of top brokers.
It is advised to make a minimum first deposit of Rs. 3,000 with a currency broker.
Forex trading online carries risk. Keep your investments within your risk tolerance.
For beginners, using free forex trading signals is advised.
Over 20 lakh Pakistanis trade forex online, and that number is growing at a 15% to 20% annual rate. The fastest-growing kind of internet trading in the nation is the use of binary options platforms to invest in foreign exchange markets.

Online forex trading can be profitable, but before one can begin to benefit, they must trade on a "live real account" for at least nine months. Every person can improve their investing skills and increase their forex trading earnings with time and effort. However, since a virtual trading environment does not accurately represent the conditions of the foreign exchange market, experts advise against using demo accounts. It is feasible to make money online, but it requires investment. Before one may earn a living, one must invest money, time, and effort. For any other line of business or career, the same holds true.

Due to how volatile currencies may be, especially on news days, forex and currency trading are sometimes compared to gambling. The argument put forth by detractors of this claim is that as the future value of tradable assets cannot be accurately predicted by their existing state, all types of investing can be viewed as a soft form of gambling. The best that can be done to acquire a trading advantage in the financial market system is to minimise the usage of leverage and to embrace advanced trading tactics and money management procedures.

Lahore, Karachi, and Islamabad are home to the majority of Pakistan's forex dealers. However, Quetta and other cities in Punjab, KP, Sindh, and Baluchistan are rapidly growing. A number of other cities, including Attock, Abbottabad, Murree, Bahawalpur, Sargodha, Sialkot, Sukkur, Jhang, Larkana, Dera Ghazi Khan, Shekhupura, Kasur, Rahim Yar Khan, Gujrat, Mardan, Sahiwal, Okara, Taxila, and Wah Cantonment, are also known for their forex trading scenes.

Foreign exchange laws in Pakistan.
In Pakistan, it is allowed to trade FX online. Foreign currency can be physically moved and traded by banks and money exchangers in accordance with State Bank of Pakistan regulations. There is no legal prohibition (ban) against Pakistanis engaging in online currency trading. Anyone can trade forex online in Pakistan, but don't count on the SBP or the SECP to assist you if something goes wrong. Pay attention to Forex Ponzi schemes. Many experts in forex trading simply take off with their clients' money. These fraudulent forex trading schemes are occasionally exposed by the Federal Investigation Agency (FIA).

Compared to exchanges, online forex trading is different. The State Bank of Pakistan regulates actual currency exchanges. "Authorised money changers licences" are distributed by the SBP's Exchange Policy Department.  The annual charge for a new Category A - Authorised Money Changers licence with multiple branches is Rs. 300,000 (Rs. 50,000 for renewal). Having a single office costs Rs. 50,000 per year for category B - Authorised Money Changers (renewal Rs. 10,000). To reach State Bank of Pakistan, dial 111-727-111 on the U.A.N.

The Securities and Exchange Commission of Pakistan regulates the Pakistan Mercantile Exchange Limited (PMEX), which offers a centralised and controlled environment for trading in commodities futures. Currently, its member brokers are authorised by law to offer trading services for contracts involving currencies (CHF/PKR, EUR/PKR, GBP/PKR, JPY/PKR), American Index futures (S&P 500, NASDAQ 100), gold, silver, crude oil WTI, commodities, and futures on commodities.

Forex Trading in Islam.
Islam (Sunni and Shia) completely approves (Halal) of forex trading. Online forex trading is permissible. There is no fatwa prohibiting currency exchanges or FX trading. Islam allows for the buying and selling of money. Click Her

Every year, millions of Pakistanis who work in the Middle East (in Saudi Arabia, the UAE, Qatar, Kuwait, Bahrain, and Oman) send Dirhams and Riyals home. All of them engage in actual physical forex trading through their banks and currency dealers (brokers). When a remittance is received from Dubai, for instance, the beneficiary has the choice of exchanging foreign currency through a dealer on the open market or through his or her bank. While currency dealers use the open market exchange rate, commercial banks use the interbank exchange rate. Foreign exchange is traded in both situations. Most international wire transfers, Telex, TT, and remittances to and from Pakistan are settled in US dollars. Many different countries' currency notes are kept for cash settlement by open market exchanges.

In actuality, Saudi Arabia, Kuwait, Bahrain, Qatar, UAE, India, Malaysia, Singapore, Indonesia, South Korea, China, Hong Kong, and Japan are the main centres of online forex, oil, and gold trading in the Middle East and Asia.

One percent (20 lakh) of Pakistan's 200 million residents are thought to have online forex trading accounts or to have done so in the previous year, either directly or through investment managers. Users of actual currency exchange services or PSX stock trading are not included in this statistic. So, go ahead and trade currencies to make money online.

Types of Forex Trading.
There are many ways to do foreign exchange trading.

Spot : The most typical kind of cash transaction that settles in two days, with the exception of transactions in US dollars, Canadian dollars, Turkish liras, Euros, and Russian rubles, which settle the following business day. Two parties are involved in this kind of transaction, and often no interest is assessed. To arrange trades between the parties, a broker charges a commission. If the FX position is retained overnight, the broker will issue a similar transaction and charge a swap fee. Most MT4 brokers offer online trading platforms for currencies that are designed exclusively for spot transactions.

Forward contract : Large investors frequently agree to a specific exchange rate and then exchange the currencies at a later time as a common practise in currency trading. Investors benefit from the reduced cost of currency purchases and other transactional expenses.

Non-deliverable forward (NDF) : NDF contracts are used by prime brokers, banks, ECNs, and forex brokers. In this method, only the value of the currency at a predetermined future date is actually transferred.

Foreign exchange swap : Two parties can temporarily exchange currencies with the intention of reversing the trade at a later time to avoid paying interest fees. Large importers and exporters frequently engage in this kind of FX trading.

Currency Futures : They are used by speculators and multinational organisations to buy and sell enormous amounts of a currency, and they typically expire after three months. Similar to forward contracts in operation, currency futures are traded on exchanges.

Foreign exchange option : Options on currencies can be used to hedging currency risks or for speculation. FX options are derivatives in which the owner is given the opportunity, but not the duty, to convert currency-denominated funds into another at a predetermined exchange rate on a given date. FX options are hazardous, but when compared to other traditional stock options markets, they have the most liquidity.

Binary Options : Binary options, which can be used to trade forex, are all-or-nothing options. Through a binary options platform, many brokers provide forex trading.

Forex Trading Account Types.
There are numerous varieties of accounts for forex trading brokers. Customers can trade and invest in well-known currency pairings including EURUSD, GBPUSD, USDJPY, USDCHF, etc., as well as cryptocurrencies like Bitcoin, XRP, Ethereum, and others using these forex accounts.

ECN Accounts : With the use of Electronic Communication Network (ECN) accounts, traders can send orders to non-bank foreign exchange liquidity providers, dark pools, and foreign exchange banks directly. Trade commissions are not assessed by ECN brokers. The majority of forex orders are filled with a spread of zero pips.

Dealing Desk Accounts : Direct dealing desks are used by large banks and high touch prime brokers to manually process foreign exchange orders. Dealing desk order executions are provided by numerous brokers, foreign exchange companies, and banks.

Straight-Through Processing (STP) Accounts : Orders placed through these accounts bypass the forex dealing rooms and are sent without human intervention directly to the bank.

Standard Accounts : The majority of brokers provide basic accounts with a 100,000 unit minimum order quantity for each currency.

Mini Accounts : Trading orders for 10,000 units of a given currency are accepted.

Micro Accounts : This sort of trader allows for the purchase and sale of currencies in lots of 1000.

Cent Accounts : Traders may use this sort of account to purchase and sell currencies in lots of 100.

Zero Account : Contrast this type with an ECN account, where the pip commission cost is often 0.1 pip or less. There are no commission fees on a zero account. The broker modifies its commission within the entire amount of the currency order. On a zero account, the pip spread expense for each forex trade is 0.

PAMM Accounts : With the use of these broker accounts, customers can connect their deposits to a trader on the network who manages both their own money and the money of the investors. Brokers who deal in foreign exchange (forex) frequently use PAMM accounts. The acronym PAMM, commonly known as percent allocation money management, stands for percent allocation management module. These accounts are viewed as an accessible alternative to hedge funds, which might only take on clients who are extremely wealthy individuals or institutions.

In order to better control their total portfolio and exposure to the foreign currency markets, forex traders and investors utilising PAMM accounts can enable and disable PAMM managers as well as designate varying amounts to various providers for management.

In contrast to hedge funds, PAMM accounts maintain the legal custody of the funds with the broker. In contrast to investing in traditional hedge funds, mutual funds, and index funds, investors have direct live access to their account balances in real time, which includes the total trades made in their accounts as well as their profits and losses.

Deposit Amount : A forex account can be started online with a minimum deposit of $10, $25, $100, $250, $1000, or $5,000, depending on the broker. Owners of VIP accounts may deposit up to $50,000 USD or more.

The average deposit made to create an account is $25 (or Rs. 3000 PKR), whereas the average deposit made by a Pakistani client over the course of three months (or 90 days) is Rs. 2 Lakhs.

