Binary Options Trading In Pakistan 2024
The best binary options trading broker in Pakistan - QUOTEX
Top binary options trading broker in Pakistan:
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1
QUOTEX - the minimum investment is $10
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2
Pocket Option - the minimum investment requirement is $50
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3
Binary.com (Deriv) - minimum deposit is $10
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4
IQcent - the minimum investment requirement ranges from $20 to $50
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5
Binarium - the minimum investment requirements: EUR 5/USD 5/ UAH 150/ RUB 300
Many traders in Pakistan prefer binary option trading because it is straightforward and allows for quick profits. Considering the ease of losing trades, it is still one of the riskiest in the trading industry. But despite the risks, binary options trading in Pakistan is growing in popularity for many reasons. Even though the high payouts (up to 85%) continue to be a notable perk that has drawn in many traders, it is well known to be a flexible trading option.
Again, the availability of underlying assets and risk management through predetermined payouts are among the benefits. But to become a profitable binary trader, you must understand the nuances of trading binary options in Pakistan. And this starts with learning if binary options trading is legal in Pakistan. So, if you are new to binary trading in Pakistan, this article will provide you with the information you need to trade options.
Start trading binary options right now with QUOTEX!What is binary option trading?
Two financial trading products that are comparatively popular in Pakistan are Forex trading and binary options trading. While in Forex, you buy and sell currencies, binary options require a trader to speculate on price movement. Here, traders are not buying or selling currency pairs; instead, they predict if the price of an instrument will rise or fall.
For instance, there is a propensity for the price to increase or decrease if one US dollar is valued at 276.15 Pakistani rupees. You are trading binary options in Pakistan when you predict price movements within a specified timeframe. So, while this looks very easy, it is risky if done without fundamentally and technically analyzing the binary market.
You need a top strategy if you want to stand a chance of winning trades. However, this is where binary options trading in Pakistan becomes a bit complex. And to create a flexible binary options trading strategy, you need to understand how binary options work.
Furthermore, a smart device with high-speed internet is the central tool traders in Pakistan need for binary options trading. Additionally, binary options trading is well-liked by Pakistani citizens thanks to the country's fast internet.
Binary Options Trading in Pakistan: Pros and Cons
Trading binary options can be profitable, but it also carries risks. So, before you begin trading, be wary of the advantages and disadvantages of binary options.
👍 Pros:
• Binary options trading in Pakistan lets traders make money faster than other trading types due to the short time it takes to complete a trade.
• Trading in binary options is legal in some countries, including Pakistan, where it has gained popularity among investors.
• If you conduct a professional market analysis and start simply, binary options trading in Pakistan can be very profitable.
• The expiration time of a binary options trade is completely up to the trader.
• Risk and reward in binary options trading are transparent, and it has a high potential return on investment.
• Binary option signals help traders make more informed decisions about the market and the assets they are trading, increasing their likelihood of making profitable trades.
👎 Cons:
• Binary options are a two-sided type of trade; if you lose, your initial investment is completely lost.
• Many jurisdictions have outlawed binary trading because the vast majority of brokers offering traders platforms to trade binary options are swindlers.
• Many binary options brokers trick their customers into losing money, and some may snare investors with commissions and trading fees.
Nuances of binary options trading in Pakistan
Binary options have a straightforward decision-making process and offer fixed payouts for correct predictions and fixed losses for incorrect ones. Binary options can be profitable if you can accurately predict how and in which direction the price of an asset will change. Traders unable to predict the pattern that governs an asset's price movement run the risk of losing money. In contrast to other types of trading, if the proposition is false, the trader could lose 100% of their investment.
Numerous brokers are available in the binary options market. Unfortunately, not all brokers are trustworthy or authorized. It might be impossible for a trader to get support or their money back if they work with a shady broker.
Traders must select the option's expiration time, which can be 30 seconds, 1 minute, 15 minutes, 1 hour, or daily. A trader will choose the "Call" option if they think the price will rise, while they will choose the "Put" option if they think the price will fall.
When trading binary options, traders do not buy or own the underlying asset. Traders cannot affect the performance of an asset or the market because they are merely speculating on its price movement. Binary options do not let traders close out a position before the expiration.
How much money do I need to start binary options trading?
Binary options trading in Pakistan does not require a trader to make a specific deposit. The amount of capital required to trade options varies greatly depending on the binary broker you select.
While some brokers might let you start with just $5 or $200, others might demand a larger initial investment, typically in the $250 to $2,000 range or even more. However, research indicates that the typical minimum deposit needed for binary trading typically ranges from $5 to $250.
