Forex trading is becoming a popular profession in Pakistan. Especially the young generation is quite aspiring to become successful forex traders. However, not many users in Pakistan have access to online wallets, or they find no support to access the online wallets. Hence, it becomes difficult for the Pakistani traders to kick start their journey in forex trading as they remain handicapped to deposit startup capital in their trading account.
This article will discuss the brokers that offer local bank transfer deposits in PKR and the potential benefits of local bank transfers.
What is a Forex broker with a Local Bank Transfer Deposit in PKR?
A Forex broker is a central medium that provides a trading platform and creates a market where buyers and sellers for the currencies come and trade. The Forex market remains open 24 hours a day from Monday to Friday. You can enjoy leveraged trading on several markets and instruments with a single platform. You only have to open an account with a broker and replenish your account with the required minimum funds.
The problem starts when you try to fund a trading account from Pakistan. You may not find it easier to use options like a credit card, Skrill, PayPal, or international wire transfer. Hence, you may want to find the Forex brokers that offer local bank transfer deposits in PKR. Such a facility can pave the path for many potential traders who remained deprived of trading because of non-friendly deposit methods.
Deposit Issues of Pakistani Forex Traders
Pakistani Forex traders cannot open accounts with PayPal or some other popular payment processors. Sometimes, they can make accounts with wallets like Skrill, but their banks deny the transactions when they try to fund through their debit cards. In such a condition, traders seek refuge from local exchange depositors who receive money in cash or through banking channels and send them the required amount in their Skrill account. However, this is expensive as local depositors may charge a high fee for the services or sometimes the local depositor turns out to be a scammer.
Moreover, traders are legally not allowed to deposit funds in their trading accounts through international wire transfers. Other than that, there are hefty fees for PKR to dollar conversion and the local taxes on deposits, and it takes 3 to 5 business days to process the transactions.
Addressing the Issues for Pakistani Forex Traders
Many Forex brokers have created a unique selling point by offering local bank transfers for deposits in Asian countries. Such brokers rapidly gain popularity among the local traders amid ease of access to deposit and withdraw the funds and with no extra charges. In Pakistan, Forex brokers with local bank transfers open their bank accounts in Habib Bank Ltd. or United Bank Ltd. because these banks have branches all over the country, and they are equally accessible for citizens of metropolitans and remote areas.
How does a Forex Broker with Local bank Transfer in PKR Work?
A Forex broker earns money by charging spreads or commission to the traders. Most brokers do not charge any fee for deposit or withdrawal. However, payment processors and intermediaries may charge you a conversion fee, and your local tax authorities may charge you a tax against your deposit.
A Forex broker must go through a lengthy process to facilitate the customers with local bank transfer deposit options. Forex brokers have to register with the local authorities to open a bank account. However, this is a win-win situation for both brokers and traders. Traders may use their internet banking facility to deposit funds in the broker’s bank account instantly. Similarly, the broker opens the potential to gain many customers who couldn’t start their trading journey because of non-friendly payment processing.
With the evolution of payment processing in Pakistan, local online wallets like JazzCash and EasyPaisa have reformed themselves into banks. They act as a bank and may be used to deposit or withdraw funds. Therefore, traders in Pakistan may use their EasyPaisa, or JazzCash account for local bank transfer deposits to the brokers.
Key Points to Consider for a Forex Broker with Local Bank Transfer Deposit in PKR
Certain factors must be considered while choosing a broker. Unique selling points and attractive bonuses are also vital, but few points must not be ignored. Although we prefer looking for brokers that offer local bank transfer deposits, let’s learn what other things can affect before you even start.
Security
The foremost factor while choosing a broker is whether your funds are secure or not. You have to take care of non-trading risk before you even start trading. Therefore, you should only opt for a broker that is highly regulated and compliant with local laws.
Transaction Cost
Always check for the transaction costs that a broker charges because they play an important role in reducing or increasing your profitability. Transaction costs may include spreads, commissions, and swaps. Therefore, compare the spreads and commissions with other brokers before making a decision.
Latency
Make sure when you place an order, there may not occur slippage or requotes, and the order is instantly executed. Latency may kill your profitability as you may not get your orders filled at the best prices.
Offered Markets
I always prefer the brokers that offer diverse markets like indices, cryptocurrencies, and shares CFDs. This can help you to diversify your portfolio.
Market Research
Always look for a broker that offers you market research, daily analysis, and newsfeed. This will save your time and energy for market research. You will have the opportunity to learn more about Forex trading.
Review of Forex Brokers with Local Bank Transfer Deposit in PKR
Now, let’s look at some of the top Forex brokers that offer local bank transfer deposits in PKR.
OctaFX
OctaFX was founded in 2011 in Saint Vincent and Grenadines. The broker is regulated by CySEC and operates in around a hundred countries. The broker offers you educational webinars in the local language, and customer support is also available in the local language. They also offer bonuses and loyalty rewards. You can start with as low as a $50 deposit. The broker also sends you email alerts for key events ahead. Along with Skrill, FasaPay, PerfectMoney, and other wallets, you can choose a local bank transfer in PKR as your deposit method.
FBS
FBS started in 2009 and is regulated by CySEC. The broker offers regular webinars in the local language. You can also browse their website in local Urdu. They have a dedicated app for social trading. You can start with as low as $1. They offer different types of trading accounts, including a cent account and a standard account. You can use a local bank transfer for replenishing funds in your trading account.
HotForex
HotForex is a highly regulated broker that started its journey in 2010. The broker is regulated with CySEC, FSA (Seychelles), and DFSA (UAE). You can start trading with a minimum deposit of $5. They have a sound base of Urdu language webinars, Urdu news articles, and educational articles. The customer support is very vigilant and endeavors to resolve your issues as early as possible.
XM
XM is comparatively a new broker that started in 2017. XM is regulated by CySEC and ASIC. XM offers unique and knowledge-driven webinars for its customers in the Urdu language. The broker offers several deposit methods, including local bank transfers in PKR.
Bottom line
We endeavored to discuss the issue of depositing funds in trading accounts aced by the Pakistani Forex traders. We also discussed the way to address the solution through local bank transfer deposits. Many brokers offer local deposits through banks in PKR. However, we reviewed some popular brokers like XM, HotForex, FBS, and OctaFX.