New FOREX brokers come on the scene all the time. With competition so rife, brokerage firms are trying harder to keep their clients satisfied as a way to protect their market share. FOREX traders, for their part, are concerned about the dangers of trading FOREX with the wrong broker. Because of this, they need the guidance of a qualified voice to stay away from dodgy brokerage firms. For this reason, we will be listing the best FOREX brokers in India today. This list is the result of a detailed review process carried out by Arincen. We will share our review methodology so traders can understand why we chose the companies we did.
What is FOREX and Why Do We Need a Broker to Trade?
The FOREX market operates 24 hours a day and five days a week (Monday to Friday), except international holidays. The FOREX market is the largest financial market in the world with some six trillion dollars changing hands daily. Brokerage firms play a key role in this marketplace by enabling clients to buy and sell through a trading platform. Most trading platforms are accessible in Web and mobile format.
How Do I Choose the Best FOREX Broker in India?
India is a developing nation with a population of some 1.3 billion people. The country has sections of very wealthy people that is balanced with an emerging middle class and large numbers of lower-income citizens. As such, its GDP per capita is in the middle of the global pack alongside countries such as Bangladesh, Ghana and Kenya.
Despite its people having a relative lack of disposable income, India has emerging tech-savvy youth t able to find ways to invest in modern securities with limited capital. There is a great appetite for investing, evidenced by the ever-growing numbers of legal FOREX brokers in India.
FOREX Regulations in India
India has a well-developed regulatory framework. Financial markets in the country are regulated first and foremost by the Ministry of Finance, which works in conjunction with the Securities and Exchange Board of India (SEBI) and the Reserve Bank of India (RBI).
Policies relating to the orderly growth and development of the securities markets are formulated under the capital markets division of the Ministry of Finance. This ministry seeks to protect the interests of investors through institutional reforms in the securities markets, building regulatory and market institutions, and providing efficient and strong legislation.
FOREX brokers in India must be registered with the SEBI, which is a regulatory authority whose primary goal is to promote and regulate the Indian securities markets. All financial intermediaries, whether domestic or foreign, must be registered with the SEBI.
The RBI regulates financial markets and systems through different legislation. In the case of FOREX, it oversees regulated FOREX brokers through the Foreign Exchange Management Act, which is designed to closely manage foreign exchange inflows and outflows.
Commissions and Fees in India
A first step in FOREX trading is identifying the spread differential, defined as the difference between the bid (sell) price and the ask (buy) price of a currency pair. While most FOREX currency pairs are traded without commission, the spread is one “cost” that applies to any trade that you place. This is, indeed, the biggest source of profit for the FOREX broker. Good companies typically offer a EUR-USD spread of three basis points.
As for commissions, FOREX trading brokers can be placed in three categories. The first offer fixed spreads, while the second tender variable spreads, with a third category of companies offering low-cost spreads but that come with a (relatively high) fixed commission.
Tradable Assets and Instruments
FOREX trading is popular among Indian traders, who, like so many others around the world, view FOREX trading as a way to make extra money. By comparison with European regulators, the SEBI does not mandate guaranteed stop losses, negative balance protection, and tightly controlled leverage. In fact, traders can get leverage as high as 1:400, even though it is highly risky to trade with such high-leverage FOREX brokers. That apart, all the normal market assets can be offered, such as regular FOREX trading, commodities, bonds, cryptocurrencies, exchange traded funds (ETF), and stocks.
Payments, Deposits and Withdrawals in India
Different brokers have their own rules and limits on the size of the deposits, withdrawals, and lots that traders can process. Most India-based FOREX brokers offer all the relevant national payment methods, such as cheques, national electronic funds transfers, real-time gross settlement wires, and credit or debit cards offered by popular carriers. E-wallets are a convenient way for young and tech-savvy traders to transact online. Common methods, like Skrill, Neteller, Paypal and FasaPay, are supported with ease.
FOREX Trading Customer Service
As timing is key to FOREX trading, you must pick a brokerage firm that is able to provide good customer support around the clock. This most notably includes the company representatives being easy to reach, fast and polite, which will in turn spare you of having to worry about problems down the road.
Technical Aspects of the Broker’s Website
When it comes to sharing sensitive personal information online, such as a credit card, cyber security is paramount. You should, therefore, always look out for SSL certification and two-factor authentication (especially when registering with a new site).
To provide our users with peace of mind, we at Arincen have introduced the “Company Checker,” which is an online tool directly linked to the international Website Scamadviser. It is an independent site that checks the countries in which these FOREX Websites are managed, where the server is located, in addition to other security and informational aspects. It ranks FOREX firms by granting them a score ranging from 0% to 100%, with the best FOREX firms usually receiving a score of 90% and above. Any company that has achieved a score lower than 85% should thus be avoided. Simultaneously, whenever looking for a new FOREX broker, users must ensure its Website is fast, modern and user-friendly.
