SEBI stands for Securities and Exchange Board for India (SEBI) which regulates companies and the shares held by them. SEBI is also responsible for issuing licenses to forex brokers.
Forex trading within Indian exchanges is getting quite popular in India, as it is creating opportunities to make money quickly. Further, SEBI regulated forex brokers in India are trusted by many to deal in currency markets and currency futures.
This article will discuss if forex trading is legal in India and list down the best forex brokers in India.
RBI & SEBI Regulated Forex Brokers in India: How They Work?
In addition to SEBI, other organizations are also involved in setting up the rules and regulations of derivative trading in India. These include the Royal Bank of India. All the relevant trading guidelines have been established under the Foreign Exchange Management Act.
While looking out for the top forex brokers, you should remember that you can trade through three stock exchanges. These are the United stock exchange (USE), MCX-SX and the National Stock Exchange (NSE).
Trading for such currency derivatives are done on the margin. This means that with the help of SEBI regulated forex brokers in India, you have to deposit some initial margin with the stock exchange of your choice. The contract would then be resolved in INR.
When it comes to the time period of future cycles, it can range from 1-12 months. Lot sizes for all currency pairs are 1000 units except for the Japanese yen/Indian rupee pair. For this, the lot size is 100,000 units.
12 Best SEBI Regulated Forex Brokers List in India 2023
- Alpari: Cashback and Bonus Points
- HotForex: 1200+ Trading Products and 12+ Trading Tools
- FP Markets: Super Quick Execution with NY 4 Facility
- Axiory: Transparent Pricing with no Hidden Charges
- FXTM: Personal and Educational Support for Beginners
- FBS: Cent Account for Beginners and Minimum Spread
- InstaForex: 24/7 Hindi Customer Support
- Avatrade: Globally Regulated and Copy Trading Options
- XM: Lower Fees and Brokerage Charges
- ROInvesting: Huge Educational Resources and a Dedicated Customer Support
- OctaFX: Learning and Copy Trading
- Olymp Trade: Trading in Forex with Expert Advice
Your search for the best brokers for forex trading will probably end here. We have list down the best legal forex trading brokers in India who follow the guidelines by government authorities for legitimate forex trading in India.
With Alpari forex trading app, you can easily make earnings on the forex market by making investments in the accounts of professional traders. The best forex broker also offers a PAMM account using which investors can choose from different managers to make an investment on their behalf.
Features of Alpari Best Indian Forex Broker
- Alpari’s collaboration with FasaPay ensures that you can deposit money to your account from anywhere in the world.
- This strategy trading forex broker can be linked directly to your bank account for depositing funds without any hassle.
- Alpari offers MetaTrader 4 and MetaTrader 5, which can be used both on mobile and computer devices.
- Alpari signal trader for forex offers different subscription accounts for different types of investors. These include standard, ECN, Pro.ECN and Nano.
Pros and Cons of Alpari
HotForex is considered amongst the top forex brokers in India as it offers more than 18 free trading tools for better management of trade. It also provides investors with the option of choosing from multiple account types depending on how much risk the investor is ready to take.
HotForex Forex Trade Brokers Features
- HotForex offers a large range of online trading opportunities which ensures that your portfolio is diversified.
- It provides 12 forex trading platforms to incorporate investors with a variety of trading styles.
- What makes HotForex the best broker for forex trading is the fact that it provides video tutorials for beginners to get accustomed with best trading techniques.
- It supports quick and easy fund transfer through a variety of payment methods.
- HotForex provides insurance cover for funds associated with client accounts.
Pros and Cons of HotForex Trading Platform in India
In addition to Forex, FP Markets can also be used for dealing in 19 global indices and commodities such as gold, silver and even oil. FP Markets forex trading platform in India provides a robust access to global markets 24X5.
As it makes use of a NY4 server, the execution of forex trading is fastened. You can depend on FP Markets tool to make trades on low spreads consistently.
Feature of FP Markets Best Forex Brokers for Beginners
- FP Markets make trading easier with its dedicated mobile apps.
- This forex trading app provides customer support in multiple languages.
