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The post How to Start Forex Trading in India by Chetan Shekar appeared first on Benzinga. Visit Benzinga to get more great content like this.
Start trading forex in India with best forex brokers in India.
India is a land of diverse cultures and a growing economy. Forex trading in India is an emerging platform with exciting opportunities. Trading in the foreign exchange market can be a profitable venture if done correctly. However, it’s crucial to have a solid understanding of the market and the necessary tools and strategies before diving in.
If you have been considering entering the world of forex trading in India, this article will equip you with the knowledge you need to get started. From understanding the basics of currency pairs and exchange rates to choosing a reputable broker and developing a trading plan. Keep reading to be part of action and learn to trade forex with Benzinga’s guide to forex in India.
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Understanding the How Forex Works in India
Forex trading is not entirely legal in India. You are only allowed to trade currency pairs that include the Indian Rupee (INR). The primary reason behind this restriction is that the INR is weak against the U.S. dollar (USD). Traders from India who want to buy the USD have to purchase it from the Central Bank of India.
As a citizen of India, you can trade forex on the National Stock Exchange (NSE), Bombay Stock Exchange (BSE) and Metropolitan Stock Exchange (MSE). Established in 1992, the Securities and Exchange Board of India (SEBI) was set up to monitor and regulate forex activity in India. It is an autonomous authority that protects forex securities issuers, investors and forex-related agencies. Forex brokers and stock exchanges must be licensed by SEBI to operate within India.
Steps for How to Start Trading Forex in India
Ready to get serious about trading forex in India? Here’s a step-by-step guide to help you get started.
Step 1: Get a Digital Device with Fast Internet Connectivity
You can use your desktop, laptop, tablet or smartphone to trade forex. The value of the currency pairs listed on the stock exchanges frequently fluctuates. A personal device to constantly track these changes is essential to successful forex trading.
Step 2: Find an Online Forex Broker
There are several forex brokers available online. Go through each broker’s website and choose 1 that allows you to trade INR currency pairs.
Be sure to check the footer of every website for information on the regulatory bodies. If you can’t find any such information from the Securities Exchange Commission (SEC), the Financial Industry Regulatory Authority (FINRA) or similar regulatory bodies, the broker can’t be trusted.
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Established in 2009, Vantage is a CFD broker with over 15 years in the industry and is trusted by 5,000,000+ traders. Vantage Markets is an excellent choice for both beginner and seasoned traders, offering features tailored to diverse needs. With a low $50 minimum deposit, no account maintenance fees, and access to over 1,000 tradable instruments, it appeals to those seeking affordability and variety. Advanced tools like MetaTrader 4 and 5, TradingView, and proprietary platforms cater to professional traders, while copy trading and educational resources support beginners. Negative balance protection and segregated accounts ensure enhanced security.
Best For
- Professional investors in need of an all-in-one broker
- Those who are keen to learn more with free trading education resources
- Intermediate and advanced traders with a small amount of capital
- Spreads from 0.0 pips on FX, no overnight fees, and $0 commission on US shares
- 1,000+ CFDs on forex, indices, commodities, shares, ETFs, and bonds to diversify your portfolio
- Leverage options vary from 100:1 to 1000:1, tailored to the regulatory requirements of each region
- Trade like professionals at a low cost with our copy trading tool
- One-click trading, comprehensive TradingView charts, expert market analysis, and real-time price alerts all within the same platform
- Free articles, interactive courses, educational videos, podcasts, and webinars, covering everything from how the markets work, to complex technical strategies
- Real-time market analysis and insights
- Intuitive mobile app with extensive functionality
- Negative balance protection
- 24/7 customer service is ideal for international account holders
- Convenient and seamless deposit and withdrawal process
- ASIC, FSCA, the FCS and VFSC regulations
- Funds withdrawal: 2-5 business days
- Promotional Campaign: Gain an extra 50% on your deposit or up to 100% when you make your first-time deposit to a Perpetual Account
- Product range could be increased
Founded in 2007, AxiCorp has grown from a two-person startup to an industry-leading online trading company, trusted by thousands of traders worldwide.
Axi is a fully digital and user-friendly global award-winning broker offering CFD trading on the popular MetaTrader4 (MT4) platform. It provides clients with extensive trading education for different levels and experiences, as well as smart automated trading solutions that include PAMM accounts and a Copy Trading app. On the Axi blog, you can access free market news, trading guides, price prediction articles and other useful resources that can help you build your trading skills and understand the markets better.
Talented Axi traders who wish to become professionals can receive funding through the Axi Select capital allocation programme.
