Trading in financial markets requires the right choice of a broker, as security of traders’ funds, their profit and opportunities depend on it. Before you start working with a company, it is important to comprehensively assess it. Traders Union analysts have already done it for you. The experts prepared a review of the Best OTC Stock Brokers in Pakistan for 2024. Five companies that enjoy huge popularity in Pakistan were selected and compared between each other.
1
Interactive Brokers - Best in Pakistan for 2024
Interactive Brokers is militantly developing, offering services to investors regardless of their trading experience. For this purpose, the broker doesn’t ask for a fixed minimum deposit but has margin requirements for accounts of various structures to make trading financially safe. The size of the leverage and Margin call and Stop out levels depends directly on the asset that the client is trading.
2
ETrade - Best in Pakistan for 2024
E-Trade terms are great for traders who prefer to work in the American stock and options market. There is no brokerage fee for trading this type of asset. But, you need to pay $25 for a partial withdrawal of capital from portfolios and $75 for a full transfer of funds. A commission is also levied on the client for the transfer of money between accounts. Trading is carried out through Etrade's proprietary terminals. Mobile versions are available. The broker delivers analytics with stock quotes and technical analysis.
3
Robinhood - Best in Pakistan for 2024
Robinhood allows US users to trade stock market assets without commissions. Investors are offered three types of accounts, which can later be changed, but a Robinhood Instant account is automatically opened upon registration. The company does not provide detailed information on trading conditions.
4
TD Ameritrade - Best in Pakistan for 2024
The broker TD Ameritrade offers favorable conditions for active traders and passive investors. The minimum deposit for investment and trading starts at $1. The company's clients can trade US stocks, US and Canadian ETFs, and options with zero commissions. Access to margin trading opens after a deposit of $2,000 or more. The broker does not support transfers through electronic payment systems. Also, credit and debit cards cannot be used to deposit and withdraw funds.
5
TradeStation - Best in Pakistan for 2024
TradeStation offers clients 14 types of accounts, including three types of brokerage trading accounts (individual and corporate) with a minimum deposit of $500. The company also provides an opportunity to trade cryptocurrencies with low commissions. Margin trading is available for deposits from $2,000.
TU Expert Review for the best OTC Stock Brokers in Pakistan
Financial expert and analyst at Traders Union
Anton joined Traders Union as a financial expert and analyst in 2013. He performs comprehensive internal testing of brokers as a trader. Essentially, Anton “test drives” brokers: he checks the operation of the website and user account, the speed and effectiveness of customer support team, stability of the software, deposit and withdrawal processing times, legal documents of companies and also all additional services (VPS, affiliate programs, contests, bonuses, educational programs, etc.). Based on the results of his “inspections”, he prepares expert conclusions about the operation of brokerage companies in the Forex, stock and binary option markets and also of the cryptocurrency exchanges.
His opinion as for the best OTC Stock Brokers in Pakistan is posted below.
Interactive Brokers - TU Expert Review
During its cooperation with Traders Union the Interactive Brokers investment company proved itself as a reliable partner, which faithfully fulfills its obligations to us. The broker provides clients with a wide range of services, allowing them to engage in both active trading and investments. At the same time, the broker charges a fee for an inactive account, and that's not convenient for passive investors. Despite the lack of a minimum deposit, Interactive Brokers is focused on working with professional market participants. The US and Canadian investors are the main target audiences of the company. Interactive Brokers customer support will help you resolve claims made to the company. You can find all the information about trading conditions and the specifics of various trading instruments on the broker's website. Before opening an account with this broker, we strongly recommend you to read about all trading conditions in detail, as well as reviews of other clients about cooperation with Interactive Brokers.
ETrade - TU Expert Review
After analyzing all the main services of this broker, I concluded that E*TRADE is perfect for both active trading and medium-term investments in investment programs. However, the company is still focused on independent work within the stock market, because it was originally initiated as an online trading service. The mobile versions of both platforms offered by E*TRADE fully provide access to the entire range of services. Training is highlighted in a separate website section. There are also information blocks, which may seem unusual to some users. News is divided into thematic subsections such as general overview, major shares dynamics, market statistics, and calendar. E*TRADE provides analysis of instruments within a particular field, but it is available only after registration. Also, a special press release section has been created to review the main trading events in the financial markets. There are no commissions when trading stocks and options on American stock exchanges. That inspires clients to invest in this particular area of trading. However, E*TRADE offers banking services and pension insurance, which additionally stimulates interest in the company. The registration process is intuitive and simple.
Robinhood - TU Expert Review
Robinhood (Robinhood Markets) has been providing investment services for about ten years and has been a Traders Union partner for more than a year. It fulfills all its obligations to its clients (the traders), which speaks admirably of its reliability. Robinhood provides three types of accounts for customers, which can be changed at your discretion after registration. Only US residents can work with Robinhood. At the same time, the broker is concerned about users' financial security and, upon registration, asks for information about their investment and trading experience. The main complaints against the broker come from foreign clients who are unable to withdraw their earned funds. The Robinhood Markets website provides investors with basic information about the company and the principles of investing to make money. The trading conditions are not indicated in full. It is also worth noting that the broker's focus is on clients from the United States. English is the only interface language.
