Top Forex and CFD brokers in India

India is one of the largest players, both politically and economically in the region. This country in South Asia occupies a territory of 3, 287, 263 square kilometers and its population exceeds 1.4 billion people. This makes India the 7th largest and the most populous country in the world.

India is known for many things – its vibrant and diverse culture, rich history, and unique nature. Every year, thousands of visitors come to India in order to experience the country or even find a path to spiritual enlightenment.

Culture aside, India is home to one of the region’s largest and most influential economies. India is one of the main markets for Forex brokers. Forex and CFD (Contracts for Difference) trading is becoming increasingly affordable due to technological advancements and low legal barriers for entry. And, consecuently, the number of traders that open accounts growths every year.

In the guide, we will provide you with a full list of the best Forex brokers in India, as well as discuss the country’s regulatory environment and the unique features of trading from India that you need to know.

Top brokers list in India

For many traders, the idea of searching for a brokerage to join already seems overwhelming. The pressure of making the right choice is high, as the failure to do so may result in devastating financial losses. There are many scam brokers, and the best way to avoid them is to find the one that is regulated. In addition, traders have to compare trading conditions with different brokers, such as: trading fees, platforms, account types, customer support, and available assets. Every trader is unique and want different things from his broker, and there are lots of brokers to consider, which makes finding the most suitable one very difficult. To make the selection process easier for you, we have assessed many brokers, and came up with the top list.

Forex trading regulations in India

Forex trading is strictly regulated in India. As mentioned earlier, the government of India has gone a long way to make the local market as secure as possible. One of the most prominent of the regulations that are imposed upon the Indian FX market is the limit on the currencies that can be traded in a pair with the Indian Rupee.

According to the Foreign Exchange Management Act (FEMA) of 1999, Indian traders can legally access the following 4 currencies:

• US dollar (USD)
• British pound sterling (GBP)
• Japanese yen (JPY)
• Euro (EUR)

There are two main regulatory bodies that are responsible for monitoring and regulating India’s financial sector. The first one is the Securities and Exchange Board of India ( SEBI) is the primary regulator of the local Forex market. And, if a broker aims to provide its services in India, it is obliged to obtain an official license from this entity.

The second body is the country’s central bank – the Reserve Bank of India. This entity is responsible for overseeing the introduction and implementation of the relevant monetary policies, and the issue of India’s national currency.

Overall, we can say that Forex trading is very restricted in the country from authorities. And unfortunately, no matter how hard the government tries to get rid of scammers, and no matter how efficient the local regulatory environment is, your security is not guaranteed when choosing a local broker. Instead of trading with local broker, residents of the country can open accounts with reputable and regulated international brokers.

The most popular trading software in India

The trading platform that your broker has to offer will ultimately define your exposure to the various trading instruments. Trading platforms help conduct technical analysis, copy trade and social trade, automate trading process, test and develop strategies, and place various order types. Which is why choosing a platform carefully is important for success.

In India, you are likely to find a variety of trading platforms to choose from. Some brokers prefer to use custom-made software, while others offer popular third party software, such as cTrader and MetaTrader4 (MT4), and MetaTrader5 (MT5). The latter two are often recommended as one of the most reliable software for traders of various backgrounds and experiences.

Developed by MetaQuotes in 2005, MetaTrader platforms offer reliability and user-friendly interface. Be noted that MT4 is mainly used for trading currencies, while MT5 is a multi-asset software. As for the cTrader, the plaform offers modern design and reliable execution, however, similarly to MT4, brokers do not offer CFDs on Stocks on cTrader.

Popular payment methods in India

In India, a trader can access a variety of different payment methods to fund their trading accounts. Cash remains to be the single most popular payment method in the country, however, it cannot be used to proceed with your trading-related transactions.

The most widely used way of making deposits and withdrawing for trading are credit or debit cards. Moreover, it should be mentioned that most of the Forex brokers in India accepts payments made via Visa and MasterCard, as well as those made via wire transfer. However, be noted that deposits made by cards are instant, while wire transfers can take a couple of business days.

Moreover, one can use international payment solutions, such as Skrill, PayPal, or PayU. It’s best to check with the broker if they accept deposits made from your preffered payment method before oppening an account. Most brokers offer live chat option for their customers.

The national currency of India

The national currency of India is the Indian rupee (INR). In India, it is mandatory for the local traders to use this currency in a pair with USD, GBP, EUR, and JPY. Elsewhere in the world, the INR is not traded as actively, as it is considered to be an exotic currency. Nevertheless, the Indian rupee was once the most traded currency in the 20th century. The issue and the relevant monetary policies are fully carried out by the Reserve Bank of India.

Trading INR pairs profitably can be challenging as the currency has low liquidity and high volatility, which makes spreads (difference between bid and ask price) wide and day-trading risky.

Pros and cons of trading Forex in India

Before you start looking through the list of most reliable Forex brokers in Indian, let us provide you with a short breakdown of the main advantages and disadvantages of the local FX market. This will help you make an informed decision on whether you would like to try yourself in this field.

Pros:

• The local Forex market is well regulated, and it generally considered very safe for traders, however, to avoid scams, it’s crucial to trade with regulated brokers
• The Indian national economy is one of the fastest-growing in the world, and, thus, the Indian Forex market has the potential to develop into one of the largest in the region

Cons:

• Legally, you can only trade four currencies in India aired with INR – GBP, EUR, USD, and JPY
• It is mandatory to have INR included in the currency pairs that you trade, but this currency is considered to be exotic and is highly prone to market volatility
• Finding a local broker that offers great conditions is difficult as the number of available brokers is limited, on the upside, traders can choose international brokers

Summary

Overall, we can say that Forex trading in India is strictly regulated and there are many limitations. The number of local brokers is limited, and they cannot compete with international players. Which is why we have included reputable and well-established brokers that accept traders from India in our top list. You can start trading with XM, exness, AvaTrade, and others.

FAQs on top Forex and CFD brokers in India