Forex Brokers in India
Looking for the best forex broker in India for 2021? There are a large variety of Forex brokers available to the Indian Forex trader of today. Forex trading is also fast evolving with new FX brokers emerging all the time and competition evolving at a rapid pace making it difficult for the Indian forex trader to stay on top of things. The best Forex broker for one user may not be the best broker for another. It depends on your trading style, what you want to trade and your support needs. Some aspects are general and apply to all brokers, whilst some are more personal depending on your individual trading style, needs or beliefs.
Forex broker regulation, however, is in our opinion very important for all traders when choosing a broker since it is a matter of how safe your investment will be. The only currency pairs you can legally trade in India are, USDINR, EURINR, GBPINR and JPYINR. Best forex brokers regulated by SEBI (Securities and Exchange Board of India) and legal in India are:
- Zerodha, SEBI Registration no.: INZ000031633
- Motilal Oswal, SEBI Registration no.: BSE: INB 011041257
- Angel Broking, SEBI Registration no.: INZ000161534-BSE
- Sharekhan, SEBI Registration no.: INZ000171337
Most Indian traders, however, elect to start trading with an international forex broker that is regulated by one of the bigger regulatory bodies in the world. Read this article for a definition of the different European Financial Regulators. Indian traders make this choice to be able to trade a wider array of currency pairs than the ones provided by the legal brokers in India.
In this section, we review various foreign forex brokers, suited for Indian traders, based on regulation, usability, platforms, minimum deposit, spreads, customer support, and many other criteria. Start by browsing our top list of recommended and trustworthy fx brokers below and continue by reading the individual reviews of each broker on the respective review pages that are linked from the top list. All forex brokers below accept traders from India.
Top 10 Tips for Picking an FX Broker in India
Here we look at ten different factors that we believe are of significant importance when you consider choosing an international Forex Broker in India, whether you are a beginner or advanced trader. The significance of each will differ depending on your needs, which in turn will depend on your trading style, your knowledge level and your type of trading.
1. Regulation and how safe is my money?
You wouldn’t put a large amount of your savings in a bank account if you did not know that the bank was secure and regulated, would you? So similarly why would you deposit with an FX Broker unless you were confident your funds and profits are safe?
In the UK, this would mean looking for a broker that is regulated by the financial conduct authority (FCA). In the USA, the equivalent would be a broker regulated by the National Futures Association (NFA) and/or the Commodity Futures Trading Commission (CFTC). In India, to trade legally, you will need a broker regulated by the Securities and Exchange Board of India (SEBI) and if you want more freedom in what to trade you should choose a broker regulated by one of the aforementioned regulatory bodies or other major ones like CySEC or ASIC.
Opening an account with a broker regulated by any of the above should allow for protection if you as a depositor/ trader have an issue or grievance with the broker. The top list above includes international forex brokers regulated by major regulatory bodies and therefore are secure for you to trade with from India, but not legal. If you, as a trader from India, elect to trade with any of these forex brokers you should deposit via an electronic wallet instead of via a bank transfer.
2. Spreads and/ or Commission
Brokers do not provide their services for nothing, so they charge either commission per trade or more likely by the spread between the bid and offer prices. The wider the spread, effectively the more the trader has to pay to get into and out of each trade. So the narrower the spread, effectively the better off for the trader. Sometimes brokers offer fixed spreads, but often the spread will be variable depending on the volatility of the market.
3. Withdrawals and deposits
Most FX Brokers today offer very low requirements to open an account (from as little as £50). Brokers have different policies with regard to depositing, funding and withdrawals. Are you able to fund the account from a bank account via wire transfer, via credit card, via PayPal? When withdrawing, is this done via wire transfer, to your electronic wallet, back to your bank account or credit card? Are there any withdrawal fees? Initial deposit requirements. Check this out.
4. Rollover interest (credit/ debit)
Some brokers charge a debit (or give a credit) for daily interest. This would be a consideration for any traders thinking of holding open positions over night.
5. Margin and Leverage
Many FX Trading accounts are based on the concept of margin and leverage. Leverage is basically the ability to increase the possible return on an investment or trade. A margin account allows the trader to use leverage by trading larger amounts than deposited in their account. This is because only the potential short term losses on the accounts need to be covered, not the full amount of the underlying asset. How much leverage any forex broker offers and the margin requirements may be a consideration when opening an account with a particular forex broker.
6. Types of forex accounts
There are different types of FX trading accounts which include more traditional cash exchange accounts, spread betting type accounts or CFDs (Contracts for Difference). The choice of which account to open will depend on your very specific needs and potentially even depend on your tax liabilities.
7. What markets can you trade?
All international FX brokers in the top list above for India offer trading in the major currency pairs, including EURUSD, USDJPY, GBPUSD and also USDINR, EURINR, JPYINR, etc. Most also offer currency cross rates, ability to trade a large selection of currency pairs against each other.
In addition, many brokers offer the opportunity to trade other financial markets and assets. These would include equity indices, government bond markets and commodities (such as oil, gold, copper).
The brokers regulated by SEBI only offer the four legal INR-based currency pairs; USDINR, EURINR, GBPINR and JPYINR.
8. Trading platforms supported by the broker
Practically all brokers offer a trading platform, whereby the trader can access the various markets available to trade. Some brokers in India provide their own developed trading platforms, whilst others suggest downloading free platforms offered by third-party providers. There are many different factors to consider when looking at differing trading platforms including; ease of use, accessibility, trading tools on offer, charting packages, mobile/ tablet access, etc. Please see our list of best trading platforms in India here.
9. Customer support
Many markets are now open 24 hours a day, five days during the week. So a strong customer support service would be open at all times during this time. Also, the speed of access to a live individual rather than an automated service should certainly be considered. Inevitably, when calling customer service it is usually with an issue, which as a trader you will likely want resolved as soon as possible. Opening hours are especially important when you’re located seven hours ahead of where the brokers accepting traders from India have their headquarters.
10. Demo account available?
Most, but not all, Forex Brokers offer demo trading accounts to practice on. A demo account allows you to test the trading platform and evaluate some of the above-mentioned factors. All forex brokers useful to traders from India in the top list above will offer demo accounts to new traders.