How to start investing in the PSX: a beginner's roadmap
Five steps from "I know nothing about shares" to your first real investment in Pakistan. You can do the first three for free, today, without risking any money.
1. Learn the basics
Understand what a share is, what the market does and the words people use. Start with stock market basics, PSX essentials and the trading glossary.
2. Practise with practice money
Open a free account and trade PSX stocks with Rs. 10 lakh in practice money, at real end-of-day prices. See how a portfolio moves and what you would do differently. Read about paper trading in Pakistan, or start now.
3. Understand risk, costs and tax
Prices go down as well as up. Read risk and return and the common trading mistakes, and learn how tax on stocks works. Use the guide to picking a first stock and the free calculators to look at a company before you decide.
4. Choose a licensed broker
You buy and sell PSX shares through a broker. Check on the PSX and SECP websites that the broker is licensed, and compare fees, minimum account sizes and trading platforms. We compare Pakistan's stock brokers.
5. Start small and keep learning
Begin with an amount you can afford to lose, spread your money across companies and sectors, and keep notes on why you bought. Keep practising new ideas in the simulator before you try them with real money. See portfolio management.
Questions beginners ask
How do I start investing in the Pakistan Stock Exchange?
Learn the basics, practise with practice money, understand the risks and the tax, then open an account with a licensed broker and start with an amount you can afford to lose.
Do I need a broker?
Yes. Shares on the PSX are bought and sold through a licensed broker. You can check that a broker is licensed on the PSX and SECP websites.
Can I practise first?
Yes. Pak Stock Exchange gives you Rs. 10 lakh in practice money, not real money, to trade PSX stocks at real end-of-day prices.
Is investing in shares safe?
No investment is risk-free. Share prices can fall as well as rise, and you can lose money. Read about risk and return before you invest.
Do I pay tax on share profits?
Tax rules apply to gains and dividends and can change. See our guide to tax on stocks in Pakistan, and check the current rules with a tax adviser.
Take step 2 now: practise with Rs. 10 lakh in practice money. Free, no real money.
Start Virtual TradingThis page is for education and is not investment advice. Pak Stock Exchange is an educational simulator and is not a broker. See our disclaimer.