Indian Rupee Trading

Indian Rupee trading (INR) has seen a marked growth in popularity that has correlated strongly with the rise in Eastern economies. This article provides an overview of trading the INR, how the exchange rate works, the pros & cons of the currency and factors affecting its price. We will also provide some top tips and strategy advice for Indian rupee trading and have compiled a list of the top forex brokers below.

Indian Rupee Trading Brokers

  1. Forex.com - Forex.com maintains its position as a leading FX broker, thanks to the 80+ currency pairs and some of the lowest fees in the industry. EUR/USD spreads come in as low as 0.0 with a $7 commission per $100k. The SMART Signals tool also uncovers forex price patterns from dozens of major markets.
  2. Interactive Brokers - IBKR presents an extensive range of over 100 major, minor, and exotic forex pairs, surpassing the offerings of nearly all leading alternatives, though not CMC Markets. Forex trading occurs over multiple platforms and boasts institutional-grade spreads starting from 0.1 pips and 20 complex order types, including brackets, scale, and one-cancels-all (OCA) orders.
  3. NinjaTrader - NinjaTraders supports the trading of popular currencies including the EUR/USD. The software also offers advanced features to streamline the trading experience, including complex order types like market if touched (MIT) and one cancels other (OCO).
  4. OANDA US - OANDA offers a diverse selection of 68 currency pairs, more than many alternatives. The broker’s in-house platform offers superb day trading capabilities via powerful TradingView charts, including 65+ technical indicators and 11 customizable chart types.
  5. IG - IG offers an above-average suite of 80+ currency pairs on its proprietary web platform, mobile app or MetaTrader 4, with more advanced charts and forex analysis tools available on the ProRealTime software. Forex spreads are competitive based on tests, starting from 0.1 pips on majors like the EUR/USD.

Indian Rupee Trading Comparison

Indian Rupee Trading Comparison
Broker Forex Assets EUR/USD Spread Forex App Rating Minimum Deposit Regulator Visit
Forex.com logo
80+ 1.0
$100 NFA, CFTC Visit
Interactive Brokers logo
100+ 0.08-0.20 bps x trade value
$0 FCA, SEC, FINRA, CBI, CIRO, SFC, MAS, MNB Visit
NinjaTrader logo
50+ 1.3
$0 NFA, CFTC Visit
OANDA US logo
65+ 1.6
$0 NFA, CFTC Visit
IG logo
80+ 0.8
$0 FCA, ASIC, NFA, CFTC, DFSA, BaFin, MAS, FSCA Visit
Videforex logo
35 Floating from 0.1 pips
$250 - Visit
Plus500 US logo
13 0.75
$100 CFTC, NFA Visit
DNA Markets logo
40+ 1.0
$100 ASIC Visit
CloseOption logo
20+ No fee - payouts approx. 80% (Copper) - $5 National Bank of Georgia Visit
Coinexx logo
60+ From 0.0 pips - 0.001 BTC - Visit
Axofa logo
10+ From 1.6 pips - $1 SVGFSA Visit
World Forex logo
53 From 0.6 - $1 SVGFSA Visit
IQCent logo
49 0.3
$250 IFMRRC Visit
RaceOption logo
25+ Floating - $250 - Visit
Scope Markets logo
44 1.0 - $50 CMA, FSC, FSCA Visit

#1 - Forex.com

Why We Chose Forex.com

Forex.com maintains its position as a leading FX broker, thanks to the 80+ currency pairs and some of the lowest fees in the industry. EUR/USD spreads come in as low as 0.0 with a $7 commission per $100k. The SMART Signals tool also uncovers forex price patterns from dozens of major markets.

"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."

- DayTrading Review Team
  • GBPUSD Spread: 1.0
  • EURUSD Spread: 1.0
  • EURGBP Spread: 1.0
  • Total Assets: 80+
  • Leverage: 1:50
  • Platforms: MT4, MT5, TradingView, eSignal, AutoChartist, TradingCentral

About Forex.com

Forex.com boasts a global reputation with multiple awards and 20+ years experience. Regulated in the US, EU, UK and Canada they provide a huge range of day trading markets, not just forex, and offer competitive fees on a cutting-edge platform. The brand also provides a suite of additional tools, from performance analytics and SMART Signals to advanced charts and strategy builders.

