The local foreign currency market is intensively developing, as of now, thus, many local investors decide to join it. Yet, there are multiple prejudices concerning its legalization and regulation, which require explanations. To save you time, we’ve covered the major legal aspects in our beginner’s guide and added step-by-step prompts on how to become a trader.
To start with, let us explain to you how such trading works. As a trader, you are supposed to buy a certain foreign currency in exchange for another one and generate profits from frequent price fluctuations. Certainly, to understand which currency to buy and when, you must watch market conditions and predict possible price movements, based on charts, financial news, expert forecasts, and your personal experience.
As you have probably heard, Pakistan is acknowledged to be one of the Next Eleven countries. Today, it goes through a period of tremendous economic growth, which stimulates all business spheres and industries, including Forex. Furthermore, due to the limitless earning opportunities offered by this market, it is now holding one of the leading positions among investment options.
Many novice investors doubt whether this activity is fully legitimate. But there is no reason for concern. Forex trading in Pakistan is lawful and accessible to local residents without any restrictions.
In general, local brokers are recommended to get registered with the Securities and Exchange Commission of Pakistan, but many of them ignore this requirement. That is why experts often recommend using the services of licensed international brokerage companies that accept local clients.
Also Read: Forex Trading in Nigeria: How to Earn Legally?
Now, when you are sure that this activity is legal, it is time to take decisive steps:
- Find a safe brokerage platform. This market is flooded with scams, so you had better rely on the choice of our experts. Our list of trustworthy brokers includes FXTM, OctaFX, XM, Moneta Markets, and AvaTrade. To make a choice among them, compare the assets, trading instruments, charting features, minimum deposit limits, commissions, payment methods they offer.
- Create a demo profile. As long as you are a beginner, and your experience is limited, it is safer to practice with virtual funds.
- Study basic trading strategies. Formulate your personal one and test it via a demo account.
- Consider passive trading. For a newbie, that is an optimal solution. We would recommend you choose either copy trading or a PAMM account.
In sum, this business sphere is currently rapidly developing in Pakistan. Yet, it is already legalized and taken under control by local authorities. So, if you are searching for promising investment opportunities, be sure to familiarize yourself with this one.