Top Pakistan Brokers for 2024

Best Pakistan Brokers Guide

Analysis by Andrew Blumer, Updated Last updated - October 08, 2024

Pakistan Financial Markets

Pakistan Brokers

When trying to find the right brokers in Pakistan check regulation (UK and European regulation is a good sign of a good broker for Pakistani traders), what the broker allows you to trade (US stocks, European stocks, CFDs, crypto, commodities, ETF, Futures etc), funding withdrawal methods the broker offers traders in Pakistan, customer support like live chat and check the trading tools suit your needs (automation, live financial data, fast market orders).

Trading Pakistan Financial markets

Pakistan's financial market is a combination of short-term lending (money market) and long-term investment opportunities (capital market).

The money market comprises the inter-bank call money, certificate of deposit (CD), and repo markets. These markets deal with short-term loans and borrowing typically used for managing daily cash flow needs.

The capital market, on the other hand, focuses on long-term investments. This includes the stock market where companies raise capital by selling shares. Pakistan's two main stock exchanges are the Karachi Stock Exchange (KSE) and the Lahore Stock Exchange (LSE). In addition, there's a futures market for foreign exchange as well as the Commodity Exchange of Pakistan (COMEX) that deals in futures contracts for agricultural products like cotton, sugar, wheat, and rice. Government securities are also traded on both KSE and LSE. The largest share of trading activity takes place on KSE.

Best Brokers Available In Pakistan

Trading in financial instruments involves a high degree of risk and may not be suitable for all investors in Pakistand. The past performance is not a guarantee of future results. Before deciding to trade, you should carefully consider your investment objectives, risk tolerance, and experience.

Choosing a well-regulated broker is essential for Pakistani traders to ensure the safety of your funds. The brokers mentioned in this list are overseen by reputable regulatory bodies like ASIC, CySEC, and FCA. This helps to protect Pakistani traders by ensuring brokers adhere to strict financial standards.

IC Markets

IC Markets stands out for traders in Pakistan with its ultra-low latency and rapid execution speeds, averaging just 40ms. This broker offers advanced trading platforms like MT4, MT5, cTrader, and TradingView, which are ideal for technical traders looking for precise entry and exit points. The availability of tight spreads across a wide array of assets, including Forex and cryptocurrencies, makes IC Markets especially attractive for scalping and high-frequency trading. Its international regulatory oversight also assures Pakistani traders of its reliability and security.

RoboForex

RoboForex offers high leverage and ultra-competitive spreads, starting virtually at zero, which is particularly beneficial for traders in Pakistan aiming to maximize their trading volume and profitability. Its platforms, including MT4 and MT5, support extensive customization and automated trading strategies, critical for traders who engage in algorithmic trading. The operational flexibility and regulatory backing by CySEC ensure that Pakistani traders have a robust and adaptable trading environment.

XM

XM is particularly advantageous for traders in Pakistan due to its strong regulatory framework under ASIC and CySEC, and its focus on customer support. Offering a wide range of trading instruments and account types, XM caters to the diverse needs of Pakistani traders, ensuring that they have the necessary tools and support to navigate the financial markets effectively.

Pepperstone

Pepperstone is ideal for Pakistani traders looking for a diverse range of trading options and an unwavering commitment to customer satisfaction. Regulated by both the FCA and ASIC, it provides a secure and reliable trading environment, with advanced trading tools that cater to both conservative and aggressive trading styles.

AvaTrade

AvaTrade is a strong option for Pakistani traders looking for versatility in their trading operations. With innovative platforms like AvaTradeGo and AvaSocial, and its commission-free structure, AvaTrade supports a community-driven trading experience, making it an appealing choice for those looking to trade CFDs with a focus on cost efficiency.

FP Markets

FP Markets is a top choice for Pakistani traders who prioritize technological efficiency and cost-effective trading. Offering MetaTrader 4 and 5 platforms with enhanced features, FP Markets provides an optimal trading environment with competitive spreads, crucial for effectively managing trading costs and strategies.

How Big Are Financial Markets In Pakistan?

The market capitalization data is from 01/05/2024 and sourced from Bloomberg so is subject to change. Financial data can fluctuate.

The total market capitalization of the Pakistan Stock Exchange is approximately 24 trillion Pakistani Rupees (Rs. 24,000 billion) The debt securities market is also showing an upward trend with a value of 40 trillion Pakistani Rupees (Rs. 40,000 billion).

