Is Binary Options Trading Legal in Pakistan? – Guide for Pakistani Traders
Pakistan is a country that is filled with surprises. Pakistanis host one of the largest internet systems in the world and have knowledge about the various forms of trading. Moreover, it is completely legal to carry out Binary Options trading in Pakistan.
The binary options are an essential trading instrument that has gained wide popularity among Pakistanis traders. It grabs the attention of new generations because it gives amazing opportunities.
This term is surrounded by so many controversies, and these are mostly ideal for traders who want to diversify their portfolios. Here you can earn a considerable profit in a short time period. If you are from Pakistan, you might know that Pakistanis don’t have a licensing system, and therefore a trader needs an offshore broker to access any trading activities.
This is the most challenging task to find a reputable and genuine platform. Most people search for a platform where they can trade using different Binary Options & strategies.
Here in this context, we will share with you the information about Binary Options trading in Pakistan. If you just entered the trading industry, then this article will help you for sure.
What Are Binary Options?
The Binary Options trading Pakistan attracts all kinds of traders, starting from beginner to expert level. This is a perfect option for all those who are looking to diversify their investments. This type of trading has been continuously growing over the last year as a credible and genuine option.
Most Pakistani beginner traders are confused about where they should start from and how to invest money in the right platform. If you also are in doubt whether it is safe or not, then here we come to shed light on this topic.
Like other countries, Binary Options trading in Pakistan is also legal. Pakistan’s Securities and Exchange Commission makes this trading option legal in Pakistan. However, there is not a single financial institution in Pakistan that has regulated trade.
Like other trading options, the risk in Binary Options trading in Pakistan is also high. Therefore, it is suggested to pick the best-regulated brokers to make a trade. Planning for trading with these offshore brokers is entirely safe and legal.
Are Binary Options Legal in Pakistan?
Yes, as we mentioned at the beginning of the article, Binary Options trading in Pakistan is completely legal and safe. There are many offshore brokers who accept Pakistani traders. Whether you are a newcomer or a proficient expert, you can practice on these platforms without having any legal consequences.
To begin trading, all you need is a stable internet connection and a computer and smartphone. Make sure that your device supports these offshore trading platforms, trading accounts, and deposits. The legality of binary options delivers the freedom to the traders without any legal complications.
Why Do Pakistanis Mostly Believe in Binary trades?
Binary options trading is the most lucrative trading instrument for all those traders in Pakistan who want to earn massive incomes. So this is a part of income source for most people that too with the short amount of time.
Most of the experts suggest this trading because of its transparent nature. It is a blessing for all those newbies who are stepping into the industry of trading. It keeps you quite aware of the risks that come on the way to making a potential profit.
If we compare this with other trading instruments like Cryptocurrencies or Forex, the Binary option is easier. With the Binary option, you don’t need to focus on different complex procedures to execute a trade successfully. So, the key reason for the popularity of binary options is that there is less risk for traders, and they can easily manage the loss.
Undoubtedly, binary options are the most profitable instruments for traders, and recently it is noticed that it gives wider payouts as compared to any other methods. So, all you require is just to identify the right platform and make the suitable investment to earn profits. Of course, trading is not so easy, but when you move in the right direction, you will succeed in this industry.
If you are planning to enter the world of Binary Options trading in Pakistan, then the very first thing you need is to be aware of the misconceptions. To start trading, you don’t need a huge amount of money. You can start with the minimum investment. This is because there are so many platforms that provide the best demo accounts with virtual money. On these platforms, you can test your skills.
How to Trade Binary Options in Pakistan?
Binary options are considered as the limited risk options for trading. You can trade binary options with different strike prices by considering the possibilities of probability. Here we suggest you the right strategy to trade in binary options trading plan.
To start with this, first, you have to understand that it is a process, and traders are free to make their own strategies for better profits. The process can be divided into five stages, and it is important to focus on each step carefully.
#1 Learn The Market Trends
This is the simplest process of choosing a strike based on the market value. If a trader thinks that the market value will be higher, they can buy it; otherwise, not. A trader should have knowledge about the market knowledge and predictions. As a trader, you should have your own opinions & predictions based on the market rate & future market movements.
