Pakistan’s Gold Trade

From time immemorial, gold has been respected as the best used precious metal not only due to its usage in ornaments but also as a widespread means of investment 'a saving for a rainy day'. No wedding ceremony in Pakistan is complete without gold jewellery which traditionally has become the most expensive item on the dowry list for parents of brides and also for the prospective grooms.
In Pakistan, like many other countries in the region, gold jewellery is more than a thing of beauty, a joy for everyone, particularly the women folks. It is the most credible mean of investment, which offers better returns than fixed deposits. The popular opinion is not unjustified as there has been a tremendous increase in the price of gold over the years.
Pakistan produces one the finest gold jewellery, particularly plain and generally studded, and its hand made designs are second to none in the world. It is also gifted with vast deposits of world class precious and semi-precious stones including rubies from Hunza Valley, pink emerald of Swat, and peridotes from Kohistan.
The gold trade in Pakistan is entirely dependent on imported gold the primary source of which is Dubai. The previous government granted licence to a single importer, 'ARY', for import of gold into the country. The present government has granted licences to two more importers making three companies responsible for all the gold imports into the country. The import of gold is subjected to duty of $ 1 per tola (11.54 grams), which translates into about Rs 4 per gram at current exchange rates.
Attempts to revive Saindak mine in District Chagai in the province of Balochistan, the first large scale metal mining project in Pakistan, has remained fruitless due to heavy capital investment. Repeated attempts to revive the Saindak Copper Gold Project to produce 15,810 tonnes of blister copper annually with gold containment of 1.47 tonnes, were futile due to an extremely uneconomical gold recovery cost. According to Mahmood Choksy, a gold jewellery exporter and also chairman of All Pakistan Gem Merchants and Jewellers Association, the cost to recover gold at Saindak is a staggering $ 400 per ounce, way above the international price of $ 284 per ounce.
According to World Gold Council (WGC), the marketing arm of world gold miners, gold demand in the country increased from 81.8 tonnes in 1997 98.2 tonnes in 1998 depicting a 20 per cent increase. India, the largest consumer of gold in the world, set a new record for the fourth consecutive year in 1997 as total gold demand increased by 11 per cent from 736 tonnes in 1997 to 815 tonnes in 1998.
WGC which started monitoring the gold demand in Pakistan for the first time in 1998, attributed the increased gold demand in Pakistan on the high affinity for gold in rural Pakistan, combined with slump in international prices in the same year, particularly in the third quarter when it touched as low as $ 288 per ounce.
In spite of economic sanctions, imposed on Pakistan after its option to go nuclear, the gold demand in the country remained unaffected in the country, primarily due to traditional belief that this is feasible to investment in gold.
Pakistan is entirely dependent on imported gold for jewellery manufacture and all other purposes. According to Mahmood Choksy, the bulk of gold import— about 40 per cent— is used in jewellery manufacturing while a similar quantity is being smuggled out of the country, mainly to India. The remaining 20 per cent, he added, is held for investment purposes in the form of biscuits. Industrial usage such as liquid gold in the manufacture of crockery and circuit board is negligible. However, jewellers have their own statistics about various statistics in the gold trade including its usage, ratio of new gold as compared to old, and local sales.
Muhammad Saleem, a local jeweller, said that 70 per cent of all gold imported is used by the jewellers, 5 per cent is used by the industry while the rest of the 25 per cent finds its way out of the country illegally.
Similarly, sources in the gold trade do not agree with the ratio between the use of new and old gold. Choksy says it is 40:60, the General Secretary of Hydri Sarrafa and Jewellery Group, Abdul Wahab put the ratio at 65:35 (65 per cent new, 35 per cent old) while another jeweller put the ratio at 70-80 per cent.
Saleem said that the ratio of usage of old and new gold by jewellers depends on the area where an individual shop is located— shops centred around posh areas such as Zaib-un-Nisa Street use comparatively lesser quantity of old Gold as compared to those located in lesser expensive markets. He put the ratio in the Saddar area at 40:60 (40 per cent old, 60 per cent new).
They also disagree with the trends of sales of gold jewellery during the last many years. Choksy said that sales of gold, particularly jewellery, has increased over the years due to an increase in population. His views were shared by Saleem who agreed that sales are ‘OK’ in spite of a substantial increase in the price of gold. Abdul Wahab, however, said that substantial increase in the cost of living and the subsequent decline in purchasing power have affected the sales. However, the ratio of visits by the buyers to the jewellers' shops has not declined but buyers prefer purchasing lighter jewellery.
PAGE faxed a questionnaire to Yousuf Akhtar Hussain, WGC’s manager for Pakistan and Egypt, and received a reply from Dubai. Following is the excerpts of the answers which will help the readers to understand the gold market and trade in Pakistan.
According to Yousuf, his experience indicates that during the last five years, gold consumers' trend has witnessed slow shifting towards lighter jewellery with the exception of areas in the interior, may be. However, he added that there seems a slight preference towards a bit more modern designs and, in general, buyers in Pakistan look for Far Eastern designs usually adapting it to their personal tastes. There is certainly a demand for Indian designs, as per research, conducted by the Council in 1997.
According to Yousuf, plain jewellery is more preferred by Pakistanis and it surpasses the studded jewellery by 65:35 and female buyers out number males by 83 per cent to 17 per cent. In addition, rings and earrings form the bulk of jewellery purchase in Pakistan, both in terms of units and tonnage. Average weight of gold jewellery purchase in the country is ten grams though it is higher in rural areas. While, the jewellery buying in Pakistan is mostly pre-planned, as far as marriages are concerned, with very little impulsive purchase, the good thing is that it is considered as the first option by over 60 per cent of the target audience. For instance, 60 per cent of urban and 63 per cent of rural people prefer to buy solid gold jewellery as compared to 10 per cent and 11 per cent respectively for designer clothes.
While 22 karat gold is used widely in Pakistan, an increase towards 24 karat is visible. In spite of hoarding, the jewellery contributes to 90 per cent of gold consumption in Pakistan, Yousuf said.
Asked what is the primary objective of WGC in Pakistan and what strategy it has to achieve it, Yousuf said that WGC’s objective is to increase the gold consumption in the domestic market. This, he said, requires a thorough study
Though it is quite difficult, it is imperative that we are able to justify how we are spending the money given each year by the miners. The WGC thus tries to keep its involvement at the level of consultants, information, banks and analysts.
Asked what are major problems detrimental to gold sale and consumption in Pakistan, Yousuf said that the problems are many dimensional, including lack of qualified designers and schools, absence of mass production and diversification.