You can open a Live trading account at Axi with a minimum deposit of $500. Axi also offers a free demo account that allows you to hone your skills and trade risk-free with $50,000 USD in virtual currency.
Best For
- Derivatives traders who use MT4
- Copy Trading
- Automated trading
- Traders looking for funding
- Competitive spreads with fast execution speed
- Copy trading to learn from professional traders
- Autochartist integration and advanced analytics driven by AI and ML
- Trading Central and user-friendly MetaTrader 4 platform
- Economic calendar with country and category filters for news of economic affairs and economic indicators from across the globe
- Axi Select capital allocation program offering funding up to $1 million USD
- No deposit or withdrawal fees
- Doesn’t accept U.S. traders
- Web trading platform could use some work
- $10 per month after 12 months of inactivity
PrimeXBT, founded in 2018 and opened in 2019, is a multi-asset brokerage that features up to 100 times leveraged trading on the most popular cryptocurrencies and stock indices, and up to 1,000 times leverage on forex pairs and commodities. The experience is broken down between dynamic crypto futures trading and CFDs for traditional assets. The brokerage also charges dynamic fees that decrease to as low as 0.001% as your balance grows.
The platform features a few trading products to serve all of your needs, including the flagship PrimeXBT crypto futures platform, which offers comprehensive trading tools, an educational platform called PrimeXBT Trading Academy, weekly trading competitions, and the Covesting copy trading module, which allows you to copy strategies and invest alongside other experienced traders of your choice. All trading aspects of the trading platform feature a modern and sleek customizable user interface.
PrimeXBT requires KYC in the same way as other brokerages do. The platform boasts a plethora of safety features to ensure the security of your funds and account. Some features include 2FA, manual withdrawal clearance, crypto address whitelisting and cold storage of digital assets.
Best For
- Traders who are looking to maximize their profits
- Active traders
- Traders of any level
- Traders who prefer anonymity
- Traders who want to diversify their portfolios across different asset type
- Traders who want good customer support — 24/7 live chat feature in 16 languages
- Multi-asset platform (forex, crypto, indices, commodities, share CFDs) under one account (Crypto Futures, PXTrader, MT5)
- FSCA-authorized entity in South Africa (FSP 45697), plus additional global licenses
- 0% commissions on CFDs (spread-only) with competitive, variable spreads
- High leverage options (up to 1:2000 on MT5 forex; up to 1:500 on Crypto Futures) — for experienced traders
- TradingView-powered charts and advanced technical analysis; interface customization and alerts
- Flexible funding and settlement in fiat or crypto (USD, USDT, USDC, BTC, ETH) with broad payment rails
- Free demo account, weekly trading contests, and a Rewards Center with bonuses/cashback
- Native mobile apps (iOS/Android) with full trading, funding, and account management
- Not available to clients in the U.S. or Canada; additional regional restrictions apply
- Variable product/payment availability by jurisdiction; some features may be limited locally
- Leverage and derivatives carry high risk (financing every 8 hours on futures; overnight fees on CFDs)
- Spreads are not fixed and can widen during volatility/liquidity gaps
- Crypto withdrawals incur network fees; higher withdrawal limits typically require account verification
The products and services available to you will depend on your country of residence and the FOREX.com entity that holds your account, as well as any as well as any applicable regulatory guidelines. To verify the availability of any products or features within your country of residence, please contact the broker directly
FOREX.com is a highly trusted global broker for forex and CFD traders. With a massive range of tradable currencies, low account minimums and an impressive trading platform, FOREX.com is an excellent choice for traders searching for a home base for their currency trading. New traders and seasoned veterans alike will love FOREX.com’s extensive education and research center that provides free, informative forex trading courses at multiple skill levels.
FOREX.com is regulated by Commodity Futures Trading Commission (CFTC) and member of the National Futures Association (NFA) in the U.S. They also are regulated by the Financial Conduct Authority (FCA) in the UK among other regulators including CIRO, ASIC and more.
