To trade forex in India, you need to open a trading account with a broker that offers forex trading services and is registered with the Securities and Exchange Board of India (SEBI). Some brokers may require you to open a Demat account as well.
Once you have opened a trading account, you can start trading forex by following these steps:
- Choose a currency pair to trade: A currency pair is a combination of two currencies, with the value of one currency being quoted in terms of the other. For example, the EUR/USD pair represents the value of the euro expressed in terms of the US dollar.
- Choose the amount you want to trade: This is known as your “position size.” You can choose the position size based on your risk appetite and the amount of capital you have available for trading.
- Choose the direction of the trade: You can choose to “buy” a currency pair if you think the value of the base currency will rise relative to the quote currency, or you can choose to “sell” a currency pair if you think the value of the base currency will fall relative to the quote currency.
- Set your stop loss and take profit orders: A stop loss order is an order that closes your trade automatically if the price moves against you by a certain amount. A take profit order is an order that closes your trade automatically if the price moves in your favor by a certain amount.
- Place your trade: Once you have set your stop loss and take profit orders, you can place your trade by executing a “buy” or “sell” order with your broker.
It is important to note that forex trading carries a high level of risk and may not be suitable for all investors. It is recommended that you thoroughly research and understand the risks involved before deciding to trade forex.
The Securities and Exchange Board of India (SEBI) is the regulator for the securities market in India. SEBI regulates the stock exchanges, intermediaries such as brokers, and other entities that are involved in the securities market.
There are several brokers in India that are regulated by SEBI and offer forex trading services. Some examples of such brokers include:
- ICICI Securities
- HDFC Securities
- Kotak Securities
- Axis Securities
- Motilal Oswal Securities
- Reliance Securities
- Karvy Stock Broking
- SBI Securities
It is important to note that this is not an exhaustive list and there are many other brokers in India that are regulated by SEBI and offer forex trading services. It is recommended that you research and compare different brokers to find one that meets your needs and requirements.
Regulated Forex 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.