Stock exchange rules and regulations spell out some basic principles that have to be followed by all equity investors and listed companies undertaking corporate actions (e.g., rights issues, bonus shares etc.).

Who Regulates The Financial Markets In Pakistan?

The Securities and Exchange Commission of Pakistan (SECP) is the regulator for the securities market. The stock markets and financial market regulators are:

The Securities and Exchange Commission of Pakistan (SECP) is the regulator for the securities market. It oversees public companies, government entities, mutual funds, and all investors in stocks or bonds. Additionally, the SECP provides online access to documents on listed companies’ corporate actions such as Shareholders Meetings, Annual General Meetings etc.

Is Forex legal In Pakistan?

Forex trading is legal in Pakistan. It is governed by the Securities and Exchange Commission of Pakistan. Forex trading also falls under the purview of the State Bank of Pakistan. This was made possible with a Forex policy that was outlined in 2000 which came into effect in 2001.

What Is Forex Trading in Pakistan?

Trading Forex in Pakistan is the trading of one currency against another; USD/CAD, AUD/JPY and so on. These currencies are traded against each other in pairs because their price action tends to move at the same time and when you can forecast or predict which way they will move based on an economic indicator or news release, called fundamental analysis, you can make money

Is Trading Forex Halal?

A question often asked by Muslims who have knowledge of Islam but are not familiar with the world of finance is: “Is trading foreign exchange halal?” The short answer would be yes; there aren’t any major problems from an Islamic perspective regarding forex trading as long as all transactions are done through brokers who are reliable merchants and use reputable currency exchanges. That being said, some considerations need to be made before deciding whether forex trading could be right for you financially and spiritually.

While forex trading itself isn't forbidden (haram) in Islam, some practices associated with it, like interest (riba) and excessive speculation (gharar), might be. Consulting with a qualified Islamic scholar can help you understand how to engage in halal forex trading practices.

What Are Islamic Trading Accounts?

Islamic trading accounts cater to investors seeking to comply with Islamic finance principles. These accounts offer Sharia-compliant financial instruments, typically avoiding practices like interest (riba). They provide a variety of investment products to suit different risk tolerances and goals.

While these products may be based on conventional financial tools such as stocks, bonds, mutual funds and currencies, they will conform to principles laid down by sharia law. Is this something new? No, there has always been an Islamic finance industry in Muslim-majority countries where most participants have been Muslim individuals or organizations.

The difference now is that there is an increasing demand for halal or haram-free financial instruments from non-Muslims. This demand has created a market for Islamic investment products in the West where most players are non-Muslim firms seeking a new niche in the global financial market.

Can You Trade CFDs In Pakistan?

The legality of trading CFDs in Pakistan is a complex issue. While the act of trading itself might not be illegal, the State Bank of Pakistan (SBP) has warned against using offshore platforms for CFD and other marginal product trading. This is because the SBP considers such activity unauthorized outflow of foreign currency.

CFD trading platforms can offer a wide range of trading assets and advanced trading platforms as well as leverage up to 1:500. This makes them a great option for investors who want to diversify their portfolios with different kinds of assets.

However, it is important to know that trading CFDs is considered very high risk. You should always consider your risk appetite before starting trading CFDs in Pakistani.

Can I Trade Cryptocurrency In Pakistan?

The legal status of cryptocurrency trading in Pakistan is complex and evolving. While individuals may still be trading crypto, the government recently stated it would 'never be legalized'. Additionally, since April 2023, Pakistani banks have reportedly informed customers that cryptocurrency trading is illegal.

To be more specific, the central bank of Pakistan does not regulate cryptocurrencies. It rather regulates the banks that are dealing with digital currencies for financial transactions.

The ban is targeted at protecting consumers from fraudulent activities by cryptocurrency exchanges and crypto brokers as well as ensuring that investors do not lose their hard-earned money from investment scams in this market of volatile assets. However, no law or regulation bans individuals and companies to trade cryptocurrencies like bitcoin or other altcoins in Pakistan.

The government of Pakistan is yet to decide the status of bitcoin and other digital currencies in this country. This means that the general public can buy/sell/trade bitcoin without any legal threat while they wait for a decision on this matter by the government.

That said, there are also some risks associated with investing in cryptocurrency due to its highly volatile nature and lack of regulation by authorities around the world (or even within countries). Therefore, before you decide to start trading cryptocurrencies ensure you understand how these markets work and if it makes sense for your portfolio based on the risk level of your investment strategy.

