How To Trade Online On Pakistan Stock Exchange

Pakistan stock exchange is a market that allows all types of business. It provides the facility to small and large investors. Business people sell and buy their shares on the Pakistan stock exchange. The business in Pakistan stock exchange is getting position day by day. The stability of the stock exchange is very effective for investors. The strength of the stock exchange enhances the profit ratio of the investors too. Stability also plays a vital role in driving the economy of the country.

Nowadays, every business is converting to online platforms; the same is the case with the trading of shares at PSX. Here in this article, we will discuss in detail how you can trade your shares online on Pakistan Stock Exchange.

Steps for Online Trading at PSX

Following are the steps for online trading at Pakistan Stock Exchange.

For Pakistani residents

A Pakistan resident person needs only the national identity card and a bank account within Pakistan that justifies your identity. Few other documents are also required for trading purposes.

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For non-Pakistani residents

A Non-Pakistan Resident is a person who does not live in Pakistan or even a person who does not even have Pakistani nationality. Such people can also invest in the Pakistan stock exchange market. They have to meet a few requirements. The first step for such persons is to open a bank account in any Pakistani bank as a custodial bank account.

A custodial bank account is an account that an investor opens for trading. The custodial account has the following two categories.

• Rupee convertible account
• Securities linked account

With the custodial bank account, one can convert its money into rupees and then trade. The second account is linked with the security. The securities link account helps in purchasing the stocks.

Another bank account is also required for trading. The bank account provides a unique market identifier number (UMIN). This number is used during the trade of shares.

Brokerage account opening

The brokerage account is necessary for all investors. It provides online access to the stock exchange market. The brokerage account saves them time and money. It is easy to handle and operate. The investors living in any major city of Pakistan do not have any tension of opening an account. They can open a brokerage account with any brokerage firm or company.

The brokerage companies or firms are present in almost all the big cities of Pakistan. The brokerage account is opened after providing the complete details of the investor and bank account details. A unique market identifier account is also necessary.

Verification of brokerage firm before account opening

The brokerage account is opened in the investor's name. Please read the terms and conditions of the account and make sure that they match the stock exchange market's terms and conditions. After opening the account, an investor's identification number along with the account number is issued.

The brokerage firms are present in all the cities. Brokerage firms or companies provide support to investors. Check and verify the following points before opening the brokerage account.

• The brokerage firm must have a Trading Right Entitlement Certificate (TREC). The Pakistan stock exchange issues the certificate. This certificate verifies that the brokerage firm is registered with the Pakistan stock exchange.
• Communication of the firm satisfies you or not.
• Check the research material of the brokerage firm.
• The online trading facility of the brokerage firm
• Calculate the fee and taxes of the online trading and the brokerage firm. If you have a low budget, then choose the brokerage firm that has a low-interest percentage.
• Select the brokerage firm that has excellent and reliable customer services. For this purpose, search the history and custom relations of the brokerage firm. The firm's previous record can give you a good picture of the firm and help you find the best brokerage firm for your investment.

Trading

After opening the brokerage account in a brokerage company or a firm, the next step is going for the online trade. Fulfill the requirements of the brokerage firm and keep one of their copies with you for the record.

For trading online, find stock, and buy online. When it seems that you can get a good profit, sell that stock, and earn a profit.

When the investor wants to start his business with the brokerage firm, he should follow the company's instructions for placing the order. Post an order of your stock at the brokerage platform. The whole online business is under the brokerage company. The investor gets the profit of the business in return.

Investment of overseas Pakistanis

The overseas Pakistani invest in Pakistan stock exchange as the stock exchange provides a more expansive room for profit. The investment is relatively easy for them. The investment from overseas is well benefited and attractive. Pakistan stock exchange facilitates them as their investment supports the country's economy.

For this purpose, they have to follow the criteria given above for the investment in PSX by non-residents of Pakistan.