For investors, a developing country is more like an opportunity to invest money and get more returns with the further development of studies. This is the main reason why just like most of the Asian countries, India is also a very popular option among international Forex brokers. As India was showing promising economic growth before the corona pandemic, it managed to become a good option for forex brokers. In terms of prosperity, India has a large billionaire base in the world, consisting of around 111 billionaires in the country.
With a huge opportunity for Forex trading, it is difficult to differentiate 0between legal and illegal Forex trading. In India, the situation is vaguer as the government has allowed forex trading, but that too, with huge limitations and certain requirements. Taking in cogniance the situation of forex trading in India, the government has allowed foreign Forex companies to trade with least conditions, while Indian citizens have to be very careful about the rules and regulations regarding forex trading. Moreover, there are proper identified authorities which keep a check on Indian financial markets to keep the inflow and outflow of money in check. These organisations ensure the stability in the market market, maintain transparency and work for the safety of the market participants.
SEBI, the regulator
In India, it is SEBI, Securities and Exchange Board of India, which keeps a check on foreign trading and maintains a balance in the market. Constituted in 1992, SEBI’s regulates the capital markets in India. SEBI is responsible for the registration of forex brokers. In India, foreign trading is allowed if the traded currency pair includes the Indian rupees. Indians cannot trade via online platforms. Legally, only four currency pairs are accepted in forex trade in India. Those are:
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USD/INR
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EUR/INR
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GBP/INR
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JPY/INR
Trading by including INR is the government’s way to ensure that no extra foreign currency goes out of India’s financial market.
Tips to select a forex broker
· In India, globally acclaimed brokers are not illegal, instead Indian citizens are barred from using online platforms, and they are restricted to trading only with INR and SEBI registered brokers. For trading with international traders, Indains have to look for an international trader which fits the criteria of Indian Government.
· This is the point where Indians need to be careful, as if they miss out the information about whether the broker is approved by SEBI or not, and trade through it, they will end up trading illegally.
· It is again important to understand that in foreign trading market, international time also plays an important role. Top Forex brokers in India eases the problem of their customer, by linking them to the best quotes and prices. All these work is done to make sure that the customers can get the maximum out of these platforms. As forex trading is an important aspect, one can’t deny the fact that the location and the standard time zones have a major impact on Indian market. Keeping the normal trading risks apart, time zones can be troubling as for the customers. It is worth noting that the market time is different across the globe
Top forex brokers
Traders have to know the time when the trade market is active, so that they can begin and close their trades. The market has certain characteristic properties. Morning witnesses, the market receives a high trading of JPY/USD is , while the USD/EUR and USD/GBP are active in the evening hours. It is important to close the overnight positions should they be closed on time , especially for overseas traders. For this purpose it is important for the traders to trade on a trusted and active forex broker platform. Some of the trusted broker platforms include:
· XM GROUP
Established in 2009, XM Group is a group of online regulated brokers. This platform comes with its own advantages and benefits. It has three platform options for investors. All the options are convenient and reliable with a user friendly interface.
· FPI MARKET
FP Markets is one of the leading direct market access brokers in Australia. It is headquartered in Sydney, Australia. It maintains a regional headquarter in Beijing China. This broker’s product offering includes more than 10,000 financial instruments which cover various asset classes. It includes Metatrader 4 and MetaTrader 5 trading platforms.
· HYCM
This forex broker is based in London and is an old and trusted forex broker. It is there in the market for more than 35 years. Widely used, this platform is very reliable and has a good image among traders. They look carefully and regulate all the different aspects of their business.