Every day the market scenario changes, and that’s why the only key secret to do your best in the trading industry is to stay updated with the market. Stay up to date about what is coming up and what’s already happened.
Nobody can see the future, but yes, you can make some predictions. Stay focus on market financial events, the Forecast period. It would be best if you had an idea about the terms that affect the trading industry, like politics, business developments, international relations, and many more. To be an expert trader, first, you need to have a good overview of the market economy.
#2 Choose The Right Market On Which You Want to Trade
Before stepping into the trading, have some idea about the market. Once you choose the right market you wish to trade; you have to stay focused on this. Choosing the right market depends upon the various factors that are mentioned as below:
- Pick The Right Level
Trading is all about finding an ideal strike. You need to pick the market based on the trading plans that offer the right opportunities to you.
- Check The Contract Duration
When you step into this industry, then you find the contracts. For instance, daily & weekly contracts for buy/ sell purposes. So, before investing, check the contract duration.
- Personal Interest
There is a certain market that captures the interest of traders, and a different trader has a different interest. If you want to proceed into this industry and have an interest in the particular market, then go with that. Pick one that brings the right opportunities for you.
- Select A Strike Cost & Its Expiration
This is the most challenging step where a trader has to select the strike price before starting. The contract structures are simple, but that doesn’t mean that it is easy. To make the right trading, you need a good plan & strategy with lots of predictions.
This is the right place where you can apply all your analytical skills. However, as a trader, you have the chance of losing money, and to be an expert trader, you have to overcome this fear first. Therefore, the selection of binary options strikes depends upon the two factors, such as risk & probability.
So, overall find a strike where you have the chances of getting maximum outcomes. Before investing any amount, make sure that you are comfortable going through any risk. To get a rough estimate of the probability, you just need some calculations and identify the mid-point between the contract’s bid and offer price.
Before making any decision, ask few questions to yourself like why one strike is more appealing than others and what are the processes behind choosing any strike. Then, when you choose any strike, make sure about the probability of profit & risk.
#3 Consider The Risk and Reward
When it comes to the binary options contracts, these are available for 5, 20, 60, and 120-minute duration. It gives you more options and totally depends upon the individual trading style, knowledge of the market forecast, and upcoming financial events.
#4 Place Your Trade
Once you have chosen your strike, you can simply place your trade. When you click on your required strike, then you can buy up the order ticket. You can press the buy/sell button and choose to place a market order and limit order. After doing all these things, you can simply place your trade.
#5 Wait for Expiration
When you have placed a market order, it should be filled immediately. However, when you place a limit order, you have to wait for it to be filled. So, as per the choice, you have to either wait for the expiration or close out your trade early. When you make trading, then there is a chance that it may not always go as you planned. If you find that the market is against your trade options, you can close it early and minimize the chances of losses.
By following the above strategies, you can successfully trade Binary Options trading in Pakistan.
Brokers and Platforms in Pakistan
In this guide, you will get details of the best binary options brokers that can help you decide which trading platform is right for you. There are thousands of brokers for binary options in Pakistan, but we will discuss some of them according to their genuineness, regulation, features, company reputation, and payouts.
It’s really crucial to understand that not all binary options are created equal. There are some binary options trading that offers excellent payouts while others with bigger deposit bonus. Therefore, picking the right broker is always tough. Here are some top-ranked platforms in Pakistan that you can choose in 2021.
Quotex.io is an innovative digital trading platform in Pakistan that helps realize your financial goals. This is a platform that allows you to trade on digital options on a wide variety. This platform is completely web-based, and that’s why there is no need to download any application.
Also, this platform supports trading options on Forex, securities, commodities, and all. The expiry durations are 1, 2, 5, 60 minutes, and one month too. The minimum deposit and withdrawal are only $5 or more, and you can pay the amount in dollars, euros, bitcoin, and pounds. Any trader can make a deposit through eWallet, credit cards, or cryptocurrency. There you don’t need to pay any extra cost for withdrawing. When you visit the website, you can’t see any bonus or referrals points, but once you pay the amount, you will be awarded multiple bonuses.
