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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
Forex trade brokers function as per the following restrictions in India:
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.
Here are a few tips that can help you choose the best Forex broker in India:
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.
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.
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.
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.
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.
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 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.
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.
Forex Broker Name | Minimum Initial Deposit | Bonus |
Alpari | ₹408.75 | 100% |
HotForex | ₹408.75 | 50% |
Fpmarkets | ₹5,455.99 | NA |
Axiory | ₹817.64 | 100% credit on first deposit |
FXTM | ₹817.6 | NA |
FBS | ₹81.76 | 100% |
Instaforex | ₹81.77 | 55% |
Avatrade | ₹8,177.43 | Bonus on a minimum of INR 16, 351.22. |
XM | ₹408.87 | 50% |
ROInvesting | ₹8,176.65 | NA |
OctaFX | ₹2,044.16 | 50% |
Olymptrade | ₹817.70 | NA |
Frequently Asked Questions (FAQs)
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.
We suggest you hire the services of a professional to iron out the basic procedures and legal ramifications associated with investing with International brokers.
Alpari, HotForex, Instaforex, Avatrade and FXTM.
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.
Forex trading is legal in India till the time the Indian National Rupee (INR) is taken as the base currency.
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
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