Binary Brokers Minimum Deposit Amount Comparison
| Broker | Pocket Option | QUOTEX | Binary.com (Deriv) |
|---|---|---|---|
| Deposit | $50 | $10 | $5 |
You should not invest large sums of money in binary options trading because it carries a high level of risk. You can select from a number of the broker's payment options when you are ready to begin trading binary options on a real account. The top binary options payment options in Pakistan are listed below.
Card payments
Electronic wallets
Bank transfers
How to start binary options trading in Pakistan? A step-by-step guide
Binary options trading in Pakistan is straightforward, and you can start trading after reading this section. Though there are risks involved, binary options trading still offers higher payouts than other trading platforms. Your trading is secure as long as you use authorized brokers.
Prepare to make additional informed decisions about the trading instruments while you search for the best binary trading platform. Below are steps to follow if you want to start trading binary options in Pakistan
Step 1: Choose a regulated binary options broker in Pakistan
Because of their dependability, legality, features, ethical business practices, and payout rates, choose regulated brokers for a better experience. So, selecting the best binary options brokers is a challenging task. Before selecting one, you must investigate the services this broker offers and compare them with those of other brokers.
2. Sign up for a trading account
After deciding on your preferred broker, you must open an account with them. The registration process is straightforward; you simply need to fill out a form with your name, mobile number, and email address.
3. Use a demo or a live account
Pakistani binary options traders can engage in trading with a live account or a demo account. A live account is the primary trading account, though a binary options demo account has incredible advantages for new traders. Trading with real money is not necessary on the demo trading account.
Before placing orders with their own money in a marketplace as volatile as binary options in Pakistan, traders must put their skills and trading strategies to the test. Traders can create the best trading strategies with a demo trading account.
4. Pick an asset to trade
After launching the trading app, choose an asset to trade when you want to trade on a live or demo account. Traders can locate the asset they prefer trading on the binary option platform by typing its name into the search bar. After choosing the underlying asset, binary options traders must research the trading instruments.
5. Analyze before placing the trade
Before placing a binary options trade in Pakistan, it is crucial to assess the asset. When trading binary options, a thorough analysis acts as a safeguard and aids traders in making precise predictions. You can now place your binary options trade if you are happy with the results of your technical analysis.
List of best binary brokers in Pakistan
Pocket Option
Pocket Option is a popular trading platform founded in 2017 by seasoned trading and investment professionals. The broker offers a powerful web-based trading platform as well as mobile apps for both iOS and Android devices.
One of the things that set Pocket Option apart from other binary options brokers in Pakistan is its tailored approach, designed to meet the needs of a broad range of investors. Binary options traders enjoy top-notch services, including a straightforward signup process and access to a wide range of assets and trading tools.
Traders can choose to trade stocks, currency pairs, cryptocurrency, and commodities. What also makes this one of the best binary options brokers in Pakistan is its low minimum deposit. You only need an initial deposit of $50 for any account you choose to open with the Pocket Option. After the initial deposit, you'll need to keep a balance between $100 and $50,000, based on your profile. Read more in Pocket Option reviews from clients in Pakistan
QUOTEX
QUOTEX is a broker specializing in binary options trading. The company was established in 2019. Its clients can trade currencies, metals, oil, cryptocurrencies, stock indices and earn a profit of up to 90% of the value of the option. QUOTEX has developed a proprietary trading platform which is easily customized, supports 29 technical indicators and allows investments from USD 10. The broker’s team provides support 24/7. Personal and payment information of the clients are protected with two-factor authentication.
Binary.com (Deriv)
Another top platform for binary trading in Kenya, Binary.com has been around since 1999. With over 1 million traders on the platform, this is one of the most popular binary options brokers around the world.
Binary.com offers a wide range of features, including forex trading, commodities, crypto trading, and more. What makes Binary.com stand out is that you can get started with a minimum deposit of just $5. This broker also provides an automated trading system that helps you to make profitable trades with minimal effort.
IQcent
IQcent is the premier online trading platform for retail clients looking to make a mark in the investing world. Broker regulated by IFMRRC. IQcent offers binary options and Contract for Difference (CFD) trading opportunities across several asset classes, such as Forex, stocks, commodities, and cryptocurrencies. The minimum trade size is just 0.01 USD/EUR, and traders can leverage up to 1:500 with CFDs.
