Forex Trading in India & Best Forex Platform

Gain knowledge of global marketing by Forex trading in India. Just check banks role and traders in Forex trading, risks behind it, guide for trading, followed by best platforms for online forex trading…

Forex Trading in India

Before we learn more about the prevalence of Forex trading in India, let me help you understand more about how it operates actually. The foreign exchange market which is most commonly known as forex market or FX is a digital market now which is open widely for 24 hours a day through which any two individuals across two nations can exchange transactions in their own currencies.

Also read: What is Forex Trading and Forex Pairs

In this article, We will be learning more about the role and what is Forex trading in India for both the banking sector and individual traders as well.

Banks Role & Traders in Forex Trading in India

Forex trading actually depends on the transaction that occurs between two individuals which can either be a bank to another bank or institution or bank to a trader or a trader to a trader as well. In any of this cases, the most prominent cases of trading occur through two individual entities which are the bank and the traders spread across the world.

Thus, the forex trading market in India divided into two main categories which is Interbank FX market and Retail forex market.

• Interbank Forex Market in India is where the transactions occur between banks to other banks or financial institutions.
• Retail Forex Market in India is where the transactions occur between different traders but in this case the volume of trade i.e, transactions occurring can be high or low but the monetary value is low compared to the Interbank.

Also read: What is Forex, How to Use Forex

Risk of Forex Trading in India

Before you understand the ways of forex trading for your learning purpose, you need to understand that there is always going to be risk involved in this process.

Trading Platform or Brokerage

FX trading in India is already a critical process. To ease it up you might use a trading platform or a brokerage where you will be charged a certain amount as an exchange rate and the platform fees which are taken anyways even if you make a profit or loss. So, you need to understand and make use of platforms where the fees are low. It should not dent your low exchange rates at times.

Market Fluctuations

Even though your trade might be a sure thing, if the market in the other nation fluctuates due to any reason then there can be severe changes in the currency value leading to a dip in your overall profit margin at the same time. So, keeping an eye out on the various issues related to a nation. It is such as politics, weather, climate and more can help you be on your toes.

Also read: Transfer Money from Forex Card to Bank Account

How to do Forex Trading in India

According to SEBI, The Securities and Exchange Board of India which is the government’s financial regulatory body in India has set a lot of rules and regulations, hence out of which they have enabled that forex trading in India is a legal measure for the taxes being recorded properly.

So for anyone who wants to do forex trading, they must either make use of an online trading platform such as Zerodha or else brokerage services as well. You might be wondering which one would be more effective in earnings profits in this modern era right?

So, let us understand the difference between these two a little more.

Online Trading Platform

In this case, the platform will ask you to complete the registration and account creation along with SEBI required details. Once approved you will be able to start trading in the FX market on your own. You can start investing as low as possible as per your own convenience. Most of the new platforms now have the same day withdrawal or at least weekly withdrawal. This allows customer to withdraw their profits or money during the same day or the week itself. When compared to brokerage services, the fees are low but the risk involved is high.

Also read: Forex Card Loaded Currency Types

Brokerage Platforms

Brokerage platforms mostly depend on human interaction and communication. This will allow the brokerage platform to spend time understanding more about your investments options. But here the fees are high because the brokerage provides an account manager to each individual who helps them understand about the future trade options. They allow them to expand and diversify their portfolio against hedge fund risk.

Best Forex Trading Platform in India

As per the recent growth, the online forex trading platforms have gained a loss of trust in Indians over past years. This is exactly why we are listing a few of the top online best forex trading platforms in India. This may readily sign up to start your FX trading journey.

Zerodha

Hailed as one of the best trading platforms in India. A pioneer in the FX market allows you to trade in the forex exchange market on the go with experts in their forum. It is helping you understand more about the right investments to make.

UpStox

As the FX trading fees are minimal. This platform allows its customers to invest around with weekly withdrawals. This allows customers a relief to relinquish their growth over the week time.

A few other forex trading platforms are:

• OctaFX
• Olymp Trade
• FXTM
• Forex.com
• iForex

Is forex trading Legal in India?

Yes, forex trading is legal and allowed in India, but only when one is registered and KYC completed by SEBI.

Is there any punishment for forex trading in India?

If one is SEBI approved and is working either with an online trading platform or a brokerage approved by SEBI then there is no punishment. Or else if any illegal transactions occur then it can lead to both penalty and jail time.

How much does a forex trader earn in India?

There is no fixed amount a forex trader can earn in India, it depends on the investment made and the currency value during the exchange as well.