XMVisit XM77,37% of retail investor accounts lose money
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Forex.comVisit Forex.com73% of retail investor accounts lose money
OctaFXVisit OctaFX74-89% of retail CFD accounts lose money
PepperstoneVisit Pepperstone74-89% of retail investor accounts lose money when trading CFDs
AvaTradeVisit AvaTrade79% of retail investor accounts lose money
FXTMVisit FXTM81% of retail investor accounts lose money
India is the world’s seventh-largest economy by nominal GDP and the third-largest by purchasing power parity.
The country’s currency is the Indian Rupee, abbreviated as INR.
India’s financial markets and its associated trading activities, including retail forex trading, are primarily regulated by the Securities and Exchange Board of India (SEBI). SEBI ensures that traders and brokers adhere to its guidelines, fostering a transparent and trustworthy trading environment. While trading in many foreign currency pairs is restricted in India, the introduction of currency derivatives on regulated exchanges overseen by SEBI offers a structured avenue for trading in forex.
In this article you will find some of the best forex brokers in India. In order to give you the most useful info on the topic, several factors were considered while creating this list:
- If the broker was regulated and accepted Indian traders
- The minimum deposit of the broker for Indian traders
- The base currencies accepted by the broker available for Indian traders
- If there were Indian local payments accepted by the broker
- The spreads of the broker for Indian traders
- The leverage of the broker for Indian traders
- If any bonuses or promotions provided by the broker were in store for Indian traders
What are the best forex brokers in India?
Below is our curated list of the best forex brokers for traders living in India, with details and information about the country laws, the features, and the characteristics.
Is forex trading Illegal in India?
Forex trading in India is not illegal. This however comes with some complexities for Indian forex traders that we will explain.
Forex trading in India is regulated by SEBI (Securities and Exchange Board of India) similarly to the way in which foreign exchange and trading are regulated in other countries. The difference comes with the fact that the RBI (Reserve Bank of India) has made trading with some other currencies and the Indian Rupee illegal for fear of devaluing the Indian currency.
With that in mind then, the only forex trading acceptable for Indian forex traders to participate in is that of INR-based pairs with major currencies the USD, EUR, GBP, and JPY. The Indian government has recently relaxed the rules to allow the introduction of trading on other major foreign currency pairs such as EUR/USD, GBP/USD, and USD/JPY. Other pairs are currently not available.
When it comes to online forex brokers and the Indian forex market, it is illegal for Indian forex traders to use any online forex trading platform that is not regulated by SEBI. If you are reading this review as an Indian citizen based abroad, then you typically have more freedom from these regulations and you can follow the regulations of your local area.
What are SEBI Characteristics?
Taking a closer look at the way that the Securities and Exchange Board of India (SEBI) operates we noticed many things from an Indian trader’s perspective.
Among these is the fact that the body does not protect the deposits of a forex trader in the same manner as is allowed by other top regulatory bodies. This means they do not push the brokers to hold deposits in segregated accounts or through ICF. This is a major reason why some Indian forex traders criticize the organization for not doing enough to protect Indian traders.
SEBI is also flexible in the rules they set which provides this level of flexibility to be extended to the broker. We can see this in the provision of leverage for forex trading, with no limitations being enforced, however, a 200:1 maximum leverage is typical.
Leverage can be risky and lead to losing your money in some cases. While ESMA and other well-regulated forex brokers do provide negative balance protection, SEBI does not. This could lead to losing your money more than you have actually deposited, so you should be careful to manage this.
How to protect yourself from being scammed
This is something that of course we never want to happen, but we do always have to guard ourselves as forex traders against being scammed.
When it comes to Indian citizens and forex traders, these kinds of scams have been previously reported by the broker AVFX with many forex traders claiming to have been victims of a forex broker scam.
Being a well-regulated forex broker means more often than not, being regulated by a well-recognized regulatory body such as FCA, NSA, ASIC, and CySEC. Well-regulated forex brokers under these conditions tend to also be ESMA/MiFID compliant.
We would recommend against making deposits and dealing with unregulated forex brokers or those under offshore regulation for maximum protection as a forex trader. Finally, as an Indian trader and Indian citizen interested in forex trading, if you want to be certain that you are trading in a legal and protected manner, you should choose a SEBI regulated broker or if this is not the case, you should try to consult with the local authorities before making any deposit or trades.
Some of these measures, as well as taking care to choose the best Indian forex broker from our listing can make sure that you remain both compliant and well-protected as a trader in the forex market.
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