There are neither design schools nor qualified designers with exception of may be one or two and the government should realize that if this particular issue is not tackled a there would be further decline in gold trade. The domestic market would soon be flooded with brand names of jewellery of higher cartage (24 karat) and a much high value-added products. Produced on mass scale in the international markets this jewellery will over run the local jewellery trade as there are hardly any local jewellers who can claim to manufacture 24 karat jewellery and none on mass scale, he warned.
While jewellery import should not be banned and in fact there is a need to do away the monopoly of the domestic market and to make it more competitive. With the help of the government, he added, the local market will be able to upgrade designs, as well as, the manufacturing industry.
In addition, he said, while there is a jewellery manufacturing, the only progress, the local manufacturers have seemingly made, is in the chain making while the industry mainly remains cottage in nature. Gold is advanced to the workers who manufacture the given design which mainly involves hand work and casting. There is no major manufacturer and as such there is no mass production or the branded jewellery. In addition, there is such fragmentation as well as overlapping that it is almost impossible to distinguish between a wholesaler, manufacturer and retailer.
On the global front the gold and jewellery advances in manufacturing pose fresh challenges for the local manufacturers as advances in manufacturing makes it possible to produce pure 22 karat jewellery which is as strong as 18 karat and so fine that hand-made production will not be able to keep pace. In addition, hollow gold jewellery is also available with solid gold look. With satellite beaming advertisements of these products, the buyers in Pakistan will inevitably start demanding them which will a setback to the local jewellery industry. However, all this could be avoided by chalking out a strategy by putting investment into the industry, establishment of manufacturing and designing schools with foreign trainers.
Yousuf said that an increase in domestic consumption of gold will have a positive impact on the exports of gold jewellery from Pakistan which has an ideal population of skilled worker. As increase in consumption means an enhanced and efficient labour which the country has in abundance and which is relatively low cost, will be conducive to boost exports not only in the US and Europe but also to win back its share in the Middle East and the Gulf.
He said that global trends show that buyers in the international market are not concerned about the origin of manufacture, caring less whether a jewellery is made in India or Italy, but rather they perceive the industry as see it. Stressing the need for improvement which can only be made possible through government’s intervention, Yousuf said that the World Gold Council is committed to assist the government as consultants to help open the gateway to the global market as well as increasing the domestic production.
Pakistan earns a valuable foreign exchange of $ 1 per tola on the import of bullion which has tremendous potential increase with the increase in consumption, he concluded.
From the figures provided by WGC it is easy to calculate just how much revenue the government has generated from the import of bullion in 1998. The 98.2 tonnes of gold imported into the country last year translates into 98.2 million grams or 8,421,955 tolas. With an import duty of $ 1 per tola, the government earned a revenue of $ 8,421,955 or an equivalent of Rs 387 million at current exchange rate.
While studded jewellery forms bulk of exports as compared to the plain jewellery, Mahmood Choksy said, "Globally it is the plain jewellery which is in much bigger demand. This underlines the importance of the value of the world class gems that we have and the need for the easy access to these stones by the local jewellers, particularly exporters."
Choksy said that the ratio of local jewellery is higher than the export but it is difficult to provide a figure. In fact, all the trade sources are unable to provide any statistics due to, what one jeweller said, the ‘tax concerns’. However, a rudimentary calculation of the domestic gold market could be made.
Pakistan exported over $ 4 million of jewellery, both plain and studded in 1997-98. As only a negligible quantity is exported, say no more than 5 per cent, the total domestic market of jewellery totals $ 80 million or Rs 3.6 billion at current official exchange rate of Rs 46 per dollar.
Choksy said that the neglect to the gold trade is obvious from the fact that in the 9th Five Year Plan the gem and jewellery sector remains totally unmentioned.
Another issue which yet remains resolved is the imposition of general sales tax at the retail stage and which resulted in weeks-long strike by the jewellers nationwide last year. The issue still remains unresolved despite numerous meetings of the representative organizations of jewellers with the government officials. While all traders, wholesalers and retailers whose annual turnover was over Rs 5 million were required to register under the scheme, the jewellers say that it is not justified as gold jewellery basically remains re-processed business in Pakistan as depending on area the usage of old gold is as high as 75 per cent.
According to Abdul Wahab, the General Secretary of Hydri Sarrafa and Jewellery Group, 65 per cent of the gold used by the jewellers in his market is old. This is primarily due to the reduction in purchasing power and increase in the price of gold as it is a common practice in Pakistan to sell the gold in times of financial crisis or to bring it to convert it into designs that are demand.
Choksy said that even those jewellers whose annual turnover is much less than Rs 5 million have received notices from the Sales Tax Department. There is a general consensus among the trade that the GST issue is hanging like a Sword of Damocles over the entire community and if not resolved will have a negative impact on the business.
Conclusion
The increase in volume of import of bullion does not truly reflect the growth of the gold trade in Pakistan as by and far, old gold is used by the jewellers in a big ratio. The future of the gold trade, both domestic and foreign, depends on a number of factors which if left unattended, will have a far-reaching adverse effects.
While there are three licenced importers in the country, the majority of jewellers have to buy the bullion through a limited number of brokers at commission. However, it is not the price that bothers the jewellers, many of whom complained that at times an artificial shortage is created resulting in shortage of the basic raw material.
Secondly, the lengthy process under the entrustment scheme where a foreign buyer can send the gold in advance to the local jeweller shies away many a prospective buyers to discourage exports. The procedure should be simplified so as to meet time-bound orders which otherwise will benefit some other competitor, particularly India.
Gold jewellery is the only sector which, in spite of paying a number of taxes, get no facility in return including financing and security which is must under the present law and order situation Moreover, financing which this vital trade is still deprived, attempts should be made to accord it the status of an industry which is efficiently regulated to bring back the lost credibility due to unethical business practices by unscrupulous traders which are damaging its image as a whole.
Adoption of latest designing and manufacturing techniques, establishment of related institutions, staffed with foreign or local experts, would help the gold trade to meet the better quality in the local market as well as in the foreign. Without a stable domestic market exports will not pick-up.
