How can I trade in the forex market in India?

Forex market is a well established financial market that has high liquidity and volatility. The market is known for its low price requirements to begin trading but also for the risk of losing money when trading. 

In India traders can trade in currencies but with certain restrictions. To learn about them and how one can trade in the forex market in India we have a brief discussion. So, let’s jump in and improve trading knowledge. 

Who regulated Forex Trading in India?

Before jumping directly into trading currencies let’s first know who regulates forex trading in India. Securities Exchange Board of India (SEBI) is the authority which is the capital market regulator of India.

The authority regulates the working of the forex market and ensures that companies follow the Foreign Exchange Management Act (FEMA) 1999. In addition, the RBI regulates the forex transactions. 

In India, only four currencies are allowed to be traded by the regulatory bodies with INR. These currency pairs are USD/INR, EUR/INR, GBP/INR and JPY/INR. Besides, cross pairing of these currencies is also allowed. 

It is done in order to maintain the value of Indian currency in the market. 

How to trade in the Forex Market?

Forex trading is not completely legal in India. Traders are allowed only with some currencies to trade and make successful trades. They can trade in these currencies through the trading platforms registered with SEBI and approved by the government body. 

Below we have the steps that traders can follow to trade in forex market in India: 

  • The first step to trade in the forex market in India is to gather all the details and information related to the market. Having an update of the market is the core thing to make best trades and earn good returns. 
  • After that traders can have the digital device to trade online. Nowadays, everyone has a laptop, desktop or smart mobile phones to trade online. Using such devices they can check with the stock exchanges as these list the price of various currency pairs online. Thus, knowing the fluctuations and tracking the essential market changes. 
  • Find the best online forex broker. Having the right broker solves half of the trading problems. Traders can analyse, compare and go through each broker’s website for a clear understanding. They will be better able to understand which broker will be best for them. Check their regulation, available services and tools. 
  • Sign-up for the trading account is the next step traders have to follow. Traders can open their account with the broker they have selected and deposit a minimum amount to begin trading. Also, there are different types of accounts available with the brokers choosing the suitable one. 
  • Then add funds to the account. Traders sign in in their account, transfer funds, and begin trading. Also, based on the broker the trader has selected they can choose the native currency. They can have bank transfer, wire transfer, debit or credit cards. 
  • Trading platforms are the next thing traders do. From the brokerage platform traders can download the trading platform available and access the services provided. Many platforms work on web and mobile apps. They can easily trade with one click making trading easily accessible. 
  • Begin forex trading with the allowed currency pairs in India. It is the last step that traders have to follow to begin forex trading. However, they have to be aware of the market volatility, the changes taking place and when to enter and exit the market. 


In the article traders can know how they can trade in the forex market. The Indian market is different and it allows only a few currencies to be traded in the market. INR with USD, EUR, JPY and GBP these currencies can be paired and traded with the regulated brokers of India. 

Traders can have various market opportunities with the brokers, the trading platforms, tools and other facilities make trading much more convenient and efficient for the traders. 

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