Forex Trading in India
India is a land of diverse cultures and a growing economy. Foreign exchange (forex) trading in India is an emerging platform with exciting opportunities.
Be part of action and learn to trade forex with our guide to forex in India.
Get Started with Forex 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.
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 fluctuate. 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.
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 1 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.