The export of precious and semi-precious world class stones be banned in raw form and a local venue for the trading of the same be established so that local jewellers can have easy and less expensive access to these stones many of which are imported into the country in cut and polished form at much higher price. Measures should also be taken to invite foreign capital for investment in high-tech gem cutting and polishing centres equipped with latest machines plus establishment of related skill development institutions.
It is imperative to keep in touch the international demand trends not only to meet the expectations of local buyers but also to meet the standards set by the international buyers. Measures should also be taken to reduce the cost of production to ensure that the second-to-none Pakistani jewellery is competitive in the global market.
Talking to PAGE, Abdul Sattar Chhotani, a Karachi-based jeweller and exporter of gold jewellery, cited various factors, detrimental to the gold trade in terms of both, the local market and exports. The major reasons hindering the growth of the gold trade, local in general and export in particular, is that no attempts have ever been made by the successive governments to accord gold the status of an industry.
In spite of the availability of the best craftsmanship anywhere and the abundance of precious and semi-precious stones, he said, Pakistan has failed to make any headway in the global gold jewellery trade due to a number of reasons.
The major drawback to export is the absence of financing facility to the jewellers who have to invest their own capital in the finance intensive business. Without this much needed and necessary financial support, Pakistani exporters are unable to compete with their major competitor, India, in spite of enjoying an edge in designing and craftsmanship, he added.
It is not only imperative, he said, that the financing-deprived gold trade be provided with the necessary financing by the government only but also by the other sectors to help boost exports. It is also necessary to revive the scheme introduced by the previous Nawaz Sharif government which allowed import of gold by returning Pakistanis.
He was referring to the scheme introduced in early 1990s which allowed returning Pakistanis to bring gold into the country at small import duty. The success of the scheme can be gauged from the fact that gold prices in Pakistan remained lower than those in Dubai for months.
The bulk of jewellers have to buy gold from any of the three licenced importers through a broker who charge commission at a rate of Rs 5 per tola which also covers transit insurance. To help encourage export of gold jewellery, Chhotani said, the government has also introduced a scheme to allow the eligible jewellers, duty free import of gold. The self-consignment scheme allows a jewellery exporter to bring in gold equal to the value of the gold content while the entrustment scheme permits foreign buyers to send the gold to the local jewellers in advance. Gold import licences can also be issued to individual jewellers by depositing a refundable $ 10,000, an amount which is much lower than the earlier amount of $ 50,000.
Chhotani said that the majority of jewellers have to buy gold from any of the three importers through a handful of brokers as the self-consignment and self-entrustment scheme is only good for those who also export. He said that 95 per cent of the jewellers buy gold from these limited number of importers through brokers.
Measures should also be taken to better the self-consignment and entrustment scheme, particularly the one which takes a long time lasting 3-4 weeks which discourages honouring the foreign orders in time.
For instance, a US-based Pakistani who usually comes to Pakistan to arrange jewellery export under the entrustment scheme told PAGE that he was forced to cancel orders from Pakistan as the local jeweller was unable to meet a time-sensitive export order due to lengthy process involved in entrustment scheme. "My orders, however, were conveniently met in time by the Indian exporters," he added.
Chhotani said that one of the primary reasons of the incompetitive prices of jewellery exports from Pakistan, as compared to its main rival, India, is the high labour cost in Pakistan. It is not only necessary to allow the import of gold jewellery into Pakistan to break the monopoly of labour but also to help improve the quality of Pakistani jewellery at par with the international standard. Allowing the import will help boost the quality of craftsmanship of our jewellery in terms of design to reflect the latest fashion trends based on international expectations and demand. In addition, the imported jewellery can also be re-exported, he added.
He said that smuggling of gold to India has decreased over the years as it started importing gold from Switzerland which has become the biggest processing and trading centre of the world. This has helped stabilize gold prices to narrow the gap between the prices in India and Pakistan which, not long ago, used to be much lower.
He also expressed concern over the lack of air-shipment facility of jewellery to one of its primary market— the US— which is also adversely affecting the exports. At present, only one airline, KLM, provides the facility and that too only once a week from Karachi while all other airlines are reluctant to offer the facility due probably to high security risks involved with this particularly precious and expensive export, he added.
Another issue, which has thus far failed to draw any attention from the policy makers, is the gold purity which has resulted in many unethical practices by the unscrupulous jewellers at the cost of the buyers. It is imperative that this aspect of the gold trade be regulated through induction of sophisticated machines and a general awareness and education in the interests of buyers, he added.
While there is not a much difference between the price of gold in Dubai and Pakistan, which on any given day fluctuates between Rs 80-85 per tola, the sales are declining due to the increase in international prices of gold in general and a receding purchasing power in particular.
Furthermore, he added, an industrial area on the model of existing export processing zones be made exclusively for the gold jewellery trade besides providing similar incentives to boost the exports
Ubaidullah Qadri, the Member of the Managing Committee of Federation of Pakistan Chambers of Commerce and Industry (FPCCI), expressed serious concern over the export of precious and semi-precious stones out of the country at fraction of prices in raw from.
He said, though, Pakistan is gifted with vast deposits of a number of precious and semi-precious stones almost all of them find way out of the country in rough and unpolished form due to lack of cutting and polishing facilities. A bulk of these stones find their way back into the country in cut and polished forms at much higher costs through imports.
In spite of abundance in world class precious and semi-precious stones, there are no local venues for local jewellers to buy these stones in the domestic market. This is adversely affecting the exports as studded jewellery out number the plain jewellery in terms of the value.
Secondly, he added, a much higher level of value addition is possible with the studded jewellery which contain precious and semi-precious stones. The export of these stones in raw shape is not only depriving the government of huge export earnings.
Qadri said that the export of stones in raw shape should be banned and the foreign investors should be invited to develop cutting and polishing industry in Pakistan to train the locals for the overall benefit of the country and the economy.
Export of Gold Jewellery and Precious and Semi-Precious Stones
(Value in Dollars)
Year
Jewellery
Precious and Semi-Precious Stones
Total
1995-96
6,459,000
2,644,000
9,103,000
1996-97
4,695,000
4,412,000
9,107,000
1997-98
4,347,000
5,888,000
10,235,000
July-Sep. ‘97
892,000
1,247,000
2,139,000
July-Sep. ‘98
1,931,000
627,000
2,558,000
Source: Export Promotion Bureau


