Best Forex Trading Platforms in India 2024
Leap into DayTrading.com’s pick of the best forex brokers in India. Our experts have vetted every platform to ensure they provide a great environment for Indian traders, such as currency pairs with the Indian Rupee (INR).
Due to strict regulations from the Securities and Exchange Board of India (SEBI) on local brokers, residents often use overseas forex platforms like those below, which all accept forex traders from India. However, citizens must adhere to Indian laws and may need permission to trade foreign currencies and use international brokers.
Top 10 Forex Trading Platforms In India
After years of hands-on testing and analysis, these 10 brokers reign as superior for forex traders in India:
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1IC Markets
Ratings
$2000.01 Lots1:1000ASIC, CySEC, FSA, CMACFDs, Forex, Stocks, Indices, Commodities, Bonds, Futures, CryptoMT4, MT5, cTrader, TradingView, TradingCentral, DupliTradePayPal, Skrill, Neteller, Visa, UnionPay, Wire Transfer, Rapid Transfer, Mastercard, POLi, BPAY, Credit Card, Klarna, Swift, SafeChargeUSD, EUR, GBP, CAD, AUD, NZD, JPY, CHF, HKD, SGD -
2XM$30 No Deposit Bonus When You Register A Real Account
Ratings
$50.01 Lots1:1000ASIC, CySEC, DFSA, IFSCCFDs, Forex, Stocks, Commodities, Indices, Thematic Indices, Precious Metals, EnergiesMT4, MT5, TradingCentralCredit Card, Debit Card, Skrill, Neteller, Wire Transfer, Perfect Money, Apple Pay, Google Wallet, TransferWise, Visa, M-PesaUSD, EUR, GBP, JPY -
3Olymp Trade
Ratings
$10$1VFSCForex, CFD, Stocks, Indices, Commodities, Crypto, ETFs, OTC, Fixed Time TradesOlymp Trade PlatformSkrill, Perfect Money, Wire Transfer, Bitcoin Payments, Neteller, Mastercard, Visa, Debit Card, Credit Card, UnionPayUSD -
4Exness
Ratings
$100.01 Lots1:UnlimitedCySEC, FCA, FSCA, CMA, FSA, CBCS, BVIFSC, FSCCFDs, Forex, Stocks, Indices, Commodities, CryptoExness Trade App, Exness Terminal, MT4, MT5, TradingCentralWire Transfer, Credit Card, Visa, Mastercard, Bitcoin Payments, Boleto, Airtel, Debit Card, Neteller, Skrill, Perfect Money, Sticpay, AstroPay, Cashu, FasaPay, WebMoney, M-PesaUSD, EUR, GBP, CAD, AUD, NZD, INR, JPY, ZAR, MYR, IDR, DKK, CHF, HKD, SGD, AED, SAR, HUF, BRL, NGN, THB, VND, UAH, KWD, QAR, KRW, MXN, KES, CNY -
5Vantage50% Welcome Deposit Bonus, earn redeemable rewards in the Vantage Rewards scheme
Ratings
$500.01 Lots1:500FCA, ASIC, FSCA, VFSCCFDs, Forex, Stocks, Indices, Commodities, ETFs, BondsProTrader, MT4, MT5, TradingView, DupliTradeSkrill, BPAY, JCB Card, AstroPay, Visa, Swift, Neteller, Wire Transfer, Credit Card, Debit Card, UnionPay, FasaPay, Sticpay, Bitwallet, VoletUSD, EUR, GBP, CAD, AUD, NZD, JPY, HKD, SGD, PLN -
6AvaTrade20% Welcome Bonus up to $10,000
Ratings
$1000.01 Lots1:30 (Retail) 1:400 (Pro)ASIC, CySEC, FSCA, ISA, CBI, FSA, FSRA, BVI, ADGM, CIRO, AFMCFDs, Forex, Stocks, Indices, Commodities, ETFs, Bonds, Crypto, Spread Betting, FuturesWebTrader, AvaTradeGO, AvaOptions, AvaFutures, MT4, MT5, AlgoTrader, TradingCentral, DupliTradeSkrill, Wire Transfer, FasaPay, Mastercard, Perfect Money, Swift, MoneyGram, Credit Card, WebMoney, JCB Card, Debit Card, Neteller, BoletoUSD, EUR, GBP, CAD, AUD -
7FOREX.com20% Welcome Bonus Up To $5000
Ratings
$1000.01 Lots1:400NFA, CFTC, CIRO, FCA, CYSEC, ASIC, SFC, FSA, MAS, CIMAForex, CFDs, Stocks, Indices, Commodities, Futures, Options, CryptoMT4, MT5, TradingView, eSignal, AutoChartist, TradingCentralWire Transfer, Credit Card, Debit Card, Visa, Mastercard, Skrill, Neteller, ACH TransferUSD, EUR, GBP, CAD, AUD, JPY, CHF, PLN -
8PepperstoneCFDs and FX are complex instruments and come with a high risk of losing money rapidly due to leverage. 81.8% of retail investor accounts lose money when trading CFDs.
