Top Forex Brokers in India for Forex Trading
It does not really matter where you live in the world you are always going to find a large range of Forex Brokers who are going to be able to offer you a range of currency pairings and other Forex related trading opportunities.
In fact, some of our featured Forex Brokers do allow and accept traders who are based in India and as such in this guide we shall be enlightening you as to which are the very best Brokers you can sign up to and what you should expect from each and every Broker you do decide to become a trader at.
Deposit: $10 Leverage: 1000:1
Deposit: $5 Leverage: 1:500
Features of an India Trader Friendly Broker
If you are comparing the features on offer from several different Forex Brokers, then you should always ensure that those you have on your shortlists of Brokers to sign up to are going to be giving you a fully rounded trading experience.
So let us now enlighten you on what you should be demoing rom any Broker you do intend to sign up to and place real money trades at.
Fast Payouts – You are never going to want to have to sit there waiting as soon as you have put in a request for a withdrawal from any Forex Broker you have bene trading at and winning at, and as such do make sure that nay Broker you sign up to and trade at pays you in less than 48 hours.
Avoid any Brokers who are going to keep you waiting for more than 48 hours, in act you are going to come across several Brokers who will pay you on the same day that you request as withdrawal fi you make your withdrawal via a web wallet!
Licensed Brokers – Whilst there are no licensing authorities in India who license and regulate Forex Brokers you will find that there are many other countries who do have a legal framework to licensed Forex Brokers.
It is therefore going to be the case that you should sign up to a Forex Broker that is licensed in places such as Cyprus, the United Kingdom and other recognised jurisdictions as you will have the added peace of mind in having the licensing authority to call upon for help if you ever need any help.
Currency Parings Options – One other aspect to you choosing just which Forex Broker to sign up to is that you will need to sign up to a Forex Broker that is not going to offer you just a small selection of currency pairings.
The more trading opportunities that are available to you at any Forex Broker the better, and as such always have a good look around their website to see just what each Broker is offering you by way of currency parings, and select one with a large number of them on offer to their traders.
Top Rated India Forex Brokers
To give you some ideas of which are the best Forex Brokers that you can sign up to and trade at, below we have some mini reviews of the top rated India trader friendly Forex Brokers.
Each of the following Brokers are going to let you sign up to their Brokerages with no problems no matter where you live in India and you are also going to find that you can claim some large sign up and ongoing bonuses and promotional offers at each of the following sites.
So keep on reading for you are going to be very hard pressed to find a better set of Brokers than those listed below!
eToro are the forex brokers who have started their forex operation and simply with a tagline “Your Social Trading Network”. Below mentioned are some of the features provided by the brokers to its customers:
- Their Leverage is as much as 400:1
- They provide an innovative platform for the Social Trading.
- They demand a minimum Deposit of $50 usually
- Their spreads commence from as small as 3pips
- They provide a remarkable 24 Hour customer Support
LiteForex is one of the forex brokers who have commenced operation in India and following are the features they provide to their customers:
- They demand very little deposit
- They provide their customers with variety of trading tools
- Provide trading accounts along with fixed or floating spreads
- Accounts like Multicurrency and swap-free
- Special instant account deposits can be availed
- Excellent customer servicing at 24/5
- Bonus Loyalty programme and many other contests for winning real prizes
FXCM is one of the largest Forex broker across the world competing the other popular forex brokers. Along with this, it also listed on the NASDAQ. Their features include the following:
- They provide Trading Signals to their customers free of cost
- The spread for the Euro/U.S. dollar is frequently 2.5 pips and that for the British pound/dollar is frequently 2.8 pips.
- There is no Forex Execution done at the Dealing Desk.
- Conflict of interest between broker and trader never arises here and there is no intervention that the dealer can make while you trade.
- Entry orders can be placed anywhere even in the spread
- You will be able to receive positive rolls at any levels of margins
FBS is a forex broker that has been awarded as the “Best Forex Broker Asia” in the Foreign Exchange Awards in the year 2012.Following features are provided to their customers:
- They demand minimal Deposit of $5
- They permit Order Volume starting from 0.01 lotto 10 lots in the step 0.01
- The maximum leverage supported here is till 1:500
- They permit spreads Fixed that is starting at 2 pips in 4 digits
- They allow Currency deposit of USD and EUR
- The variety of deposit Options they support are Bank Wire, Liberty Reserve, etc.