Crypto currency Trading.
Trading crypto currencies like Bitcoin is possible through forex brokers and crypto currency exchanges. By registering for a broker account, one can trade crypto currencies on margin (leverage) over the internet. By daily trading volume, Bitcoin dominates the crypto currency market.

Most Traded Crypto currencies.
The top cryptocurrencies that millions of Pakistanis trade are included in this section. Most people choose Bitcoin and Ethereum.

Buy and Sell Crypto currencies.
Similar to a traditional international exchange, cryptocurrency exchanges and exchangers may convert Pak Rupees to Bitcoin and Bitcoin to Pak Rupees.

Even though many exchanges might initially accept customers from Pakistan, almost all of them will "reject" verification when processing customer withdrawals. This is because their banks have set limitations on them about money laundering, which make doing business with Pakistan difficult. For Pakistani citizens, the majority of cryptocurrency exchanges with US and UK origins will pose verification issues. Opening an account with an exchange in Russia or Hong Kong is the sensible course of action. Before opening an account, it's always a good idea to get in touch with the exchange.

How to Buy and Sell Bitcoin in Pakistan.
You can buy bitcoins directly from Pakistanis who already own them and credit them with money through cash payments, in-person meetups, local banks, etc.
A list of well-known exchanges where you may buy and sell Bitcoin and other crypto currencies is provided below.

Legality of Crypto (Bitcoin) Transactions.
Although it is legal to buy and sell bitcoins and other virtual currencies in Pakistan, there are a few recent developments there that should be understood in the context of the entire nation.

In accordance with the demands made by the Financial Action Task Force (FATF), the Pakistani government formally established cryptocurrency legislation on April 1, 2019.

The State Bank of Pakistan's Banking Policy & Regulations Department issued BPRD Circular No. 03 of 2018 on April 6, 2018, which states that initial coin offerings (ICO) tokens and virtual currencies (VCs) like Bitcoin, Litecoin, Pakcoin, OneCoin, DasCoin, Pay Diamond, etc. are not guaranteed by the government because they are not recognised as legal tender.

In Pakistan, banks are not permitted to purchase or sell Bitcoin or other cryptocurrencies until the government develops a detailed strategy for structuring e-currency transactions.

According to a report published by Propakistani.pk, the Federal Investigation Agency (FIA) has advised the government of Pakistan to make Bitcoin and other digital currencies illegal in Pakistan.

The Federal Board of Revenue (FBR) is investigating money laundering and tax evasion as major issues, and there have been attempts to target significant bitcoin merchants in the past.

Recently, there was media coverage of plans to fully legalise Bitcoin in the nation and classify it as an investment, however this information was later refuted.

Islamic view on Bitcoin.
The Muslim scholars are divided on the subject, according to a study published in the SEISENSE Journal of Management.

Best Websites for Crypto currency Price Charts, Market Cap and News.
and Smartereum.com
are reliable sources for up-to-date market capitalization information, interactive technical charts, quoted crypto currency prices, and breaking news.

Forex Trading Books (Guide).
One of the greatest ways for novices to learn about forex trading is to study books, ebooks, or wiki (investopedia.com, wikipedia.org). The majority of them offer training on trading tactics and techniques as well as FX trading courses. You can access their PDF online.
  1. Salman Shariff's book Infographical Forex: Complex Forex Concepts and Strategies Simplified.
  2. Rob Booker's The Currency Trader's Handbook.
  3. Finance on a global scale book written by Piet Sercu.
  4. Uwe Wystup's book FX Options and Structured Products.
  5. Michael Archer's Getting Started in Currency Trading book.
  6. John L. Person's book Forex Conquered: High Probability Systems and Strategies for Active Traders.
  7. Boris Schlossberg's book Technical Analysis of the Currency Market: Classic Techniques for Profiting
  8. James Dicks' book Forex Made Easy
  9. Gerald E. Greene's book, Turning Losing Forex Trades Into Winners: Proven Techniques to Reverse
  10. The Insider's Guide to Currency Trading: Principles, Methods, and Strategies Brian Twomey's book
  11. 15 Trades of the Essentials of Forex: Jay M. Meisler, John Bland, and Michael Archer's book The GlobalView.com Guide to Successful...
  12. Giles Jewitt's FX Derivatives Trader School Book
  13. Book by Kathleen Brooks titled "Kathleen Brooks on Forex: A Simple Approach to Trading Foreign Exchange Using
  14. Don Snellgrove's book Selective Forex Trading: How to Complete Over 100 Trades in a Row Without Losing Money
                  Technical Analysis.
                  Charles Dow, Ralph Nelson Elliott, William Delbert Gann, and Richard Wyckoff are among the forerunners of analytical methods. Pricing patterns can be used by forex traders to enter or exit a deal. Popular patterns include the head and shoulders and double top/bottom patterns as well as technical indicators, moving averages, flags, pennants, balance days, and cup and handle patterns.

                  Many well-liked technical analysis-based forex trading strategies use moving averages, relative strength indices, and MACD, as well as put/call ratios, bull/bear ratios, short interest, implied volatility, and many others.

                  Technical concepts : Chart pattern, breakout, cycles, and average true range The golden ratio, the dead cat bounce, and the Elliott wave theory Flow, point-by-point analysis, Trends, Support, and Resistance.

                  Type of Charts : Chart types include candlestick, line, open-high-low-close, and point-and-figure.

                  Overlays : Bollinger bands, the Channel, the Ichimoku Kinko Hyo, the Moving Average, the Parabolic SAR-Wilder's, the Pivot point, the Resistance, the Support, the Trend line, and the Zig Zag. Similar to this, some traders combine several indicators, including MACD and the Average Directional Index, MACD and the Super Trend, MACD and the Moving Average, MACD and the RSI, and MACD and Moving Averages.

                  Breadth indicators : McClellan Oscillator, McClellan Summation Index, and advance-decline line.

                  Price-based indicators : Commodity Channel Index, Momentum, Relative Strength Index (RSI) oscillator, Relative Vigour Index (RVI), Stochastic oscillator, Average Directional Index, and Trix are some examples of indicators.

                  Volume-based indicators : Money Flow, the Accumulation/Distribution Index, and the On-Balance Volume.

                  Related Trading Concepts : Chartered Market Technician, Clustering illusion, Financial signal processing, Market analysis, Market timing, Mathematical finance, Multimedia information retrieval, Multiple comparisons problem, Overfitting, Price action trading, Texas sharpshooter fallacy, and Robert Nurock are a few other concepts that forex traders should read up on.

                  Fundamental Analysis.
                  This explains why examining currencies through GDP, retail sales, monetary policy, interest rates, and employment statistics is a more passive method. Financial statements from the stock market, including balance sheets, income statements, cash flows, and others, are important for fundamental analysis.

                  Professional forex traders use a blend of fundamental and technical analysis to be profitable.

                  The following topics should be read by traders who want to learn about fundamental analysis: Balance of trade, Currency codes, Currency strength, Foreign currency mortgage, Foreign exchange controls, Foreign exchange hedge, Foreign-exchange reserves, Foreign exchange derivative, Money market, Nonfarm Payrolls, Tobin tax, World currency, Leads and lags, derivatives (hybrid securities on the credit derivative futures exchange), Bond attribution, Fixed income, corporate bonds, and government bonds debt with high yields public bond, Securitization, Exchange rate and currency band.

                  Auto Trading.
                  Auto trading robots are another name for auto trading scripts. Numerous online brokers offer auto trading features.

                  Auto trading (Auto Trading Robots) refers to the process of an investor's trades being executed automatically by a computer programme. This programme employs a pre-programmed trading strategy. The majority of automated forex trading scripts are based on technical analysis.

                  Expert Advisors (EA) are another name for auto trading robots. In order to automate order executions based on well-known technical or proprietary trading techniques, investors can download and activate forex EA on the MetaTrader 4 (MT4 EA) and Metatrader 5 (MT5 EA) trading platforms. MQL4 and MQL5, respectively, are the names of the programming languages used to create Expert Advisors for MetaQuotes' MT4 and MT5.

                  Programming languages MQL4 and MQL5 are employed in the development of trading bots, technical market indicators, scripts, and function libraries for the MetaTrader platform.

                  Online EA for MT4 generation is available for free or at a cost (MT4 Programming Service). The following are popular websites for creating MT4 Expert Advisors:
                  • forexeadvisor.com,
                  • forexrobotacademy.com,
                  • forexgenerator.com,
                  • eagenerator.com,
                  • fxdreema.com,
                  • mql5.com,
                  • babypips.com,
                  • forexrobots.net,
                  • forexfactory.com,
                  • fxeabuilder.com,
                  Many brokers offer their clients free auto trading robots and have their own in-house trading platforms.

                  Similar to auto trading, algorithmic trading employs techniques to divide huge orders into more manageable portions in order to account for variables like time, price, and volume. High frequency traders (HFT) rely on sophisticated algorithms to keep the markets profitable.

                  The traditional currencies (EUR/USD, GBP/USD, etc.) and digital currencies (Bitcoin, Ethereum, etc.) can both be traded using forex auto trading robots.