Ten Largest Gold Consumer Markets In 1997
Country
Demand
India
737 tonnes
USA
362 tonnes
China
214 tonnes
Turkey
202 tonnes
S. Arabia
199 tonnes
Gulf States
142 tonnes
Taiwan
142 tonnes
S. Korea
114 tonnes
Italy
107.7 tonnes
Japan
107.1 tonnes
Source: World Gold Council


Use of Imported Bullion In Pakistan (1998)
Demand
Tonnage
Jewellery
85
Bars
2
Coins
1
Hoarding
6
Others
3
Total
97 tonnes
Source: World Gold Council (Estimated Figures)


International Gold Prices During last seven years
Year Price ($ per ounce)
1992
343.45
1993
359.18
1994
384.14
1995
384.08
1996
387.87
1997
331.26
Quarter-wise Changes in Gold Prices


Quarter
Price ($ per ounce)
95-4
385.12
96-1
400.13
96-2
390.05
96-3
384.62
96-4
376.47
97-1
351.28
97-2
343.07
97-3
323.66
97-4
307.72
98-1
294.18
98-2
299.78
98-3
288.64
Source: World Gold Council

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You can evaluate all the advantages of our trade platform in full measure by opening a demo-account. Trading through a demo account is absolutely the same as on a real account. It allows you to perform all kinds of transactions, to use all types of orders and allows you to try trading without any risk of losing money. While trading on a demo-account you can gain experience, realize in action your trade systems and acquire necessary skills for working with the terminal.
To open demo-account you need to download, install and launch the trade terminal.
1. In the main menu of the program select point “File – Open new Account”

IMF Currency Could Threaten Dollar’s Reserve Status

Last week, SDR became the latest addition to the growing list of forex acronyms. So-called Special Drawing Rights are a unit of account used by the IMF, “defined as the value of a fixed amount of yen, dollars, pounds and euros, expressed in dollars at the current exchange rate. The …

Free demo account

You can evaluate all the advantages of our trade platform in full measure by opening a demo-account. Trading through a demo account is absolutely the same as on a real account. It allows you to perform all kinds of transactions, to use all types of orders and allows you to try trading without any risk of losing money. While trading on a demo-account you can gain experience, realize in action your trade systems and acquire necessary skills for working with the terminal.
To open demo-account you need to download, install and launch the trade terminal.
1. In the main menu of the program select point “File – Open new Account”
In the following window select “Demo account” – and press the “Next” button

Trading

The City Credit Capital trading experience is made up of our products, pricing, technology and service. In each of these areas we surpass market expectations by providing our traders with a competitive package and comprehensive, tailored support.

