Is forex trading legal in Pakistan?

Retail forex/CFD trading itself is not criminalised, but there is no local licensing: SECP does not issue local retail forex/CFD broker licences and SBP does not allow margin-based currency trading inside Pakistan. Residents trade via offshore brokers regulated abroad (FCA, ASIC, CySEC) - legal only where funded through legitimate banking channels; using Hawala/Hundi or unregulated platforms that bypass the banking system is illegal. No SBP-mandated NBP exists domestically. SECP has reiterated (2025) crackdowns on unlicensed currency/commodity-futures operators. Verification: SECP (https://www.secp.gov.pk), SBP (https://www.sbp.org.pk). USD/PKR is rarely offered as a tradable pair.

No local retail leverage cap because there is no domestic retail forex/CFD licensing regime; SBP does not permit margin-based currency trading within Pakistan. Offshore brokers (FCA/ASIC/CySEC) used by Pakistani residents advertise up to ~1:1000 (e.g. Exness). As of the review.

Of the 62 brokers we measure for Pakistan, 20 hold a local licence and the rest onboard residents through a foreign entity. That is not the same as being unregulated — it is a different question, and the broker pages name the entity in each case.

9 of them carry a warning from a regulator somewhere. A warning does not change a computed score here, but it removes the firm from beginner selections.

SECP issues investor alerts/warnings against unlicensed/illegal investment and futures schemes, and SBP warns against unauthorised forex/Hawala channels, but a single consolidated public 'forex broker blacklist' comparable to RBI's Alert List was not clearly identified. As of the review (2025-2026); check SECP alerts (https://www.secp.gov.pk) and SBP notices. Named example firms: Not found in research.