With the mass scale spread of the internet, Forex trading has become so popular in Pakistan. People in Pakistan are eager to learn Forex trading. However, the problem arises when Pakistani traders try to fund their trading account. There are certain restrictions in banking channels, and most international payment processors also do not support Pakistan. In such a scenario, Forex traders in Pakistan may need to look for brokers that offer withdrawals in PKR. This article will discuss how to find the best Forex broker that may support local currency withdrawal.
What is a Forex broker with PKR withdrawals?
A Forex broker is a connecting medium between buyers and sellers of currencies. The broker facilitates the traders through a trading platform. Forex traders access different trading instruments through a single platform and may open or close the positions from Monday to Friday. All you need is to open an account with a Forex broker and replenish your account with adequate funds.
Here comes the problem when traders face huge withdrawal and conversion fees when they manage their account in US Dollars. The solution to mitigate this cost of conversion and withdrawal is using local deposit and withdrawal services. Some reputed brokers offer withdrawals in PKR using the local E-wallets like JazzCash or EasyPaisa.
Challenges Faced by Pakistani Traders
Forex traders in Pakistan face many challenges when it comes to deposits and withdrawal of the amount. Since PayPal is not available in Pakistan and other wallets like Skrill, WebMoney, and PerfectMoney charge a 3.5% conversion fee when traders transfer their withdrawal from these wallets to their local bank accounts. Not only this, but brokers may also charge a certain fee when you withdraw your profit.
When you try to fund your Skrill account or other wallets through your debit or credit card, you may face local taxes on your transactions along with a conversion fee as well.
Hence, the traders may have to bear hefty fees on both deposit and withdrawal. This may significantly impact the profit of traders as well.
Remedy for Pakistani Forex Traders
Some brokers have gained popularity in a very short period because they managed to address the issues faced by Pakistani traders. They started offering deposits and withdrawal in local currency. It saves the conversion fee and takes no time in payment processing. The local agents send and receive payments on behalf of the Forex broker. The payment channels may include local banks and local E-wallets.
How does a Forex broker with PKR withdrawal work?
A Forex broker offers several methods of deposit and withdrawal of funds. Most brokers do not charge any fee on deposit or withdrawal, but the intermediaries like international banks or payment processors may charge a certain fee. Forex brokers only earn by charging spreads or commission for the trades that you place, and there are no other means for them to make money. Therefore, it is a win-win situation for the brokers and the traders to mitigate the withdrawal costs through local payment systems.
Forex brokers set up their bank accounts in well-known banks of Pakistan. They use those bank accounts to process deposits and withdrawals. In the same way, they set up JazzCash and EasyPaisa accounts and use the same account to process deposits and withdrawals. This practice enables the broker to process payments at no extra cost. However, the broker may charge a nominal spread while converting US Dollars to PKR and vice versa.
Key Features to Look for a Forex Broker with PKR Withdrawal
Although the Pakistani Forex traders need to look for brokers that offer withdrawal in PKR, many other factors must not be ignored. Let’s briefly discuss some of the key features that you look for a broker.
Regulation
No matter how attractive offers you receive from a Forex broker, do not sign up if the broker is not regulated.
Customer Services
Find any issues regarding withdrawal or any other thing. Your broker should be easily accessible, and the support team should be vigilant enough to resolve your issues instantly.
Execution
Latency and slippage may cost you extra pennies. So avoid brokers who have a lag in their order execution.
News Feed
Choose a broker that provides free news feed, analysis, and educational content for its traders. It is a good starting for beginners to learn.
Brief Review of Forex Brokers with PKR Withdrawal
After discussing the local withdrawal issues and solution, let’s briefly review the Forex brokers that offer PKR withdrawal.
FBS
FBS Markets is online trading and contract for difference (CFDs) broker founded in 2009. The company has grown significantly since 2009 and boasts over 2.5 million active merchants in 2017. The broker is internationally active and has the necessary licenses through IFSC (Belize) and CySEC (Europe).
This company accepts international clients. In addition, FBS has received international subsidiaries with customer support in over 20 languages. The largest customer base is in Asia. FBS is very well known for its live events and charities for poor people. The broker specializes in forex trading, which you can see on the broker’s homepage. FBS strives to provide its clients with the best conditions for trading currencies. With this broker, you can start trading with any amount of money because the minimum deposit is only $ 1.
HotForex
HotForex was founded in 2010 as a MetaTrader broker. Their traders have free access to over 150 securities, albeit with some restrictions. HotForex is one of the trending entities among other top traders because HotForex is one of the few brokers that owns multiple regulatory ranks worldwide. Regulatory Authority Financial Services Authority (Seychelles), FCA of the United Kingdom, FSCA in South Africa, and DFSA in Dubai are the regulatory body for HotForex.
The minimum deposit required is $5. They have great customer support round the clock, and their free educational webinars are quite helpful for traders.
OctaFX
OctaFX was founded in 2011, and currently, their legal address is located on the island of Saint Vincent and the Grenadines. The company operates in more than a hundred countries. The broker has established an educational program for which videos and e-books are available. A news block and online quotes are offered to help the trader.
The minimum deposit required is $50. They have vibrant customer support in the local language. They have many bonuses and rewards for the traders.
XM
Under the XM Group brand name, the Trading Point Holdings Ltd group of companies is regulated in several jurisdictions. XM UK is licensed by the UK Financial Conduct Authority (FCA # 705428). XM Australia is registered with the Australian Securities and Investments Commission (ASIC, license number 443670). XM Global is regulated by IFSC Belize (license number 60/354 / TS / 18), and XM Cyprus is registered with the Cyprus Securities and Investments Commission (CySEC, license number 120/10). Unfortunately, there is no two-factor authentication for users when logging into your account. Protection of personal data and funds depends on the complexity of your account password.
Trading with XM means trading with a trusted and recognized broker. All clients are provided with the same transparent and fair trading conditions, regardless of the size of their capital, the amount of investment, or the type of account.
InstaForex
InstanVector Ltd is registered in the British Virgin Islands and is regulated by the Financial Services Commission BVI FSC, license number SIBA / L / 14/1082. Insta Service Ltd. Registered in Saint Vincent and the Grenadines under IBC 22945. Insta Global Ltd. registered there, but at the address: Shamrock Lodge, Murray Road, Kingstown, St. Vincent, registration number 24321 IBC 2017. This official information is presented on the website instaforex.com.
Trading conditions are aimed at meeting the needs of both speculators with rich trading experience and novice traders. The selection of instruments that can be traded is quite impressive. Users are presented with 107 currency pairs, CFDs on futures, on American stocks (rating of CFD brokers). Trades in gold and silver are available.
Conclusion
We discussed the key issues that Pakistani traders face during withdrawal. We also discussed the appropriate solution offered by the brokers. We finally reviewed some of the well-known brokers that offer PKR withdrawals.