Currency trading in India is one of the most profitable investing opportunities available to retail investors. However, a lack of expertise, funding, and ambiguous government regulations have prevented retail middle-class investors from investing in the currency markets.
Currency trading is unfamiliar to many people.
Currency futures, which were launched in India in 2008, are by far the best available hedging instrument for individuals who are exposed to currency risk.
Futures and options contracts in currency derivatives segment are open for trade.
Table of Contents
- Currency Trading in India Legal or Illegal?
- What exactly is currency trading?
- What Is The Best Way To Get Started With Currency Trading In India?
- Best Currency Trading Brokers In India
- Final Thoughts
Currency Trading in India Legal or Illegal?
This is the most common question asked by a trader before starting currency trading.
Yes, currency trading in India is totally legal, but only with SEBI registered brokers.
The Government has not prohibited to trade currencies.
In India, one can trade currency on Indian exchanges such as the BSE, NSE, MCX, NCDEX, MCX-SX, and NSEL.
For forex trading, Indian exchanges provide USDINR, JPYINR, EURINR, and GBPINR pairs.
What exactly is currency trading?
Currency trading is the act of purchasing or selling currency pairs on the foreign exchange market.
The currency market is one of the world’s biggest and most liquid market.
What Is The Best Way To Get Started With Currency Trading In India?
The importance of currency trading cannot be overstated.
Via currency conversion, the forex exchange market aids both foreign trading and investment.
For example, all products from the United States can be imported, and any commodity can be exported to the European Union.
Dollars can be quickly converted to rupees or other currencies.
Many retail traders are unaware that foreign exchange allows for direct trading.
Currency contracts in India are cash settled, which means you do not get actual delivery of the currencies.
As a result, a demat account is not needed for currency trading.
To begin with currency trading in India, all you need is a trading account.
Follow these simple steps to start currency trading in India:
- Find a legitimate and SEBI registered currency broker.
- Open a trading account & complete the documentation process.
- Activate currency segment while opening the trading account.
- Access the trading platform offered by your broker.
- Make an initial deposit into the currency trading account.
- Place your first trade by selecting currency pair and you are done.
Different brokerage houses allow trading in currency derivatives within the hours prescribed by the exchanges.
Currency trading is currently open on the NSE from 9:00 a.m. to 5:00 p.m. Monday through Friday.
Trading may also be accomplished by dialing a brokerage’s toll-free number and making an order through their call centers.
Best Currency Trading Brokers In India
Let’s have a look at some of the best currency trading brokers available in India.
Zerodha is a flat-rate equity and currency derivatives broker headquartered in Bangalore. Regardless of the number of lots, it charges a brokerage of 0.01 percent or ₹20 per completed order, whichever is lower.
Zerodha’s platforms is very user-friendly, and they provide one of the best Currency Trading experience in India.
They have their own inhouse trading platform that works on any device including Desktop, Mobile, Tablet etc.
Zerodha has a inbuilt advanced charting software to trade seamlessly.
SAMCO is a fintech company headquartered in Mumbai, that was established in 2015. CNBC-Awaaz named it “India’s best equity broking house” in 2019.
Samco has the lowest brokerage prices in the market, charging a flat fee of Rs 20 per sale, regardless of the scale of the trade.
It also offers margin funding, loan against shares, and other financial products.
Samco provides depository services via CDSL. It is a low-cost stockbroker noted for its high margin offerings and free trading platform.
3. ICICI Direct
ICICI Direct is one of India’s most well-known online currency platform.
ICICI Securities, part of the ICICI Group and India’s top financial service provider providing banking and other financial services, has been in operation for 65 years and has established a footprint across the country.
Customers may use ICICI Direct to access e-trading and brokerage facilities.
They have financial products such as Online Equity & Derivatives Trading, Mutual Funds, Initial Public Offerings & Fixed Deposits, Bonds, NCD, wealth management-related products, home loans, loan against securities, and so on, all from a single platform.
Customers can trade with ICICI direct Mobile, a trading app.
The mobile trading app is compatible with both Android and iOS devices.
The app has a number of exclusive features, including:
- Flat rate Currency trading
- Investing in Initial Public Offerings (IPOs) and Mutual Funds.
- Keep an eye on your portfolio.
- Get real-time stock details on a daily basis.
- Receive trading alerts.
- Keep an eye on the market.
- Make a number of watchlists.
5Paisa is a discount broker headquartered in Mumbai.
It is funded by the IIFL Group, a major financial services firm in India.
Their trading platform is available as a smartphone app, a web browser, and a desktop trading application.
It has set a target of acquiring 50,000 or more customers in the current fiscal year.
The clientele is younger and more engaged.
5paisa allows you to open an account without having to fill out any paperwork.
After you submit the online application and supporting documents, it usually takes 1 hour for your account to be approved.
To open a 5paisa account, go to the website and fill out the online account opening form.
5. Angel Broking
Angel Broking is an Indian full-service broker. They are among the best broker in India for currency trading.
Angel Broking provides a compatible platform that allows users to trade in a variety of segments, including equity, derivatives, currency, and commodities.
It is listed on the BSE, NSE, MCX, and NCDEX exchanges.
The application allows you to invest in Initial Public Offerings (IPOs) and Mutual Funds.
Both investors and regular traders can find the trading platform easy to use.
You can trade using a web-based trading platform or can download mobile or desktop apps.
Currency trading in India is a one-of-a-kind market where all types of investors will benefit.
Scalping, intraday trading and long-term positions are all viable options for making profits.
Discipline, persistence, practice and the right trading partner are what you need to be a good trader.