How to Trade Forex Online in India | Forex Trading | Inveslo
Learn About Forex
28 April @ 08:31

Learn How to Trade Forex Online in India

While currency trading has the potential to create substantial profits, it is also a high-risk investing strategy. When you're dealing with a country like India, the situation becomes much more difficult. In addition to severe regulatory constraints, Indian traders have a restricted range of trading alternatives. Confusion over the legality of forex trading in India may often act as a deterrent for many would-be traders who are looking to get into the market.

This article is intended to act as a trading guide for those who are new to the market - a step-by-step instruction for novices on how to trade forex in India. The foreign exchange market is one of the most liquid markets in the world, with a total volume of $6.6 trillion every day. However, it is just as volatile as the stock market and exposes investors to an excessive amount of risk. As a result, forex trading may not be suitable for everyone, particularly for novices. The Indian government imposes a variety of regulations on currency trading in order to safeguard dealers against adverse market movement. As an illustration,

  • Investors can only open trades in currency pairings that include the Indian rupee. 
  • Traders are only permitted to trade currency derivatives. 
  • Clients can only trade with brokers who are regulated by the exchange. 

Not to mention the fact that you may trade three cross-currency pairings in India, including the GBPUSD, EURUSD, and USDJPY, among others.

Step 1: Open an account with a broker who is regulated by the exchange.

Traders must register with a registered broker in order to trade. The Securities and Exchange Board of India (SEBI) oversees the regulation of exchanges and brokers that participate in foreign exchange trading in India. To begin, join a broker, but before joining check to see if the broker is registered with the Securities and Exchange Board of India (SEBI).

Step 2: Verify your account information.

To authenticate their accounts, traders must complete the Know Your Customer (KYC) process. Clients who wish to authenticate their identification might submit the following documentation.

I. A photocopy of your national identification card/passport/driving licence

II. Bank statement/utility bill, second page

Step 3: Deposit monies in your account

It is necessary to have a funded account in order to begin trading currencies. A variety of payment options are often provided by brokers. Consult with your potential broker about the many alternatives available and pick the one that best meets your needs.

Step 4: Access the trading platform

To access the forex market, traders require a trading platform. Currently, the most common trading platforms in the business are MetaTrader4 and MetaTrader5. The platforms are custom-built by brokers and are only available to their clients. Trading platforms may be accessed and used either online or on a desktop computer. Clients can also use their mobile phones to access a trading platform.

Step 5: Start putting trades

Once you have completed all of the qualifications, you will be able to begin trading at your convenience. Access your trading platform by logging in with the credentials associated with your Live Account. After enrolling into a trading platform, use the market watch to locate the allowed trading pairs and begin making trades.

Final Words

Foreign exchange trading is growing increasingly popular in India, despite the severe laws in place. As part of its implementation of the FEMA Act 1999, the Central government of India appears to be attempting to loosen even more limitations on currency trading in the country.