Is Exness Pakistan a good trading platform? It is important question but now it is banned here. That’s why we are giving you a solution. Neuron markets had won numerous awards for trading Forex as an MT5 platform in Pakistan. Neuron forex broker, which is great in stature, both reliable & reputable.
However, the State Bank of Pakistan (SBP) on 18 May 2022, declared some trading platforms illegal, of which Exness Pakistan was one.
Why Did The SBP Put a Ban on Exness Pakistan?
After noticing the growth of illegal activities, regarding forex trading on various online platforms, which include Exness Pakistan, the ban was issued. Below are the illegal activities, observed by the SBP:
• Foreign exchange trading - offshore
• Margin trading & CFD (Contract for Difference) trading platforms/apps/websites, offering its products to Pakistani residents, whilst luring the public via advertisements on social media to purchase their products / services.
Unfortunately, Exness Pakistan was one of these brokers, which according to the SPB, violated the FERA, 1947 (Foreign Exchange Regulation Act), section 4(1) & 5(1a).
Although this was quite a blow to forex traders, it would be a great idea to stay in the market and be on the lookout for or try to find the best legal forex broker in Pakistan like a Neuron markets.
How to Choose a Forex Broker?
Below you can find some important tips when you are selecting your new Forex Broker in Pakistan after the Exness platform Pakistan was declared illegal.
1. Regulatory Compliance: Exness Pakistan:
When it comes to choosing a forex broker, you first must scrutinize their reputation. An esteemed forex broker within the United States will have membership in the NFA (National Futures Association) which is a self-regulating organization concerned with the futures industry.
Furthermore, it will also carry registration with the CFTC (Commodity Futures Trading Commission). This commission is regulating the commodity futures as well as the options markets within the United States.
Additionally, every country located outside the United States will have a regulatory organization of its own.
As a result of concerns about the deposits’ safety as well as the forex broker’s integrity, it is advisable to only open accounts with brokers who are appropriately regulated. Neuron markets is the preferable choice for the present time.
Every forex broker offers a variety of accounts. Below you can find the four areas which you should take into account when you are comparing features between brokers:
- • Leverage & Margin
- • Commissions & Spread
- • Requirements of initial deposits
- • Ease of Deposits & Withdrawals
- Leverage & Margin
As established by the broker, the participants in forex trading may have accessibility to leverage which is provided within their margin account.
As an example, using the leverage of 50:1, a forex participant with a $1,000 account, can be holding a position of $50,000. Certain brokers even offer a leverage of 200:1. Leverage works in the favor of a forex trader with winning positions, hence the perspective for profits is considerably increased. Exness Pakistan is not presenting and providing good leverage within the client margin account.
- Commissions & Spreads
A specified percentage may be charged by a forex broker who takes commissions of the spread, meaning the variance between the sell/bid & asks/buy price regarding a forex pair. Numerous brokers who do not charge a commission, make their profit with wider spreads. Be informed about how your broker is making money and do your comparison research.
As an example, the spread could either be a fixed one, consisting of three pips. The minimum unit, concerning a price change, within forex trading, is called a pip. On the other hand, the spread could also be variable based on the volatility of the market. With a wider spread, it becomes more difficult to derive a profit.
When it comes to popular trading pairs, like the GBP/USD & EUR/USD, the tighter the spreads will be, in comparison with the pairs which are thinly traded.
- Requirements of Initial Deposits
Many Forex accounts can be initiated with a rather small amount, which can even be just $50. Of course, when it comes to leveraging, your buying power will be exceeding the minimum deposit. Thus, this is the reason why forex trading poses to be highly attractive to both beginner traders as well as investors.
The following types of accounts are offered by many brokers:
- • Standard
- • Mini
- • Micro
These accounts come with differing initial deposit requirements.
- The Ease of Deposits & Withdrawals
Every forex broker has particular policies where account withdrawal & funding are concerned. Brokers may permit forex account holders to fund their online accounts in the following ways:
- • Credit Card
- • PayPal
- • ACH Payment
- • Bank Cheque
- • Wire Transfer
- • Business Cheque
- • Personal Cheque
In general, withdrawals can be made either by wire or cheque transfer, whilst the broker has the option of charging a fee for these rendered services. But Exness Pakistan has a limited option for charging fees for rendered services as compared to Neuron markets which offered all the above options and are always avid to find more reliable options.
3. Currency Pairs Offered:
A lot of currencies are available for trading forex. However, just a few attract the most attention and, thus trade with the most substantial liquidity. Additionally, to the above-mentioned GBP/USD and EUR/USD pairs, the other major pairs are USD/CHF and USD/JPY.
However, a forex broker may be offering an extensive choice of forex pairs, yet the most important factor is that their offer should include the pairs which will be of interest to the forex trader.
4. Forex Customer Service
Customer support from the broker should be always accessible. Take into consideration whether you will be able to get a person on a phone call.
Make a call to a broker to give your insight into their customer service as well as the average waiting time. Exness Forex customer service is good but not according to the perception of customers on the opposite side Neuron markets provided the world’s best forex customer services and 99% of customers are happy with these services.
5. Trading Platform:
For the forex trader the portal to conduct trading on the market is the trading platform. Therefore, a trader should be assured that both a broker’s platform & software comes with the necessary technical & fundamental analysis tools, whilst trades can both be entered as well as exited easily.
The last point is particularly important because a well-developed trading platform will come with well-marked buy & sell buttons, whilst there are some adjusted with a panic button, to close all open positions. On the contrary, an interface with a bad design could result in high-cost order entry mistakes.
More considerations include:
- • Order entry types
- • Customization options
- • Strategy builders
- • Back testing features
- • Automated trading options
- • Trading alerts.
Neuron markets broker is offering free demo accounts, which enable forex traders to test the trading platform even before opening & funding the account.
Having confidence in and trust in Neuronmarkets, will give you more time to turn your attention toward developing forex strategies and doing analysis. Doing research prior to your commitment to a broker can give an investor a greater chance to be successful in the highly competitive field of forex marketing.
By following the above-mentioned guidelines, a trader can avoid illegal transgressions which took place with a broker like Exness Pakistan.