In addition to various financial instruments, IQcent also provides an extensive suite of payment methods with more than 10 supported options. The minimum deposit amount may vary depending on the type of account but goes from as low as $10 to $250 and $1,000. However, traders can't deposit lower than (USD/EUR) 5,000 for direct bank transfers.
IQcent offers an intuitive and useful proprietary web-based trading platform with several in-built indicators essential for making informed trading decisions, including momentum, relative strength, and average range. Depending on your needs and preferences, IQcent offers three types of binary options: turbo options, intraday options, and long-term options.
Binarium
Binarium is a broker providing access to trading binary options. The company was established in 2012. The broker is positioned as a reliable company oriented primarily at the CIS market, which is testified by a fully Russian-language website and the focus of customer support on Russian-speaking traders. Client funds are safely held in segregated accounts, which means that the money of traders is held in European banks, separately from the broker accounts. Binarium is a perfect option for novice traders, who want to start their professional career with binary options that are simpler compared to Forex.
Compare brokers for binary options trading in Pakistan
| Broker | Accepting Clients From Pakistan | Minimum Investment | Assets |
|---|---|---|---|
| Pocket Option | Yes | $50 | Currency Pairs, Stocks, Crypto, Commodities |
| QUOTEX | Yes | $10 | Currency Pairs, Stocks, Crypto, Commodities |
| Binary.com (Deriv) | Yes | $10 | Currency pairs, cryptocurrencies, CFDs, indices, stocks, synthetic indices, commodities |
| IQcent | Yes | From $20 to $50 depending on region | CFDs on currency pairs, Indices, commodities (gold, silver), Cryptocurrencies, Binary options |
| Binarium | Yes | EUR 5 / USD 5 / UAH 150 / RUB 300 | Currencies, cryptocurrencies, indices, commodities |
How to choose the best broker for binary options trading?
Binary options trading in Pakistan is safe if you choose a top binary broker. However, confirm that the binary options broker on your list is under the supervision of reputable financial institutions within its borders. Additionally, they must be competent to offer any assistance in upholding Sharia law. So, to choose the best broker for binary options trading in Pakistan, consider the factors below.
1. Regulation
When looking for trading platforms, traders should pay particular attention to whether a binary options broker is regulated. Select a binary broker from a list containing brokers approved by an established financial institution. Signing up with a reputable broker is the risk management strategy you must integrate, considering the risky nature of the binary market.
2. Trading conditions
Before choosing a broker, ensure you thoroughly research their trading terms because binary brokers set the rules for trading options. This includes the payouts ratio, assets you can trade, margin, spread, swaps, the minimum level for placing a stop loss, time-based arbitrage, etc. For the best trading experience, traders must sign up with binary brokers whose terms suit their trading style when trading binary options in Pakistan.
3. Options for beginners
As a beginner, it is best practice to inquire about the broker's options for you. Exemptions are made for novices by top binary brokers. Some beginner-friendly brokers incorporate low minimum deposits, educational resources, a special account (demo) for beginners, etc.
Again, they provide flexible customer service because they understand that new traders might have many questions to ask. Binary options trading in Pakistan is safer and more promising when brokers prioritize customer assistance.
In addition to the standard options, such as toll-free telephone support, live chat, and web-form alternatives, beginner traders require support sensitive to Islamic accounts and trading under Sharia. Accessibility for mobile users and a welcoming app interface are equally elevated must-haves for the best binary brokers.
How much can I earn?
While trading binary options in Pakistan is known to offer high payouts, the amount traders can earn is variable. Binary traders are likely to earn between 70% and 85% of their initial investment on each trade they make. Potential traders should review the payout terms and conditions before registering, even though payout ratios vary between brokers. Some brokers provide up to a 90% payout ratio to traders, but ensure the broker is reputable because it is typical for scam brokers to provide up to a 98% payout ratio. However, it is worth remembering that in case of failure, the trader loses the entire bet size.
The following are some of the variables that affect your earnings when trading binary options in Pakistan:
The broker's percentage payoff
The expertise, skills, and trading strategies of traders
traders' consistency or frequency of trading
Your investment size
Charges for transactions
Is binary options trading legal in Pakistan?
Binary options are legitimate, and traders can operate independently of the government. Pakistan has legalized binary options, so traders can engage in binary options trading in Pakistan without worrying about violating any financial regulations. If there is anything that should bother traders, it should be the reputation of the broker they choose.