Ratings
$00.01 Lots1:30 (Retail), 1:500 (Pro)FCA, ASIC, CySEC, DFSA, CMA, BaFin, SCBCFDs, Forex, Currency Indices, Stocks, Indices, Commodities, ETFs, Crypto, Spread BettingMT4, MT5, cTrader, TradingView, AutoChartist, DupliTradeVisa, Mastercard, Credit Card, Debit Card, PayPal, Wire Transfer, POLi, UnionPay, BPAY, Neteller, Skrill, PIX PaymentUSD, EUR, GBP, CAD, AUD, NZD, JPY, CHF, HKD, SGD -
9PrimeXBT$100 Deposit Bonus
Ratings
$00.01 Lots1:1000CFDs, Cryptos, Forex, Indices, Commodities, FuturesOwnBitcoin Payments, Ethereum Payments, Credit Card, Debit CardUSD, EUR, GBP -
10IQ OptionRISK WARNING: YOUR CAPITAL MIGHT BE AT RISK
Ratings
$100.001 Lots1:500CFD, Forex, Crypto, Stocks, Digital OptionsOwnSkrill, Yandex Money, QIWI, Wire Transfer, Alipay, Perfect Money, MoneyGram, Credit Card, Vietcombank Transfer, Volet, Maestro, Sofort, GlobePay, BoletoUSD, EUR, GBP, ZAR
Here is a summary of why we recommend these brokers:
- IC Markets - IC Markets maintains its commitment to providing exceptionally tight 0.0-pip forex spreads on major currency pairs such as EUR/USD. This makes it an excellent option if you are seeking superior execution, with an average of 35 milliseconds. Additionally, if you are a high-volume trader, you can benefit from rebates of up to $2.50 per forex lot.
- XM - XM offers a strong selection of currency pairs with no re-quotes or hidden charges, while spreads have come down over the years, now starting from 0.8 pips on the EUR/USD in the commission-free account.
- Olymp Trade - Olymp Trade offers the industry average of around 30 currency pairs. Spreads came in at 1.1 pips for EUR/USD during tests, which is not the most competitive compared to leading brands like AvaTrade (0.9 pips). That said, experienced traders can access multipliers up to x500 on major pairs.
- Exness - Exness offers an impressive selection of around 100 forex pairs - more than most brokers we've evaluated - along with competitive spreads on major pairs starting as low as 0.1 pips. Additionally, traders benefit from a robust suite of forex analysis tools, including market news powered by FXStreet.
- Vantage - Vantage offers 55+ currency pairs - above the industry average, so experienced traders can explore plenty of opportunities. Vantage's deep liquidity pool provides forex spreads from 0.0 pips in the ECN account, lower than many alternatives. There are also no commissions, deposit fees or hidden charges.
