To select the best forex broker in India you need to know some shortcomings that come up with forex trading in India. In fact, a lot of people try to mislead Indian traders about the regulations of forex trading in India. Consequently, before searching for the best forex broker, you need to know; first, whether you are legally allowed to trade and; second, if yes, you need to know how to overcome the issues related to regulations in order to trade safely.
Is forex legal in India?
Forex trading is relatively a new type of investment in India. However, it was vulgarized by so many forex brokers promising huge income with small investments. The increasing number of broker scams, along with the risky nature of Forex trading, has forced the Indian Government to put severe restrictions for Indian traders.
Here comes the focal question: is Forex Trading legal in India?
The answer is Yes and No. The Indian government declared forex partially legal and partially illegal.
How is that?
forex trading is legal in India only when you do it through forex trading platforms and the base currency is the Indian Rupee (INR). Therefore, under the Foreign Exchange Management Act (FEMA), forex trading with a foreign base currency is prohibited. Moreover, it is also illegal for the people of India to send the INR to overseas brokers for the purpose of trading or investing.
How Indian citizens trade with international forex brokers.
If you live in India, you are not legally allowed to trade forex currency pairs that do not have the Indian rupee as the base currency or counter-currency.
However, you can still open an account with an international broker if you deposit money via an electronic wallet service like Skrill, PayPal, Neteller or other similar online payments service. Wire transfer from an Indian bank is strictly prohibited and can generate penalties. Generally, avoid using any financial instrument based in India.
Best forex brokers accepting Indian citizens
|Broker||Min Account Size||Leverage||Spread||Review||Open Account|
|$200||600:1||5 Pips||Review||Visit Broker Demo|
|1000:1||Starting from 0||Review||Visit Broker Demo|
|$1||Varies from Europe to other countries||Review||Visit Broker Demo|
|up to 500:1||Starting from 0,2||Review||Visit Broker Demo|
|$0||up to 3000:1, the highest in forex Market||Starting from 1.2||Review||Visit Broker Demo|
*Trading bonus are not eligible for clients registered under Trading Point of Financial Instruments Ltd and Trading Point of Financial Instruments UK Ltd
Though these brokers don’t have a physical presence in India, they accept Indian clients. The only thing they need to do is to make a deposit via an electronic wallet. Therefore, this can be challenging for some traders especially those who don’t have funds in their wallets.
What is the solution?
There are two important solutions to overcome this obstacle.
The first option is to make a transfer from your bank account to your electronic Wallet. The major online banks accept this option and it is the easiest one.
The second option is to buy sold from someone else.
How is that?
There are people from India who have money on skrill, PayPal, or Neteller. What you need to do is to ask these people to transfer a certain amount of money to your online account. Then, you give them the same amount in Cash or you make a transfer to their accounts in India. This method is useful since your funds cannot be tracked; however, it might be dangerous since there is a lot of scammers on the net. They may ask you to make a transfer first.
To avoid any problem, it is better to look for more trusted people and do some research on facebook groups. Therefore, you should care about this more than the best forex broker in India.