Forex trading has become increasingly popular in recent years, and India is no exception. As more and more individuals are eager to participate in this lucrative market, the demand for reliable and trustworthy forex brokers has also risen. However, not all brokers are created equal, and it is essential to choose one that aligns with your trading goals and offers the necessary tools and features.
To help you make an informed decision, we have extensively analyzed and compared the various forex brokers available in India. Considering factors such as regulatory compliance, trading platforms, customer support, account types and more. Whether you are a beginner or an experienced trader, this list will provide you with the necessary information to make the right choice and embark on your forex trading journey with confidence.
Quick Look: Best Forex Brokers in India
- Best for MT4/5 Users: FOREX.com
- Best Advanced Traders: Interactive Brokers
- Best for Forex Execution: IG Markets
- Best for Beginner Forex and CFD Traders: XM Group
- Best for Education and CFDs: AvaTrade
Best Forex Brokers for Traders in India
If you’re in India and you’re looking for a reliable online forex broker, the list below offers some excellent options regulated by reputable financial authorities.
Though these brokers don’t have a physical presence in India, they accept clients from India who make deposits using payment services and electronic wallets. The top forex broker that accepts clients from India depends in large part on your unique situation and your particular needs as a trader.
Best for MT4/5 Users: FOREX.com
- Best For:Fast, Reliable Execution and High-Volume Traderssecurely through Forex.com NON US's website
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% to 77.7% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.
The products and services available to you at FOREX.com will depend on your location and on which of its regulated entities holds your account
FOREX.com is a highly reputable broker among U.S. and international traders. They offer over 80 currency pairs, high quality educational resources and excellent customer service.
Accounts at FOREX.com require a minimum deposit of $100. The broker lets you trade
Trading platforms can be web-based or downloaded to a desktop or mobile app. FOREX.com also gives its customers access to the company’s proprietary Advanced Trading Platform for desktop computers and its Web Trading platform if you prefer to trade via a web browser. FOREX.com has a maximum leverage ratio of 50:1.
Pros
- Easy-to-navigate platform
- Extensive educational resources and research tools
- Customizable charting tools
- Regulated in seven Tier-1 jurisdictions, one Tier-2 jurisdiction, and one Tier-4 jurisdiction
Cons
- Cannot trade other assets
Best for Advanced Traders: International Brokers
When you use IBKR to open a forex account as an Indian trader, you get all the same benefits that everyone else does. Register today and you will see:
- Real-time quotes
- Solid liquidity
- 100+ currency pairs
- Professional trading tools
- Tight spreads
- Low commissions
- No hidden spreads
- No markups
The beautiful thing about using IBKR is that you can open up a forex portfolio and look into other investment options at the same time. With this level of access and the support that is available, you can build a robust portfolio without opening dozens of accounts across the Internet.
Pros
- Comprehensive, quick desktop platform
- Mobile app mirrors full capabilities of desktop version
- Access to massive range of tradable assets
- Low margin rates
- $0 minimum deposit
Cons
- Trading platform may be intimidating for new investors
Best for Forex Execution: IG Markets
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.
IG Markets is a unique trading platform that allows Indian investors to access:
- Forex currency pairs
- CFDs that come with a range of underlying assets
- Real-time forex prices
- Margin trading
- Advanced charting
- Mobile trading
- Automated trading
You can fund your account today and get started, or you may want to attend the IG Markets Academy if you want to learn how to invest properly in this space.
Pros
- Up to 50:1 margin options
- Key FX pair spreads starting at 0.6
- 0.8 spreads to start on major indices
- Commodity spreads as low 0.1
- No account fees or minimums
Cons
- Investors often feel as though they need more trading instruments and options
Best for Beginner Forex and CFD Traders: XM Group
- Best For:Beginner Forex and CFD Traderssecurely through XM Group's website
Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 72.89% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
XM Group is a platform that allows Indian investors to get into CFDs and forex, depending on where you prefer to funnel your cash. Features include:
- More than 50 currency pairs
- CFDs based on indices, stocks, commodities, metals and energies
- More than 1,000 trading instruments
- Up to 1000:1 leverage
- Minimum deposit is only $5
- Free educational tools that teach you about the forex market
Pros
- You can create multiple income streams for yourself
- You can trade with MT4 or MT5 depending on your preference, along with several other platforms
- Spreads can start as low as 0.0
Cons
- Some traders may not want to social trade where they know others are getting paid for output
Best for Education and CFDs: AvaTrade
AvaTrade is a platform designed to help you learn more about forex trading and CFDs. There are:
- Dozens of forex pairs
- Contracts for Difference (CFD) on stocks, indices, bonds or treasuries, commodities, crypto, options and ETFs
- No commissions and tight spreads to keep costs low
- Up to 400:1 leverage
- Copy trading options for those who want to learn from others
Yes, AvaTrade offers fast execution, but it also allows Indian investors to get information from other investors and build a community around you that can help.