                  In the long run (six months to a year), the majority of these auto trading scripts lose money, despite the fact that the bulk of forex EAs and auto trading robots make the claim to truly generate money fast for home traders.

                  Social Trading.
                  Investors can automatically follow, share, and reproduce the trading approach of professional traders through social trading, sometimes referred to as copy trading or mirror trading. They are helpful for those who are new to forex trading or would prefer to have a managed forex account.

                  Trading Signals and Forecasts.
                  These are forecasts and buy/sell signals provided by professional traders or automated trading programmes. A trader might opt to join forex trading groups on Whatsapp, Instagram, Facebook, Twitter, Telegram, and LinkedIn in order to obtain buy and sell signals. As an alternative, the entire system might be automated using trading robots. A number of these suppliers also offer live forex signal distribution apps for the iPhone and Android platforms.

                  Numerous websites make the claim to offer reliable paid and free forex trading signals online. To forecast the direction of the currency prices in the future, they combine fundamental and technical analysis. Along with forecasts on popular currency pairs (such as EUR/USD, USD/CHF, GBP/USD, and USD/JPY), trading signals for cryptocurrencies like Bitcoin are also available.

                  Free and Paid Forex Signal Providers,
                  • fxleaders.com,
                  • live-forex-signals.com,
                  • foresignal.com,
                  • forexsignals.com,
                  • dailyforex.com,
                  • fxempire.com,
                  • metatrader4.com,
                  • fxprofitsignals.com,
                  • intomillion.com,
                  • babypips.com,
                  • forexfactory.com,
                  • forexgdp.com,
                  • investopedia.com,
                  • tradingview.com,
                  • signals.me,
                  • thebestforexsignal.com,
                  • take-profit.com,
                  • gold-pattern.com,
                  • metaforexsignals.com,
                  • forexlivesignal.com,
                  • foxytrades.com,
                  • investoo.com,
                  • profit-forexsignals.com,
                  • maxpipfx.com,
                  • dailyfreepips.com,
                  • investing.com,
                  • fxstreet.com,
                  • forexcrunch.com,
                  • longforecast.com,
                  • 30rates.com,
                  • actionforex.com,
                  • poundsterlinglive.com,
                  • walletinvestor.com,
                  • economies.com,
                  • forexpeacearmy.com, FPA
                  • mql5.com,
                  • twitter.com,
                  • dailyfx.com,
                  • investing.com,

                  Trading Software Platforms.
                  The trading platform used to trade forex is accessible as downloaded desktop software, a web-based terminal, and a mobile app. A lot of brokers have their own integrated, personalised trading platform. However, among retail forex traders, MetaTrader 4, MetaTrader 5, and cTrader are very common.

                  Many investors specifically look for reputable "MT4 brokers" when opening a forex trading account. The financial software provider MetaQuotes Software Corp., with its headquarters in Limassol, Cyprus, developed the MetaTrader 4 and 5 trading platforms. It was established in 2000, is privately held, and employs more than 50 people. The specifics of MetaQuotes' earnings are not disclosed to the general public.

                  Cyprus, China, Singapore, Australia, Turkey, UAE, Pakistan, Thailand, Japan, and Bulgaria are among the countries where MetaQuotes maintains offices.

                  For order execution, technical and fundamental analysis, deposits and withdrawals, historical price charts, interactive charting, and other functions, trading platforms and software are required for Forex, Stocks, Options, Bonds, and other financial instruments. Although few brokers may have their own in-house developed custom trading platform, the majority use third party software vendors.

                  Trading Software (Platform)

                  Parent Company

                  MetaTrader 4 and MetaTrader 5

                  MetaQuotes Software


                  Spotware Systems Ltd.



                  Worden TC2000

                  Worden Brothers, Inc.


                  ICE Data Services


                  MultiCharts, LLC

                  Sierra Chart

                  Sierra Chart



                  Wealth Lab

                  MS123, LLC




                  NinjaTrader Group, LLC


                  CQG, Inc.


                  TD Ameritrade

                  Wave59 PRO2

                  Wave59 Technologies

                  EquityFeed Workstation

                  EquityFeed Corporation


                  HUBB Financial


                  VectorVest Inc.

                  INO MarketClub

                  INO.com, Inc.

                  TD Ameritrade

                  TD Ameritrade, Inc.


                  Monex Group, Inc.

                  FXCM trading Station

                  Jefferies Financial Group

                  Bloomberg Terminal

                  Bloomberg L.P.

                  Capital IQ

                  S&P Global




                  Thomson Reuters

                  Free Stock Charts


                  Yahoo finance






                  Forex Meaning.
                  A global decentralised (OTC) market for trading currencies is known as forex, FX, or the currency markets. The daily exchange rates are set by this market. One side exchanges a specified quantity of currency for another in a foreign exchange transaction.

                  The money used to exchange goods and services is known as a currency. Each independent nation has its own currency. For imports, exports, financing through the issuance of debt, foreign payments, etc., currencies can be traded against one another. Foreign exchange transactions are these kinds of acts.

                  PKR There are several different currencies, including rupees, US dollars, British pounds, Australian dollars, euros, and rubles from Russia. A currency (bank notes and coins) serves as a medium of exchange. A promissory note payable to the bearer on demand is known as a banknote (bill, paper money). A coin is a spherical piece of metal that the government mints and uses as legal money to exchange goods and services.

                  Fiat money and commodity money are two different monetary systems into which currencies can be grouped.

                  Fiat money is a form of cash that has been designated as money by governments but has no inherent worth. The State / Federal banks have the power to control the amount of fiat money in the economy by purchasing and selling bonds, increasing and reducing the money supply, and changing interest rates.

                  Commodity money includes items like gold, silver, copper, salt, peppercorns, tea, Rai stones, embellished belts, shells, alcohol, cigarettes, cannabis, silk, chocolates, nails, cocoa beans, cowries, and barley. In the modern world, commodity money can serve as a backup form of payment or investment during economic downturns.

                  Governments do not control decentralised markets. OTC refers to trading that takes place between two parties outside of the purview of an exchange. A regulated trading environment, or exchange (bourse), makes it easier to buy and sell securities like stocks, options, futures, foreign exchange, and commodities. Debt securities, equity securities, and derivatives (forwards, futures, options, and swaps) are all examples of securities. Stock options, bond options, stock market index options, options on futures contracts, and callable bull/bear contracts are only a few examples of options. Futures contracts are agreements that are made in advance to buy or sell a securities at a specific price in the future. These include futures on currencies, interest rates, and stock market indices. A few examples of commodities are sugar, wheat, rice, gold, silver, oil, gas, and coal.

                  For transactions involving forex trading, there is no clearing house. A clearing house makes it easier to exchange (or "clear") transactions involving payments, securities, or derivatives. Trading in foreign exchange is permitted by governments, central banks, institutional investors, commercial businesses (commodity traders), commercial banks, and private individuals.

                  The majority of trading on the currency markets is done by big banks like Citi, JP Morgan, UBS, Deutsche Bank, Bank of America Merrill Lynch, Barclays, Goldman Sachs, HSBC, XTX Markets, and Morgan Stanley. They offer liquidity to "dealers." In the interbank market, many banks compete with one another as currency traders. A top level market called the interbank market is where banks trade currencies with one another. For their forex trading systems, they rely on Thomson Reuters and Electronic Broking Services (EBS). Millions of dollars may change hands with each transaction.

                  For international trade, foreign exchange markets are crucial. For instance, to conduct imports and exports, the United States and the European Union trade dollars and euros. Additionally, these actions help carry trade, or currency speculation. When investors lend (invest in) high-yielding currencies while borrowing low-yielding currencies, this is known as a carry trade. Uncovered interest arbitrage, a trading method that benefits from the difference in interest rates between two countries, is another name for it. In forex trading, the term "arbitrage" refers to the practise of profiting on the interest rate discrepancies between two sovereign currencies.

                  In the 1970s, modern forex trading first emerged. Initially, the Bretton Woods system strictly regulated currency transactions, but over the past 30 years, several nations have switched to variable exchange rates. After World War II ended in 1944, the Bretton Woods system was adopted by the United States, Canada, Western Europe, Australia, and Japan. Countries adhere to a system of fixed and fluctuating exchange rates for its currency. The British pound, euro, yen, and dollar are all freely floatable currencies. Pegged float exchange rates, such as those with horizontal bands and crawling bands, are examples of floating exchange rates. The country's foreign exchange reserves, often known as forex reserves or FX reserves, serve as the security for a currency board that administers fixed rates. A central bank or other monetary body may hold forex reserves as assets denominated in US dollars.

                  Except on weekends, forex markets are open every day of the week. between Sunday at 22:00 GMT (Sydney) and Friday at 22:00 GMT (New York).

                  Because forex profit margins are so slim, traders use leverage to increase their earnings. Leverage in finance refers to trading assets with borrowed money. In the forex market, leverage refers to borrowing money from the broker to trade the markets. Most brokers offer leverage up to 1:200. The brokerage will lend an investor $200 for every dollar they deposit.