- AvaTrade - AvaTrade offers 50+ currency pairs with competitive spreads from 0.9 pips and zero commissions. You can trade majors, minors and exotics around the clock on industry-leading platforms, including MT4 and MT5. Traders can also access beginner-friendly trading tools and comprehensive forex education.
- FOREX.com - FOREX.com continues to uphold its stature as a premier FX broker, offering over 80 currency pairs and boasting some of the most competitive fees in the industry. With EUR/USD spreads dipping as low as 0.0 and $5 commission per $100k, it stands out. Moreover, its SMART Signals help to identify price behaviors across numerous major currency markets.
- Pepperstone - Pepperstone offers ultra-competitive forex spreads averaging 0.12 pips on EUR/USD in the Razor account, accompanied by a diverse portfolio comprising 100+ currency pairs - an extensive selection surpassing most competitors. Additionally, Pepperstone distinguishes itself by offering three currency indices (USDX, EURX, JPYX), not commonly found among alternative platforms. Pepperstone has now won our annual 'Best Forex Broker' award twice.
- PrimeXBT - PrimeXBT offers forex trading on over 50 majors, minors and exotics with margin opportunities and zero commissions. The forex platform is fast, reliable and feature-rich based on our latest tests with 3 charts, 10 timeframes, and 91 technical studies - ideal for active trading strategies.
- IQ Option - IQ Option offers CFD trading on 24 forex assets, including major pairs and some minors. EU traders can access a maximum of 1:30 leverage in line with local regulations. The broker offers commission-free trades but spreads are on the high side so the brand does not excel in this area.
Best Forex Trading Platforms in India 2024 Comparison
IC Markets
"IC Markets offers superior pricing, exceptionally fast execution and seamless deposits. The introduction of advanced charting platforms, notably TradingView, and the Raw Trader Plus account, ensures it remains a top choice for intermediate to advanced day traders."
Christian Harris, Reviewer
IC Markets Quick Facts
GBPUSD Spread | 0.23 |
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EURUSD Spread | 0.02 |
EURGBP Spread | 0.27 |
Total Assets | 75 |
Leverage | 1:1000 |
Platforms | MT4, MT5, cTrader, TradingView, TradingCentral, DupliTrade |
Account Currencies | USD, EUR, GBP, CAD, AUD, NZD, JPY, CHF, HKD, SGD |
Pros
- As a tightly regulated and widely respected broker, IC Markets prioritizes client security and transparency, helping to ensure a reliable trading experience globally.
- You have access to over 2,250 CFDs across various markets, including forex, commodities, indices, stocks, bonds, and cryptocurrencies, allowing for diversified trading strategies.
- IC Markets offers among the tightest spreads in the industry, with 0.0-pip spreads on major currency pairs, making it especially cost-effective for day traders.
Cons
- Despite four industry-leading third-party platforms, there is no proprietary software or trading app built with new traders in mind.
- Interest isn't paid on unused cash, an increasingly popular feature found at alternatives like Interactive Brokers.
- The breadth and depth of tutorials, webinars and educational resources still need work, trailing alternatives like CMC Markets and reducing its suitability for beginners.
XM
"With a low $5 minimum deposit, advanced charting platforms in MT4 and MT5, expanding range of markets, and a Zero account offering spreads from 0.0, XM provides all the essentials for active traders, even earning our ‘Best MT4/MT5 Broker’ award in recent years."
Christian Harris, Reviewer
XM Quick Facts
Bonus Offer | $30 No Deposit Bonus When You Register A Real Account |
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GBPUSD Spread | 0.8 |
EURUSD Spread | 0.8 |
EURGBP Spread | 1.5 |
Total Assets | 55+ |
Leverage | 1:1000 |
Platforms | MT4, MT5, TradingCentral |
Account Currencies | USD, EUR, GBP, JPY |
Pros
- XM’s Zero account is ideal for day trading with spreads from 0.0 pips, 99.35% of orders executed in <1 second, and no requotes or rejections.