- FP Markets uses modern trading technologies such as MetaTrader 4 (MT4), MetaTrader 5 (MT5) and so on.
- You can access an advanced client portal where you can track your trading decisions in real time.
- FP Market is known for maintaining fair trade practises as it avoids any price manipulation, dealing desk and requotes.
Pros and Cons of FP Markets
Suggested Read: Best Technical Analysis Software for Stock Trading in India
With Axiory, you can start trading on major forex trading indicators within 10 minutes. Axiory best forex broker provides daily updates regarding the most trending market assets and predicts how they might perform in the future.
It is also useful for obtaining an asset by asset deep analysis so to understand the condition of market on a particular day.
Features of Axiory SEBI Regulated Forex Brokers in India
- Axiory has been developed to initiate trades with low spreads so that investors can earn more profit.
- In case of any grievance, you can reach out to excellent customer support services through live chat or email and get a prompt response.
- Axiory provides negative balance protection with the help of its modern account monitoring tools. In case there are price movements which might render your account balance negative, Axiory resets the balance to zero and covers for any additional losses.
- This strategy trading forex broker maintains strict segregation between company funds and client funds.
- Axiory provides a range of different trading tools to enable investors to make better trading decisions. These include Autochartist, Axiory strike indicator and so on.
Pros and Cons of Axiory
FXTM, one of the best Indian forex brokers, makes trading easier for beginners with a slew of video tutorials, seminars and more. It also ensures that you earn maximum profits by keeping spreads to a minimum.
Moreover, with its faster trade execution processes, FXTM enables you to make informed trading decisions.
FXTM Signal Trader Forex Broker Features
- FXTM provides a better access to global markets with the help of its financial instruments involving cryptocurrencies and stocks.
- It offers multiple types of trading accounts such as standard, cent and shares.
- FXTM makes use of modern trading technology such as MetaTrader 4 and MetaTrader 5. It also has designated apps for mobile and tablets.
- By using the FXTM invest feature, beginners can copy investment practises done by experienced traders.
- FXTM has a global research team which provides in-depth analysis of market conditions for the day.
Pros and Cons of FXTM
SEBI regulated forex broker FBS can also be used to deal with CFDs, metals and stocks. Beginners can open a cent account of FBS which involves a significantly lower risk.
Moreover, this forex trading app is compatible with different payment methods accepted across the globe.
FBS Best Forex Broker Features
- FBS forex trading platform maintains a low spread to reign in your losses and maximise your profit. You can start with -1 pip.
- Commissions to traders or managers are provided by FBS itself.
- You can get assured support round the clock in case of any grievance.
- Under its Forex News section, you can get a hold of latest events that are shaping up the market
- FBS has a designated mobile app for apple iOS and android devices.
Pros and Cons of FBS
InstaForex is one of its kind forex trading tools as it has different account options for beginners, traders and investors. What makes it feature among the best Indian forex brokers is that it provides online training to people new to forex trading. InstaForex also runs promotional campaigns for demo accounts.
Features of InstaForex Strategy Trading Forex Broker
- With Instaforex forex trading platform, it is possible to add funds to your account without having to pay any commission.
- PAMM system and ForexCopy let you invest in experienced traders with expected annual returns to be around 1000%
- Traders and investors have the option of monitoring their account activity in real time.
- If you think you invested in the wrong stock or CDS, you can initiate automatic refund.
- Instaforex makes use of around 10 trading servers, some of them being US, UK, HK and so on.
Pros and Cons of InstaForex
AvaTrade signal trader for forex has a user friendly and intuitive interface which makes it perfect for first time investors. With its AvaProtect feature, AvaTrade protects you in case you wind up in a losing position.
This forex trading platform also has a range of modern trading tools such MetaTrade 4, AvaOptions, DupliTrade, etc.
AvaTrade Top Forex Broker Features
- AvaTrade maintains low spreads for different transactions so that your profit is maximised.
- AvaTrade makes use of modern forex trading techniques. These include restriction free scalping, short-selling, unlimited netting.
- It has several trading platforms MT 4, MT 5, WebTrader, AvaTradeGo etc.