Is Crypto Legal in Pakistan?

The legality of cryptocurrency in Pakistan is currently unclear. Previously, there were no specific laws against it, but the government has recently indicated a strong stance against cryptocurrencies. You can find reports from May 2023 stating the government will 'never legalize' them.

According to the chairman of the State Bank of Pakistan (SBP), Tariq Bajwa, cryptocurrencies are not legal tender in Pakistan and no bank or financial institution can offer services for them. He also added that virtual currencies are not backed by assets or a central bank which means they do not have intrinsic value.

In 2016, SBP issued a statement stating that all banks cannot offer their services to use cryptocurrencies as a payment system and reserve bank cannot allow anyone or any company to set up businesses related to virtual currencies due to its lack of intrinsic value and security risks involved with them.

The SBP has said in the past that they are studying how they can regulate the cryptocurrency market to prevent money laundering where criminals will be able to hide their finances through cryptocurrency transactions. However, since then it seems there has been no action towards regulating this market yet.

I cannot provide legal advice and recommend users research the latest information before making any decisions regarding cryptocurrency in Pakistan.

Types Of Trading In Pakistan

When looking for a broker to trade in Pakistan, be careful to go be a reputed, well-regulated broker that receives high praise from its clients. Brokers online usually offer several types of trading account to their clients (as insinuated above), including:

CFD Trading in Pakistan

Conducting transactions in derivatives popularly known as CFDs (or contracts for difference) lets Pakistani traders make speculations on the future price movements only of their underlying assets (no real asset ownership on CFDs). Such assets usually involve commodities, stocks, currency pairs, stock indexes or other types of financial tools.

While the act of trading itself might not be illegal, the State Bank of Pakistan (SBP) has warned against using offshore platforms for CFD and other marginal product trading. This is because the SBP considers such activity unauthorized outflow of foreign currency. It's important to thoroughly research the legal landscape and the risks involved before considering CFD trading in Pakistan.

Forex (Foreign Exchange) Trading In Pakistan

Foreign exchange trading involves exchanging one particular currency for another. Exchange rates are susceptible to fluctuations as the value of a currency goes up or down with another given currency pair. Forex trading gained more traction once online trading became prevalent in recent years. The Forex market is known to be the most prominent fiscal market internationally, with the most liquidity. In April 2024, the Forex market exhibited a daily turnover of 6.8 trillion, based on data gathered by the BIS (Bank for International Settlements).

Demo Accounts In Pakistan

Demo accounts are accounts that use virtual money that is not real. These accounts are used by newbie traders to practice trading, try out a trading strategy, or evaluate a potential broker’s platform and services. Such accounts simulate an actual trading environment, helping new traders build confidence in their strategies. Demo accounts are often available in many countries, including Pakistan.

Islamic Accounts

Islamic or Shari’a-based accounts are most suitable for traders and investors wishing to trade using accounts conforming to Shari’a law. These accounts remove the involvement of Riba (usury), which is considered Haram under Shari’a law.

What To Know Before Trading In Pakistan

Before you begin investing in the Pakistani stock market (PSX), it's crucial to understand the regulatory landscape. The Securities and Exchange Commission of Pakistan (SECP) regulates the PSX and other financial institutions like stockbrokers, credit rating agencies, insurance firms, and more.

For Pakistani citizens with a local bank account and valid ID, setting up a brokerage account is straightforward. However, non-residents, including Non-Resident Foreign Nationals (NRFs) and Non-Resident Pakistanis (NRPs), and Foreign Institutional Investors (FIIs) need to follow additional requirements.

To invest in Pakistani stocks, all non-residents (NRFs, NRPs, and FIIs) must open an account with a bank that offers custodial services. These accounts typically include a linked securities account for holding purchased stocks and a Special Convertible Rupee Account (SCRA) for holding funds. Additionally, a deposit account with the State Bank of Pakistan and the Central Depository Company (CDC) is required to hold treasuries and other securities.

Finally, non-residents must establish an account at a custodian bank to obtain a Unique Market Identifier Number (UIN) for identification within the stock market. Before opening a Pakistani stockbroker account, NRPs, FIIs, and NRPs must complete these steps and provide their bank information and identification documents.