#2 IQ Option
The IQ option is another platform that Pakistani traders use most of the time. This is a regulated broker platform that includes more than 250 instruments. In fact, it is an ideal platform for intermediate to advanced traders. This is a robust platform that is considered a simple and customizable trading platform. This platform brings an intuitive user interface and is regulated under CSEC. This platform can smoothly run on devices Android, Windows, iOS, and Mac. Well, this is not available on an outdated device.
The best thing about this platform is that it allows you to start with the minimum deposit of $10 and also conduct the trades in $1. This platform also gives a free demo account to novice traders to brush up on their skills. It supports traders 24/7 through live chat and mail. It offers a wide amount of payment options to Pakistani traders.
The withdrawal methods and deposits are Credit Cards, Neteller, AstroPay, Web Money, Skrill, and many more. However, a Pakistani trader can’t make the trade through debit cards. For them, it is suggested to use E-wallet services.
#3 Pocket Option
If you are looking for a platform to make instant withdrawals, this is an ideal platform for you. This platform offers multiple excellent features to beginners as well as expert traders. Also, this platform works with any level of trader, starting from a newbie to beginner & advanced to expert.
The site provides an easy-to-use interface and has good online feedback. It gives a great user experience and offers a 50% deposit bonus. This is the one and only platform that accepts clients from Europe & the USA. The maximum profit of this site is 96%, with a minimum deposit of $50. This platform can smoothly work with Android, web, Windows, and iOS.
Regulations in Pakistan
The online trading websites do not comply with the US regulatory requirements. In fact, these are regulated by CFTC. There are so many scams that traders complain to the CFTC. Also, there are so many platforms that do scam with beginners and experts. Mostly these kinds of websites claim that they deposited money to your account, but in reality, they didn’t. Therefore, it is necessary to pick the right platform when you start trading. You need to have the proper knowledge before stepping into this platform.
Education for Pakistani Traders
For being an expert trader, you need to have proper knowledge and education. Therefore, you need some educational resources that can help to enhance your trading skills. The best traders never stop learning; in fact, they change their skills as per the change in the market. To be on the list of top Pakistani traders here, we provide some of the best resources.
A range of e-books are available on the internet where you can get some valuable information about the binary trading option. The good thing to refer to a book is that it suggests you the pace that suits you. The best book we can suggest to you is ‘Trading Binary for Dummies,’ by Joe Duarte.
- Beginner Guides & Newsletters
The best thing about this is you can easily get them on the internet without paying any money. Just search and download, and that’s it. These are accessible on any device. And the most popular instruction guide, which is popular among Pakistani traders, is ‘Abe Cofnas.’ You can also check the newsletters to stay updated with the market news.
- Video Tutorials
This is the easiest way to learn, and there are a bunch of videos available that you can watch to place a trade. There are many experts who deliver seminars on this topic and give valuable information to beginner traders.
- Digital Chat Rooms
This is another option through which you can learn some brainstorming ideas from binary options experts. You can also check the live charts to learn some new tactics.
If you are a newbie to this, you can analyze the strategies of experienced Pakistani traders. After that, you can replicate their ideas.
Besides that, you can check all the online trading videos to utilize as much information as you can.
Frequently Asked Questions
Can I Trust a Broker Who Gives 100% Assurance of Profits?
There is no guarantee of success when you are dealing with the financial market. Don’t trust anyone who gives you a guarantee to earn dollars quickly.
Can I Make Trading Through Mobile Devices?
Yes, you can make trading through your mobile devices. It is also downloadable on Android as well as iOS platforms.
Is It Safe to Carry Out Binary Trading in Pakistan or Not?
Yes, anyone can do safe binary trading in Pakistan.
Although trading is always exciting and dynamic, it also holds the chances of loss. This is the mind game where you have to apply all your analytical skills. It needs a lot of skills with some good luck too. The only way to make uncountable profits in this field is to choose the right platform, use an effective strategy, and be updated with the market reports. The best way to start Binary Options trading in Pakistan is to make small investments, test your abilities, and sharpen your skills.