Financial regulators in Pakistan: who does what
Pakistan has two main financial regulators that matter to a trader.
SECP (Securities and Exchange Commission of Pakistan) supervises securities and futures markets. The current position is Securities and Exchange Commission of Pakistan (SECP), with trading in listed securities and commodities only via SECP-licensed securities and futures brokers. A securities broker deals in shares, and a futures broker deals in contracts on commodities or other assets for a future date. Both need an SECP licence.
SBP (State Bank of Pakistan) is the central bank. It sets the policy rate and manages the foreign exchange regime under the Foreign Exchange Regulation Act (FERA). FERA controls how residents may buy foreign currency and send it abroad. SBP rules decide which payments to foreign platforms banks may process.
| Regulator | Main area | Why it matters to a trader |
|---|---|---|
| SECP | Securities, futures, brokers | Licensing of brokers, public warnings |
| SBP | Banks, currency, foreign exchange | Rules on sending money abroad |
The legal position of retail forex
Retail forex and CFD trading means a private person speculates on price moves, usually with leverage, through an online platform. A CFD (contract for difference) is a contract that pays the change in an asset's price without you owning the asset.
The official statements on offshore platforms are direct:
- On remittances: 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' purchases: per the SBP, the purchase of offshore forex/margin/CFD products by Pakistani residents violates section 4(1) of FERA 1947.
- 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.
For firms operating inside Pakistan, the Futures Market Act applies. On licensing, 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. On the 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.
This site is a partner of a foreign broker, Exness. That is why we set out the official Pakistani position here in full and in plain words, and why you should read it before you open any account.
For a fuller explanation, read Is forex legal? and SBP FX rules. This page is general information, not legal advice. For your own situation, speak to a qualified lawyer or your bank.
How to check a firm
Investment safety in Pakistan starts with checking who you are dealing with:
- Per the SECP, lists of licensed brokers are on the PSX and PMEX websites. Look the firm up there under its exact legal name.
- Compare the website address, phone numbers and social media accounts with those on the official list. Fraudsters often copy the name and logo of a real firm.
- Search SECP press releases for warnings about the platform or the people promoting it.
- Treat promised fixed returns, pressure to deposit quickly and "account managers" on WhatsApp as warning signs.
The SECP explained page covers licence types and how SECP warnings work. Investment scams describes common schemes seen in Pakistan.
Where to report fraud
If you have lost money or been approached by a suspicious platform, keep every record: payment receipts, chats, screenshots, website addresses and account details. Contact your bank at once about the payment. The Report fraud page explains which authority handles which kind of complaint.
How to use this section
If you are new, start with Is forex legal?, then read Investment scams. If you want a regulated way to invest, PSX basics explains the local stock market.
If you already trade, the SBP and SECP pages quote the source documents and section numbers, so you can check the wording yourself. Crypto status covers digital assets separately.
Whatever you decide, remember that leveraged forex and CFD trading can lose money fast, sometimes more quickly than you can react. Read Risk management before you trade with real money.
Frequent questions
Who regulates forex brokers in Pakistan?
SECP licenses securities and futures brokers. SBP controls foreign exchange and payments abroad. Per the SECP, offshore forex and CFD platforms have no regulatory approval in Pakistan.
Can I send money from Pakistan to an overseas forex platform?
Per the SBP, remitting foreign exchange to overseas forex/margin/CFD platforms is not allowed through any payment channel (FERA s.5(1)).
Will a Pakistani regulator help if an offshore platform does not pay me?
Per the SECP, offshore platforms have no Pakistani licence or oversight and offer no legal protection or recourse.
How do I know if a local broker is licensed?
Per the SECP, lists of licensed brokers are on the PSX and PMEX websites. Check the firm's name and its contact details against those lists.
Is this page legal advice?
No. It summarises official statements. For a decision about your own case, consult a lawyer.