The PSX facilitates trading in various instruments like stocks, derivatives, exchange-traded funds (ETFs), Islamic products, and government bonds. Transactions are primarily conducted in Pakistani rupees and recorded electronically through BATS (Bonds Automated Trading System), KATS (Karachi Automated Trading System), and KITS (Karachi Internet Trading System).

In essence, KATS caters to stockbroker trading, KITS facilitates online trading, and BATS provides a platform for trading government and corporate bonds.

What To Look For In A Pakistani Broker Account

Before you open an account to trade Pakistani stocks on the Pakistan Stock Exchange (PSX, formerly PMEX), consider the following factors:

Exchange Membership And Regulation

Brokers dealing on the PSX must have an officiall PSX issued TREC certificate, authorizing them to conduct trades on the exchange. Additionally, all financial institutions, including stockbrokers, must be regulated by the Securities and Exchange Commission of Pakistan (SECP).

Trading Platforms In Pakistan

All brokers should offer user-friendly online trading platforms for placing orders on the PSX or similar exchanges. Ideally, the platform should be easy to navigate and use. Many platforms provide technical analysis tools (indicators, price charts) and news feeds.

Research

Full-service online brokers may offer access to market research and other valuable information to assist investors and traders in making informed decisions.

Funding and Withdrawing from a Broker in Pakistan

Since some major payment methods like PayPal are not available in Pakistan, it's crucial to check the funding and withdrawal methods offered by your chosen broker. Additionally, compare the currency conversion rates (USD to PKR) and any associated fees for your preferred withdrawal method.

Commission Charges And Other Fees When Trading In Pakistan

Active traders will likely benefit from brokers with lower per-trade fees and commissions, as these charges can accumulate over time. Even less active traders can benefit from cost-effective options.

Trading Customer Support In Pakistan

A reliable broker with good customer support will address your inquiries and help resolve any issues related to your account. Most Pakistani stockbrokers offer customer support via phone call and email.

Pakistan Trading Opportunities

Pakistan's strategic location as the second-largest South Asian economy presents exciting trade opportunities. The country actively participates in global trade, with exports and imports reaching around 25% of GDP in 2017, according to the World Bank. This is further bolstered by its membership in the South Asia Free Trade Agreement. Pakistan's evolving financial sector caters to Muslim investors by offering Sharia-compliant investment products and accounts. Additionally, the trade tensions between the US and China (two of Pakistan's biggest trading partners) could create opportunities. For example, US companies seeking alternatives to Chinese imports may shift manufacturing to Pakistan to avoid tariffs. Pakistan's ranking of 26th for investor protection by the World Bank demonstrates its commitment to a fair business environment.

Pakistan Trading Challenges

Despite a healthy trade-to-GDP ratio, Pakistan faces challenges. As a net importer, the country is vulnerable to trade agreement failures and rising oil prices. The World Bank's downward revision of Pakistan's growth forecast in early 2019 reflects these concerns. Pakistan's ranking by the World Bank paints a picture of a complex business environment. The country ranks 130th for ease of doing business and 136th for offering a favorable business environment. Additionally, its ranking for accessing credit (112th), cross-border trade (142nd), and tax payment (173rd) highlight these challenges. Furthermore, interventions by Pakistan's central bank to stabilize the currency exchange rate can create foreign exchange uncertainty for investors. Currency devaluation can also negatively impact businesses seeking stable currency environments.

Verdict: Opportunities Exist Despite Challenges

While Pakistan presents a challenging business environment, it also offers significant opportunities. Muslim investors, in particular, may find it an attractive market due to the availability of Sharia-compliant financial products.

Remember When choosing a broker, carefully evaluate their offerings (asset classes, platform features, services) to ensure they align with your trading needs.

We have conducted extensive research and analysis on over multiple data points on Pakistan Brokers to present you with a comprehensive guide that can help you find the most suitable Pakistan Brokers. Below we shortlist what we think are the best pakistan brokers after careful consideration and evaluation. We hope this list will assist you in making an informed decision when researching Pakistan Brokers.

Trading in Pakistan

When trading in Pakistan you will need to chec what your options with your Pakistan trading broker are.

We list below the various regulated trading account types available to traders in Pakistan. If you are looking for a trading platform or broker in Pakistan that are suitable for trading in Forex, CFD's, indices, stocks, and ETFs, Cryptocurrencies (availability subject to regulation) or commodity markets; this Pakistan broker guide will explain the things you should check and be aware of before you invest.