Pros
- Support available in 14 languages and trading platforms in 20 languages
- Practice/demo account available
- Breadth of trading assets
- Voted Best in Class for educational resources making it a great option for beginners
Cons
- Transferring funds to the account may take up to five days; withdrawals could take up to 10 days
- Customer service could be bette
What to Look for in a Forex Broker
Despite the general lack of normal online forex brokers based in India, other than 3 stock exchanges, you can still trade forex through foreign-based online brokers. Generally, a quality brokerage has the following 11 elements:
- Oversight by a reputable financial regulator
- Excellent reputation among forex traders
- Allows you to trade in the type of account you prefer
- Requires an affordable minimum deposit
- Gives you trading access to all major and minor forex currency pairs and other assets
- Has a maximum leverage ratio appropriate for your trading strategy and risk tolerance
- Offers competitive dealing spreads
- Provides clients with insurance against negative balances
- Keeps re-quotes and slippage on orders to a minimum
- Maintains client funds in segregated accounts
- Withdrawal and deposit options fit your needs
Another important factor to consider when choosing a forex broker is platform and trading software. In addition to their own proprietary trading platform, many brokers offer cTrader, NinjaTrader, and the very popular MetaTrader 4 and 5 platforms from MetaQuotes that both support automated trading.
Trading forex in India involves quite a few limitations and legal issues. Be sure to choose a broker overseen by a major financial regulator, such as the U.K.’s Financial Conduct Authority (FCA) or Cyprus’ Securities and Exchange Commission (CySEC), which generally comply with the European Union’s rigorous Markets in Financial Instruments Directive (MiFID) rules. Not all forex brokerages are created equal, and most are not registered in India, even though they accept Indian clients. So, make sure your needs as a trader are adequately met by the forex broker you select before committing any funds.
Trading Forex in India
The national currency of India is the Indian rupee ₹ with ISO 4217 symbol code INR. The rupee is divided into 100 smaller denominations known as paisa (p). According to the Bank for International Settlements’ 2016 Triennial Central Bank Survey, the Indian currency was ranked 18th among world currencies, making up 1.1 percent of daily forex turnover.
The Reserve Bank of India (RBI) set forth the legal framework for foreign exchange transactions by the Foreign Exchange Management Act (FEMA) of 1999. The RBI regulates and oversees foreign exchange transactions in India and the Securities and Exchange Board (SEBI) is the principal regulator of the Indian stock market and the forex brokers based in India are licensed under FEMA.
The SEBI-regulated forex brokers, which include the 3 major stock exchanges in India, are only allowed to offer INR-based currency pairs for USD, EUR, GBP and JPY. All other currency pairs are strictly barred from trading in India unless a specific transaction is authorized by the Indian government.
Due to an increase in financial scams involving forex brokers, the Indian government was forced to severely restrict the way Indian citizens can operate in the forex market. If you live in India, you are not legally allowed to trade forex currency pairs that do not have the Indian rupee as the base currency or counter-currency.
You can still open an account with a foreign-based broker as long as you send your deposit through an electronic wallet service such as PayPal, Neteller
Get the Right Forex Broker in India
Trading forex anywhere can be risky, but that seems especially true in India if you're unfamiliar with the country’s legal restrictions on currency transactions. If you live in India and want to trade the Indian rupee exclusively against USD, GBP, JPY
It’s against the law to use an account from a bank or other India-based financial institution to fund a trading account and make forex market transactions in currency pairs that do not include the INR. If you still wish to trade non-INR currency pairs, then you must make a margin deposit to a foreign broker by transferring funds from an electronic payment service such as PayPal or Neteller.
Frequently Asked Questions
What are the best forex brokers in India?
There are several good forex brokers to include FOREX.com, eToro and AvaTrade.
Can you legally trade forex in India?
Yes, forex trading is legal in India, but it is subject to certain restrictions and regulations enforced by the Reserve Bank of India and the Securities and Exchange Board of India. It is important to ensure that you are complying with all the necessary guidelines and requirements before engaging in forex trading in India.
Is forex trading risky in India?
Forex trading is a risky venture in India, as it is in most countries. The foreign exchange market is highly volatile and unpredictable, making it challenging for traders to consistently profit. There are regulatory restrictions in India on forex trading, which adds an additional layer of complexity and risk.
Get a Forex Pro on Your Side
FOREX.com, registered with the Commodity Futures Trading Commission (CFTC), lets you trade a wide range of forex markets with low pricing and fast, quality execution on every trade.
You can also tap into:
- EUR/USD as low as 0.2 with fixed $5 commissions per 100,000
- Powerful, purpose-built currency trading platforms
- Monthly cash rebates of up to $9 per million dollars traded with FOREX.com’s Active Trader Program
Learn more about FOREX.com’s low pricing and how you can get started trading with FOREX.com.
About Jay and Julie Hawk
Jay and Julie Hawk are the married co-founders of TheFXperts, a provider of financial writing services particularly renowned for its coverage of forex-related topics. With over 40 years of collective trading expertise and more than 15 years of collaborative writing experience, the Hawks specialize in crafting insightful financial content on trading strategies, market analysis and online trading for a broad audience. While their prolific writing career includes seven books and contributions to numerous financial websites and newswires, much of their recent work was published at Benzinga.