Short answer
Pakistani regulators have put clear limits on online forex trading. The State Bank of Pakistan (SBP) controls foreign exchange, and the Securities and Exchange Commission of Pakistan (SECP) licenses brokers. Both have said that residents dealing with offshore forex, margin and CFD platforms are outside the rules.
- On sending money: per the SBP, remitting foreign exchange to overseas forex/margin/CFD platforms is not allowed through any payment channel (FERA s.5(1)).
- On residents buying these products: per the SBP, the purchase of offshore forex/margin/CFD products by Pakistani residents violates section 4(1) of FERA 1947.
- On offshore platforms: per the SECP, offshore forex/CFD platforms operate without regulatory approval in Pakistan.
This page is general information, not legal advice. Laws, circulars and how they are enforced can change. For your own situation, speak to a qualified lawyer and read the current texts on the official SBP and SECP websites.
Key terms
- Forex (FX): buying one currency and selling another, for example USD against PKR or EUR against USD.
- Margin trading: opening a position larger than your deposit. The broker holds part of your money as margin, which is the security for the open trade.
- CFD (contract for difference): a contract that pays the price difference of an asset between opening and closing. You never own the asset itself.
- Offshore platform: a broker or app based outside Pakistan and not licensed by a Pakistani regulator.
- FERA: the Foreign Exchange Regulation Act, the main law behind SBP foreign exchange controls.
For more definitions, see the trading glossary.
What the SBP says about forex trading
The SBP issued a clarification on offshore foreign exchange trading, margin trading and CFD websites, apps and platforms. It covers two points.
Sending money abroad to trade
On sending money: per the SBP, remitting foreign exchange to overseas forex/margin/CFD platforms is not allowed through any payment channel (FERA s.5(1)).
The wording covers remittances made "directly/indirectly", so the rule is not limited to a bank wire. It applies to any payment channel used to move foreign exchange out of Pakistan to such a platform. If you are thinking about using a card, a wallet or an agent to fund an offshore trading account, read this clarification first.
Buying offshore FX and CFD products
On residents buying offshore products: per the SBP, the purchase of offshore forex/margin/CFD products by Pakistani residents violates section 4(1) of FERA 1947.
This point concerns the resident, not only the bank or payment provider. The SBP text names some platforms as examples. A platform that is not named is not covered by any approval because of that.
For the wider framework, including what residents may and may not do with foreign currency, see SBP FX rules.
What the SECP says about online trading platforms
The SECP supervises securities and futures markets. Its position: Securities and Exchange Commission of Pakistan (SECP), with trading in listed securities and commodities only via SECP-licensed securities and futures brokers.
On offshore platforms, the SECP has said:
- On platform status: per the SECP, offshore forex/CFD platforms operate without regulatory approval in Pakistan.
- On protection: per the SECP, offshore platforms have no Pakistani licence or oversight and offer no legal protection or recourse.
In practice, if an offshore platform refuses a withdrawal, closes your account or disappears, a Pakistani regulator has no licence it can act on. You would have to deal with the platform under the rules of the country where it is based.
The SECP also warns the public by naming specific platforms in press releases: SECP warnings by press release naming platforms (Quotex 09.04.2025; IBKR look-alikes, IGIL Securities, BMA Capital No.108 etc. 22.05.2025; Hillhouse Capital, S-169 Wharton 13.01.2026), none of which names Exness. The releases we read do not name Exness. That is not a Pakistani licence or approval for it or for any other offshore broker.
More detail is in SECP explained.
Forex trading law in Pakistan: the licensing rule
Pakistan has a licensing law for futures market intermediaries such as brokers and advisers:
- Licence requirement: under the Futures Market Act 2016, s.47(1), no one may carry on a regulated activity (futures broker, adviser, representative) without an SECP licence.
- Penalty: under the Futures Market Act 2016, s.104(3), operating without a licence carries, for an individual, a fine of up to PKR 250 million or up to 3 years' imprisonment, or both.
