Instaforex Pakistan is not a legitimate forex broker in Pakistani regulations due to many reasons.
However, on 18 May 2002, the SBP (State Bank of Pakistan) declared some online trading platforms illegal, which included Instaforex Pakistan.
The SBP stated that such online forex activity via certain trading platforms is a contravention of the FERA (Foreign Exchange Regulation Act) of 1947. Sections 4(1) & 5(1a) specified that unauthorized & unregistered individuals were barred from conducting forex trading, including Instaforex Pakistan app.
Pakistani forex traders experienced the banning of Instaforex Pakistan as a great setback. However, with this article, we want to encourage these traders to find the best legal forex broker within Pakistan. Neuron Markets is a regulated, registered, and authorized platform. It is the best alternative and most recommended forex trading platform after the illegality of Pakistan Instaforex platform.
How to Select a Forex Broker?
The Forex Market, due to many factors, is distinctive because of its rapid growth and 24-hour trading schedule. What actually puts it in another category in comparison with other global financial markets, is the fact that it is by far the largest, where nearly 8 trillion dollars are traded on a daily basis.
Due to the forex market’s high trading volume as well as its easy accessibility to traders, this market, as far as its forex brokers are concerned, has shown tremendous growth.
With its high number of forex brokers available, it makes it more difficult for beginner traders to select one. Your decision of selecting a broker is a critical one, which can have a significant effect on the success or failure of your trading future.
Below are some guidelines or factors you should take into account when you are choosing your broker.
1. Does Instaforex Pakistan meet all regulations?
The most crucial factor to research before selecting a broker is if and how the brokerages are regulated. Inside the United States, a broker has to be under the regulation of the NFA (National Futures Association. Furthermore, registration as an FCM (Futures Commission Merchant) with the CTFC (Commodity Futures Trading Commission) is also a necessity.
In the case of InstaForex Pakistan, the regulation guidelines were not met to the satisfaction of the SBP. But Neuron Markets met the regulation guidelines.
2. Competitive Spreads:
Before signing an agreement with a broker do your research regarding the spread that they are offering. A brief explanation is that when currencies are traded it is done in pairs. The spread entails the difference between the sell/bid & the ask/buy price.
It will be a good indication when the spread is not greater than 5 pips regarding the major currencies. The major currencies are:
- • GBP/USD
- • -EUR/USD
- • USD/CHF
- • USD/JPY
- • AUD/USD
- • USD/CAD
3. Professional Website is necessary
A website actually portrays the broker’s stature and reputation, providing you with a clear picture of the company. Undoubtedly, this is a matter of subjectivity. However, some rather basic questions can be asked, such as:
- • Whether it crashes frequently
- • Does it has a professional image
- • Can it be easily navigated
• The above-mentioned questions have to be asked if you want to get information about any company. However, it becomes more vital when you want to make an investment in such a company. Due to the illegality of Pakistan InstaForex, it was replaced by Neuron markets which show professional performance and it crashes frequently.
4. Customer Support:
This factor is more important in trading forex in comparison with other industries. Over and above the frustration which is caused by the deficiency of customer support, it can result in losing actual money.
For instance, when your broker is unable to respond to both your emails and phone calls in a prompt manner when you are requesting to open/close a position based upon the forex market, it can result in you losing money if the answer takes too long.
It is advisable to test a particular broker’s customer support prior to signing up, by calling, emailing, or chatting with an online representative. When you do not receive the response anticipated, think again before choosing that broker.
5. Rapid Response Time:
Although this is actually associated with customer support, it surpasses it. Even if you are satisfied with a broker’s customer support, it is crucial to get confirmation that when you are making an inquiry either for opening or closing a position, your application is accomplished with the slightest delay.
Neuronmarkets offers the most effective manner to substantiate this to open a demo account. However, either way, you should do this in any case, to boost your trading skills.