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Forex trading is commonly referred to as foreign exchange trading. To buy one currency, we must first sell another. It is a global trading network that includes every country, including Pakistan. There is no allegation of trading forex while residing in Pakistan.
Numerous companies in Pakistan engage in forex trading. Offline Forex trading is accessible to anyone. According to many people, it is one of the upcoming lucrative businesses for Pakistanis.
Forex Trading Firms
Because forex trading is legal and permitted in Pakistan, many Pakistanis invest in the currency. Even though it is legal, the trader must follow the SECP guidelines. The only money that can be traded is related to the traditional national currency. These currencies include the USD, EUR, and JPY.
People used to go to forex trading companies to trade in currencies. Trading companies typically provide their clients with convenience in a variety of ways.
Top-rated trading companies in Pakistan offer the following services to their clients:
- Security
- Deposit Or Withdrawal
- Trading Platform
- Customer care
Security
The first and most crucial role of a company is to provide security to its customers. The more reliable a policy is, the more clients it attracts. Clients will not hand over large sums of money to someone who lacks a trustworthy approach. Clients look for the company’s credibility in terms of trading.
Deposit Or Withdrawal
Recognized companies make it a point to make their clients’ deposit and withdrawal policies as simple as possible. Companies have no right to your money; they hold it to make a profit or something similar. As a result, they ensure that you can deposit and withdraw funds.
Trading Platform
Companies offer their customers the best and most user-friendly trading platform. The company provides all available information to its clients, allowing them to trade more efficiently.
Customer Care
Customers choose a company that can provide immediate contact in the event of a problem or a sudden need for assistance. Forex trading is a game of seconds, and the client does not want to lose his win-win situation due to a lack of customer service.
Criteria for FX Trading Company Eligibility
As previously stated, trading is a legal and rapidly expanding business in Pakistan. The State Bank of Pakistan and the Securities and Exchange Commission of Pakistan set all the rules. Every company, industry, or broker intends to register themselves or their businesses following the guidelines outlined by the SBP and SECP.
Existing companies are registered with SECP. The Security and Exchange Commission of Pakistan grants licenses to companies with mutual funds worth more than 20 million rupees. It keeps some of the money in the State Bank of Pakistan. Although companies must first register with SECP, brokers can operate without a license.
Most Traded Currencies in Foreign Exchange
Forex is the world’s largest and most liquid market. Every day, millions and trillions of dollars of trade take place. There are six top traded currencies among the most commonly used currencies. The USD is the most valuable of those six currencies. Following that, we have the Euro, Japanese Yen, etc. The following are the top six most-traded currencies:
- US Dollar
- Euro
- The Japanese Yen
- The British Pound
- The Canadian Dollar
- The Swiss Franc
US Dollar
The US Dollar reigns supreme in the Forex market. Every day, USD trades on a global scale. It can also be found with the pair of many of the world’s most important currencies. Furthermore, due to the USD’s global acceptance, many countries have begun to use it as their national currency.
EURO
In 1999, the Euro was introduced to the forex market. It is now the world’s second most traded currency, trailing only the US USD. It adds liquidity to any money in the forex market after being accepted and trusted. The EuroEuro may be the most politicized currency in the forex exchange.
The Japanese Yen
In the world of foreign exchange, the Yen is a well-known currency. It is also well-known for its carry trade (strategy of seeking profit through interest).
The British Pound
Despite being a significant member of the European Union, the United Kingdom has refused to accept the EuroEuro as its currency. The British Pound is the fourth most traded currency in the world. It is the tumultuous currency of the forex market. The value of the British Pound is frequently calculated using the total power of the British economy.
Canadian Dollar
The loonie is another name for the Canadian Dollar. Aside from the United States, Canada has a correlated economy. Canada exports a wide range of commodities and has currency value in the Forex market.
The Swiss Franc
In the Forex Exchange, they are regarded as a haven. This is the currency of the countries, most likely Switzerland. The Swiss National Bank actively participates in forex exchange to keep the Franc within a relatively narrow range.
Role of the Trading Firms
Forex trading companies play an essential role in trade. Companies strive to provide their customers with the best services possible to participate more actively in forex trading. Companies give their clients a brief overview of each possibility that they can predict. In layman’s terms, forex trading companies assist with currency exchange or money exchange.
These companies also inform their clients that this transaction will only take place between multiple pairs of currencies from various countries, such as US dollars [USD], Canadian dollars [CAD], Euros [EUR], British pounds [GBP], Japanese yen [JPY], New Zealand dollars [NZD], Swiss francs [CHF], Pakistani rupees [PKR], Indian rupees [INR], and others.
If we use a forex broker, they will trade by purchasing a currency pair for us to meet our needs. For example, a trader who wants to exchange US dollars [USD] for Pakistani rupees [PKR] will buy the pair of US dollars and Pakistani rupees [USD/PKR] and then sell US dollars [USD]. This forex exchange business’s legacy of profit and loss occurred as it did in other companies.
If the current change rate is higher than the rate of that currency at which the trade was closed, the trader makes a profit; otherwise [the currency change rate is lower than the currency rate at which the transaction closes], the trader loses. If someone wants to trade forex, it is always preferable to use the services of a registered company. Because they have more experience and significant insights into the market, the chances of loss are reduced.