These sections are aimed at people and firms acting as brokers, advisers or representatives without a licence. That includes local "account managers" and agents who take money from the public to trade. The text we read is the version as passed. Later amendments were not checked, so look up the current text before relying on it.
How to check whether a broker is licensed
On finding licensed brokers: per the SECP, lists of licensed brokers are on the PSX and PMEX websites.
A simple check:
- Get the exact legal name of the firm, not just the brand or app name.
- Look for that name in the broker lists on the Pakistan Stock Exchange (PSX) website for securities, or the Pakistan Mercantile Exchange (PMEX) website for futures and commodities.
- Contact the firm only through the official details shown there, not through a WhatsApp number or social media page.
- If the firm is not on either list, it is not an SECP-licensed broker.
If you want regulated market exposure inside Pakistan, start with PSX basics and Law and regulators.
Common situations
| Situation | What the official texts say |
|---|---|
| Wiring money from a Pakistani bank to an offshore forex or CFD broker | Covered by the SBP clarification on remittances to such platforms |
| Paying the same broker by card, wallet or through an agent | The SBP wording covers indirect remittance through any channel |
| A local person offering to "manage" your forex account for a share of profit | A regulated activity under the futures market licensing rule if unlicensed |
| Trading commodities or futures through a PMEX broker | Done through SECP-licensed brokers, which is the route the SECP describes |
| An app advertised on WhatsApp or Telegram promising fixed returns | Matches the pattern the SECP warns about. See Investment scams |
Is forex legal or haram in Pakistan?
"Legal" and "halal" are separate questions. The law question is answered by the SBP and SECP texts above. The religious question depends on how a product is built. Scholars discuss issues such as interest on overnight positions (swap), delayed settlement in currency exchange, and speculation with excessive uncertainty (gharar).
This site does not issue religious rulings. For an overview of the terms and how Islamic finance approaches trading, see Islamic finance, and ask a qualified scholar about your own case.
Risk, whatever the legal position
Leveraged forex and CFD trading can lose money fast. Leverage makes losses bigger in the same way it makes gains bigger. A move against you can wipe out your deposit within a short time. With an unlicensed offshore platform, the SECP has said there is no legal protection or recourse in Pakistan.
Before risking anything, read Risk management and Trading basics. Understanding a strategy does not change the legal rules above.
If you have been targeted or cheated
If someone took your money through a fake trading platform or "investment" scheme:
- Stop sending money, including any "fees" demanded to release a withdrawal.
- Keep screenshots, chat records, payment receipts and account details.
- Report it through the official channels: the SECP, your bank, and the authorities that handle financial and cyber fraud.
Our Report fraud page explains the routes. Confirm current contact details on each authority's official website.
Frequent questions
Is forex trading legal in Pakistan?
Currency exchange through authorised banks and exchange companies is regulated by the SBP. For online speculation, the SBP has said that residents buying offshore forex, margin and CFD products breaches FERA, and that remitting money to such platforms is not allowed. Read the current SBP text and get legal advice for your own case.
What is the SBP position on forex trading?
On sending money: per the SBP, remitting foreign exchange to overseas forex/margin/CFD platforms is not allowed through any payment channel (FERA s.5(1)). The SBP also says that residents buying such offshore products violates FERA.
Does the SECP license offshore forex brokers?
The SECP says offshore forex and CFD platforms operate without regulatory approval in Pakistan and offer no Pakistani legal protection. Licensed brokers are listed on the PSX and PMEX websites.
If a platform is not on an SECP warning list, is it safe?
No. Warning lists name only some platforms. A missing name is not a licence. Check the PSX and PMEX broker lists instead.
Can I trade commodities or futures legally from Pakistan?
The SECP says trading in listed securities and commodities is carried out through SECP-licensed securities and futures brokers. Check that a broker is on the PSX or PMEX list before opening an account.
Is this page legal advice?
No. It summarises published SBP and SECP positions. Rules can change, so read the current official texts and consult a qualified lawyer before acting.