Pros

  • Excellent trading tools including the Trading Central research dashboard and the SMART Signals price pattern scanner
  • The $100 minimum deposit requirement makes the broker accessible for beginners
  • You can enjoy industry-leading forex pricing starting from 0.0 pips, plus fast execution speeds of less than 1 second

Cons

  • The $15 monthly inactivity fee is higher than some competitors, including XM which only charges $5
  • It's a shame that there's no copy trading platform for beginners or signal providers
  • The investment offering varies between countries

#2 - Interactive Brokers

Why We Chose Interactive Brokers

IBKR presents an extensive range of over 100 major, minor, and exotic forex pairs, surpassing the offerings of nearly all leading alternatives, though not CMC Markets. Forex trading occurs over multiple platforms and boasts institutional-grade spreads starting from 0.1 pips and 20 complex order types, including brackets, scale, and one-cancels-all (OCA) orders.

"Interactive Brokers is one of the best brokers for advanced day traders, providing powerful charting platforms, real-time data, and customizable layouts. Its superb pricing and advanced order options also make it highly attractive for day traders, while its diverse range of equities is still among the best in the industry."

- DayTrading Review Team
  • GBPUSD Spread: 0.08-0.20 bps x trade value
  • EURUSD Spread: 0.08-0.20 bps x trade value
  • EURGBP Spread: 0.08-0.20 bps x trade value
  • Total Assets: 100+
  • Leverage: 1:50
  • Platforms: Trader Workstation (TWS), Desktop, GlobalTrader, Mobile, Client Portal, AlgoTrader, OmniTrader, eSignal, TradingCentral

About Interactive Brokers

Interactive Brokers (IBKR) is a premier brokerage for experienced traders, providing access to 150 markets in 33 countries, along with a suite of comprehensive investment services. With over 40 years of experience, this Nasdaq-listed firm adheres to stringent regulations by the SEC, FCA, CIRO, and SFC, amongst others, and is one of the most trusted brokers for trading around the globe.

Pros

  • IBKR continues to deliver unmatched access to global stocks with tens of thousands of equities available from 100+ market centres in 24 countries.
  • IBKR is one of the most respected and trusted brokerages and is regulated by top-tier authorities, so you can have confidence in the integrity and security of your trading account.
  • The TWS platform has clearly been built for intermediate and advanced traders and comes with over 100 order types and a reliable real-time market data feed that rarely goes offline.

Cons

  • TWS’s learning curve is steep, and beginners may find it challenging to navigate the platform and understand all the features. Plus500's web platform is much better suited to new traders.
  • IBKR provides a wide range of research tools, but their distribution across trading platforms and the web-based 'Account Management' page lacks consistency, leading to a confusing user experience.
  • Support can be slow and frustrating based on tests, so you might find it challenging to reach customer service representatives promptly or encounter delays in resolving issues.

#3 - NinjaTrader

Why We Chose NinjaTrader

NinjaTraders supports the trading of popular currencies including the EUR/USD. The software also offers advanced features to streamline the trading experience, including complex order types like market if touched (MIT) and one cancels other (OCO).

"NinjaTrader continues to meet the demands of active futures traders looking for low fees and premium analysis tools. The platform hosts top-rate charting features including hundreds of indicators and 10+ chart types."

- DayTrading Review Team
  • GBPUSD Spread: 1.6
  • EURUSD Spread: 1.3
  • EURGBP Spread: 1.6
  • Total Assets: 50+
  • Leverage: 1:50
  • Platforms: NinjaTrader Desktop, Web & Mobile, eSignal

About NinjaTrader

NinjaTrader is a US-headquartered and regulated brokerage that specializes in futures trading. There are three pricing plans to suit different needs and budgets, as well as ultra-low margins on popular contracts. The brand's award-winning charting software and trading platform also offers a high-degree of customization and superb technical analysis features.

Pros

  • Low fees are offered, with $50 day trading margins & commissions from $.09 per micro contract
  • Traders can get free platform access and trade simulation capabilities in the unlimited demo
  • NinjaTrader continues to deliver comprehensive charting software for active day traders with bespoke technical indicators and widgets

Cons

  • Non forex and futures trading requires signing up with partner brokers
  • There is a withdrawal fee on some funding methods
  • The premium platform tools come with an extra charge

#4 - OANDA US

Why We Chose OANDA US

OANDA offers a diverse selection of 68 currency pairs, more than many alternatives. The broker’s in-house platform offers superb day trading capabilities via powerful TradingView charts, including 65+ technical indicators and 11 customizable chart types.

"OANDA remains an excellent broker for US day traders seeking a user-friendly platform with premium analysis tools and a straightforward joining process. OANDA is also heavily regulated with a very high trust score."

