CFD (Contract for difference) Forex trading

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cover photo of the post best forex trading platform in pakistan

CFD trading could be defined as a trading where we could speculate falling and rising prices of different financial markets from around the globe for example commodities, indices, forex and shares etc. CFD trading is a wider concept than forex trading, which loosely means that currency trading i.e. Forex trading is just a single chapter in the whole book of CFD trading.

Trading platforms and their relation with the brokers

Trading platforms are kind of software where investors and traders meet to trade and speculate rising and falling of prices and manage market positions like opening and closing etc. Now what brokers do is offer these platforms either free of cost or on a fixed fee with different features to facilitate the traders differently. Now traders according to their own perspective and liking choose a trading platform or in other words a broker to create a trading account with while putting fee and features of that brokerage into consideration. While speaking of trading platforms for currency/forex traders, MetaTrader is one of the terminologies we should know about. It is basically the most popular trading platform for currency traders that is affiliated with many brokerage firms out there. Its MQL scripting language is a tool to facilitate in currency trading.

Looking into what options do we Pakistanis have for the choice of brokerage firms…?

For any kind of trader, reliability, authenticity and good fee structure are three preferred traits he/she looks for in a broker. It’s very important for a trader to make the right decision regarding choosing a trading platform as it would reflect in the rate of success. But also, in the case of our Pakistani traders, what they also keenly look for other than the above mentioned traits are wheatear it fulfills the Islamic criteria of halal trading or not. It’s a real deal breaker for Muslim traders. Over the past many years the number of such firms are increasing with newer facilities, tools and fee structures for the benefit of investors and traders both, all of which ensures authenticity.

Top 10 Forex Trading Platforms in Pakistan:

We shall now discuss the different platforms; what they are and what they have to offer!

The trading platforms that are quite well received in Pakistan are as follows:

  1. XM
  2. HotForex
  3. CMC Markets
  4. FBS
  5. OctaFX
  6. AvaTrade
  7. eToro
  8. Pepperstone
  9. FxPro
  10. FXTM

It is of high importance that a chosen broker is regulated from the official regulatory body of Pakistan i.e. Securities Exchange Commission of Pakistan (SECP). Pakistani traders prioritize opting for the regulated brokers because while it is highly recommended to get registered from SECP, it is not absolutely necessary hence not a legal requirement.