TD Ameritrade - TU Expert Review
TD Ameritrade is a regulated stock broker that offers its clients a vast array of trading and investment opportunities. Here you can make transactions with exchange-traded securities, assets of the OTC market, and Forex instruments. Investors have access to cash solutions from partners — Charles Schwab, Federated, JP Morgan, and State Street, as well as a line of managed portfolios, compiled under the principles of modern portfolio theory (MPT). Ameritrade provides both standard cash accounts and margin accounts. Cash accounts do not require a minimum deposit. Margin accounts allow a trader to double his purchasing power, however, you need to replenish the account from $2,000 if you want to get this opportunity. The minimum investment for working with targeted managed portfolios is $25,000; with personalized terms and services, you need $250,000. TD Ameritrade offers proprietary platforms (web, mobile, and desktop) with built-in calendars, the ability to create multiple watch lists, and a GainsKeeper calculator to automatically track capital gains and losses. Also, clients have access to market updates and news in real-time, advanced fundamental analysis, third-party research from TipRanks with target prices and Smart Score ratings.
TradeStation - TU Expert Review
Throughout its activities, TradeStation strives to allow traders of any experience to unleash their trading and investment potential. To this end, the company provides a suite of powerful trading technologies, quality brokerage services, and comprehensive training. Clients can quickly and efficiently place orders, monitor positions, balances, and orders on accounts, and generate hot observation lists. The TradeStation broker ensures fast and reliable fulfillment of clients' orders using a combination of advanced order routing technology, regular and thorough speed checks, better execution quality, and better prices. The company streams both historical and real-time market data and provides access to the latest news. TradeStation offers Simulated Trading, which is a simulated trading account for real-time strategy testing without financial risk. It has access to one of the largest market history databases in the industry for stocks, options, and futures. Clients can use a simple programming language EasyLanguage to create individual indicators and trading strategies on live and demo accounts.
Summary
Many brokers operate in Pakistan, but not all of them are reliable or offer attractive trading conditions. TU experts selected 5 companies and rated them based on collected data. By reviewing them, you will learn about the Best OTC Stock Brokers in Pakistan 2024 and will be able to evaluate the pros and cons of its closest competitors.
Overall score of the best OTC Stock Brokers in Pakistan
| Interactive Brokers | ETrade | Robinhood | TD Ameritrade | TradeStation | |
|---|---|---|---|---|---|
|
Overall score |
9.1 |
8.3 |
8.2 |
8.1 |
8 |
|
Execution of orders |
8.8 |
8 |
7.9 |
7.8 |
7.7 |
|
Investment instruments |
9.4 |
8.6 |
8.5 |
8.4 |
8.3 |
|
Withdrawal speed |
9.2 |
8.4 |
8.3 |
8.2 |
8.1 |
|
Customer Support work |
9 |
8.2 |
8.1 |
8 |
7.9 |
|
Variety of instruments |
8.7 |
7.9 |
7.8 |
7.7 |
7.6 |
|
Trading platform |
9.5 |
8.7 |
8.6 |
8.5 |
8.4 |
|
|
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|
|
FAQ
What factors are important when you are choosing a broker?
When you are choosing a broker, it is important to make sure it is a reliable company, consider its fees, the list of trading instruments, deposit and withdrawal methods and other factors. It is important to study a broker in detail, before opening an account with it.
What learning instruments can a broker offer?
Brokers offer various educational options. These include full-fledged educational courses, or video tutorials, articles, and books. Companies also often hold seminars and webinars.
Does the choice of a beginner differ from the choice of an experienced trader?
Yes. A novice trader should primarily consider the availability of educational tools and a demo account, as well as basic assets. A more experienced trader is interested in wider opportunities on advanced account types, a wider choice of instruments for technical analysis, and a greater number of trading instruments.
What commissions and fees should I take into consideration when I am choosing a broker?
The commissions and fees in the financial markets are divided into trading and non-tradings ones. Trading fees are the fees that are charged directly during trading (spread, commission per lot, etc.), while non-trading fees are the ones charged outside the trading process (for example, account fee, inactivity fee, deposit and withdrawal fee).
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Team that worked on the article
Mikhail Vnuchkov joined Traders Union as an author in 2020. He began his professional career as a journalist-observer at a small online financial publication, where he covered global economic events and discussed their impact on the segment of financial investment, including investor income. With five years of experience in finance, Mikhail joined Traders Union team, where he is in charge of forming the pool of latest news for traders, who trade stocks, cryptocurrencies, Forex instruments and fixed income.
Olga Shendetskaya has been a part of the Traders Union team as an author, editor and proofreader since 2017. Since 2020, Shendetskaya has been the assistant chief editor of the website of Traders Union, an international association of traders. She has over 10 years of experience of working with economic and financial texts. In the period of 2017-2020, Olga has worked as a journalist and editor of laftNews news agency, economic and financial news sections. At the moment, Olga is a part of the team of top industry experts involved in creation of educational articles in finance and investment, overseeing their writing and publication on the Traders Union website.