It is advised that traders only work with licensed brokers. Since most of the binary trading platforms, traders prefer in Pakistani are offshore brokers, ensure they are overseen by the reputable financial organizations mentioned above. Ensure the broker has a license and provides accounts that adhere to Islamic law. Also, to minimize the risks of binary options trading, traders should utilize their financial market knowledge and the appropriate technical analysis.
Are binary options halal or haram?
The Islamic faith is based on the belief that there is only one God, and that Muhammad is his last prophet. Muslims are required to follow the teachings of the Quran and the Sunnah (the Prophetic tradition). One of the main principles of Islam is that everything is permissible unless it's specifically prohibited by Allah.
There are two types of things that are prohibited in Islam: those that are haram and those that are makruh. Haram means "forbidden" while makruh means "disliked". Something that is haram is completely off-limits, while something that is makruh should be avoided if possible.
Now that we've established that, let's take a look at binary options trading and see where it falls on the spectrum. But first, what is binary options trading?
The Argument For Binary Options Trading Being Haram
Those who believe that binary options trading is haram are usually of the opinion that all forms of gambling are forbidden by Islam. They argue that since there is an element of chance involved in binary options trading, it falls under the category of gambling. And since gambling is haram, binary options trading must also be haram.
Another argument that is often made is that you are essentially betting on the direction of an asset's price movement. And since Islam prohibits speculation, this makes binary options trading haram as well.
The Argument for Binary Options Trading Being Halal
On the other side of the argument are those who believe that binary options trading is halal. These are their core points:
The skill argument: Binary proponents argue that binary options trading isn't gambling because there's a level of skill involved in predicting the direction of an asset's price movement.
The prediction argument: This argument claims that traders aren't actually betting on the direction of an asset's price movement.
Rather, you are investing based on your prediction, and it's therefore not a form of gambling. This means your prediction isn't the product of chance, but a calculated and weighted prognosis, requiring considerable effort.
The investment argument: This argument asserts that binary options trading is a type of investment and not speculation because you are not buying the asset itself, but rather a contract that will pay out if your prediction is correct.
FAQs
Is the binary option legal in Pakistan?
Yes. Binary options are legal, and traders can trade options without violating the financial rules set by the Pakistani government. A profitable and enjoyable experience is guaranteed, provided that traders use a reputable and regulated broker. It also reduces the possibility of scam brokers duping traders with ease.
Is Binary trading allowed in Islam?
Gambling is haram in Islam, so considering the speculative state of options trading, there is evidence of it being haram, but this is still a debate among top regulatory bodies. Binary options trading is also haram because Islam forbids speculation. Islamic finance prohibits transactions that involve too much uncertainty or ambiguity (gharar). Since binary trades can have time frames of days, hours, minutes, or even seconds, it also worries about the potential for interest (riba) when traders hold positions overnight.
Where can I trade binary options?
You can trade binary options on the trading platforms of many top brokers. Binary brokers like Pocket Option, QUOTEX, Binary.com (Deriv), IQcent, and Binarium are popular alternatives for traders in Pakistan.
Is binary options trading gambling?
Given how they are frequently defined, binary options might be better categorized as a form of gambling than an investment. The claim is valid because of their negative cumulative payout, where the brokers have an advantage over the investor, and because they require little to no market knowledge. Again, since both involve making predictions and there are only two possible outcomes—winning and receiving a fixed payout or losing 100% of your initial investment—binary options trading and gambling have tighter similarities.
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Team that worked on the article
Peter Emmanuel Chijioke is a professional personal finance, Forex, crypto, blockchain, NFT, and Web3 writer and a contributor to the Traders Union website. As a computer science graduate with a robust background in programming, machine learning, and blockchain technology, he possesses a comprehensive understanding of software, technologies, cryptocurrency, and Forex trading.
Having skills in blockchain technology and over 7 years of experience in crafting technical articles on trading, software, and personal finance, he brings a unique blend of theoretical knowledge and practical expertise to the table. His skill set encompasses a diverse range of personal finance technologies and industries, making him a valuable asset to any team or project focused on innovative solutions, personal finance, and investing technologies.
Dr. BJ Johnson is a PhD in English Language and an editor with over 15 years of experience. He earned his degree in English Language in the U.S and the UK. In 2020, Dr. Johnson joined the Traders Union team. Since then, he has created over 100 exclusive articles and edited over 300 articles of other authors.
Mirjan Hipolito is a journalist and news editor at Traders Union. She is an expert crypto writer with five years of experience in the financial markets. Her specialties are daily market news, price predictions, and Initial Coin Offerings (ICO).