- Investors and traders can make use of tutorials and eBooks to gain knowledge about useful trading tactics.
- AvaTrade offers robust customer service in different languages and through different social media channels.
Pros and Cons of AvaTrade
XM Forex Broker
XM forex trade broker makes use of more than 1000 trading instruments. XM maintains spreads as low as 0.6 pips. You can obtain tailored guidance with the help of personal account managers.
It is often touted as the best broker for forex trading as it provides free access to forex market research and webinars.
Features of XM Best Forex Brokers for Beginners
- XM has a large reserve of video tutorials for the help and guidance of newbie traders.
- The forex trading indicators provided by XM can be accessed on multiple devices.
- It provides the same quality of service to different customers, irrespective of their capital investment.
- You can obtain daily updates upto how the market is behaving.
- In addition to forex, you can trade in CDS, shares, indices, metals and more.
Pros and Cons of XM
ROInvesting trading platform uses novel trading techniques, more than 30 analytical instruments and multiple chart windows for benefiting customers.
As ROInvesting makes use of data encryption technology , you can be assured that all your transactions are safe.
Features of ROInvesting SEBI Regulated Forex Brokers
- It has numerous video tutorials and ebooks helpful for both beginners and professionals.
- Due to its cross platform functionality, you can use ROInvesting on tablets, mobile devices and desktops.
- Traders don’t have to worry about commissions as the forex trading app regulates the entire process to keep commissions low.
- You can obtain dedicated customer service almost instantly anytime, except on weekends.
Pros and Cons of ROInvesting
Editor’s Choice: Best Forex Trading Platforms in India
Our editors put thorough research before bringing the list. Here are the 2 best Forex brokers in India as per our editor.
OctaFX is a SEBI registered forex and crypto trading platform that has recently become a popular choice for Forex traders in India due to its low spreads and fast execution. OctaFX allows an unlimited number of demo accounts, trading account integration, profit calculation and analysis, and virtual investment.
Features of OctaFX: One of the Best Forex Brokers in India
- Quick Liquidity Access
- 97.5% Slippage free orders
- 35 Currency pairs, 2 Metals, and 3 indices
- Smart Tech-enabled trading
- Android and iOS app
- Hindi Language Support
Pros and Cons of OctaFX
Olymp Trade is one of the most popular Forex brokers in India. It provides access to a wide range of assets including currency pairs, stocks, indices, commodities, Crypto, ETF and more. Olymptrade also has a mobile and desktop app that allows you to trade on the go.
Features of Olypm Trade Registered Forex Trading Broker for Professionals
- Experience Points for active traders
- Profit line tool
- Advisor for Trading Strategies
- Personal Manager
- Payment and Withdrawal through multiple methods including UPI
- Android, iOS, and Windows OS App
Pros and Cons of Olymp Trade
Is Forex Trading Legal in India?
While selecting the best Indian forex brokers, a lot of people are confused whether forex dealing is legal in India or not. Let us clear this confusion for you. Strategy trading through forex remains legal till the time the currency pair being traded includes Indian National Rupee (INR).
International forex trade brokers are legal to trade currencies in India. But Indian citizens are barred from using online platforms for trading and have to be satisfied with forex brokers regulated by SEBI in India.
This is done to prevent the Reserve Bank of India running short on dollars and avoid further devaluation of the Indian currency.
What Are the Restrictions Imposed on SEBI Registered Forex Brokers in India?
Forex trade brokers function as per the following restrictions in India:
- Forex traders cannot take part in the trading of any currency pair that does not include INR as its base currency.
- Any Indian citizen is legally barred from sending INR out to foreign countries for the purpose of investments or conversion.
- Forex brokers can only offer conversion options for USD, JPY, GBP and EUR.
- All SEBI regulated forex brokers in India need to be registered and have a valid license.
How to Stay Secure from Indian Forex Broker Scams?
Indian forex broker scams are more common than you think. If you are also thinking of dealing in foreign currencies, these are the few points you need to keep in mind.
- Only hire SEBI regulated forex brokers in India. You can ask to see the license of the broker or check for the same on the site.