Forex Trading in Pakistan

You've probably noticed how Forex trading is really taking off in Pakistan, right? Over the past half-dozen years or so, the trading volume in Pakistan has been on a steady climb. It's like everyone in Pakistan is getting in on the action. But traders in Pakistan must understand the risks.

Across the world $7.5 trillion USD in volume is traded every single day. Commodities global trading volume is around $380 million USD a day. Global stock markets trading volume is around 460 million USD a day.

Modern software, more affordable mobile devices in Pakistan and higher internet uptake in Pakistan has increased competition for new trading clients among brokerages in Pakistan, which has opened Forex trading to a new audience.

Is Forex Trading Legal in Pakistan?

There's this common myth floating around that diving into Forex trading in Pakistan is illegal, this is not the case, but Forex trading in Pakistan is risky. Forex trading in Pakistan is not a get rich quick scheme, you will be competing with people not just in Pakistan, but all over the world. The key, though, is to be smart about it. You have to choose a broker in Pakistan that's not just reputable but also strictly regulated and allowed to offer services to traders in Pakistan.

Trading in Forex is allowed in Pakistan as businesses dealing internationally must exchange currency. Forex is an integral part of import and export in Pakistan and investing internationally. Pakistan Forex trading is not banned, their are many top-notch international online brokers available to traders in Pakistan offering regulated trading environments.

Do Forex Traders Pay Tax in Pakistan?

Once a traders profits reach a level where the income on the Forex trading can be taxed in Pakistan the trader should make sure all taxes owed for a financial year are paid. Just a heads up about the tax situation here in Pakistan. You've must file taxes in Pakistan even if the markets chewed you up and you spat out losses this year. Also in Pakistan you can't claim any trading losses against your personal income taxes, unfortunately. Don't just wing it - get yourself some solid advice from a qualified tax pro in Pakistan who knows the ins and outs of the tax labyrinth in Pakistan. In Pakistan, Islamic accounts are not restricted.

Cryptocurrencies in Pakistan

Here in Pakistan, the crypto scene is still pretty new, and cryptocurrency in Pakistan is getting more and more tangled up in the local financial regulatory rule in Pakistan. The thing about cryptos is, they operate on this decentralized model, right? So, unlike our traditional currency markets in Pakistan, they're not as rattled by interest rate shifts or the political drama in Pakistan that's always on the news. Crypto in Pakistan is a different beast altogether.

You know, with the surge of younger traders in Pakistan, who are not only tech-savvy but also starting to speculate with decent money in Pakistan, there's a noticeable shift happening in Pakistan towards the crypto market (which is highly volitle and high risk in Pakistan). Cryptocurrency traders in Pakistan contribute to the $20 billion USD worth of Bitcoin is traded daily around the world.

Commodity Trading in Pakistan

In Pakistan commodity trading includes the trade in precious metals, energies and agricultural commodities.

Some commodities like metals are seeing exponential growth in Pakistan since 2002.

Fast growing countries like China and India have been growing rapidly over the last 3 decades. This has meant that countries like China and India have a vast requirement for many basic commodities and raw materials for their populations. Crops to feed people and metal to build infrastructure for example. This means countries like Pakistan are able to take advantage of this demand.

We list brokers that allow you to trade commodities in Pakistan here.

Islamic Accounts in Pakistan

Pakistan brokers support Islamic accounts or swap-free accounts. Pakistan Islamic accounts have no rollover interest on overnight positions to comply the Muslim faith. Traders of Islamic faith are forbidden to pay interest. Brokers in Pakistan offer accounts that are suitable for Islamic traders. These Pakistan brokers complies with Sharia law.

Benefits of Trading in Pakistan

Pakistan economy and population is growing. The middle class population in Pakistan is increasing which means a growing consumer base. Many business and financial opportunities exist in Pakistan. Pakistan has a young population educated in technology and the internet.

Concerns of Trading in Pakistan

Pakistan digitisation of financial trading has made it easier to defraud unsuspecting investors across the internet. Make sure the broker you trade with is regulated and passes the checklist in this Pakistan guide. Educate yourself as much as possible open a demo account if necessary be you open a live trading account.

Learn about leverage when trading. Pakistan Brokers offering high leverage trades in Pakistan can mean high profit margins. But this goes both was it can also mean huge losses. There are things like negative balance protection and stop loss accounts which some Pakistan brokers offer as a level of protection. you can learn more about further below on this guide.