- XM’s growing roster of 1,000+ instruments provides diverse short-term trading opportunities, with unique turbo stocks, fractional shares, and more recently thematic indices.
- XM’s customer support has delivered over years of testing, with 24/5 assistance in 25 languages, response times of <2 minutes and now a growing Telegram channel.
Cons
- While the XM app stands out for its usability and exclusive copy trading products, the selection of technical analysis tools needs to be improved to meet the needs of advanced traders.
- Although trusted and generally well-regulated, the XM global entity is registered with the weak IFSC regulator and UK clients are no longer accepted, reducing its market reach.
- XM is falling behind the curve by not offering cTrader and TradingView which are increasingly being favored over MetaTrader for their smoother user experience and superior charting packages.
Olymp Trade
"Olymp Trade remains a good choice for beginners looking for a user-friendly bespoke platform and mobile app, plus 24/7 customer support. The $10 minimum deposit makes it easy to get started, however, the range of additional day trading tools trails competitors."
Jemma Grist, Reviewer
Olymp Trade Quick Facts
EURUSD Spread | 1.1 |
---|---|
Total Assets | 30+ |
Platforms | Olymp Trade Platform |
Account Currencies | USD |
Pros
- Beginner-friendly blog section with analytics, trading education and market news
- Over 10 flexible payment methods available including bank cards and Bitcoin deposits
- Minimum deposit and withdrawals of only $10, ideal for newer traders
Cons
- Only one proprietary platform available, with no access to popular third-party software such as MT4 or cTrader
- Weak regulatory oversight and offshore registration means traders will receive limited safeguards compared to top alternatives
- Research and education trails most alternatives
Exness
"After slashing its spreads, improving its execution speeds and support trading on over 100 currency pairs with more than 40 account currencies to choose from, Exness is a fantastic option for active forex traders looking to minimize trading costs."
Christian Harris, Reviewer
Exness Quick Facts
GBPUSD Spread | 0.0 |
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EURUSD Spread | 0.0 |
EURGBP Spread | 0.0 |
Total Assets | 100+ |
Leverage | 1:Unlimited |
Platforms | Exness Trade App, Exness Terminal, MT4, MT5, TradingCentral |
Account Currencies | USD, EUR, GBP, CAD, AUD, NZD, INR, JPY, ZAR, MYR, IDR, DKK, CHF, HKD, SGD, AED, SAR, HUF, BRL, NGN, THB, VND, UAH, KWD, QAR, KRW, MXN, KES, CNY |
Pros
- Exness was the first brokerage to pass the $1 trillion and $2 trillion marks in monthly trading volumes, highlighting its legitimacy.
- Fast and dependable 24/7 multilingual customer support via telephone, email and live chat based on hands-on tests.
- Exness Terminal offers a streamlined experience for beginners with dynamic charts while setting up watchlists is a breeze.
Cons
- Apart from a mediocre blog, educational resources are woeful, especially compared to category leaders like IG which provide a more complete trading journey for newer traders.
- MetaTrader 4 and 5 are supported, but TradingView and cTrader still aren’t despite rising demand from active traders and integration at alternatives like Pepperstone.
- Retail trading services are unavailable in certain jurisdictions, such as the US and the UK, limiting accessibility compared to top-tier brokers like Interactive Brokers.
Vantage
"Vantage remains an excellent option for CFD traders seeking a tightly-regulated broker with access to the reliable MetaTrader platforms. The fast sign-up process and $50 minimum deposit make it very straightforward to start day trading quickly."