                  When trading currencies, bases are base currencies and quotes are quote currencies (counter currencies). Euro, Pound Sterling, Australian, New Zealand, United States, Canadian, Swiss Franc, and Japanese Yen are among the base currencies.

                  Majors like EUR/USD, USD/JPY, GBP/USD, AUD/USD, USD/CHF, NZD/USD, and USD/CAD are the ones that dominate currency trading. These top currencies account for 85% of trade on the foreign exchange market. The Spot Price is the current official exchange rate for the cited currency.

                  Nicknames : GBP/USD (Cable) - GBP also called Quid, EUR/CHF (Swissy, Euro-Swissy), EUR/USD (Fibre), EUR/GBP (Chunnel), USD/CAD (Loonie, The Funds), AUD/USD (Aussie), USD/JPY (Gopher), GBP/JPY (Guppy), EUR/JPY (Guppy), NZD/USD (Kiwi, The Bird), EUR/JPY (Yuppy), USD/RUB (Barney), EUR/RUB (Betty). These names could change depending on where you are. For instance, in London markets, the cockney term "Betty" is used to refer to Cable (GBP/USD).

                  Pips in Forex : The percentage in point (pip) or price interest point (pip) is the smallest unit of change in the exchange rate of a currency pair. PIP should not be confused with the smallest change in the stock quote, often known as "Tick Size."

                  For instance, if the EUR/USD quoted price trades from 1.3000 to 1.3010 on the forex open or interbank market, it can be claimed that the price has increased by 10 pip. Observe the final two digits.

                  Japanese Yen prices have four decimal places, which corresponds to 1/100th of a cent in dollar currencies. Since the yen is much closer in value to one hundredth of other major currencies, a pip is one unit of the second decimal point for the yen.

                  Fractional pip pricing is offered by electronic trading platforms that supply institutional liquidity for the foreign currency markets. Prime and Prime of Prime (PoP) forex trading companies offer currency exchange quotations at fractional pip values that can be as low as 1/10 pip.

                  Foreign exchange brokers Prime and Prime of Prime offer micro-contract deals, allowing the trader to utilise greater margin (leverage) and take on more risk.

                  Units : A lot is a predetermined sum of money that is traded between merchants. The usual lot size is 100 000 dollars. For tiny position sizes, several brokers additionally support trading in mini lots (10,000) and micro lots (1000).

                  Day Trading : It entails trading in currencies, equities, bonds, and other financial items throughout the course of the day. Only big institutions and extremely wealthy people were permitted to day trade in the past. Day trading is now a common way for retail traders to trade the financial markets because it is so simple to access margin trading.

                  Short-term trading is the umbrella term for day trading. Scalping, in which traders purchase and sell financial assets (forex, bonds, stocks, and options) in less than a minute, is another well-liked short-term day trading strategy. A related type of trading called front running includes purchasing and selling financial assets in a matter of milliseconds.

                  Swing Trading : It is also referred to as medium-term trading and entails keeping financial instruments such as stocks, bonds, currencies, options, and overnight holds of stocks for up to two weeks. To make money, traders typically use medium-term trend following tactics.

                  Long Term Trading : It entails purchasing assets, money, options, etc., and holding them for a short while to a long time. It fits the definition of a long-term investment. Long-term trend following and value investing strategies can give traders and investors a competitive edge in the financial markets.

                  Forex Market Size.
                  The most liquid markets are the forex ones. When people and businesses may purchase and sell assets without significantly affecting their pricing, a market is said to be liquid.

                  By volume, the forex market is the biggest. The quantity of financial instruments traded at a specific moment (usually every day) is referred to as trading volume in the world of finance. Credit markets come in second place to forex markets in terms of trade volume. A credit market, also known as a bond market or debt market, is a place for investors to buy and sell debt instruments as well as issue new debt. The bond (credit) markets are composed of bonds, notes, and bills. The volume of trading in foreign exchange markets averages $5.09 trillion per day, according to the triennial Central Bank Survey of Foreign Exchange and OTC Derivatives Markets Activity.

                  The most commonly traded currencies are the US dollar (US$), the euro (€), the pound sterling (£), the yen (JPY), the Australian dollar (A$), the Canadian dollar (CAD), the Swiss franc (CHF), the renminbi (CNY), the Swedish krona (SEK), the New Zealand dollar (NZ$), the Mexican peso (MXN$), the Singapore dollar (SGD), the Hong Kong dollar (HK$), the Norwegian

                  The $5.09 trillion daily market is broken down into $1.654 trillion in spot transactions, $700 billion in outright futures, $2.383 trillion in foreign exchange swaps, $96 billion in currency swaps, and $254 billion in options by the Bank for International Settlements. The Bank for International Settlements (BIS), which is owned by central banks, was founded in 1930 to keep track of significant foreign exchange moves around the globe. It has representative offices in Mexico City and Hong Kong in addition to its Basel, Switzerland, headquarters.

                  Of all international foreign exchange trades, the UK accounts for 40%, the US for 19%, Japan for 6%, and Hong Kong for 6%. With $383 billion daily in forex trading, Singapore surpassed Japan in 2013. The main hub for currency trading is in London. The value of Special Drawing Rights is determined by the International Monetary Fund using FX quotes at London market rates. Special drawing rights (SDRs), an IMF accounting unit, are a representation of the organization's foreign exchange holdings. US dollars account for 41.73% of SDRs, followed by the euro (30.93%), the renminbi (10.92% of Chinese yuan), the Japanese yen (8.33%), and the British pound (8.09%).

                  In 2010, exchange-traded foreign exchange futures and options saw trading volume of $166 billion. More than 2% of global currency exchange turnover is currently made up of exchange-traded currency derivatives (futures and options on futures). More currency futures contracts than any other type are done through foreign exchange futures contracts, which are governed by the Chicago Mercantile Exchange. Interest rates, stocks, currencies, and commodities are just a few of the financial products that are traded on the Chicago Mercantile Exchange (CME). Certain emerging markets do not allow foreign exchange derivative products because of capital controls. Major emerging markets include Argentina, Brazil, China, India, Indonesia, Mexico, Poland, South Korea, Turkey, Egypt, Iran, Nigeria, Pakistan, Russia, Saudi Arabia, Taiwan, and Thailand.

                  Currency futures exchanges exist in South Korea, South Africa, and India, however these countries also have capital controls. They prohibit the trading of very big currency orders.

                  Since 2004, the amount of forex trading has almost doubled. The rise of retail and high frequency forex traders has made a significant contribution. High speeds, high turnover rates, and high order-to-trade ratios are all characteristics of high-frequency trading (HFT). Retail investors are people who take part in the financial markets but invest less money. They have the option of investing in stocks, bonds, and currency goods.

                  High liquidity, electronic execution trading platforms, and low transaction costs have all contributed to the increase in trading volume. It is now simple to purchase and sell currencies online thanks to online electronic trading platforms (MetaTrader 4, 5), which are used by retail brokers. Retail forex traders' daily spot transaction turnover in 2010 was 10%, or $150 billion.

                  History of Forex.
                  A means of exchange has always been utilised by people. The first currency exchange services, aside from barter, were offered by money changers in the Holy Land during Biblical times. People in Byzantine traded currency in the fourth century. In ancient Egypt, coin trades were frequent.

                  In the 15th century, the Medici family represented textile traders and established banks to conduct currency exchanges in outlying areas. Italian banking family House of Medici established Medici Bank in 1397. It established nostro and vostro accounts, which are used for currency exchange accounting and translate to "ours" and "yours" in Italian.

                  In the 17th century, when currency brokers exchanged foreign exchange on behalf of the Kingdom of England and the County of Holland, Amsterdam had a thriving currency market.

                  The country's first investment bank was Alex. Brown & Sons. In 1850, it exchanged currencies. A licence for currency trading was granted to Banco Esprito Santo (BES), a Portuguese bank, in 1880. Many nations started using the Gold standard in the same year. A monetary system that uses the standard economic unit of account based on a set amount of gold is known as a "gold standard." In a monetary system, the national treasury, the mint, the central bank, and commercial banks serve as the government's primary means of controlling the nation's money supply. Gold specie, gold bullion, and gold exchange are some examples of Gold Standard kinds. The Gold Standard was largely abandoned after World War 2.

                  From 1899 to 1913, countries' holdings of foreign currency reserves increased by 10.8%. From 1903 through 1913, gold ownership grew at a 6.3% annual rate.

                  By the end of 1913, the Pound Sterling was in charge of the world currency market. By 1940, London had more than 40 currency exchange brokers in addition to international banks. Paris, New York City, and Berlin were some other significant locations for currency exchange.

                  Leading currency traders in the 1920s included Kleinwort Benson, Japheth, Montagu & Co., and Seligman. In 1954, the Bank of Tokyo took the lead in currency trading with the passage of the Foreign Exchange Bank Law.

                  The Bretton Woods Accord allowed for a 1% deviation from the base exchange rate of the currencies in 1944. This agreement was terminated by American President Richard Nixon in 1971, resulting in the free floating exchange rate. The Smithsonian Agreement was implemented, allowing currency fluctuations of up to 2%.