Let’s get down to their features individually

  1. XM, fortunately offers Islamic trading and is regulated by IFSC, CySEC and ASIC. Since trading is not everyone’s cup of tea, XM even offers a demo account to practice trading on it with fake virtual money before investing actual money. This feature let the traders first sharpen their decision making skills before making real trading decisions based on their tactics and strategies of trading. On this platform there are 4 kinds of accounts with different minimum deposit. First off, Micro and Standard account both have a 5$ limit to start trading with. While the Ultra Low account on the other hand, has set a 50$ limit to start trading with. Lastly, the Shares account has a deposit limit of 10,000$ with an ease to deposit the money in PKR. Moreover, on this platform only well reputed currencies are traded i.e. USD, EUR and GBP.
    P.S. MT4 and MT5 offered.
    Other Benefits:
    • Customer Service in Urdu
    • Rewarding Trading Contests
    • Quite Secure
  2. HotForex is regulated by FCA, CySEC, FSCA, DFSA and FSA. Micro, Premium, Zero spread accounts, auto trading and copy trading accounts are up for selection. Micro accounts deposit limit is 5$, Premium account starts with 100$ and both zero account and auto trading starts with 200$. With only USD, EUR and GBP as base currencies. Platforms offered are MT4 and MT5. Demo Account and Islamic account are also available.
    Other Benefits:
    • Customer service in Urdu.
    • 100 percent bonus
    • Cash rebates
    • Contests offering good rewards
  3. OctaFX is regulated by FCA and CySEC. The type of accounts are Micro account, ECN account and a Pro Account available. In the case of OctaFX the minimum deposit is 100$ which can go up to 500$. While USD, EUR and GBP as base currencies with more than one deposit method available like other trading platforms.
    Other Benefits:
    • 50% deposit bonus on each deposit
    • Quite Secured
    • Urdu available
  4. FBS is another trading platform which is not only opted by Pakistani traders but is also used globally. Regulated by CySEC, this platform is a popular choice among new traders. FBS account types are mainly 4 i.e. Cent account, standard, ECN accounts and Zero spread account with $1, $100, $1000 and $500 minimum deposit respectively. Islamic account offered does also fulfil the criteria of halal trading. Base Currencies: USD, EUR, GBP.
    Other Benefits:
    • Facilities in Urdu available
    • 100$ deposit bonus
    • Regulated offshore
    • Deposit limit starts with only 1$.
  5. CMC Markets regulated by ASIC, FCA, and MAS of Singapore deals in trading of 26 currency pair and approximately 9500 assets. There are 2 types of accounts namely standard and corporate. And Islamic account if needed. Unlike other platforms, there is no minimum deposit limit. Base currencies like other platforms are USD, EUR, GBP. Moreover, forex pairs are traded on MT4 platform.
    Other Benefits:
    • Very good security
    • Refunds up to 10$ per lot traded
    • Regulated from Singapore as well.
  6. Regulated globally AvaTrade is the next big platform which is also rated an excellent choice. It is regulated by Central Bank of Ireland, ASIC, FFAJ, and FSCA. AvaTrade is one of very few platforms that offer fixed spreads. Also, a major change that’s seen here is that it does not offer Urdu language facility. Minimum deposit limit is 100$ with retail account and bet spreading account to choose from. PKR deposits unfortunately are not supported but USD, EUR and GBP could be your deposit currency like base as well.
    Other Benefits:
    • MT4, MT5 and Webtrader offered.
    • Easily available Islamic account and emo account
    • Welcome bonus of 20% on minimum deposit of 1000 USD/EUR/GBP
  7. Regulated by FCA, CySEC, FSCA, and SCB, FxPro is very well reputed with multiple awards and winnings. 3 types of accounts are available with a minimum deposit of 200$.
    Other Benefits:
    • Fully catered demo and Islamic accounts
    • MT4, MT5 and cTrader platforms of your choice offered
    • Very secure
    • Good in providing education
  8. FXTM is another well recognized across globe and frequently chosen broker among pakistanis is regulated by CySEC, FCA, FSCA, and the FSC with Urdu language support available and 6 account types to choose from among which 3 are standard accounts and 3 are ECN accounts. With 10$ minimum deposit with 100$ for standard and 500$ limit for ECN account.
    Other benefits:
    • Deposits in PKR available
    • No fee on deposits
    • Good Security
    • A Loyalty program offered
    • Provide good education
    • Islamic account upon request
    • Demo account easily available
  9. Pepperstoneis globally recognized and quite well received in Pakistan, which is regulated by few of top regulatory bodies i.e. FCA and ASIC. Minimum deposit limit is 200$ with a Standard and ECN accounts as available trading accounts choices.
    Other Benefits:
    • Active trader program with rebates available
    • Secure
    • MT4, MT5, cTrader, Zulu Trade platforms offered.
  10. eToro is regulated around the world by CySEC, FCA and ASIC and is in fact a top choice for social trading. It offers a standard Islamic account with a deposit of 1000$ and a demo practice account is also easily available.
    Other Benefits:
    • User Friendly
    • Most deposit methods are free

Few Other Forex Broker are:

  1. IG (Most Trusted)
  2. Saxo Bank (Best for Research)
  3. Interactive Brokers (Great for professionals)
  4. IC Markets (one of the best MT broker)
  5. Tickmill (best for low costs)

So, to sum up, what one should look for in a broker is that it offers halal trading and is quite trusted around. In this era of fast advancements, people have opened up fraudulent brokerage firms as well which is why it is extremely important to be well read and informed before starting trading.