Changes of trading conditions during the period from 25.12.2008 22:00 CET to 05.01.2009 22:00 CET

Double spreads for all currency pairs and metals are charged
Minimum distance for stop and limit orders setting increases up to 10 spreads
Trading on some currency pairs and metals can be suspended
These changes of the trading conditions are due to the thin low liquid market during the holidays and high volatility.

Forex Software: Our World-Class Forex Trading Platforms

When you trade the nearly $4 trillion-a-day forex market with GFT, you get the advantage of our wide range of free software, which includes all of the tools you need for trading.
Get a practice account using our full-featured trading platform for your desktop, our web-based application that includes forex charts and tools, or our mobile trading software for PDAs, BlackBerry® and cell phones.
All of our forex software includes free currency news, commentary, charts and tools so you can access the information you need to make informed trading decisions.

Trade on spreads as low as 1-2 pips, commission-free

Trade currencies and spot gold at FOREX.com. Dealing spreads are as low as 1-2 pips on the most widely traded currency pairs. As always, you pay no commissions at FOREX.com, only the bid/offer spread. And with our fractional pips, you gain an extra digit of precision so that you can take advantage of smaller price movements. Plus, you can enter orders at any price - even inside the spread - and trade around news events, major economic announcements and other times of high market volatility. Learn more about pricing and spreads.

AUDJPY: Breaking Trend?

April 19th, 2009
Though I’m a bit leery of Sunday price action it looks like a fairly long term support line is being broken.This could be interesting…. continuing …Looking closer, this may not yet be a break, as there have been previous “breaks” which gives us a bit of leeway here. A redraw based on a previous “break” leaves a bit of breathing room still.
Here is the original post: AUDJPY: Breaking Trend?
Tags: breaking-trend, development, education, forex, include-data, loop-values, philosophy, popular-posts, programming, Rookie Forex Trader, rookie-forex, tradingPosted in Rookie Forex Trader, forex No Comments

Sunday Session Starts On A Risk-Aversion Note

April 19th, 2009
Overall, the Sunday session started again with traders looking to shed risk and buy the safety of the U.S. dollar. It appears this has been the trend over the last few days of trading, and the market appears quite happy to carry it through
See the original post: Sunday Session Starts On A Risk-Aversion Note
Tags: archives, aversion-note, central-banks, education, financial, forex-trading, government, market, pair, stumbleupon, technical-outlook, tutorialPosted in Forex Analysis Reports, forex No Comments

Learning Forex Trading- The Broker

19 hours ago by fxbroker When it comes to learning forex trading there are many things that you need to consider first. So before you start trading you should write a list of exactly what you need to learn, such as forex trading terminology, brokers, charting, ...Work From Home - http://work-from-home.vjad.net/ - References

Trade on spreads as low as 1-2 pips, commission-free

With the US trade deficit at a new year low, February has shown that the deficit or difference in exported and imported goods in the US is 25.97 bn US dollars. This brings a time of low imports from places like China and Japan which typically export a large percentage of their exports to the [...]

Trading Platforms

Four trading platforms to choose from for maximum flexibility, convenience and speed. Test drive the trading platform

Advanced tools & research

As a FOREX.com client, you'll have access to a variety of resources and unique trading tools that can help you make more informed trading decisions.
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Full suite of daily and weekly forex research. Whether you're interested in fundamental analysis or technical trading methods, you'll have access to a wide variety of institutional-grade Forex market analysis as a FOREX.com client. And, tune in to our Weekly Market Call for timely trading ideas and analysis from Brian Dolan, our Chief Currency Strategist.
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ForexInsider streaming market commentary: Our exclusive FOREXInsider delivers actionable analysis of news, events and technical levels that impact currency prices, in real-time, to your trading platform. Updates are published as often as 20 times an hour, so that you can act instantly on new market intelligence.
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FOREXCharts by eSignal: Access eSignal's professional level charting package with over 30 analytical tools and indicators, a complete selection of drawing tools, and choice of real-time data feed. Preview FOREXCharts by eSignal.

Trader education, mentoring services, and more

FOREX.com delivers hands-on forex training through a variety of educational programs and events. For traders just getting started in the Forex market, we offer one-on-one platform walkthroughs, online training courses, as well as live, introductory web-based seminars ("webinars"). Exclusive client-only events cover more in-depth trading techniques and strategies and include an interactive Q&A with our senior analysts and currency strategists. As a FOREX.com client, you can also take advantage of our professional mentoring services. During your one-on-one consultations with a senior forex specialist, you can discuss the latest market research report, ask for a second opinion about your trading plan, or just bounce ideas around. Contact us to learn more about our mentoring services

Fully automated click & deal trading, with instantaneous fills

At FOREX.com, we've always automated processing for all click & deal forex trades. When you click BUY or SELL, our systems perform a real time margin check and, if accepted, immediately respond with a trade confirmation. Why is this important to you? First, you benefit from an unbiased trading environment that is not subject to human intervention. Second, automated trade processing improves our efficiency, which lowers our overhead and allows us to pass along the saving to you in the form of tighter spreads

Trade on spreads as low as 1-2 pips, commission-free

Trade currencies and spot gold at FOREX.com. Dealing spreads are as low as 1-2 pips on the most widely traded currency pairs. As always, you pay no commissions at FOREX.com, only the bid/offer spread. And with our fractional pips, you gain an extra digit of precision so that you can take advantage of smaller price moveme

Never heard of Forex?