Best For
- Beginner forex traders
- Active forex traders
- Impressive, easy-to-navigate platform
- Up to 30:1 leverage
- Access to 80+ FX pairs and 80+ technical indicators
- Trade to your full capability with the mobile app with quality execution with one-swipe trading, advanced TradingView charting and analysis tools, real-time trade & order alerts and full account management features
- Exclusive trading tools including Trading Central, TradingView, Smart Signals and Performance Analytics
- EUR/USD spread as little as 0.0 and low commissions
- 30 indicators for technical analysis, nine timeframes and graphical objects such as Line Studies and Shapes on MT4
- Various tradable asset classes including forex, shares CFDs, crypto CFDs, commodities and indices
- No negative balance protection
- $15 per month inactivity fee after no trading activity for 12 months
Standard Accounts: $1,000
Founded in 2006, IFC Markets is a popular forex and contracts for difference (CFD) broker that provides high-quality trading services to over 185,000 clients from more than 80 countries. The broker has oversight from the British Virgin Islands Financial Services Commission (BVI FSC) as well as the Labuan Financial Services Authority (LFSA) in Malaysia.
IFC Markets offers trading in over 600 financial instruments including forex, stocks, indices, commodities, cryptocurrency futures and synthetic assets through excellent trading platforms: MetaTrader 4, MetaTrader 5 and its own developed NetTradeX advanced platform. IFC Markets also gives clients unlimited trading opportunities via its unique GeWorko Portfolio Quoting Method that lets traders create their own synthetic instruments or choose from PCI Library, synthetic instruments created by professionals.
Best For
- Traders who want to create their own trading instruments
- Intraday and mid-term traders
- Small volume traders
- Trading platforms variety
- The GeWorko Portfolio Quoting Method lets you create synthetic assets
- 15 years experience in the business
- Highly rated by clients with 8 recent international awards
- Insured by AIG Europe Ltd.
- Only regulated by 2 minor agencies
- Not available to traders in the U.S., Japan and Russia
Step 3: Sign-up for an Account
You can open a new account with the forex broker on its website. Some forex brokers require a minimum amount of deposit to open an account. These brokers also offer different kinds of accounts based on your financial goals. Choose the one that’s right for you.
Step 4: Transfer Funds to Your Account
Once you’ve signed up for an account, you need to transfer funds to start trading forex. Depending on the broker you’ve chosen, you can choose your native currency and fund your account using several options. Generally, these funding options include bank transfers, wire transfers and debit cards.
Step 5: Download a Forex Trading Platform
You need to download the forex trading platform on your computer or smartphone. Take the time to customize the look and feel of the platform to help you maximize forex trading opportunities.
Step 6: Begin Your Forex Trading Journey
Before you start trading forex, you might want to run a few demos using virtual money. These demos can help you get used to the interface of the forex broker without conceding unnecessary losses. After you feel confident using the platform, you can start trading forex using real money.
India Forex Trading Strategies
Forex traders rely on certain basic strategies to make a profit on international markets. These forex trading strategies are easy to learn but difficult to master. Take a look at some of the major forex trading strategies.
Scalping
Scalping is a forex trading strategy that involves making small profits with multiple trades. You can set the entry and exit positions with minor changes in the currencies to achieve low margins. Scalping needs precise execution to make the most of your trades.
These are short-term trades that can last anywhere between 1 to 60 minutes. Being well-informed about currency trends is crucial to successful scalping.
Day Trading
As the name suggests, day trading involves opening and closing a trade on the same day. These trades can take place anywhere between a few minutes to a couple of hours. This way you can avoid running through unprecedented losses due to overnight price volatility.
If you’re new to forex trading, day trading is a simple and straightforward method to start earning. It can limit your risk while improving your chances of profitability.
Swing Trading
Swing trading is a strategy that involves trading forex currencies over a day or a week. This method gives you plenty of time to deflect daily ups and downs in the value of currency pairs. You can skip through needless stop losses along the way with this medium-term forex trading strategy.
Position Trading
Position trading is a strategy that involves holding your trade positions open for the long term. These trades can take place anywhere between a week to several months or even years. This method lets you take advantage of major shifts in the value of currency pairs without stressing over micro changes in the market.
You can set the entry and exit positions for lengthier durations with position trading. Keeping a watchful eye over current events and socio-economic policies that affect the world at large is key to making this type of trading work. You can casually sign-in to your account once or twice a week.
Range Trading
Range trading is a strategy that involves predictable price movements of currency pairs. This method relies on historical performance data of currency pairs to identify repeating patterns of lows and highs.
Based on the financial data, you can set a wider entry and exit position to capitalize on previous price trends. With the calculated risks involved, it is a safer alternative to day trading.
Forex Trading Example in India
Let’s say the USD/INR is trading at 74.6350. If you’re expecting the value of USD to rise in a few hours, you can buy 100,000 units of USD. In this case, you’ll need 7,463,500 INR deposited in your account to complete the transaction.
In 3 hours, the value of the U.S. dollar against the Indian Rupee rises to 75.0000. You can immediately sell the $100,000 you bought and make a profit of 36,500 INR (7,500,000 – 7,463,500) within a single day.
