India is one of the largest players, both politically and economically – in the region and across the world. This country in South Asia occupies a territory of 3, 287, 263 square kilometers and its population exceeds 1, 352, 642, 280 people. This makes India the 7th largest and the second-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. It is, therefore, unsurprising that the field of Forex trading is also flourishing there. When it was first introduced, the Indian Forex market lacked proper regulation and was filled with scammers and fraud schemes. However, the opposite is true today.
Upon realizing the potential that the development of the FX market can hold for the country, the Indian government has made a lot of effort to make Forex trading in India safe for all the parties involved. As of today, the market is drastically different from what it used to be like in its early days.
In the guide below, 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 the national economy that you can benefit from.
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.
However, in order to find the right one, a trader will need to dedicate a lot of time and effort to carefully research and fact-checking, and, often, this notion on its own is enough to discourage many from getting into the Forex trading field.
Our team of experts decided to lend a helping hand to those that feel confused and overwhelmed, and struggle to decide where to start in their search for the best trading platform in India. Below, you will find our top picks of the brokers that offer their services in India, as well as the information about their licensing, success rates, and the special trading tools that are accessible with them.
CySEC, IFSC, ASIC
CySEC, FCA, FSA
100 currency units
CIMA, FCA, NFA
Forex trading in India is not illegal, however, it is strictly regulated. 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:
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 wishes 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.
So, overall, is it safe to trade Forex in India? Well, there is no easy way to answer that. Unfortunately, no matter how hard the government tries to make rid of the market of the scammers, and no matter how efficient the local regulatory environment is, your security is not guaranteed.
Similarly, when a trader joins the Forex market in India, there is a high chance that he might come across fraud schemes disguised as a legitimate broker. However, this does not mean that one should give up on Forex trading altogether.
Instead, the choice of the best Forex broker in India should be approached carefully and wisely. One should always join the broker that possesses an official license from the authoritative regulatory body, and the possession of such a license should always be double-checked with the entity itself.
The trading platform that your broker has to offer will ultimately define your exposure to the various trading instruments. Moreover, your trading sessions will depend heavily on how efficiently the trading software that your broker uses functions.
In India, you are likely to find a variety of trading platforms to choose from. Some brokers prefer to use the software that was custom-made specifically for them. It is completely fine to join a broker with such a platform, as it is likely that you will be offered a free tutorial on how best to use it.
Some of the other best online trading platforms in India include the popular ones, such as cTrader and MetaTrader4, and MetaTrader5. 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, this trading platform has quickly won over the trust of brokers from all over the world and is now used by 90% of them. MT5 is an updated version of the original MT4 and is working equally as well, with just a few bugs fixed.
If you are an amateur trader, using MT4 or MT5 could be a good idea for you, as you will be able to find a variety of educational guides, tutorials, and online forums dedicated specifically to how best to utilize this trading platform.
In India, a trader can access a variety of different payment methods to use for their respective trading sessions. 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.
Thus, the most widely used way of making deposits and withdrawing funds earned via trading Forex is via using credit or debit cards. Most of the best Forex brokers in India in 2020 accepts payments made via Visa and MasterCard, as well as those made via wire transfer.
A trader will also be able to find some alternatives for online payment systems. Some are developed locally, and often have a convenient mobile app, that works even in the places where the mobile reception is not the best. Moreover, one can use international payment solutions, such as Skrill, PayPal, or PayU.
There is no definitive answer as to which payment method works best for the Forex traders, thus, one should choose the solution that best suits their respective trading needs.
With a GDP of 8,683 trillion USD, India is considered the world’s fifth-largest economy by market exchange rates, third-largest by purchasing power parity, and of the fastest=grwing economies in the world. The country’s overall GDP mostly consists of the service sector that makes up for a total of 55.6% of it.
The industrial sector of India contributes 22.6% to the country’s GDP, while the agricultural sector occupies 18.1%. India is the world’s nineteenth largest exporters, and the main exported goods from India include:
As a trader, you will be pleased to know that the Indian economy is not only developing fast but is also quite diverse. The telecommunications industry is growing at a rapid speed, and India has already managed to become the world’s second-largest smartphone market, succeeded only by China.
Indian automobile manufacturer was also named as the world’s second-fastest-growing, with the peak export sales reaching 36% between 2008-2009. IT industry has grown to generate total revenues of up to 100 billion USD. Finally, India’s pharmaceutical market is expected to develop even further in the next few years, which doesn’t come as a surprise with the country listed among the world’s twelve main biotech destinations.
The national currency of India is the Indian rupee or the 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.
If you are interested in trading national currency, it is recommended that you find a regulated Forex broker in India that accepts payments in the INR. By doing that, you will be able to make sure that you will not lose significant chunks of your earnings on the commission fees.
Trading Forex is a risky financial enterprise, and it is no surprise that the authorities across the world are doing their best to keep the minors out of it. Similarly, in order to start Forex trading in India, one needs to 18 or older. On top of that, once you manage to find the best Forex broker in India to join, it is likely that you will have to meet its own requirements- such as employment status or the monthly income.
Amateur traders in India are often confused about whether or not it is free to start Forex trading there. The answer is yes and no at the same time. It is free to join a certain brokerage, and you can utilize the free demo account for as long as you like – if it is available.
However, if you wish to access real trading, you will be asked for an initial deposit – and the amount of it will be determined by the brokerage that you end up choosing. The minimum deposit requirement usually stays within the range of 5 USD to 500 USD (or equivalent). It is always advised that you only deposit what you will be comfortable losing, and it is, therefore, important to pay attention to the deposit standards of the brokerages while you are looking for one.
While searching for the best Forex platforms in India, many traders actively seek the provision of bonuses and promotions. The former can be very useful in kickstarting your trading sessions and are usually provided to the new brokers upon the completion of the signing up. Bonuses can also be issued periodically to the returning brokers, once the consequent deposits are made.
Unfortunately, in India, the provision of such bonuses is treated as an aggressive form of marketing, and is, therefore, prohibited altogether. Nevertheless, an Indian trader will still be able to access some other beneficial tools, such as leverage that can get pretty high in India.
Before you start looking through the list of most reliable Indian Forex brokers of 2020, let us provide you with a short breakdown of the main advantages and disadvantages of the local FX market. Having read through those, you will then be able to make an informed decision on whether or not you would like to try yourself out in trading Forex in India.
As mentioned earlier, the main advantage of the Indian Forex market is its safe environment that the local authorities have managed to achieve in the past few years. If you are new to the field of FX trading, in India it is less likely that you will come across a fraud scheme while looking through the country’s top Forex brokers list.
Moreover, the country’s national economy is expanding fast, which means that a trader can truly benefit from its success. Having said that, one should also remember that the Indian Forex trading market is subjected to a number of strict regulations that can ultimately limit your options in many different ways. A good example of that would be the fact that an Indian trader can only officially trade 4 currencies, and only in a pair with the INR.