- DayTrading Review Team
  • GBPUSD Spread: 3.4
  • EURUSD Spread: 1.6
  • EURGBP Spread: 1.7
  • Total Assets: 65+
  • Leverage: 1:50
  • Platforms: OANDA Trade, MT4, TradingView, AutoChartist

About OANDA US

OANDA is a popular brand offering exceptional execution, low deposit requirements and advanced charting and trading platform features. The top-rated brand has over 25 years of experience and is regulated by trusted agencies, including the NFA/CFTC. Around the clock support is available for short-term traders, alongside flexible contract sizes and automated trade executions.

Pros

  • Beginners can get started easily with $0 minimum initial deposit
  • There's a strong selection of 68 currency pairs for dedicated short-term forex traders
  • The broker's API facilitates access to 25 years of deep historical data and rates from 200+ currencies

Cons

  • There's only a small range of payment methods available, with no e-wallets supported
  • It's a shame that customer support is not available on weekends
  • The range of day trading markets is limited to forex and cryptos only

#5 - IG

Why We Chose IG

IG offers an above-average suite of 80+ currency pairs on its proprietary web platform, mobile app or MetaTrader 4, with more advanced charts and forex analysis tools available on the ProRealTime software. Forex spreads are competitive based on tests, starting from 0.1 pips on majors like the EUR/USD.

"IG continues to provide a comprehensive package with an intuitive web platform and best-in-class education for beginners, plus advanced charting tools, real-time data, and fast execution speeds for experienced day traders."

- DayTrading Review Team
  • GBPUSD Spread: 0.9
  • EURUSD Spread: 0.8
  • EURGBP Spread: 0.9
  • Total Assets: 80+
  • Leverage: 1:30 (Retail), 1:250 (Pro)
  • Platforms: Web, ProRealTime, L2 Dealer, MT4, AutoChartist, TradingCentral

About IG

Founded in 1974, IG is part of IG Group Holdings Plc, a publicly traded (LSE: IGG) brokerage. The brand-US offers spread betting, CFD and forex trading across an almost unrivalled selection of 17,000+ markets, with a range of user-friendly platforms and investing apps. For 50 years, IG has maintained its position as an industry leader, excelling in all key areas for traders.

Pros

  • The IG app offers a superb mobile trading experience with a clean design that helped it secure Runner Up at our Best Trading App award
  • As a well-established broker, IG operates under strict regulatory guidelines in multiple jurisdictions, maintaining a high level of trust
  • IG is amongst the best in terms of its range of instruments, which includes stocks, forex, indices, commodities, and cryptocurrencies, providing ample diversification opportunities

Cons

  • IG applies an inactivity fee of $12 per month after 2 years, deterring casual investors
  • Stock and CFD spreads still trail the cheapest brokers like CMC Markets based on tests
  • IG has discontinued its swap-free account, reducing its appeal to Islamic traders

An Overview Of Indian Rupee Trading

The Indian rupee is used as legal tender for over 1 billion people living in India. In the past decade, India has experienced huge increases in its economy’s growth rate, reaching the position of the fifth largest GDP worldwide. Although the growth in the economy has been strong, the domestic currency has experienced a drop against other main currencies in recent years. However, India’s large workforce and economic growth is an indication that the currency may start to strengthen again.

How Is The INR Exchange Rate Determined?

India has a floating exchange rate system whereby the exchange rate of another currency with the Indian rupee is influenced by multiple market indicators like demand and supply. For example, if demand for the INR increases, its strength will increase as the currency becomes more desirable and scarce.

Likewise, if supply were to increase or demand were to decrease, the currency’s strength would reduce as the market becomes more saturated with the currency in relation to the market’s desire to obtain it.

trading the indian rupee

Pros Of Indian Rupee Trading

Indian rupee trading can be a volatile experience. If buy-sell rates that include the rupee are very variable then profits could be made more quickly for successful trades, particularly if you can make correct predictions and identify important trends.

Trading forex is a much more straightforward process today than it used to be. Nowadays, investors have years of historical data and INR price history to draw upon to make predictions. Moreover, online trading services and automated trading systems are much more accessible and affordable, with more sophisticated technical analysis tools, mobile app support and order execution models available.

Cons Of Indian Rupee Trading

Whilst the volatility of the Indian Rupee can make for large profits, it can also lead to big losses. The quick changes in the currency’s value can make an accurate prediction of trends more difficult and losses more sudden and significant.