The Foreign Exchange Market is the world's largest financial market, trading nearly 3 trillion dollars daily. Traders on this market are able to buy, sell, exchange and speculate on currencies

ONLINE FOREX TRADING

The forex or Foreign Exchange is a financial market place where you speculate on changes in exchange rates of foreign currencies such as the euro, the dollar or Yen.
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Read free online material. Review the basics of the Forex market, its key concepts and common trading drivers.
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Join us for free interactive webinar. Our webinar series provide instruction, demonstration and discussion.
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Come meet us at a workshop. Attend a local workshop designed for new and active traders alike.
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Trade with a plan. Speak with one of our experienced Market Strategists to help you develop a strategy to meet your goals.

New to the Forex market?

We've worked hard to distill our collective trading experience into an approach suitable for all skill levels.
Step 1: Understand the FOREX market. Dive into Forex 101 for a compact overview of the basics or sit back and join us at one of our live interactive webinars.
Step 2: Prepare to trade in a live environment. Register for one of our training courses and study at your own pace or join us at a local workshop, where our experienced instructors can teach you in a dynamic classroom setting.
Step 3: Test your skills risk free. Sharpen your technical analysis techniques with a free 30 day practice account.

Learn to trade currencies - your way

Learning to trade the Forex market effectively requires the rightguidance and resources. That's where we can help.
Attend a live, interactive webinar

Safety of Client Funds

Assuring client fund safety is one of the single most important factors in the financial industry. GCI Financial Ltd is regulated by the International Financial Services Commission (IFSC) for trading in financial and commodity-based derivatives and other securities, including foreign exchange. The IFSC's strict requirements include capital adequacy, reporting and record keeping, and proper disclosure and conduct with clients. Furthermore, GCI has years of experience managing risk, a strong balance sheet, and offers additional legal and structural guarantees:
Client funds held with GCI Financial Ltd ("GCI") are maintained in separate Customer Funds accounts and may never be utilized for operating expenses or for other purposes or commingled with GCI's operating capital.

The GCI Advantage

Why trade with GCI? Our mission is to offer clients the best combination of advanced trading software, low costs and low margin requirements, efficient and secure back office fund administration, and a broad array of products with high profit potential. Advantages of opening a live account include:
Zero commissions. Client trading performance is enhanced by eliminating all commissions and fees.
Superior trading software. The GCI trading software provides real-time prices in all major currencies, market indices, shares, and commodities. Customers can choose from a Windows-based or Java-based version, and have access to mobile phone trading as well real-time charts and market news. Click here to download a free demo.
Product Offerings. In addition to Forex, GCI offers trading in indices, shares, and commodity CFDs.
Hedging Capability. Clients can open positions in the same instrument in opposite directions, without the positions offsetting and without using additional margin. Clients have complete control over whether they close or hedge their positions to reduce risk.
Rapid and fair trade execution. Market orders are confirmed within seconds at prices clicked on or accepted by the client. GCI also has a "zero slippage guarantee" for all Forex Stop and Entry Stop orders.
Low margin requirements. GCI provides access to Forex, share, and index trading with margin requirements of 0.5% on Forex, 1% on Share Indices, and 5% on individual shares

Introducing Brokers

GCI offers an outstanding opportunity to qualified introducing brokers ("IBs"). Our IB program supports brokers, traders and industry participants in creating or enhancing a lucrative Forex or Share Trading business. Advantages of introducing business to GCI include:

Outstanding compensation based on trading volume. Many companies and individuals have built lucrative IB businesses with GCI, enjoying the benefits of monthly revenue payments while letting GCI manage the expense and maintenance of back office systems, trading software, and 24 hour dealing. And for IBs with an existing business, we will exceed your current compensation schedule if you move your business to GCI.
Reliable monthly payments from an industry leader. GCI depends on Introducing Brokers for a large part of its trading volume. As such, we highly value all our IB relationships and have considerable administrative resources dedicated to making sure you are paid on time and in full.
Refer accounts to GCI or Build Your Own Brand. Whether referring clients to GCI and letting us do the account opening work, or taking advantage of our "white label" version of the internet trading platform branded with your company logo, IBs can build their business in the way that best suits their client base and their goals.
A superior product to offer your clients. No one else can match GCI's breadth of product offerings and low margin requirements. While many FCMs and brokers now offer online trading with narrow spreads and zero commissions, your clients will also benefit from being able to trade precious metals, indices, and share CFDs along with Forex. 200:1 leverage on all of these products makes GCI the clear choice and ensures that your clients will not easily be "lured" to competing brokers or IBs.
Advanced and secure online reporting. With GCI, you can more effectively manage your marketing process and expected monthly IB payment - login any time to GCI's online reporting system to run reports on your clients' trading activity, and to view their account details.

