The Securities and Exchange Commission of Pakistan (SECP) is the primary regulatory authority overseeing financial services in Pakistan, including non-bank financial companies and capital markets. While the SECP does not currently license online retail forex trading in its traditional form, it regulates a limited number of firms permitted to offer currency trading through exchange-approved derivatives.
This article outlines the current landscape of SECP-registered forex brokers, clarifies what forex activity is legal in Pakistan, and highlights safe alternatives for Pakistani traders through internationally regulated brokers.
Forex Regulation in Pakistan: Key Facts
- Retail forex trading via unregulated brokers is illegal under SECP directives
- SECP does not licence offshore brokers like Exness, FBS, or XM to operate in Pakistan
- Legal currency trading must be done via Pakistan Mercantile Exchange (PMEX) brokers under SECP regulation
- International forex brokers may be accessible online, but they operate outside SECP jurisdiction
SECP-Registered Brokers Offering Legal Forex Exposure via PMEX
1. KASB Securities
- SECP Licence: Yes (NBFC and PMEX Member)
- Forex Products: Currency futures via PMEX
- Platform: KTrade
- Strengths: Regulated, Urdu support, mobile app
- Suitable For: Local investors seeking regulated exposure to USD/PKR
2. Multiline Securities
- SECP Licence: Yes (TREC holder and PMEX participant)
- Forex Products: Currency contracts through PMEX
- Platform: Web and desktop PMEX trading terminals
- Strengths: Live local support, tailored for Pakistani clients
3. AKD Securities
- SECP Licence: Yes (NBFC and registered PMEX broker)
- Forex Products: Limited currency pairs via PMEX
- Platform: AKD Trade
- Strengths: Established brand, in-person onboarding
4. IGI Securities
- SECP Licence: Yes
- Forex Products: FX futures listed on PMEX (e.g., USD/PKR)
- Platform: PMEX-compliant software
- Strengths: Institutional-grade tools and compliance
5. Pearl Securities
- SECP Licence: Yes
- Forex Products: Currency derivatives via PMEX
- Strengths: Responsive service, Urdu onboarding support
What About Popular Global Brokers?
The following are not registered with SECP, but are commonly used by Pakistani traders at their own risk:
- Exness
- FBS
- Octa
- HFM
- XM
- IC Markets
These brokers operate offshore and do not provide SECP oversight, which means:
- No legal protection under Pakistani law
- Possible restrictions on local bank transfers or withdrawals
- Risk of access disruption due to SECP directives
Key Takeaways
- SECP does not allow direct forex trading with offshore brokers
- Only PMEX-listed currency futures brokers are legally authorised to offer forex products in Pakistan
- Firms like KASB Securities, AKD, and IGI Securities are SECP-compliant
- Many traders still use offshore brokers, but it carries regulatory and legal risks
- Always verify SECP licence on the SECP website or check PMEX’s list of approved members
Frequently Asked Questions
Are forex brokers legal in Pakistan?
Only brokers registered with SECP and trading via PMEX are legal. Direct offshore forex trading is not permitted under Pakistani law.
Does SECP regulate Exness or FBS?
No. These brokers are not registered in Pakistan and are not under SECP jurisdiction.
How can I trade forex legally in Pakistan?
You can trade currency futures through SECP-approved brokers on PMEX such as KASB, AKD, or IGI Securities.
Is it safe to trade with offshore brokers in Pakistan?
Offshore brokers may be regulated elsewhere but are not protected under Pakistani law, making them legally risky.
Where can I find a list of SECP-registered forex brokers?
Visit the official SECP website or PMEX member directory to confirm authorised brokers.
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