Start Trading Forex in India
In India, forex trading is not totally legal. You may only trade currency pairs that consist of the Indian Rupee (INR). The fundamental reason for this restriction is the INR’s weakness relative to the US currency (USD). Traders from India who wish to acquire US dollars must do so through the Central Bank of India.
You can trade FX on the National Stock Exchange (NSE), Bombay Stock Exchange (BSE), and Metropolitan Stock Exchange if you are an Indian citizen (MSE). The Securities and Exchange Board of India (SEBI) was established in 1992 to monitor and regulate foreign exchange transactions in India.
It is an independent authority that protects issuers of forex-related securities, investors, and forex-related entities. To operate in India, Forex brokers and stock exchanges must be regulated by SEBI.
Prepared to become serious about forex trading in India? The following instructions will help you get started.
Step 2: Get a device and a good internet connection
You can trade forex on your desktop, laptop, tablet, or smartphone. The value of currency pairs traded on stock exchanges swings often. A personal device that monitors these fluctuations in real time is vital for successful forex trading.
Step 2: Find a Forex broker online
There are numerous online forex brokers available. Examine the websites of each broker and select one that allows you to trade INR currency pairs.
Check the footer of each webpage for information about the governing bodies. If no such information is available from the Securities and Exchange Commission (SEC), the Financial Industry Regulatory Authority (FINRA), or other comparable regulatory authorities, the broker cannot be trusted.
Step 3: Sign up for an Account
On the forex broker’s website, you can establish a new account. There are FX brokers that require a minimum deposit to open an account. These brokers also provide several account types based on your financial objectives. Choose the appropriate option.
Step 4: Transferring Funds to Your Account
After registering for an account, you must transfer funds to begin trading forex. You can select your native currency and fund your account using a variety of methods, depending on the broker you’ve selected. These funding sources often consist of bank transfers, wire transfers, and debit cards.
Step 5: Download a Forex trading platform
The forex trading platform must be downloaded on your computer or mobile device. Take the time to personalize the platform’s appearance in order to maximize your forex trading prospects.
Step 6: Start Your Forex Trading Career
Before you begin trading forex, you may wish to do a few virtual money demos. These demos can help you become familiar with the forex broker’s interface without incurring excessive losses. Once you are comfortable with the software, you can begin trading forex with real money.
Regulated Forex Trading Brokers
Are you looking for a reputable broker which whom you can trade with?
Do you want to learn more about Forex Trading and how to choose the best Forex broker for you?
Continue reading as we recommend the best brokers for forex trading below.
Broker | Review & Broker Type | Min. Deposit | Leverage | Spreads | |
fpmarkets  | ASIC, CySEC | From $1, €10 | Up to 1:500* | From 0.0 pips | |
IC Markets  | AFSL, ASIC, CySEC, FSA | $200 | From 1:1 to 1:500 | From 0.0 pips | |
FXOpen  | ASIC, FCA | $1 | Up to 1:500* | Floating spread from 0 pips | |
AXI  | ASIC,FCA, DFSA, FSC | $1 | Up to 1:500 | From 0-0.4 pip | |
Exness  | FCA, CySEC, FSA, CBCS, FSC, FSCA | From $1 - $200 | From 1:100 - 1:2000 | From 0-1 pip | |
NordFx  | VFSC | $200 | Up to 1:1000 | Floating spread from 0.9 pips | |
Eightcap  | ASIC, VFSC | $100 | From 1:30 - 1:500* | From 0.0 pips | |
Vantage Markets  | CIMA, ASIC, FCA | $100 | Up to 1:500* | From 0.4 pips | |
Instaforex  | CySEC, FSC BVI, FSC | From $1 | From 1:1 - 1:1000 | From 0-7 pip | |
FBS  | CySEC, FSC, FSCA, ASIC | From $1, €10 | 1:3000 | From 1 pip |
3 Most Common Forex Trading Strategies
Certain fundamental tactics are utilized by forex traders to generate a profit on foreign marketplaces. These forex trading methods are simple to understand yet challenging to master. Consider some of the most prominent forex trading tactics.
Day trading
Day trading, as the name suggests, involves opening and closing a trade on the same day. These transactions can last anywhere from a few minutes to several hours. This manner, you can prevent experiencing unfathomable losses caused by overnight price volatility.
Day trading is a basic and uncomplicated way to start earning money if you are new to forex trading. It can reduce your risk while increasing your profit potential.