Jemma Grist, Reviewer
Vantage Quick Facts
Bonus Offer | 50% Welcome Deposit Bonus, earn redeemable rewards in the Vantage Rewards scheme |
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GBPUSD Spread | 0.5 |
EURUSD Spread | 0.0 |
EURGBP Spread | 0.5 |
Total Assets | 55+ |
Leverage | 1:500 |
Platforms | ProTrader, MT4, MT5, TradingView, DupliTrade |
Account Currencies | USD, EUR, GBP, CAD, AUD, NZD, JPY, HKD, SGD, PLN |
Pros
- Vantage caters to hands-off investors with beginner-friendly social trading via ZuluTrade & Myfxbook
- The broker has recently made efforts to expand its suite of CFDs providing further trading opportunities
- It’s quick and easy to open a live account – taking less than 5 minutes
Cons
- Unfortunately, cryptos are only available for Australian clients
- It's a shame that some clients will need to register with the offshore entity, which offers less regulatory protection
- A steep $10,000 deposit is needed for the best trading conditions, which include the $1.50 commission per side
AvaTrade
"AvaTrade offers the full package for short-term traders. There is powerful charting software, reliable execution, transparent fees, and fast account opening with a low minimum deposit."
Jemma Grist, Reviewer
AvaTrade Quick Facts
Bonus Offer | 20% Welcome Bonus up to $10,000 |
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GBPUSD Spread | 1.5 |
EURUSD Spread | 0.9 |
EURGBP Spread | 1.5 |
Total Assets | 50+ |
Leverage | 1:30 (Retail) 1:400 (Pro) |
Platforms | WebTrader, AvaTradeGO, AvaOptions, AvaFutures, MT4, MT5, AlgoTrader, TradingCentral, DupliTrade |
Account Currencies | USD, EUR, GBP, CAD, AUD |
Pros
- The broker’s unique risk management tool, AvaProtect, protects against losses up to $1 million and is easy to activate in the platform
- Automated trading is supported through MetaTrader Expert Advisors (EAs), as well as the AvaSocial and DupliTrade tools
- AvaTrade is a heavily regulated and trustworthy broker with licenses from the ASIC, CySEC and more
Cons
- It’s a shame that there are no rebate schemes for serious traders looking for additional perks - CMC Markets would be a better choice here
- There is no ECN account with raw spreads
- There’s an above-average $50 inactivity fee after three months, though this won't impact active day traders
FOREX.com
"FOREX.com remains a best-in-class brokerage for active forex traders of all experience levels, with over 80 currency pairs, tight spreads from 0.0 pips and low commissions. The powerful charting platforms collectively offer over 100 technical indicators, as well as extensive research tools."
Christian Harris, Reviewer
FOREX.com Quick Facts
Bonus Offer | 20% Welcome Bonus Up To $5000 |
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GBPUSD Spread | 1.3 |
EURUSD Spread | 1.2 |
EURGBP Spread | 1.4 |
Total Assets | 80+ |
Leverage | 1:400 |
Platforms | MT4, MT5, TradingView, eSignal, AutoChartist, TradingCentral |
Account Currencies | USD, EUR, GBP, CAD, AUD, JPY, CHF, PLN |
Pros
- The in-house Web Trader continues to shine as one of the best-designed platforms for aspiring day traders with a slick design and over 80 technical indicators for market analysis.
- There’s a wealth of educational resources including tutorials, webinars, and a stacked YouTube channel to help you get educated in the financial markets.
- FOREX.com offers industry-leading forex pricing starting from 0.0 pips, alongside competitive cashback rebates of up to 15% for serious day traders.
Cons
- Funding options are limited compared to leading alternatives like IC Markets and don’t include many popular e-wallets, notably UnionPay and POLi.
- Despite increasing its range of instruments, FOREX.com's product portfolio is still limited to forex and CFDs, so there are no options to invest in real stocks, real ETFs or real cryptocurrencies.
- There’s no negative balance protection for US clients, so you may find yourself owing more money than your initial deposit into your account.
Pepperstone
"Pepperstone stands out as a top choice for day trading, offering razor-sharp spreads, ultra-fast execution, and advanced charting platforms for experienced traders. New traders are also welcomed with no minimum deposit, extensive educational resources, and exceptional 24/7 support."
