Is Online Forex Trading Legal in India?
According to the FEMA, currency and forex trading in India is technically legal. Yet, if traders fail to adhere to the authorized brokers or the permitted pairs of currencies, they may be in violation of the law.SEBI and RBI regulate forex trading in India to minimize the risks associated with it. Due to this, Indian citizens cannot trade forex online or electronically within Indian territory under any circumstances. However, forex trading in India is considered legal when it is carried out through certain foreign exchange trading platforms that are designated as legal.
There were only four tradable instruments earlier the EUR/INR, the GBP/INR, the JPY/INR, and the USD/INR that were able to be traded. However, as of December 10, 2015, there has been approval from the Reserve Bank of India to allow exchanges to offer cross-currency futures contracts as well as exchange-traded currency options in three more major currency pairs: EUR-USD, GBP-USD, and USD-JPY.
What is the FEMA act?
In 1999, the Central Government of India enacted the Foreign Exchange Management Act (FEMA), which is a law that governs the management of foreign exchange in the country. The Reserve Bank of India regulates forex trading in India through the Foreign Exchange Market Act (FEMA).
How to Choose the Best Forex Broker in India?
Whenever you’re looking for a Forex brokerage company, keep in mind that you’re giving access to every penny you’ve earned, with the hope that they’ll allow you to trade and withdraw your profits. Even if you have great strategies for forex trading in India, if the broker shuts down or disappears with all of your money, it will all be for nothing. For this reason, it’s important to choose a reliable forex broker who meets your needs and won’t scam you.Consider the following tips when choosing the best broker for forex trading in India.
- Regulatory Compliance – Flashy websites do not necessarily indicate that a broker is trustworthy. Verify the broker’s regulation by checking the broker’s website thoroughly or by reading reviews.
- Deposit & Withdrawals – Pay close attention to the flexibility of your withdrawal and deposit options when choosing a forex broker. Ensure that both deposit and withdrawal options are smooth and reliable.
- Availability of diverse Account Types – A good forex broker should offer a range of trading account types for traders of various experience levels and capitals. Make sure you carefully review the list of accounts your broker offers, and decide if any are appropriate for your experience and capital.
- Features & Offerings – Each Forex brokerage has its own offerings and features. The four main features to compare among forex brokers are high leverage, reasonable commissions, low spreads and forex bonus offers.
How to trade forex online in India?
To start forex trading in India digitally, a person will require to open a forex account. An explanation of how to open an online forex trading account from India is given below in the following paragraphs.Follow these steps to open a forex account with AximTrade:
- Log in to your AximTrade account and choose “+ Open an Extra Account” in the top right corner of the page.
- Select the “Account Type” that suits you best. There are four types of accounts to choose from Standard, Cent, ECN, and infinite leverage. A demo account is also available if you’re just starting out.
- Select your preferred account type and press “Open”.
- Create a trading password and an investor password for your account. It is not advisable to use the same password for the investor account and the trading account. Be sure to use both uppercase and lowercase letters, along with numbers. Click “Done”.
- The account has now been set up for trading. All your accounts can be found under the “My Accounts” tab.
Best Time for Forex Trading in India
The trading sessions for forex trading in India follow India’s Standard Time (IST), which means the market opens on Monday morning and closes on Saturday morning. There is a time difference between European forex brokers’ market hours and Indian forex brokers’ market hours because India’s Standard Time is 5 hours 30 minutes ahead of Greenwich Mean Time (GMT+5.5).When it comes to forex trading in India, the overlaps are the busiest sessions of the day, as the market is extremely active during these times. Volatility and liquidity make trading during these times of day particularly profitable. Every time a currency pair is traded, its activity varies, depending on who is trading it. Identifying the time when forex pairs are most active requires understanding the different forex trading sessions.
Market timings for MetaTrader traders in India start on Monday at 2:30 a.m. IST and continue until Saturday at 1:30 a.m. or 2:30 a.m. If you are looking for the best type of forex trading in India, we recommend using AximTrade, which is available 24 hours a day except on weekends. In contrast, the Indian Exchange market (nseindia.com) allows you to trade only between 9:15 and 15:30 IST.
Benefits of choosing AximTrade for Forex Trading in India
As a global leading Forex trading brokerage firm, AximTrade offers its customers the highest leverage on the market, extending up to infinity. Traders can also take advantage of easy-to-use technology, educational resources, technical analysis, and highly competitive trading options such as Copytrade to explore the diversity of forex currency pairs.AximTrade offers up to 15 trading accounts, including 7 Standard Accounts, 2 Cent Accounts, 5 ECN Accounts and 1 Infinite Leverage Account per Active Member Area. AximTrade stands out for its reliability and excellent trading conditions, with an execution time of 0.004 s, 100+ trading instruments, and a 100% forex bonus. With a minimum deposit requirement of just $1 and a wide range of trading tools provided by the leading broker, forex trading in India is now easier than ever with AximTrade.
AximTrade partnership program offers the simplest start-up options. Our Forex IB program is the simplest and most straightforward type of partnership. Signing up is easy, you don’t have to pay any upfront investment, and there is no integration needed. Contact us for details on how to become a forex broker partner from India and start earning commissions right away when your clients execute a trade by using AximTrade.
Source: Online Forex Trading in India: The Complete Guide