Trading Software Preview

CFD/Share Trading
GCI is the first to offer CFD/Share trading (shares, indices, currencies and commodities) on the industry's leading online dealing platform. Trade from the Dealing Rates Table or directly from the integrated real-time charts. You can set alerts, place conditional orders, and take advantage of our AFX news feed, live quotes, comprehensive real-time position and account tracking, and mobile trading access

Recommend by Top Industry Participants

GCI is recommended by top industry participants and has had its market analysis featured in leading publications, including the Financial Times. Click here for a partial list of company websites that recommend GCI Financial Ltd.GCI's analysis also appears regularly on Multex.com and Reuters, and is subscribed to by major institutions including J.P. Morgan, HSBC Asset Management, and Goldman Sachs. Click here for a partial list of articles and publications featuring GCI

Overview of GCI Financial

GCI Financial Ltd ("GCI") is a regulated securities and commodities trading firm, specializing in online Foreign Exchange ("Forex") brokerage. In addition to Forex, GCI is a primary market maker in Contracts for Difference ("CFDs") on shares, indices and futures, and offers one of the fastest growing online CFD trading services. GCI has over 10,000 clients worldwide, including individual traders, institutions, and money managers. GCI provides an advanced, secure, and comprehensive online trading system. Client funds are insured and held in a separate customer account. In addition, GCI Financial Ltd maintains Net Capital in excess of minimum regulatory requirements

Free MetaTrader Practice Account

Download MetaTrader 4 from MetaQuotes
Submit the form below to instantly download GCI's MetaTrader software with $50,000 of practice money. Benefits include:
Instant fills in Forex. No requotes or delays
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Trading with a regulated broker
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Pak Forex reserves faces erosion of 3.1billion dollars in five months

Karachi, Apr 4 (ANI): The Pakistans Foreign Exchange Reserves has seen an erosion of 3.10 billion dollars in just five months of the current financial year, indicating a threat to the health of the countrys economy.The State Bank of Pakistan has reported 13.27 billion dollars worth total foreign exchange reserves by March 29, 2008, which indicates a huge plunge of 3.10 billion dollars when matched with the record high 16.37 billion dollars reserves on November 2, 2007, according to The Nation.

Pak forex reserves slide to $11.178 bn

Karachi, June 6: : Pakistan's foreign reserves fell by $334 million to $11.178 billion in the week that ended on May 31, said the central bank.Reserves held by the State Bank of Pakistan fell to $8.684 billion from $9.061 billion a week earlier, while those held by commercial banks rose to $2.494 billion from $2.451 billion

Pak forex reserves fall to $10.91 billion

LAHORE: Pakistan’s foreign reserves fell by $44 million to $10.91 billion in the week that ended on June 14, said the central bank on Thursday.Reserves held by the State Bank of Pakistan fell by $12 million to $8.267 billion, while those held by commercial banks rose to $2.643 billion from $2.567 billion.Pakistan’s foreign exchange reserves hit an all-time high of $16.486 billion on October 31, 2007, but have fallen since then because of political uncertainty, beginning when President Pervez Musharraf imposed six weeks of emergency rule on Nov 3.

Pak forex reserves hit $10.26 billion

Pakistan’s central bank, State Bank of Pakistan (SBP) on Friday said country’s foreign exchange reserves rose by $100 million to $10.26 billion in the week that ended on March 21, 2009. In a statement issued here SBP said its reserves rose to $6.79 billion from $6.69 billion a week earlier while reserves held by commercial banks were flat at $3.47 billion

Barron's calls for a bottom in Oil

Some are anticipating the return of higher crude oil prices. In their January 26th edition Barron's ran a cover story saying "Buy Oil". Thus far, those who followed this venerable publication's advice have not been rewarded, as Oil has been flat to slightly lower since the article ran.Thus far, those who followed this venerable publication's advice have not been rewarded, as Oil has been flat to slightly lower since the article ran.Often, cover stories featuring major predictions/calls by more "mainstream" publications like Barron's, Business Week, etc, have been good contrarian indicators -- meaning the articles have been wrong. It seems that by the time a major publication features a particular business trend, the trend is near the tail end of its run. Like many business trends, the stock market is a discounting mechanism and by the time an editor is convinced to dedicate a cover story to its magazine, the trend has likely been played out. This is even more likely to be true when trends hit the mainstream non-business media. For example, the large number of stories about how to become a Day Trader came at the height of the Internet Bubble, and the large number of reality TV shows about "flipping houses" that emerged just as the Housing Bubble was about to burst.

Swiss Exclusive Interbank FOREX Trading

Dukascopy provides access to the very first Decentralized Marketplace (SWFX – Swiss Forex Marketplace), combining the liquidity of centralized marketplaces and a number of banks. Through its marketplace technology, Dukascopy is able to avoid exposure risk and conflict of interest with its clients, as the trades are fully hedged with counterparties.Dukascopy business model combines the individual bids and offers of all the participants in one place, providing a fair trading environment for buyers and sellers. For each trade executed over the Dukascopy Trading Platform, SWFX – Swiss Forex Marketplace, there are offsetting over-the-counter transactions: between the buyer and Dukascopy as the seller, and transactions between Dukascopy and the seller.Dukascopy - SWFX Swiss Forex Marketplace business model derives its success from the best quality of institutional Forex market worldwide in combination with financial stability. The complete security is reinforced by the zero market exposure model that is the guiding principle of Dukascopy (Suisse) SA.Dukascopy (Suisse) SA is a member of Arif and boasts a shareholder capital of CHF 22,000,000.00.SWFX - Swiss Forex Marketplace Platform has been designed for highly accurate instant execution exclusively for professionals. Dukascopy apologizes for not being able to service retail clients.Dukascopy - SWFX Swiss Forex Marketplace Platform is engineered and optimized to operate efficiently even with higher lot sizes (over 5 million).Trading philosophy of Dukascopy is based on principles of equal competition and absence of conflicts of interest.Dukascopy offers some of the best spreads available in the market (0.5 - 1 pip on Majors) thanks to the worldwide liquidity generated by the active participants.SWFX - Swiss Forex Marketplace Platform provides its service through GUIs (2 versions) and APIs (3 versions).Trading Accounts with Dukascopy can be funded via money transfer, bank guarantee, Standby Letter of Credit or via accounts with Swiss Banks.Dukascopy (Suisse) SA is registered in Switzerland and is submitted to Swiss laws.The shareholder capital of Dukascopy (Suisse) SA is CHF 22 million. More information about SWFXMore information about Trading PlatformTo learn more about Dukascopy Forex trading platform, S