Making Money with Forex in India
The biggest hurdle you’ll face when trading Indian forex is the limited number of foreign currencies. Indian residents can only trade forex pairs with the INR in it. But the USD/INR is a popular currency pair with an attractive return rate.
Historically, the USD has been proven to grow stronger in value over the years. Considering the recent performance, the 52-week low for the USD is 68.2900 while the 52-week high is 76.9163. You can leverage the broad range of price movements to make tremendous profits in the short and long-term.
Forex Terminology
Millions of people trade forex every day. For successful forex trading, learn these basic terms before you get started.
- Pip: the smallest unit of price movement in a currency pair. Forex pairs are usually listed to the 4th decimal point. For instance, if the USD/INR has moved from 74.6535 to 74.6545, it is considered a rise of 10 pips.
- Lot size: the total number of currency units bought or sold. 100,000 units is the standard lot size but you can trade lesser units as well.
- Orders: an order lets you execute the trade. For instance, if you want to buy 100 USD/INR, you execute a buy order. Similarly, if you want to sell 100 USD/INR, you execute a sell order. There are different types of orders to help you minimize losses and maximize profits.
- Calls: a call is sent out by your online broker when your trade positions need additional funding to be maintained. You should constantly check your account for any calls you may have received to avoid further losses.
Things to Consider Before Trading Forex in India
Here are some key points to consider when it comes to forex India:
- Currency pairs: Forex trading involves the trading of currency pairs. The most commonly traded currency pairs include major currencies such as the US dollar (USD), Euro (EUR), British pound (GBP), Japanese yen (JPY), etc. Traders speculate on the direction of exchange rates between these currency pairs.
- Forex trading platforms: Forex trading can be conducted through various online platforms provided by authorized brokers. These platforms offer traders access to real-time market prices, charts, technical analysis tools, and the ability to execute trades.
- Regulations and legalities: Forex trading in India is regulated by the RBI and SEBI. Residents of India are only allowed to trade forex through authorized brokers who adhere to the regulatory guidelines. It is essential to choose a reliable and licensed broker to ensure the safety of your funds and compliance with the regulations.
- Account types: Forex brokers offer different types of trading accounts, including demo accounts for practice purposes and live accounts for real trading. A live trading account requires a minimum deposit, and traders can choose from various account types based on their trading preferences and capital.
- Risk management: Forex trading involves inherent risks, including the potential for financial loss. Traders should have a sound understanding of risk management techniques, such as setting stop-loss orders, using proper position sizing, and diversifying their trading portfolio.
- Education and analysis: Successful forex trading requires knowledge and skills. Traders should invest time in learning about fundamental and technical analysis, market trends, and economic indicators that can impact currency movements. Utilizing educational resources, attending webinars, and staying updated with market news are important aspects of becoming a proficient forex trader.
- Practice and strategy: Before committing real money, it is advisable to practice forex trading using demo accounts. This allows traders to familiarize themselves with the platform, test different strategies, and gain practical experience without risking their capital.
Forex Trading in India at a Glance
If you are planning to start trading forex in India, then you must have a clear understanding of the process and the risks involved. Forex trading is the buying and selling of currencies with the aim of making a profit from the fluctuations in their value. In India, forex trading is regulated by the Securities and Exchange Board of India (SEBI) and Reserve Bank of India (RBI).
To start trading forex in India, you need to follow a few steps. Firstly, you need to select a reliable forex broker who can offer you a trading platform that suits your trading style, and meets your risk management needs. Secondly, you need to make sure you have a good understanding of the market and the currencies you wish to trade. Use reputable sources such as financial news and analysis outlets to stay informed about market trends and expected movements in currency prices.
Lastly, you should start with a demo account to practice trading before investing real money. This will enable you to familiarize yourself with the platform, test out your trading strategy, and gain the confidence to trade successfully. Remember, the forex market is highly volatile, and losses can be significant. Therefore, it is essential to have proper risk management techniques in place, such as using stop-loss orders.
Starting forex trading in India is a complex process, but with the proper guidance, strategy, and mindset, you can become a successful forex trader and make a profit from the markets.
Frequently Asked Questions
Who regulates forex trading in India?
The SEBI is responsible for regulating forex, brokers and protecting investors.
What are the best online forex brokers in India?
There are several to include Pepperstone, Forex.com and Etoro.
The post How to Start Forex Trading in India by Chetan Shekar appeared first on Benzinga. Visit Benzinga to get more great content like this.
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