Indian rupee trading is not as popular as many other currencies in the foreign exchange market, meaning that brokers often have reduced leverage rates on offer for related pairs. This can limit the profitability of trades for more adventurous investors.

Similarly, the lower interest in trading the INR leads to reduced trading volume and market liquidity. This can impact profits both in terms of greater slippage and wider spreads.

Factors Affecting INR Price

Many factors can affect the value of the currency and anyone involved with Indian rupee trading must watch out for these, both to better inform trend predictions and to exit positions before a wild reversal. The main factors to consider are the political climate, both domestic and international, central bank policy, external risk and economic health.

The GDP growth rate plays a huge role in the dominance of a particular currency and ties in most of the factors listed above. If an economy is growing quickly due to something like a political change, then investors are likely to be interested in that economy. When they invest, they will need to make their investment in the domestic currency meaning the demand for that currency will increase. As an investor on the forex market, if you suspect an influx of investment/economic growth in a particular economy then you could buy the currency whilst it is relatively cheap and then sell it when there is higher demand.

Trading Hours

Trading in the forex market is open 24/5, allowing for all countries and exchanges to get involved during convenient times of the day. That being said, there are often better hours in the day for trading particular currencies and forex pairs. Generally, the times during which the relevant stock exchanges are open is a good time to trade as liquidity and volume are higher, reducing slippage and spreads.

The Stock Exchange of India is open 09:00 – 17:00 IST (Indian Standard Time), corresponding to 03:30 – 11:30 GMT. These hours will likely be relatively good for most Indian rupee trading pairs. However, the active trading hours in the London and New York sessions, especially when trading GBP/INR or USD/INR, will generally see much better liquidity and volume.

The London session runs from 08:00 to 17:00 GMT and the New York session runs from 14:00 to 22:00 GMT. Therefore, the best times for Indian rupee trading are generally 08:00 to 17:00 GMT, crossing through the end of the Indian stock market hours and hitting the crossover of the London and New York sessions.

Brokers That Support Indian Rupee Trading

If you wish to get involved with Indian rupee trading you will need to find a suitable brokerage. Most online forex platforms will offer some currency pairs involving the INR, such as EUR/INR and CHF/INR. We have created a list of our top recommended forex brokers here and you can find a detailed guide to comparing options on our forex brokers page. Before opening an account and depositing money anywhere, double-check that the firm in mind definitely offers the currency pairs you are looking for.

Utilising Data Tracking Tools

Indian rupee trading is much like other forms of forex, securities and derivatives trading in that tracking, analysis and educational tools are invaluable resources to investors of all experience levels. Carefully consider different charting options and timeframes, indicators, signals services and market analysis services to try to best predict the price movements of the INR. You should also make use of market trackers, forecasts, expert tips and educational videos and courses to try to get the most out of your trading experience.

Final Word On Indian Rupee Trading

Indian rupee trading allows investors to speculate upon the comparative strength of the INR and, indirectly, the Indian economy as a whole. The technological advancements of recent years have made the process much more accessible and straightforward than it once was, so retail traders from across the world can get involved. The currency is not one of the most popularly traded, so it suffers from reduced liquidity compared to some other major currencies, though the volatility this brings can be an attractive prospect for seasoned traders. To get started, simply open an account with a forex broker that offers currency pairs involving the INR and begin.

FAQs

What Is The Indian Rupee?

The Indian rupee (INR) is the official currency of India and exists as legal tender for more than one billion people. The currency is a managed-floating one, with exchange rates influenced by market powers like supply and demand, with the central bank trading some rupees to better their own interests.

Why Should I Trade The Indian Rupee?

Indian rupee trading can be volatile, which means successful trades could make quicker, more significant profits. Additionally, forex trading is much more accessible than it once was, so retail investors can easily access online platforms, trading charts and analysis tools.

What Strategy Should I Use When Trading The Indian Rupee?

There is no one best strategy for Indian rupee trading, or indeed any form of trading, as the markets are so unpredictable and volatile. However, successful traders are often those who are rigorous with their risk management and pay close attention to both fundamental and technical analysis, making use of historical data and useful tools. A more in-depth guide to trading strategies can be found here.

What Factors Affect The Price Of The Indian Rupee?

Many factors can affect the price of the INR, and any investors involved with Indian rupee trading should keep a close eye on them. The most noteworthy ones include central bank policy, economic health, GDP growth and the political climate.

Does India Use The Gold Standard?

India got rid of the gold standard in 1993 for a managed floating regime, whereby the currency is floated against others in the world but the central bank purchases some INR to moderately influence exchange rates.