                  Due to the collapse of the Bretton Woods Accord and the European Joint Float in 1972 and 1973, the forex markets were shut down on a number of occasions. This was brought on by the West German government's $3 billion dollar purchase, which the markets were unable to support.

                  In 1973, Reuters introduced computer-based currency quotations.

                  In 1973, the currency markets were decentralised in the majority of western nations. In the United States, the first retail forex transaction by a person took place in 1982. The People's Bank of China began allowing forex trading in 1978. In 1981, South Korea legalised forex trading.

                  In the 1980s, the UK and US accounted for more than one-quarter of all FX trades. Deutsche Bundesbank tried to intervene in the foreign exchange markets on February 27, 1985. Iran traded oil for goods after the imposition of sanctions, but in 1991 it decided to settle import payments through currency trading.

                  Forex Market Players.
                  Commercial banks and securities dealers make up the majority of players in the currency markets. They exchange goods and services. The interbank foreign exchange market is the name of this market. Direct access to this prime of prime liquidity is not available to retail traders. 51% of all foreign exchange transactions take place on the top tier interbank market.

                  Compared to retail forex traders, who may pay spreads (the difference between the bid and ask price) that range from 1 to 10 pip per trade depending on market volatility, commercial banks and dealers pay extremely small spreads.

                  On a smaller scale, retail forex brokers also perform market-making duties. A company (broker) that quotes the sell and buy prices of forex trading pairs is known as a market maker in the industry. The difference between the ask (person selling a currency) and bid prices is how it receives its fee. Typically, the ask price is greater than the bid price. The bid and ask prices may be same in highly liquid interbank markets, giving major banks free access to daily currency trades worth billions of dollars.

                  Hedge funds, business entities, pension funds, and insurance companies are examples of other forex participants.

                  Commercial Organisations: To guard against price risks, multinational corporations buy and sell currency futures.

                  Central banks: State banks that operate in the foreign exchange markets primarily do so to control the money supply, inflation, and interest rates. FX trading rarely results in gains for central banks.

                  Foreign Exchange Fixing: This entails central banks joining the foreign exchange markets to maintain a fixed exchange rate. This approach is taken by Pakistan State Bank. It conducts daily market activities to maintain the rate in order to stop inflation and the devaluation of the Pakistani rupee. Stable exchange rates benefit banks, dealers, exporters, and importers but can deplete a nation's foreign exchange reserves in times of excessive debt.

                  Investment Management (Hedge Funds): Asset management is a service provided by investment management companies to investors in order to maximise market returns. In order to provide alpha for their customers, several hedge funds invest in the currency markets. Investment firms sometimes use currency overlay as a trading method to lower the risks associated with substantial currency exposure for endowments, pension funds, and commodity trading organisations.

                  Non-bank foreign exchange companies : They offer private citizens and companies money exchange services. They are also referred to as foreign exchange brokers and, in many instances, offer just pure currency exchange with physical delivery rather than online trading platforms. These forex firms handle 15% of all currency transactions within the UK. They provide better exchange rates than conventional banks. Although the State Bank of Pakistan grants licences for currency exchanges, the nation also has a sizable number of unlicensed forex exchanges in operation.

                  Foreign Exchange Companies (bureau de change) : The most frequently exchanged currencies in Pakistan are the Omani riyal, Canadian Dollar, Euro, Saudi Riyal, Qatari Dinar, UAE Dirham, Bahraini Dinar, Malaysian Ringgit, UK Pound Sterling, and US Dollar. In Pakistan, the majority of foreign exchange businesses also offer money transfer (remittance) services. The biggest money transfer firms in the world are Western Union, World Remit, Transferwise, UAE Exchange, Travelex, XE Money Transfer, Moneygram, Xoom.com, Ria Money Transfer, and Revolut.

                  Commercial Banks for Foreign Exchange : Almost all domestic commercial banks allow customers to open foreign currency deposit accounts. In Pakistan, a $100 deposit is required to create a foreign currency account. You can open an account in dollars, pounds, euros, Japanese yen, or renminbi (Chinese yuan). Investors can take bets against the bank and trade the currency markets by using these currency accounts to change Pakistani rupees into foreign currency and then back into rupees at a later time. PKR/USD is the currency pair that is most frequently traded using this approach.

                  Foreign currency bank account is referred to as FCY. Banks can also be used for currency or forex trading. An FCY (foreign currency account) can be opened at any bank. Large deposits (above $1 million) are suited for this form of currency trading because banks do not provide margin lending on their FCY accounts.

                  Retail Forex Traders : In Pakistan, online retail currency trading is fairly common. Through brokers and, in some cases, banks, they conduct online forex trading. Online retail forex trading is not officially regulated in Pakistan. National Futures Association and Commodity Futures Trading Commission keep an eye on US regulation. Forex brokers, including businesses engaged in contracts for difference and financial spread betting, are regulated by the Financial Services Authority.

                  Forex brokers can be separated into two categories: brokers and market makers/dealers. They primarily engage in speculative currency trading. While market makers/dealers take direct risk against the retail customer or may transfer it to a bank or a non-bank foreign exchange liquidity provider, brokers accept client orders and look for the best price.

                  Market makers make up the majority of retail FX brokers. This indicates that they engage in the trade on the opposing side. Trading occurs between their customers and their own broker. Market creating is widespread and entirely legal.

                  To traders and investors, a market maker or liquidity provider buys and sells assets. It makes money from the difference between the quoted currencies, equities, bonds, and commodities' ask and bid prices. During distressed selling or inflated buying of the assets during trading sessions, the market maker must ensure that there is sufficient liquidity present in the market. In order to guarantee the stability of the asset pricing, market makers frequently establish agreements with additional liquidity sources including commercial banks, hedge funds, and dark pools.

                  Speculation in Forex Trading.
                  Speculators can influence the value of a particular currency in both good and bad ways.

                  The idea of financial market speculation was supported by Milton Friedman, who called them a stabilising or rationalising factor. Milton Friedman (July 31, 1912 – November 16, 2006) was an American economist who won the 1976 Nobel Memorial Prize in Economic Sciences for his research on consumption analysis, monetary history and theory, and the complexity of stabilisation policy.

                  According to Columbia University professor and American economist Joseph Eugene Stiglitz, who was born on February 9, 1943, this has more to do with politics and the free market economy than it does with economics.

                  Although traders with small capital have collectively gained a lot of influence in the past ten years thanks to the emergence of retail forex brokers, large hedge funds and currency speculators are better at steering or calculating the valuation of currencies than smaller traders.

                  Some nations view currency speculation as a form of gambling that could jeopardise their economic policies. One of Malaysia's past prime ministers, Mahathir Mohamad, developed a fierce dislike for billionaire currency speculator George Soros and blamed him for the devaluation of the ringgit in that country in 1997.

                  Financial markets journalist Gregory Millman is in favour of the idea of having speculators because they assist justify the overbuying or overselling of assets. He contends that investors can prevent economic bubbles from emerging by liquidating their holdings (currencies, stocks, bonds, and futures) when they become excessively overvalued.

                  Currency Market Mechanics.
                  Variables might cause swings in the forex market.

                  Relative Parity Conditions : Incoming and outgoing monetary flows, GDP expansion, inflation (relative purchasing power parity), interest rates (interest rate parity, domestic Fisher effect, international Fisher effect), budget and trade deficits or surpluses, sizable cross-border M&A transactions, and other macroeconomic conditions are all included in this.

                  Balance of Payments : the list of all imports and exports that have occurred in the nation. Local currency can depreciate or appreciate depending on the overall inflows and outflows of foreign reserves. Pakistan is one of the nations affected by this model since it imports a lot and exports little. During a balance of payment crisis, the local currency may devalue significantly.

                  Asset Market Model : According to the model for determining exchange rates, "the exchange rate between two currencies represents the price that just balances the relative supplies of, and demand for, assets denominated in those currencies." When substantial amounts of a specific currency are kept or sold with the goal of making a profit, the demand and supply for that currency can be affected, which results in readjusted pricing.

                  Unfortunately, none of the currency pricing models are able to account for the variations in supply and demand over a longer period of time.

                  Economic Factors that impact Currency Valuation.
                  The following factors can be used to explain changes in the demand and supply of currencies:

                  Economic policies : interest rate, monetary, and fiscal policies of the government.

                  Budget Deficits and Surpluses : The value of a currency may be negatively impacted by a nation's fiscal shortfalls. When a nation's spending exceeds its tax revenue, a deficit results. The converse occurs in a budget surplus, where the government's income vastly outpace its expenses.

                  Trade Deficits and Surpluses : The currency can suffer from trade imbalances, which occur when a nation purchases more than it exports. Similar to this, when there is a trade surplus, imports are lower and exports are higher.

                  Inflation : The purchasing power of a nation's citizens may steadily decline due to high inflationary tendencies, which will weaken demand for that nation's currency.

                  Economy's Health : The GDP, employment rates, retail sales, and capacity utilisation might influence the favorability of currencies. There is a considerable demand for the currencies of strong economies.

                  Productivity : Stronger positive capital inflows into productive economies increase the demand for domestic currency.