CRUDE OIL TRADING

Crude on the Slide

Judging by the equity markets reaction yesterday to the proposed U.S. bank bailout plan by Treasury Secretary Geithner, the market doesn’t approve. The bank bailout was largely hyped by the media, but Wall Street’s reaction has cast a heavy shadow on the financial markets. The plan was intended to provide stability to a weakened U.S. financial system. Without added stability, an economic recovery could begin to take place. Now that the markets have crushed this proposal, crude oil may continue to head lower.It is not difficult to be bearish on crude oil, given the price in crude dropped from $147 in July to yesterday’s close of $38.All the talk of bank bailouts, TARP plans, and the economic stimulus plan arouse feelings of a quick economic turnaround. However the market had a different view as the Dow Jones Industrials Average was sent lower by the tune of 4.6% while crude oil was punished 4.5%.Crude oil may slip to the $35 price level by the week’s end on poor market sentiment and negative oil inventories figures that are expected to be released later today at 15:00 GMT. U.S. crude oil stockpiles could potentially increase into March, adding additional downward pressure to the price of Oi

Crude on the Slide

Judging by the equity markets reaction yesterday to the proposed U.S. bank bailout plan by Treasury Secretary Geithner, the market doesn’t approve. The bank bailout was largely hyped by the media, but Wall Street’s reaction has cast a heavy shadow on the financial markets. The plan was intended to provide stability to a weakened U.S. financial system. Without added stability, an economic recovery could begin to take place. Now that the markets have crushed this proposal, crude oil may continue to head lower.It is not difficult to be bearish on crude oil, given the price in crude dropped from $147 in July to yesterday’s close of $38.All the talk of bank bailouts, TARP plans, and the economic stimulus plan arouse feelings of a quick economic turnaround. However the market had a different view as the Dow Jones Industrials Average was sent lower by the tune of 4.6% while crude oil was punished 4.5%.Crude oil may slip to the $35 price level by the week’s end on poor market sentiment and negative oil inventories figures that are expected to be released later today at 15:00 GMT. U.S. crude oil stockpiles could potentially increase into March, adding additional downward pressure to the price of Oi

Britain’s Economy to Slump by a Staggering 2.8% in 2009

According to the International Monetary Fund (IMF), Britain’s economy is set to slump by a massive 2.8% this year. The global economic watchdog was extremely concerned, as this forecast indicates that Britain’s economy will decline twice as fast as previously predicted. Therefore, Britain’s economy is set to shrink more than that of the Euro-Zone, the United States and Japan. This data is likely to kick-in when the Bank of England (BoE) meets next week and cuts Britain’s Interest rates. The consequence of this is highly likely to lead to a further weakening of the Pound Sterling.

Get the Latest Currency News from GFT

Global Forex Trading offers real-time, international currency news directly within our online currency trading software, DealBook® 360. As a foreign exchange trader, it is important to have forex dealer that provides you with the most accurate and informative international currency news for trading. Global economic, social and political events create international currency news everyday, which typically has a direct affect on foreign currency exchange rates

Canada Afternoon: C$ Ends Up Sharply As Risk Aversion Recedes

TORONTO (Dow Jones)--The Canadian dollar ended sharply higher Thursday, as it and other cyclical or risk-sensitive currencies benefitted from a broad global move away from the U.S. dollar and a surge in previously timid risk appetites among investors. The U.S. dollar was trading at C$1.2420 at 3:49 p.m. EDT (1949 GMT), from C$1.2492 at 8:00 a.m. EDT (1200 GMT) and C$1.2607 late Wednesday. As it usually does, the Canadian dollar responded positively Thursday to a concerted rally on virtually all major global equity markets. The rally was chiefly if not exclusively driven by an upsurge of investor optimism that global policymakers may be getting the upper hand on the global economic crisis, after leaders of the G-20 nations meeting in London announced a series of measures that included major new funding for the International Monetary Fund and stepped up aid programs for developing countries. The buoyant mood also spilled over to boost commodity prices such as oil, which vaulted well over the $50-a-barrel mark and added additional impetus to the Canadian dollar's rally. The currency eventually rose to a new one-week high at C$1.2339, according to EBS before retreating somewhat. While the scope of its gains Thursday were impressive and have the potential to extend once again to the top of the currency's recent trading range in the C$1.2000 area, currency watchers caution that such one-day rallies have been seen numerous times in recent months, and can often reverse just as quickly if data or other events conspire to stoke global risk aversion again. The biggest near-term event risk for the