Christian Harris, Reviewer
Pepperstone Quick Facts
GBPUSD Spread | 0.4 |
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EURUSD Spread | 0.1 |
EURGBP Spread | 0.4 |
Total Assets | 100+ |
Leverage | 1:30 (Retail), 1:500 (Pro) |
Platforms | MT4, MT5, cTrader, TradingView, AutoChartist, DupliTrade |
Account Currencies | USD, EUR, GBP, CAD, AUD, NZD, JPY, CHF, HKD, SGD |
Pros
- There’s support for a range of industry-leading charting platforms including MT4, MT5, TradingView, and cTrader, catering to various short-term trading styles, including algo trading.
- Pepperstone emerges as a low-cost broker, especially for serious day traders with spreads from 0.0 in the Razor account and rebates of 25%+ through the Active Trader program.
- Pepperstone boasts impressive execution speeds, averaging around 30ms, facilitating fast order processing and execution that’s ideal for day trading.
Cons
- Pepperstone does not support cTrader Copy, a popular copy trading feature built into the excellent cTrader platform and available at alternatives like IC Markets, though it has introduced an intuitive copy trading app.
- Pepperstone’s demo accounts are active for only 30 days, which may not be not long enough to familiarize yourself with the different platforms and test trading strategies.
- Despite enhancements to its range of markets, crypto offerings are relatively limited compared to other brokers such as eToro, with no option to invest in real coins.
PrimeXBT
"PrimeXBT is perfect for aspiring traders looking for crypto derivatives alongside traditional markets like forex and indices, all tradable on an intuitive, web-based platform. The copy trading solution is also ideal for hands-off traders with 5-star ratings and performance graphs to help you find the right trader."
William Berg, Reviewer
PrimeXBT Quick Facts
Bonus Offer | $100 Deposit Bonus |
---|---|
GBPUSD Spread | Variable |
EURUSD Spread | 0.1 |
EURGBP Spread | Variable |
Total Assets | 45+ |
Leverage | 1:1000 |
Platforms | Own |
Account Currencies | USD, EUR, GBP |
Pros
- The web platform and app were built for technical traders with advanced charting features, a customizable layout and multiple order types including one-cancels-the-other (OCO).
- Ultra-fast execution speeds, averaging 7.12ms, make PrimeXBT an excellent option for day traders looking to secure the best prices in volatile markets.
- PrimeXBT has added fresh opportunities with new tokens for exchanging and funding, including 1Inch, Aave, and Injective.
Cons
- The lack of integration with established platforms like MT4 will be limiting for traders familiar with the world’s most popular forex trading software.
- While common in the crypto industry, PrimeXBT lacks authorization from a trusted regulator, seriously elevating the risk for retail traders.
- Despite improvements, the selection of around 100+ instruments still seriously trails competitors, notably OKX with its 400+ assets.
IQ Option
"IQ Option is a good broker for beginners with a slick platform and low minimum investment. New users can also open an account in three easy steps."
William Berg, Reviewer
IQ Option Quick Facts
GBPUSD Spread | 5 pips |
---|---|
EURUSD Spread | 14 pips |
EURGBP Spread | 15 pips |
Total Assets | 60+ |
Leverage | 1:500 |
Platforms | Own |
Account Currencies | USD, EUR, GBP, ZAR |
Pros
- High payouts on binary options
- iOS & Android compatible app
- User-friendly platform for beginners
Cons
- No MetaTrader 4 integration
- €10 inactivity fee after 90 days
How Did DayTrading.com Choose The Best Forex Brokers?
To list the top FX platforms in India, we leveraged our database of 216 brokers and followed these steps:
- We filtered for brokers offering trading on currency pairs like INR/USD.
- We pinpointed forex trading platforms that accept Indian residents.
- We sorted brokers by their overall rating, balancing 100+ data entries with observations from our experts.
What Is A Forex Broker?
A forex broker allows you to buy and sell currency pairs like the INR/USD (Indian Rupee/US Dollar), with the aim of profiting from market fluctuations.
