The foreign exchange market is a liquid and high-volume financial market. Many traders invest in it to make profits with low investments. However, the volatility of the market makes it challenging to earn.
Indian traders trade in the forex market. However, they abide by specific government rules. So, here we have the process of how to start forex trading in India. Hence, making it easy for Indian traders to invest and earn profits.
Steps to Invest in Forex Market in India
The Indian forex market is not like other countries. It has some restrictions which confine it to specific currencies. The Security Exchange Board of India looks after the regulations of the market brokers.
In addition, there are certain currencies that Indian traders can invest their funds in. Below is the process of forex trading in India:
Online Forex Broker
The first step of forex trading in India is to find an online broker. Many brokers are offering their services. But, traders must find one that supports their trading goal and helps them with the best tools.
The broker has to provide various account types, trading platforms and payment methods. Also, it has to have technical and fundamental analysis to support traders.
For example, PrimeFin easymarkets and Investby are two popular and reliable forex brokers. They have permission from SEBI to operate in India with licence and registration in the market.
Traders can choose reliable online forex brokers to ensure secure trading. Moreover, they have to check with the available currency pairs.
Once Indian traders have the best broker, they can move to the next step of signing up. Afterwards, traders can open their accounts to access the facilities and trade online in currency pairs.
For the process, traders must register using their email id, contact number, password and other details. After registration, they can move ahead with the process and access the trading account and services.
Indian traders have to verify their identity. They can do this by completing their KYC process. Provide brokers with details they ask for, like name, address, contact number and id proof.
The broker cross-checks the information. Get the KYC and then provide access to the account. It is an essential part of opening an account online with brokers.
To start currency trading, traders deposit funds in their accounts. Then, they can use various payment methods available with the broker. Finally, traders can select the one that suits them and deposit the minimum amount to trade.
The most common methods accessible online transfer are:
- Bank wire transfer
- Debit card
- Credit card
Using them, traders invest in the market. They can buy and sell in currencies that the government of India permits.
Indian government allows traders to invest in four significant forex pairs:
Indian traders can invest in the cross with the four currencies. It is so because the government wants to protect the Indian currency from going further down in value.
Plus, the SEBI registration ensures the high security of the Indian traders and the financial market.
The trading platform is the next important thing to start forex trading in India. Traders can access trading platform features and facilities to invest in.
It offers tools, order types, execution of traders and research tools.
Traders can use these and other benefits to analyse markets. As a result, they can make better trading decisions and have high market profits using trading platforms.
Trading platforms can be desktop or mobile-friendly. Or many financial brokers offer both easy market access and trading.
Take Market Position
The final step of forex trading in India is to invest in currency pairs. Traders can buy or sell currency pairs and take their market positions. For this, they have to analyse the market, research and then decide on the currency pair to trade.
It is necessary to research to ensure future profits. The forex market is volatile and keeps fluctuating. Thus, the currency pairs price changes as the market conditions change.
Therefore, investors should check with the market and the currency pair before trading.
Indian forex trading is booming despite the regulations of the government. Traders are finding the market attractive to meet their luxurious needs. The article details the steps to start forex trading in India.
Thus, making it easy for traders to invest. They can trade in the four currencies and make profits.