Article
It’s not trading. It’s a casino in finance clothing.
In Pakistan today, a dangerous illusion is spreading under the label of “trading.” Apps like Binomo, Quotex, Exness, and others promise quick profits at the tap of a button, but in reality they operate no differently than slot machines disguised in financial clothing. Far from creating investors, they exploit youth with the lure of easy money, siphoning hard-earned rupees into unregulated offshore platforms. The State Bank of Pakistan has already warned that these schemes are draining foreign exchange from the country, costing “billions of rupees” in lost dollars, yet aggressive promoters and social-media influencers continue to glamorize them as a path to wealth. This is not investing; it is gambling that weakens households and the nation alike.
Binary-options ‘signals’, one-tap ‘forex’ apps, and offshore CFD platforms don’t turn you into an investor; they turn you into the product.
Why this is gambling (and why the house wins)
These apps sell ultra-short bets with fixed payouts. If a platform pays ~80% on wins but you lose 100% on losses, you must be right over 55.6% of the time just to break even—yet short-horizon price moves are effectively a coin flip. That’s a built-in negative expected value. This is why major regulators abroad banned retail binary options outright years ago (EU via ESMA in 2018; UK FCA made the ban permanent in 2019), citing systemic consumer harm and fraud. ESMAFCA
Where Pakistan stands (and why this bleeds dollars)
Pakistan’s own authorities are explicit: remitting foreign exchange to offshore “forex/CFD/binary options” websites and apps is illegal. The State Bank’s Exchange Policy Department formally warned banks in May 2022 that such platforms “lure the public” and cause an outflow of foreign exchange; banks were ordered to block payments and inform customers about the illegality and risks. SBP also issued a public advisory the same day. State Bank of Pakistan+1
In August 2025, Pakistan’s National Cyber Crime Investigation Agency (NCCIA) issued a list of 46 illegal apps and asked the PTA to block them nationwide. Media reports quoting the NCCIA include Binomo, IQ Option, Pocket Option, Deriv, Olymp Trade, OctaFX and Quotex among the unregulated trading platforms—explicitly framed as high risk and illegal for Pakistani users. TechJuiceThe Express TribuneThe News International
“How many dollars are we losing?”
There is no official, disaggregated SBP estimate published for dollar outflows specifically from these apps. What we do have are three hard signals:
SBP’s 2022 circular labels these platforms a source of foreign-exchange outflow and bans banks from facilitating any payments to them. That’s a policy response to a real leak. State Bank of Pakistan
NCCIA and PTA (Aug 2025) say the illegal platforms were “collecting billions of rupees” from Pakistanis—money that either leaves the country or fuels parallel channels. Even “billions of rupees” at current exchange rates imply tens of millions of USD at minimum. SAMAA TV
Pakistan’s broader crackdown on illegal dollar markets shows how such leakages keep pressure on the rupee; when authorities clamp down, the open-market rate firms—then trading migrates to encrypted channels. The mechanism is the same: unrecorded outflows weaken reserves and the currency. Reuters
For context on scale (not a direct measure of these apps), SBP also capped cross-border card spending at USD 30,000 per individual in 2022 after observing misuse of cards for cross-border payments. That cap illustrates the magnitude authorities needed to police in retail channels. State Bank of Pakistan
Anyone quoting an exact annual dollar loss for these apps is guessing; the official line is clear about the leak, not the precise sum.
Message to promoters & “signal sellers”
If you promote unlicensed ‘trading’ apps to Pakistanis, you are selling illegal access to foreign-exchange gambling.
Under SBP’s reading of the Foreign Exchange Regulation Act (FERA), facilitating payments to offshore forex/CFD/binary platforms is prohibited. PTA and NCCIA have named and moved to block dozens of such apps. That leaves promoters exposed: you’re advertising illegal services that drain foreign exchange and can trigger enforcement. State Bank of PakistanThe Express Tribune
Promotional claims like “guaranteed returns”, “risk-free signals”, or doctored PnL screenshots prey on survivorship bias. EU/UK bans were enacted precisely because “firms sell aggressively and exaggerate profits” while most users lose money. That pattern is not unique to Europe. FCA
Message to the youth
If it feels like a game, it’s a casino—and casinos are designed so you lose.
Real investing means owning productive assets, understanding cash flows, and compounding over time. Tapping a green/red button on a price tick is not “investing”; it’s a negative-sum bet with a hidden house edge and withdrawal frictions that keep your losses on the platform and your dollars out of Pakistan. The State Bank has already told banks to block this activity; if you’re being funneled to crypto rails or P2P workarounds, that’s a red flag, not a hack. State Bank of Pakistan
What Capital IQ stands for
We don’t sell thrills; we protect capital.
Our policy is simple. We will continue to educate savers, especially first-time earners, on the difference between speculation that bleeds dollars out of Pakistan and investing that compounds value inside it. When regulators escalate action (as they did in August 2025), it validates this stance. The Express Tribune
Citations (key sources)
SBP Exchange Policy Department, Circular Letter No. 08 of 2022 prohibiting payments to offshore forex/CFD/binary platforms; SBP public advisory, 18 May 2022. State Bank of Pakistan+1
NCCIA/PTA move to block 46 illegal apps including unregulated forex/binary platforms such as Binomo and Quotex; multiple national outlets. TechJuiceThe Express TribuneThe News International
Samaa TV quoting NCCIA: these platforms were “collecting billions of rupees” from Pakistani users. SAMAA TV
Reuters on the July 2025 crackdown: rupee firmed while illegal FX activity shifted online—illustrating how such channels drain FX and distort markets. Reuters
ESMA (EU) and FCA (UK) bans on retail binary options due to widespread harm and fraud. ESMAFCA
SBP cap on cross-border card spend at USD 30,000 per person (Nov 2022), introduced after misuse of cards for cross-border payments. State Bank of Pakistan