It works like this in India:
- Select a forex platform that accepts Indian traders. Think about your requirements, such as a sophisticated charting platform, fast execution speeds and tight spreads for forex day trading in India. FX brokers should be authorized by the SEBI.
- Sign up for an account. This generally involves verifying your identity and address, which can often be done by providing a copy of your Aadhaar card that contains a 12-digit number tied to your biometric and demographic data.
- Deposit Indian Rupees. Entry requirements have fallen over the years, with brokers now normally requiring 0 USD to 250 USD, or around 0 INR to 21,000 INR, based on our research.
- Start trading currencies. Buy or sell currencies like INR directly or make use of derivatives like forex CFDs, entering and exiting positions on your broker’s desktop client, web solution, or for the growing class of mobile traders, on a forex app.
The Role Of The SEBI
The Securities Exchange Board of India (SEBI) oversees forex brokers in India. Considered a ‘yellow tier’ regulator in line with DayTrading.com’s Regulation & Trust Rating, it’s an active financial watchdog that provides strong investor protections.
Forex brokers in India should hold a license with the SEBI, and meet various requirements that are verified through audits and compliance checks, notably:
- Brokers should only facilitate trading in currency pairs that contain the INR, such as INR/USD, INR/EUR, INR/JPY, and INR/GBP. Cross-currency pairs like EUR/USD, USD/JPY and GBP/USD can also be traded on the Bombay Stock Exchange (BSE) and the National Stock Exchange of India (NSE).
- Brokers should not provide leverage beyond a specified amount, typically up to 1:20 when dealing currency pairs involving the INR. This is lower than the 1:30 limit in tightly regulated jurisdictions like Europe and the UK and is in place to minimize the risk of you incurring huge losses.
- Brokers must segregate client funds from company capital in segregated accounts. This protects your Rupees in case the broker runs into financial difficulties.
- Brokers be transparent about the risks of trading currencies, ensuring you understand the dangers of leverage and the highly volatile nature of the FX market. You could lose any Rupees you invest.
With an unusually restrictive set of rules placed on local brokers, some residents sign up with international forex platforms that accept Indian traders.
However, it’s important to understand that the SEBI actively deters residents from investing in foreign currencies. Depositing Rupees from your local bank account to an overseas account is not generally allowed. Additionally, Indian citizens may need permission from the relevant government authority.
Given the complex set of regulations that apply to Indian forex brokers and traders, I recommend consulting a local professional who can advise you on the latest rules from the SEBI. This will help ensure you choose a legal forex broker.
How Do Forex Trading Platforms Make Money?
Forex platforms primarily make their money through two trading costs: spreads and/or commissions.
Spreads
Many brokers incorporate their charges into the bid-ask spread of the currency pair, which is the difference between the buy and sell price of the asset.
Let’s say your chosen Indian forex broker quotes a bid price for INR/USD of 74.105 and an ask price of 74.100. The spread is, therefore 0.005 INR (74.105 – 74.100), or 5 pips.
Now if you decide to buy 10,000 USD, at the bid price this would cost 74,105 INR. If you were to then sell it at the same quote of 74.105/74.100, you would get back 74,100 INR.
The missing 5 INR has been charged by the broker as the spread. Of course, you would want to sell at a higher price point that would at least cover the cost of the spread.
Commissions
Forex brokers, especially Electronic communications network (ECN) brokers, may also charge a commission, which is a fixed fee.
They normally do this in return for much tighter spreads, which can start from near 0.0 pips on popular currency pairs based on our experience.
Let’s say your chosen forex broker in India charges a fixed rate of 200 INR commission per lot (100,000 units). The bid price given by the broker is 74.00, or 74 INR for 1 USD and you decide to buy 10,000 USD for 740,000 INR.