                  Political Conditions and Currencies.
                  Certain nations are prone to political unrest, which can negatively impact their currencies. Pakistan is an illustration. The stability of the political climate in Pakistan has a significant impact on the value of the Pakistani Rupee.

                  Market Psychology.
                  Market psychology is a branch of behavioural economics that has applications in the pricing of currencies.

                  Flight to Quality : Investors generally begin storing their cash and other valuables in safe havens during unpredictable global events. For instance, the US Dollar, Swiss Franc, and Gold are seen as safe havens during times of political and economic uncertainty for nations. Investors constantly seek to preserve their cash, which is why this is also known as risk aversion. Investor confidence in the financial markets may be maintained with the ability to transfer funds to Safe Haven Currencies.

                  Business Cycles : Long-term business cycles (industry transitions) might result in clear currency trends. This can be used as a tool to project a currency's worth in the future.

                  Buy the rumor, sell the fact : a reliable indicator of the behaviour of the masses while making financial decisions. Investors frequently ignore well-known facts and concentrate on rumours in an effort to pressure currencies towards unwarranted depreciation or overvaluation. Cognitive biases and the idea of anchoring may be involved.

                  Economic Numbers : GDP, employment levels, retail sales, and other factors, at least in the short term, can influence currency speculation.

                  Technical Trading : Investors and traders can influence a currency's ultimate end-of-day pricing by using technical trading methods (technical strategies) to seek for patterns to enter and exit a currency.

                  Forex Trading Regulators.
                  The SBP and SECP are in charge of overseeing forex trading regulations in Pakistan, however they don't have any specific guidelines or legislation regarding online forex trading.

                  Contact information for SECP may be found at NIC Building, 63-Jinnah Avenue, Blue Area, Islamabad. Phone: (051) 9207091.




                  Securities & Exchange Commission of Pakistan, State Bank of Pakistan


                  Australian Securities and Investments Commission ASIC


                  International Financial Services Commission IFSC


                  Investment Industry Regulatory Organization of Canada IIROC


                  Financial Markets Authority AMF

                  Hong Kong

                  The Securities and Futures Commission SFC


                  Qatar Central Bank QCB

                  Saudi Arabia

                  Capital Market Authority CMA

                  United Arab Emirates

                  Dubai Financial Services Authority DFSA, Central Bank of the U.A.E, Emirates Securities and Commodities Authority SCA


                  Financial Services Commission VFSC

                  Saint Vincent and the Grenadines

                  Financial Services Authority FSA


                  Cyprus Securities and Exchange Commission CySEC

                  United Kingdom

                  The Financial Conduct Authority FCA

                  United States

                  National Futures Association NFA, U.S. Commodity Futures Trading Commission CFTC, Securities and Exchange Commission SEC

                  Forex Account Deposits and Withdrawals.
                  Visa, Mastercard, Neteller, Skrill (Moneybookers), Cryptocurrencies (Bitcoin BTC), Dixipay, Cashu, UnionPay Debit Card, Perfect Money PM, and Bank Wire Transfer are just a few of the methods available for depositing and withdrawing money from a broker.

                  Before funds can be withdrawn, brokers need account verification (scan of ID card, proof of address).

                  Forex Account Verification.
                  Before being activated, an online trading account might need to be validated by a customer care representative. Few brokers allow accounts to be started without verification; nevertheless, basic documentation submission may still be needed in order to withdraw funds.

                  A client is required to submit a scanned copy of their passport or NADRA national ID card together with a proof of address (bank statement or utility bill) in order to have their account verified.

                  Few regulated, reliable forex brokers offer no-verification free deposit bonuses for brand-new accounts; in most cases, the bonus still needs to be activated with a working phone number or email address.

                  Online Stock Trading.
                  On January 11, 2016, Sialkot Trading Floor of the Lahore Stock Exchange and the Islamabad Stock Exchange amalgamated to establish Pakistan Stock Exchange (PSX).

                  All stock brokerages in Pakistan are governed by the Securities & Exchange Commission of Pakistan (SECP). It also runs Jamapunji, a programme for investor education.

                  The electronic (paperless) settlement of transactions made at the Pakistan Stock Exchange is handled by the Central Depository Company (CDC).

                  Stock indices KSE 100 Index, KSE 30 Index, and KMI 30 Index serve as performance indicators for Pakistan Stock Exchange (PSX).

                  The wealth management divisions of banks in Pakistan provide its clients with mutual funds and index investment products. The Pakistan Stock Exchange has 400 regulated stock brokerage firms as members.

                  Over 220,000 private individual investors trade stocks on the retail market in the nation. Additionally, there are 883 local institutional investors (banks, insurance companies, provincial or federal governments, pension funds, large businesses) and 1,886 foreign institutional investors (hedge funds, index funds, governments) who buy and sell stocks on the Pakistan Stock Exchange (PSX).

                  On its exchange, PSX has 559 publicly traded businesses listed as of February 23, 2018.

                  The typical daily volume of shares traded on PSX ranges from $50 million to $100 million US dollars (traded in PKR), depending on the day of the week.

                  Brokers for trading stocks and commodities.

                  Stock Brokerage

                  Stock Brokerage

                  Stock Brokerage

                  AKD Securities

                  IGI Securities


                  AZEE Securities

                  Arif Habib Online Trading

                  Zafar Stocks

                  M.M. Securities (Pvt.) Limited

                  BIPL Securities

                  Alfalah Securities (AFS)

                  Taurus Securities

                  Intermarket Securities Limited

                  BMA Trade

                  BankIslami Scrips Equity Trading

                  Askari Securities Limited

                  JS Global Capital Ltd

                  Foundation Securities

                  Topline Securities (PVT.) LTD.

                  Invest & Finance Securities Limited

                  Ismail Iqbal Securities

                  Asian Securities

                  Mayari Securities (Private) Limited

                  Darson Securities Private Limited

                  Rafi Securities

                  Optimus Capital Management

                  Diyanah Islamic Financial Services

                  Abbasi Securities Pvt Ltd

                  Standard Capital Securities

                  Managed Forex Trading Accounts.
                  A managed forex account is a sort of foreign exchange (FX) account in which seasoned money managers trade the client's money that has been deposited. Popular forms of money management provided by trading consultants include forex hedge funds. In order to ensure that the fee is paid exclusively on gains, these money managers impose a fee that can range from 20% to 50% of the entire earnings and on high-water mark.

                  There may be a 2% non-refundable management/administrative fee. According to the fund's net asset value (NAV), management fees are computed as a percentage and normally range from 1% to 4% annually, with 2% being the average. For their total assets under management (AUM), the majority of hedge funds use the Two and Twenty calculation.

                  To help novice or inexperienced investors or those who are uninterested in trading the foreign currency markets on their own, many brokers provide managed FX accounts.

                  Managed forex money are highly susceptible to fraud. Money should only be deposited with reputable, licenced trading advisors. Investors should ensure they do due diligence (check references, conduct background checks) because managed forex funds are not regulated in Pakistan. Aside from those funds that are governed by the SECP or the State Bank of Pakistan, investing in such funds should be avoided.

                  Large commercial banks and brokers offer stock equity funds (Mutual Funds, Index Funds) as a regulated form of money management. The general public favours Open End Schemes, Dedicated Equity Funds, Voluntary Pension Funds, and Close End Schemes.

                  Because their money managers invest in overnight treasury bills, currency swaps, Pakistan Investment Bonds (PIB), and offer interbank liquidity, money market funds resemble managed forex accounts in Pakistan. The Federal and Provincial Governments of Pakistan, as well as other banks, all pay interest to these funds.

                  Regulated Managed Investment Funds (Mutual, Equity, Pension, Open/Close Schemes), Money Market, Mutual, Equity
                  • ABL Cash Fund
                  • AKD Cash Fund
                  • Alfalah GHP Cash Fund
                  • Alfalah GHP Money Market Fund
                  • Askari Sovereign Cash Fund
                  • Atlas Money Market Fund
                  • Atlas Sovereign Fund
                  • BMA Empress Cash Fund
                  • Faysal Money Market Fund
                  • First Habib Cash Fund
                  • HBL Cash Fund
                  • HBL Money Market Fund
                  • JS Cash Fund
                  • Lakson Money Market Fund
                  • MCB Cash Management Optimizer
                  • NAFA Government Securities Liquid Fund
                  • NAFA Money Market Fund
                  • NIT Money Market Fund (Formerly: NIT Government Treasury Fund)
                  • PIML Daily Reserve Fund
                  • Pakistan Cash Management Fund
                  • UBL Liquidity Plus Fund
                  • UBL Money Market Fund
                  • ABL Government Securities Fund
                  • BMA Chundrigar Road Savings Fund
                  • Askari High Yield Scheme
                  • First Dawood Mutual Fund
                  • Unit Trust of Pakistan
                  • Pakistan Capital Market Fund
                  • National Investment Unit Trust
                  • HBL Islamic Money Market Fund
                  • Meezan Cash Fund
                  • Al Ameen Islamic Cash Fund
                  • Alhamra Daily Dividend Fund
                  • Faysal Islamic Savings Growth Fund
                  • Atlas Islamic Income Fund
                  • Pak Oman Advantage Islamic Income Fund

                  Best Sites for Currency Rates and News.
                  This section includes a selection of the top websites where you may regularly check live open market exchange rates, news, and interactive technical charts. Check the current remittance exchange rate for the Pakistani Rupee (PKR) against the US Dollar (DD), US Dollar (TT), Australian Dollar (AUD), Bahrain Dinar (BHD), Canadian Dollar (CAD), Chinese Yuan (CNY), Danish Krone (DKK), Euro (EUR), Hong Kong Dollar (HKD), Indian Rupee (INR), Japanese Yen (JPY), Kuwaiti Dinar (KWD), Malaysian Ringgit (MYR), New Zealand Dollar

                  Site Name















































                  Pakistan Foreign Exchange Reserves.
                  Foreign exchange reserves, also known as forex reserves or FX reserves, are sums of money or other assets that the State Bank of Pakistan and commercial banks hold in order to cover costs associated with their international trade, balance of payments, import bills, repayment of foreign debt, coupon payments for sovereign bonds, interest on funds raised through Eurobonds, interest rate currency swaps, etc.