Swing trading
Swing trading is a strategy for trading foreign exchange over a period of one day to one week. This strategy provides ample time to counteract daily fluctuations in the value of currency pairs. With this forex trading technique for the medium term, you may avoid unnecessary stop-loss orders.
Scalping
Scalping is a forex trading strategy that involves generating several modest profits. You can attain low margins by setting entry and exit positions with minimal currency modifications. Scalping requires exact execution in order to maximize profits.
These are trades with a duration of between one and sixty minutes. Knowledge of currency patterns is essential for successful scalping.
Example of Forex Trading in India
Suppose the USD/INR exchange rate is 74.6350. If you believe the value of the US dollar will grow within a few hours, you can purchase 100,000 USD. In this instance, you must have 7,463,500 INR in your account to complete the transaction.
In three hours, the value of the U.S. dollar relative to the Indian Rupee will increase to 75.000. You can sell the $100,000 you just purchased the same day for a profit of 36,500 INR (7,500,000 – 7,463,500).
Profiting with Forex in India
The limited number of foreign currencies is the largest obstacle you’ll face when trading Indian forex. Indian citizens can only trade currency pairs containing the INR. However, the USD/INR is a widely traded currency pair with an appealing return rate.
Historically, it has been demonstrated that the USD gains value with time. Based on its recent performance, the USD’s 52-week low is 68.2900 and its 52-week high is 76.9163. Short-term and long-term gains can be generated through the use of a wide range of price fluctuations.
Forex Vocabulary
Every day, millions of people trade forex. For successful forex trading, familiarize yourself with these words before you begin.
Pip: the smallest unit of change in a currency pair’s price. Typically, Forex pairs are listed to the fourth decimal place. For example, if the USD/INR rose from 74.6535 to 74.6545, this represents a 10 pip increase.
Lot size refers to the total number of units purchased or sold. The standard lot size is 100,000 units, although you can also trade fewer units.
Orders: an order permits the deal to be executed. For example, if you wish to purchase 100 USD/INR, you would execute a buy order. Similarly, a sell order is executed if 100 USD/INR is to be sold. There are various order kinds that might help you minimize losses and boost earnings.
Your online broker will send you a call when your trade positions require more cash to be maintained. You should routinely check your account for any missed calls to prevent further losses.
Forex Trading in India
Indian FX is a market with tremendous potential. Within a few weeks, INR currency pairs such as USD/INR and EUR/INR can experience an increase of up to 1,000 pips. Long-term profits can be generated by trading Indian forex if you are patient.
Frequent Requested Information
Question: Who governs foreign exchange trade in India?
Answer: The SEBI is responsible for regulating foreign exchange, brokers, and investor protection.
Question: What are India’s top online forex brokers?
Answer: There are many, such as FXOpen, fpmarkets, and ICMarkets.
Regulated Forex Trading Brokers
Broker | Review & Broker Type | Min. Deposit | Leverage | Spreads | |
fpmarkets | ASIC, CySEC | From $1, €10 | Up to 1:500* | From 0.0 pips | |
IC Markets | AFSL, ASIC, CySEC, FSA | $200 | From 1:1 to 1:500 | From 0.0 pips | |
FXOpen | ASIC, FCA | $1 | Up to 1:500* | Floating spread from 0 pips | |
AXI | ASIC,FCA, DFSA, FSC | $1 | Up to 1:500 | From 0-0.4 pip | |
Exness | FCA, CySEC, FSA, CBCS, FSC, FSCA | From $1 - $200 | From 1:100 - 1:2000 | From 0-1 pip | |
NordFx | VFSC | $200 | Up to 1:1000 | Floating spread from 0.9 pips | |
Eightcap | ASIC, VFSC | $100 | From 1:30 - 1:500* | From 0.0 pips | |
Vantage Markets | CIMA, ASIC, FCA | $100 | Up to 1:500* | From 0.4 pips | |
Instaforex | CySEC, FSC BVI, FSC | From $1 | From 1:1 - 1:1000 | From 0-7 pip | |
FBS | CySEC, FSC, FSCA, ASIC | From $1, €10 | 1:3000 | From 1 pip |
Kathleen Brooks is UK and EMEA research director and based in London. She uses both fundamental and technical methods in her analysis. Her philosophy of market analysis is to break things down to their most simple parts and build from there.
Kathleen has regularly contributed to Yahoo Finance, Reuters and often quoted in international publications such as Financial Times and the Wall Street Journal.