The order size is therefore 0.1 lots, so you would pay a commission of 20 INR (0.1 x 200 INR)
With this fee model, you generally have more certainty about the costs of a trade. This makes it particularly popular with experienced traders and those using fast-paced strategies likeChoosing A Forex Broker
The choice of forex trading platform will always be a personal one, depending on your trading style and preferences.
However, based on our many years working in the industry and thousands of hours examining forex brokers that accept Indian traders, we believe there are five key factors you should take into account:
1. What currency pairs can you trade?
Check the currencies you want to speculate on are available on the platform.
Keep in mind that the SEBI only allows local brokers to offer seven currency pairs – INR/USD, INR/EUR, INR/GBP, INR/JPY and cross-currency pairs – EUR/USD, GBP/USD and USD/JPY. Buying or selling non-authorized currencies is prohibited in India and could lead to legal ramifications.
Some international forex platforms that operate in India and that we’ve evaluated may offer other currencies. For example, Pepperstone is among the best for its range of 100+ currency pairs (including INR/USD), but these may not be SEBI-approved.
2. Is the broker authorized to deal FX in India?
As we’ve outlined, the SEBI has strict regulatory rules that make it challenging to buy and sell through non-authorized methods.
Fortunately, it’s straightforward to check whether a forex broker is authorized in India. A genuine firm will clearly have an Indian forex broker license number. For example, Zerodha provides SEBI registration details at the bottom of each webpage. Simply search this number in the SEBI’s directory of Recognised Intermediaries.
Other indicators that an FX broker is legitimate are an office in India and customer support in Hindi and one of the 22 reocgnized regional languages, such as Bengali.
3. Are the trading fees competitive?
Check the costs you will incur on the currency pairs you’re interested in, especially as a short-term trader for whom transaction costs can mount up quickly.
For example, Zerodha offers a flat Rs. 20 fee or 0.03% of the trade value (whichever is lower) on intraday trades across currencies, which primarily user derivatives like futures and options.
Also factor in additional costs. For instance, you may have to pay a conversion fee if your deposit Rupees to an account based in another currency, though brokers with INR accounts can help you avoid this.
4. Is the forex platform user-friendly with the features you need?
Ensure you get on with the forex platform, whether a desktop client or web trader. This is where you may spend a significant amount of time analyzing the impact of monetary policy decisions from the Reserve Bank of India (RBI) for example, and executing short-term trading strategies.
Based on our analysis, MetaTrader 4 (MT4) remains the most widely available platform (it was designed for FX trading), but brokers are increasingly integrating other third-party solutions, notably TradingView and cTrader.
We’re also witnessing a shift in forex trading patterns to using mobile apps that support full account management, market analysis and easy order execution. For example, Zerodha’s proprietary platform Kite, is available as an iOS and Android app, offering a simple yet intuitive user experience for all your forex needs.
After personally testing almost every major forex platform on the market, from third-party solutions like MT4, MT5, cTrader and TradingView to countless in-house terminals and apps, I strongly recommend starting with a forex demo account.I believe these simulators are the best way to learn a platform’s features and check the broker is a good fit, before risking your Rupees.
5. Is it easy to make deposits and withdrawals?
Make sure the firm makes funding and emptying your forex trading account cheap and convenient.
Based on our investigations, some top FX brokers for Indian traders offer international solutions like wire transfers and debit cards, plus more localized solutions like RuPay and Paytm.
For example, Upstox supports a range of convenient deposit options for Indians; NetBanking, UPI transfer, Google Pay, NEFT/RTGS/IMPS, and cheque.
Bottom Line
India is unusual in its heavily restrictive approach to forex trading, which can make choosing an online broker challenging.
A SEBI-regulated forex broker will guarantee legitimacy and should give you important client safeguards. However, we’re seeing some traders turn to overseas forex platforms for their wider market access. If you opt for this route, it is imperative you adhere to Indian laws, which may require getting approval from the relevant government department.
To find the right brokerage for your needs, use DayTrading.com’s selection of the best forex brokers that accept Indian traders.
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