                  The State Bank of Pakistan and Commercial Banks' total foreign exchange reserves are listed in this section as at the end of the month. In October 2016, Pakistan's foreign exchange reserves reached an all-time high of $24.025 billion dollars. In December 1999, the record-lowest number ever was $1.783 billion US.


                  Forex Reserves

                  March, 2019

                  $ 17.39 Billion US Dollars

                  February, 2019

                  $ 14.95 Billion US Dollars

                  January, 2019

                  $ 14.92 Billion US Dollars

                  December, 2018

                  $ 13.83 Billion US Dollars

                  November, 2018

                  $ 14.02 Billion US Dollars

                  October, 2018

                  $ 14.18 Billion US Dollars

                  September, 2018

                  $ 14.9 Billion US Dollars

                  August, 2018

                  $ 16.3 Billion US Dollars

                  July, 2018

                  $ 16.8 Billion US Dollars

                  June, 2018

                  $ 16.4 Billion US Dollars

                  May, 2018

                  $ 15.9 Billion US Dollars

                  April, 2018

                  $ 17.5 Billion US Dollars

                  March, 2018

                  $ 17.8 Billion US Dollars

                  February, 2018

                  $ 18.3 Billion US Dollars

                  January, 2018

                  $ 18.9 Billion US Dollars

                  December, 2017

                  $ 20.1 Billion US Dollars

                  November, 2017

                  $ 18.7 Billion US Dollars

                  October, 2017

                  $ 19.5 Billion US Dollars

                  Richest and the Most Successful Traders.
                  The top traders and investors in the world are listed in this section. These traders and hedge fund managers make investments in commodities (oil, gold, gas, etc.), options, equities, bonds, and currencies. They are mostly billionaires.
                  1. George Soros, owner of Soros Fund Management, has an 8.3 billion USD net worth.
                  2. Duquesne Capital's Stanley Druckenmiller has a 4.8 billion USD net worth.
                  3. $300 million is the net worth of Andrew Krieger, a former partner at Soros Fund Management.
                  4. Bill Lipschutz, a partner at Hathersage Capital Management, has a $300 million fortune.
                  5. Bruce Kovner (Caxton Associates): 5.2 billion USD in wealth
                  6. 80 million dollar net worth for author and forex trader Michael Marcus
                  7. The Tudor Investment Corporation's Paul Tudor Jones has a $4.7 billion USD net worth.
                  8. Joe Lewis (Tavistock Group) has a $5 billion global net worth.
                  9. Private currency trader Urs Schwarzenbach has a $1 billion net worth.
                  10. WiseTree Investments' Michael Steinhardt has a US net worth of 1.1 billion.
                  11. Steve Cohen (Point72 Asset Management) has a $12.8 billion global net worth.
                  12. Bridgewater Associates' Ray Dalio has a net worth of $18.1 billion.
                  13. William Ackman, a partner at Pershing Square Capital Management, has a $1.09 billion net worth.
                  14. Ken Gryphon (Citadel LLC) has a 9.9 billion USD net worth.
                  15. Renaissance Technologies' James Simons has a net worth of $15.5 billion.
                  16. Glenview Capital Management's Larry Robbins has a US net worth of 2.3 billion dollars.
                  17. Andreas Halvorsen is worth US$3.7 billion and works for Viking Global Investors.
                  18. David Elliot Shaw, owner of D. E. Shaw & Co., has a $4 billion net worth.
                  19. David Tepper (Appaloosa Management), $11 billion in wealth
                  20. Warren Buffett (Berkshire Hathaway) has an 86 billion dollar net worth.
                  21. Icahn Enterprises' Carl Icahn has a 17.9 billion USD net worth.
                  In Pakistan, when it comes to financial investments (market making, investment funds), Mr. Aqeel Karim Dhedhi, the CEO of AKD Group (AKD Securities), is regarded as the richest man. He is reportedly wealthy $500 million USD (more than PKR 60 billion rupees).

                  Prize Bonds in Pakistan.
                  Each month, thousands of Pakistanis invest in prize bonds. In Pakistan, a prize bond is a lottery bond that is issued by the government as a profit-bearing (1.5% annually) security in order to finance national development projects or daily government operations. Government of Pakistan's Central Directorate of National Savings in Islamabad oversees and issues them.

                  The maximum payout for a bond with a premium of Rs. 40,000 is Rs. 80,000,000 (PRK 8 crore). Websites like Hamariweb.com, Prizebond.net, Savings.gov.pk, and Pakbiz.com are well-known sources for the most recent draw results.

                  Investors in prize bonds can get in touch with National Savings by writing to 23-N, Savings House, G-6 Markaz, Civic Centre, Islamabad. 051-111-267-268 Pakistan

                  Banks in Pakistan.
                  The official currency of Pakistan is the rupee (sign: Rs; code: PKR). The State Bank of Pakistan is in charge of issuing and managing the nation's supply of Pakistani rupees.

                  The State Bank of Pakistan is the nation's central bank, in charge of administering the country's interest rate policy, printing money, and controlling the nation's money supply.

                  Current and savings accounts are the two primary types of deposit accounts offered by banks.

                  Current Account : This type gives the bank complete access to the client's cash, which it uses in a variety of ways to make money for itself even though it does not create any interest income for the account holder. Overnight interbank lending is one frequent activity.

                  Savings Account : Savings account participants receive interest on their final balances on a monthly, biannual, or annual basis. The bank invests the deposit money in short- to long-term lending, such as providing business or auto loans, project financing, purchasing and selling government bonds, etc. It splits its revenues with the customer.

                  In Pakistan, holders of savings accounts are required to pay zakat once a year. Customers can request that their banks not deduct Zakat from their account balances by submitting a Zakat Declaration Form to them.

                  Islamic Banking : It is a type of banking that abides with Sharia law's regulations. It entails the bank refraining from financial actions that would compel it to accept or distribute interest payments (riba).

                  Many people disagree with the term "Islamic Banking," with the majority arguing that a bank cannot turn a profit if it does not accept interest or issue debt. Many contend that the term is a marketing ploy used by the bank to increase the number of retail and business depositors while already adjusting its profit margin before finalising the financing arrangement with the client.

                  An arrangement known as a mudarabah calls for an Islamic bank to finance a purchase while levying no interest. It more closely resembles the rent-to-own type of deal used by western banks.

                  Musharakah is a profit-and-loss-sharing business arrangement with an Islamic bank in which both the bank and the client provide funding. They also split the joint venture's post-dissolution liabilities as well as profits and losses.

                  Banks doing business in Pakistan are governed by the State Bank of Pakistan.

                  Bank Name

                  Bank Name

                  Bank Name

                  Al Baraka Bank (Pakistan) Limited.

                  Citi Bank N.A.

                  Habib Bank Limited. (HBL)

                  Allied Bank Limited.

                  Deutsche Bank A.G.

                  Standard Chartered Bank (Pakistan) Limited.

                  Askari Bank Limited.

                  The Bank of Tokyo-Mitsubishi UFJ

                  Habib Metropolitan Bank Limited.

                  Bank Alfalah Limited.

                  Dubai Islamic Bank Pakistan Limited.

                  Industrial and Commercial Bank of China

                  Bank Al-Habib Limited.

                  Faysal Bank Limited.

                  Industrial Development Bank of Pakistan.

                  BankIslami Pakistan Limited.

                  First Women Bank Limited.

                  JS Bank Limited.

                  MCB Islamic Bank Limited.

                  Meezan Bank Limited.

                  National Bank of Pakistan

                  S.M.E. Bank Limited.

                  Samba Bank Limited.

                  Silk Bank Limited

                  Sindh Bank Limited.

                  The Bank of Khyber.

                  Zarai Taraqiati Bank Limited.

                  Soneri Bank Limited.

                  The Bank of Punjab.

                  Bank of China

                  Summit Bank Limited.

                  The Punjab Provincial Cooperative Bank Limited.

