How to Start Investing in Pakistan Stock Exchange

 

We all know that wise people invest their money and the poor people spend their money. That's the reason behind these two. The poor people think that it is useless thing but the investor thinks it the best opportunity of building wealth. They invest their money in stock market and get good returns over the years. Warren Buffet is the giant of stock exchange who become the richest person of the world through investing in stock market. He invested his money when the market was crashing and then he got reasonable returns over the many years.

What we did?

We did alternatively to the Warren Buffet. We buy stocks when the market is raising and sold when the market is crashing. That's why we loose our many in few days and then say good bye to the stock market forever. But this is a bad practice and we must get education about stocks before investing in stock market.

How to invest in Pakistan Stock Exchange?

In Pakistan, we can invest in Pakistan Stock Exchange. Even foreigner invest in Pakistan Stock Exchange. For investing in Pakistan stock Exchange, you must have a brokerage account and a CDC account. First of all you have a brokerage account and then the brokerage house open your CDC account. After that you deposit the money in you brokerage account and then you will be able to buy stocks. These stocks will be shown in your CDC account.

Commission on buying stocks:

The brokerage house charge commission from you on buying and selling the stocks. This commission is too little but is two folded that you give commission to them on buying a stock and on selling a stock as well. If you are holding a stock for long term then you can bear the two folded commission.

Annual CDC fee:

CDC only charges annual fee. And this fee is charged once in a year which is about 1250. 

Renewal of Pakistan Stock Exchange account:

If you open an account in Pakistan Stock Exchange and after some time stop working, your account will be suspended. And after some months or years, you again think to work in Pakistan Stock Exchange, you will have to deposit a simple form to activate your account.

How to open an account?

To open an account with brokerage house, you have to search different brokerage house and after that finalize the brokerage house which have good services. 

If you want to ask any question about it, do ask me.