Forex trading in india
Still have a question? Ask your own!
Forex trading is not completely illegal in India, but it is restricted to certain currencies, which are paired against the INR as well as some of the 'cross currencies'. In India, you can trade within the brackets of USD-INR, YEN- INR, GBP- INR and EUR-INR pairs. In cross currencies, you can trade within EUR-USD, GBP-USD, and the USD- JPY pairs.
Note that you are allowed to trade only through brokers who are registered with the authorized exchanges such as NSE, MCX-SX, and/or the BSE. If you trade in pairs other than those allowed by the RBI, then it is considered illegal under the FEMA act. A foreign broker is required to deposit the funds in USD to trade using the eligible pairs.
The main reason behind restrictions in Forex trading is to ensure that the loss by a trader does not result in the outflow of foreign exchange which may lead to pressure on the domestic currency, therefore increasing the current account deficit. India is not the only country which has restrictions on Forex trading; there are a large number of countries in the world which have similarly restricted it completely or partially.
Additional Reading on Forex Trading:
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In India, forex trading is legal only when it is done through registered Indian brokers. The National Stock Exchange (NSE) and Metropolitan Stock Exchange of India (MSE) are most commonly used stock exchanges in India. The Reserve Bank of India and Securities Exchange Board of India regulate the forex trading in India. It is legal in India if the base currency is INR only, if the forex trade is taking place between two foreign currencies, it is illegal. For a better and detail understanding to your queries, ask a legal question or take online lawyer consultation from the best lawyers in India through a legal tech company MyAdvo on their website, or download MyAdvo App on your phone.
Online forex trading in India is illegal. In 2013, the Reserve Bank Of India issued a circular prohibiting overseas forex trading through electronic or internet trading portals. It has been found out by RBI that the public was asked to pay these marginal payments for the trading transactions through their bank account deposits or debit cards, and the accounts to which the money was being paid were of the same agents opened in different banks. Thus, RBI issued a special instruction to the commercial banks of the country to be very careful in sorting out such accounts.
Anyone found to be violating the rules and instructions, shall be penalized under FEMA 1999. The person shall also be penalized for violation of KYC policy and money laundering standards. All these transactions are declared to be non permissible under FEMA including foreign currency, remittances marginal trading or exchanges are also punishable.
Only currency pairs involving INR can be traded legally on Indian Exchanges. There are 4 such pairs available to trade. Trading on other pairs is illegal under FEMA Act.
Trading in forex market through online broker is a Non-Bailable Offence in India.
There are many online brokers who misguide retail investors claiming forex (spot) trading can be performed legally via them, however it is not true.
It is generally to prevent retail investors from losing big time (this is what RBI claims! ) But in my opinion it is just to prevent currency outflow (this is my personal opinion).
Certain points worth considering regarding forex are:
1. Forex market is very volatile and without proper study, forex trading can be suicidal.
2. Online forex brokers provide very high leverage, which can wash out your account very soon if you do not have proper technical expertise.
3. Such trades do not happen on a central exchange, they happen Over the counter (OTC) and so are not very well regulated.
So if at all you plan to trade forex, you should perform your Due Diligence and select a highly trustworthy broker to protect your hard earned money.
Well I will put it that way- “It’s not illegal but it’s not that straightforward either”. Many Corporate houses do FX trading in the name of hedge. To put things into perspective Margin trading is not allowed so if you are doing it without margin, i.e 1:1 where position size equals to funds invested you are doing fine. Now coupled with $ 200k limit on foreign transfers per Financial year max you can get is 0.2 lot to trade in a pair like EURUSD (1:1 margin) which wouldn't be enough to even get your fund transfer cost recovered.
Now as with every other law this is bendable too. Transfer your money through paypal, moneybooker or netteller. As long as total value per FY is less than $200k none gonna care. If you are 10% of the profitable lot do declare your income from foreign sales. I believe you will be fine.
Well Fx trading is not a criminal offense and nobody is bothered if you are not trading in millions. And if you are get yourself a license by forming a Pvt. Ltd company. Max. penalty could be fine.
Disclaimer- Fx trading is erratic and takes years to perfect. 90% traders loose their deposits in less then a month. Things which could go up can go down too in case market go against you. Your account can’t survive if you are not following proper money management techniques. Better to trade in INR associated pairs like USDINR with an Indian stock broker.