                  United Bank Limited. (UBL)

                  Contracts for Difference CFDs.
                  Contracts for Difference (CFD)-based share trading is available from all online FX brokers.

                  CFD vs Forex : While forex only involves trading in currencies, CFDs are used to trade a wide variety of financial markets, including company shares, indices, energy (oil, gas), and metals (gold, silver).

                  CFDs were first launched in the late 1990s and are widely used by forex traders. CFD and Forex trading are supported by the majority of online platforms.

                  A contract for difference (CFD) in finance is a derivative trading agreement between two traders, let's call them a "buyer" and a "seller," wherein the seller agrees to pay the buyer the difference between the asset's current value (such as shares, gold, or oil) and its value at the time of the contract (if the difference is negative, the buyer pays the seller instead).

                  Online CFD trading by retail traders is done through NetTradeX and MetaTrader 4 or 5. CFDs may also be made available by brokers through their own custom trading platform.

                  When trading CFDs, between 70 and 90 percent of retail investor accounts experience a loss.

                  CFD Trading Brokers

                  IG markets


                  CMC Markets

                  TD Ameritrade

                  Saxo Bank

                  City Index

                  London Capital Group

                  ETX Capital

                  24 Option


                  Interactive Brokers

                  Spread EX

                  XTB Online Trading

                  FxPro UK


                  CFD vs Stock Trading : The key distinction is that, in a typical stock purchase transaction, the trader fully owns the underlying asset, whereas when trading a CFD, the investor only bets on the direction of the trade.

                  In the UK, CFD and financial spread betting are well-liked alternatives to share trading since they are exempt from capital gains tax.

                  Currently, Pakistanis can open accounts with any retail forex broker located outside of the nation and trade CFDs and engage in financial spread betting. Trading in CFDs is not available locally in Pakistan.

                  Similar to share and currency trading, CFD trading is not forbidden (haram) under Islamic law (Sharia law); this is true for both Sunni and Shia sects. Online CFD trading is legal and halal.

                  Forex Brokerage Industry News and Opinions.
                  This section contains the top websites to visit for the most recent information about online retail forex brokers, the foreign exchange trading industry (B2B), opinions, revenues, office expansions, regulatory warnings, and other analyses.
                  • Financemagnates.com
                  • Leaprate.com
                  • Financefeeds.com
                  It is advised that forex traders go to Financemagnates.com to perform due diligence on their brokers (regulator notices, revenues, total client base).

                  Pakistan Mercantile Exchange Limited (PMEX)
                  PMEX was established in 2002 and started operating in 2007. The Securities and Exchange Commission of Pakistan (SECP) oversees the first demutualized commodities futures exchange in Pakistan.

                  National Bank of Pakistan Limited (33.98%), Pakistan Stock Exchange Limited (28.41%), ISE Towers REIT Management Limited (17.76%), LSE Financial Service Limited (7.25%), Pak Brunei Investment Company Limited (6.80%), Zarai Taraqiati Bank Limited (2.90%), Pak Kuwait Investment Company Limited (2.90%), and Individuals (0.0001%) are the major shareholders in PMEX.

                  It has strategic partnerships with Borsa Istanbul, Izmir Commodity Exchange (ICE), Dubai Gold & Commodities Exchange (DGCX), Iran Mercantile Exchange (IME), Dalian Commodity Exchange (DCE), and Belarusian Universal Commodity Exchange (BUCE). It is a member of the Association of Futures Markets and the Futures Industry Association.

                  PMEX provides a MetaTrader MT4/MT5 trading platform that is Shariah compliant. A minimum deposit of Rs. 25,000 is often required by PMEX member brokers to create a new trading or investing account.

                  As of October 2018, the average monthly volume of contracts traded at PMEX was PKR 306.066 billion. On December 20th, 2018, the highest trading volume per day was 75.39 billion Pakistani Rupees.

                  Entrepreneurs interested in establishing a commodities brokerage firm in Pakistan under PMEX's supervision may send an email to membership@pmex.com.pk.

                  Unlisted Public Limited Company status; 0043602 as the company registration number
                  Number for National Taxation: 1457095-5
                  Deloitte Yousuf Adil Chartered Accountants is the company's auditor. MCAS&W Law Associates is the company's legal counsel.

                  PMEX Regulated Brokers.
                  The Futures Markets Act of 2016 created rules for controlling commodities exchanges in Pakistan, while the Commodities Exchange and Futures Contracts (CEFC) Rules of 2005 dealt with broker licencing. The SECP regulates PMEX's (Pakistan Mercantile Exchange) operations.

                  There were 69 PMEX brokers working inside Pakistan as of December 2018.
                  1. Market 786 (Private) Limited Adam Securities Limited
                  2. (Private) Limited Fintech
                  3. Limited by Royal Securities
                  4. Limited by La Mercancia
                  5. Limited by IGI Finex Securities
                  6. JS Global Capital Limited, Goodluck Commodities (Private) Limited
                  7. Commodities (Private) Limited by Paramount
                  8. Limited by Continental Capital Management
                  9. Limited by AKD Commodities
                  10. Capital (Private) Summit Limited
                  11. Limited by Value Stock Securities
                  12. Limited by Fortune Securities
                  13. DS (Private) Limited Darson Securities
                  14. Limited by Arif Habib Commodities
                  15. ACM Gold (Private) Ltd.
                  16. Limited by BIPL Securities
                  17. Limited by BMA Capital
                  18. Limited by Abbasi Securities
                  19. Management (Private) C & M Limited
                  20. Forest Products (Private) Limited
                  21. Limited by IA Commodities
                  22. Amaan Capital (Private) Ltd.
                  23. Limited by First Commodities
                  24. Commodities (Private) Limited by Zara
                  25. Securities & Services (Private) Limited by Gazipura
                  26. Ahmed Khanani Securities (Private) Limited, Mohammad Munir
                  27. Commodities (Private) Limited, Arsh.
                  28. Limited by Millennium Brokerage
                  29. Commodities (Private) Limited by Agromet
                  30. Limited by Zafar Securities
                  31. Limited by RAH Securities
                  32. Investment Management Multiple Limited
                  33. Limited by Rahat Securities
                  34. Limited by Abbasi & Co.
                  35. the private company Markets & Futures Limited
                  36. Limited by Zahid Latif Khan Securities
                  37. Limited by General Investment & Securities
                  38. Limited by A Q Investments
                  39. Commodities Amigo (Private) Limited
                  40. Limited by Max Commodities (Private).
                  41. ICON Capital Management (Private) Ltd.
                  42. Ahsam Securities (Private) Ltd.
                  43. a private company called Khadija Commodities
                  44. Commodities Exchange (Private) Limited
                  45. Limited by Goldman Commodities
                  46. Limited by Garibsons Commodities
                  47. Limited by Foundation Securities
                  48. iSecurities (Private) Limited
                  49. Betterments (Private) Limited
                  50. Security (Private) Limited M.M.
                  51. Pakistan's Shajar Capital (Private) Limited
                  52. Limited by H.G. Markets
                  53. Topline Securities, Ltd.
                  54. Limited by Azee Securities
                  55. Limited by Salman Majeed Securities
                  56. Limited by Adam Commodities
                  57. Limited by Jahanzaib Commodities
                  58. Capital (Private) Limited, Vector
                  59. Limited by Askari Securities
                  60. Limited by Blink Capital Management
                  61. Limited by Azam Gold Trading
                  62. Obox Gold (Private) Ltd.
                  63. Following (Private) Limited
                  64. Commodities Empower (Private) Limited
                  65. BSMG (Private) Limited
                  66. Resources (Private) Limited, Rays.
                  67. Commodities Management (Private) Limited by Matrix
                  Pakistan Mercantile Exchange Limited (PMEX) Local Products.
                  The following local trading services are available from PMEX member brokers:






                  Red Chilli, Rice, Sugar, Wheat, Palm Olein

                  Liquid Contracts

                  Tola Gold, Milli Tola Gold, Wheat (GRADE A & A+), Red Chilli


                  Rice, Guar

                  Pakistan Mercantile Exchange Limited (PMEX) International Products.
                  PMEX member brokers may provide the following services for foreign exchange trading:




                  Gold, Silver, Copper, Platinum


                  Crude Oil, Brent Crude Oil, Natural Gas



                  Equity Index

                  E-mini NASDAQ 100 Futures, Dow 30 Futures, S&P 500 Index Futures

                  Liquid Contracts

                  Brent 10, Brent 100, Crude 10, Crude 100, Copper, Gold 1 Oz, Gold 10 Oz, Gold 100 Oz, Silver 500 Oz, Silver 100 Oz, Silver 10 Oz, International Cotton, Gold EUR/USD, Gold GBP/USD, Gold USD/JPY, Gold AUD/USD, Gold USD/CAD, Gold USD/CHF, Platinum (5 OZ), Platinum (50 OZ), Natural Gas (10,000 mmbtu), Natural Gas (1000 mmbtu)


                  Corn, Soybean, Wheat, Palladium, Japan Equity Index, Gold (1 Gram, 5 Grams, 10 Grams, 1 Tola, 5 Tola, 10 Tola)