- Keep a check on SEBI’s official site to know which new forex brokers have been approved or rejected.
- In case a broker offers to trade different currency pairs, immediately cease the dealing. Indian laws make it illegal to pair with any other currency without keeping INR as the base currency.
Few Tips While Choosing a Best Forex Broker in India
Here are a few tips that can help you choose the best Forex broker in India:
Look for a SEBI Regulated Forex Broker
This is one of the most important things to look for while choosing a forex broker in India. A SEBI regulated broker means that the broker is authorized by the Securities and Exchange Board of India to provide forex trading services to Indian citizens.
Check if the Broker Offers Multiple Asset Classes
A good Forex broker should not just offer currency pairs, but also other assets such as stocks, indices, commodities, crypto and more. This will give you more flexibility in terms of choosing your investments.
Make Sure the Broker Offers a Mobile App
In today’s fast-paced world, it is important to have a mobile app that allows you to trade on the go. A good forex broker should have an Android, iOS or Windows mobile app that lets you trade from anywhere at any time.
Check for Multi-lingual Support
This is another important thing to look for especially if you are not comfortable with English. A good Forex broker should have options to choose other languages and offer customer support in regional languages so that you can get guidance and assistance in your own language.
Money Loading and Withdrawal Methods
The best Forex brokers in India will offer a variety of money loading and withdrawal methods so that you can choose the one that is most convenient for you. Some of the most common methods include UPI, bank transfer, credit/debit card, e-wallet, and more.
How Much Money Is Needed to Start Trading Forex?
Forex trading is slowly becoming a popular way to make money. However, it can be an overwhelming experience for those who have just set foot in it. One of the common questions that newbies have is how much money is needed to start trading.
The amount of money you need is based on many factors, including your overall experience level, risk tolerance, and the type of account you want to open. You are supposed to adhere to certain vital guidelines when it comes to the money you need for forex trading.
Forex Trading for Beginners
Forex trading can be a new experience for beginners, but with the right approach, it can be highly profitable and exciting. As a beginner, it is imperative to remember that forex trading is all about risk management.
It simply means how much you are ready to lose on a trade. Don’t expect to make huge profits, as you are starting with your trading journey; take one step at a time and start by setting up your user profile.
Minimum Amount Needed to Start Forex Trading
If you plan to start your forex trading journey right away, you can do this with a minimum of INR 8,000. This will give you a lot of flexibility when trying your hands at standard forex trading.
It is important to remember that the Forex market is highly leveraged, and even small market movements can have a significant impact on your account balance.
Updated Indian Forex Brokers Detailed Comparison of 2023
|Forex Broker Name||Minimum Initial Deposit||Bonus|
|Axiory||₹817.64||100% credit on first deposit|
|Avatrade||₹8,177.43||Bonus on a minimum of INR 16, 351.22.|
Frequently Asked Questions (FAQs)
What are the restrictions on residents of India for forex trading?
It is illegal for Indian citizens to use online trading platforms and send rupee outside the country for investment or conversion. They can exchange foreign currencies only through SEBI regulated forex brokers.
Further, Indian government recognises only GBP, USD, EUR and JPY.
How to work with International brokers for forex trading in India?
We suggest you hire the services of a professional to iron out the basic procedures and legal ramifications associated with investing with International brokers.
Which broker is best for forex trading in India?
Alpari, HotForex, Instaforex, Avatrade and FXTM.
What is punishment for forex trading in India?
There is no punishment designated by Indian penal code for forex trading. However, you might attract the ire of legal authorities if you try to deal in currencies other than dollar, pound or Japanese yen, keeping Indian rupee as the base currency.
Is Forex trading illegal in India?
Forex trading is legal in India till the time the Indian National Rupee (INR) is taken as the base currency.
Can I go to jail for Forex trading in India?
Forex trading is a heavily regulated trading and investment area in India. Although, Forex trading is not illegal, traders might land in trouble for dealing in foreign currencies through unregistered brokers and agencies.
For more real-time information keep checking Registered Stock Brokers in Currency Derivative Segment by SEBI