Over the last few years, online trading in Pakistan has grown extensively and the world of binary options has also dramatically increased in this country. Traders in Pakistan, both novice and professional, are enjoying the benefits of low risk and high rewards that this form of trading offers as well as the wide selection of services and features provided by the brokers.
Are You Allowed To Legally Trade Binary Options in Pakistan?
There are currently no laws that prevent traders from trading options online in Pakistan. Within the country, the Securities and Exchange Commission of Pakistan (SECP) is responsible for regulating the capital and corporate markets and their duties also include the development of a regulatory framework based on best practices and international legal standards. The aim of this regulation is to protect traders from risk and to boost capital growth in the country. While the SECP is also tasked with regulating and monitoring brokers in the country, there are currently no binary options brokers who are regulated within Pakistan. Instead, there are many international brokers offering their services within the country. These brokers are regulated by other regulatory bodies such as the Cyprus Securities and Exchange Commission (CySEC) in Cyprus and they provide their brokerage services based on the regulations of Pakistan.
How to Select a Top-Notch Binary Options Broker
In order to trade online, you need to sign up and open a trading account with a broker. This will then give you access to the trading interface. Since this market has grown so rapidly, there are many brokers to choose from and the first place to start is to check if the broker is regulated. You can either obtain this information directly from the broker or you can check for this information online. So let’s explore other services and features to look out for.
Platform for Trading Online
Most brokers in the industry offer a trading platform which is 100% web-based. This means that you will not need to download any software and armed with your computer and internet connection, you could be trading within minutes. When selecting a broker in Pakistan, you need to ensure that their trading interface is simple to use an easy to navigate. Most platforms offer dropdown boxes, making it easy for you to select the asset you want to trade in as well as the expiry time of the trade. The ‘Call/Up’ and the ‘Put/Down’ buttons are also clearly color-coded and marked making it easy for you to execute a trade.
Stock Market Assets
Options trading gives you the flexibility to trade in a wide variety of assets so choosing a broker that offers a good choice is important. Stock trading in Pakistan is made possible with the wide selection of stocks to trade in such as, Apple, Microsoft, Nike and many more. Other assets include commodities such as gold, silver, coffee and more; indices such as Dow, Nasdaq, FTSE 100 and more as well as currency pairs such as, EUR/GBP, USD/ZAR, NZD/USD and many more. Remember that it is best to start trading in an asset you have some knowledge of and if you are new to the game, then select one or two assets and familiarize yourself with them by reading financial news and forums and then make your trade.
Demo Account Trading
The reality of trading online is that it involves risk and while there are ways to minimize this risk, the first step is using a demo account. Many brokers offer this service free of charge and it allows a trader to practice trading within a real live environment without the risk of losing any real money. The benefit of this if you are a new trader, is that it allows you to familiarize yourself with the trading platform as well as the trading environment. In this way, when you enter real trading with your hard earned cash, you will be more prepared. Professional traders can also use this facility to practice trading tactics and strategies. If a demo account is important to you then check if the broker offers this service. Keep in mind that some brokers require that you first open a trading account and make an initial minimum deposit before you can access their demo facility.
You can trade binary options from the luxury of your mobile phone and some brokers offer an app which provides you with a mobile platform to trade. Using your iOS and Android devices, you could easily be trading while on-the-go. If it is important to you to have access to mobile trading, then check with the broker if they offer this service. Most brokers who do offer this service do not charge for the app and it can easily be downloaded from the App Store or Google Play.
Let’s be honest. Most traders trade in order to make money and when trading options in Pakistan, it is best to choose a broker that offers a competitive rate of return. That is, most brokers offer a rate of return up to 85% for winning trades as well as up to 15% rebate on losing trades. Many brokers offer a welcome bonus up to 100% which means that they will give you extra money to trade with proportionate to your initial deposit. So for example, if the welcome bonus is 50% and you deposit $200, the broker will give you an additional $100 to trade with. While this sounds like an excellent offer, these bonuses come with very strict terms and conditions and in some cases, you are better off not accepting the bonus money.
In order to use the trading interface, most brokers will require a minimum initial deposit. To date, I have not found any brokers who offer the Pakistani rupee as one of the currencies they offer. The most common currencies are usually the US Dollar, the Euro and the British Pound so you must take this into account and calculate the conversion rate. Trading effectively is based on trading with money you can afford to lose since trading can be risky.
Finally, take a good look at the banking options that the broker offers both for depositing and withdrawing money. You need to ensure that these options are accepted and available in Pakistan in order to ensure that you always have easy access to your funds. Most brokers offer a wide range of options such as credit cards, debit cards, MoneyBookers, Nordea, wire transfer, PayPal and many more. This information is often easily found on the broker’s site.
If you are living in Pakistan and you haven’t yet joined the world of options, then you are missing out. This fast-paced and entertaining form of online trading offers top rewards giving you the opportunity to enjoy trading success and ultimately, profits.