Trading Platforms, Tools and Features
Most FOREX traders demand access to the fastest networks that can support high-volume trades. Indian traders are no different. To this end, India is well suited to handle advanced electronic communications network (ECN) enabled brokers that require the most advanced technology to provide institutional-grade execution speeds.
The majority of FOREX brokers in India offer MetaTrader’s MT4 platform. This is the platform of choice for many FOREX traders as it is a well-developed product that was designed for the sole purpose of trading FOREX. After many years on the market, the platform has a range of detailed charts and helpful indicators that are superior to its rivals. Traders can deploy their own expert advisors (EA) to carry out their trading strategies more efficiently.
Ask Other Traders on Our Network
Arincen has created a collaborative environment where traders of all experience levels come to meet. After all, Arincen’s goal is to simplify the world of trading. Our Website provides a range of powerful tools, like our market-leading signals, rolling news, and a cooperative community where traders of all levels can learn from each other.
Which FOREX broker has the best platform?
FOREX traders of all experience levels will do well to get familiar with MetaTrader’s reliable and highly developed MT4 platform. Some of its best features are helpful research-based insights, responsive charting and deep market analysis packages. However, if you want to push the boundaries of your trading experience, you can try a proprietary platform. If you invest time and effort in this endeavor, Saxo Bank offers advanced trading features and insightful tools with excellent market analysis.
Which FOREX broker charges the lowest fees?
You will find that FXDD’s ECN account comes with the lowest fees. No matter your trading experience level, there is a pricing tier that caters to your needs.
Which FOREX broker offers the most CFDs?
According to our research, CMC Markets and IG offer the widest range of CFD selections.
Which FOREX broker offers the most assets?
CMC Markets and IG are the two FOREX brokers we would not hesitate to praise for the widest and most comprehensive range of financial assets.
Which FOREX broker is best for professionals?
Professional traders are not always easy to please. They have invested time to master the trading landscape and will not accept platforms that offer slow execution times or limited functions. Elite traders are also searching for a platform that features in-depth market analysis that comes with advanced indicators that help them make better decisions. In this case, you should look to the best FOREX brokers that use MT4, an industry mainstay that offers all of the above.
Best 7 FOREX Brokers and Platform in India
Take a look at our expert’s top 11 FOREX brokers in India for 2023
FXDD 92.15 - Best Overall Broker
ICM Capital 91.10 - Best Deposit and Withdrawal Broker
XTB 85.55 - Best Customer Service Broker
IG 85.45 - Best Regulations Broker plus Convenient Platform
Think Markets 80.05 - Aimed at the Audience of Traders
FXDD received the highest score in our survey (92.15). One of the first FOREX companies to offer a credit card in order to allow traders to withdraw their profits, this New York-based company has the UK's FCA license under its belt. It also has a rich portfolio of assets, offers a relatively low spread, in addition to the MetaTrader4 (MT4) platform. Further, it has excellent and fast customer service, and also offers traders a variety of ways to deposit money.
CM Capital is considered the industry leader in deposits and withdrawals, whereby each withdrawal does not take more than five business days. Moreover, the company offers its customers a handy credit card to withdraw their profits, in addition to enabling customers to use various deposit methods. The company, which is licensed by the UK's FCA, has several branches around the world. Among other things, it has a rich portfolio of assets, especially stocks, offers a low spread, as well as the ability to use MT4.
What distinguishes XTB is the fact that it offers the best customer experience among all the companies we have surveyed. Indeed, it boasts the fastest response rate from all the companies under investigation. This is especially relevant, since the market is always on-the-go, and so you need to act fast. XTB offers lots of asset classes, as well as the ability to use the MT4 trading platform. Finally, it maintains a relatively low spread, which is suitable for quick deals.
IG is arguably the best broker when it comes to security and trust, boasting, as it does, licenses from 10 regulatory bodies, including the all-important FCA from the UK. The company is also a bank and is a publicly traded company in London. It is known for offering more than 10,000 asset classes of currencies, commodities, future contracts, ETFs, indices, cryptocurrencies etc. Further, it has its own state-of-the-art trading platform and offers a relatively low spread.
Saxobank is considered one of the best investment banks in the area of financial markets and currencies, as it offers the very best trading platform and tools from all the companies we have reviewed. Meanwhile, its spread is very low and, as such, suitable for short-term deals; and it offers a large number of asset classes, including currencies, commodities, indices etc. Finally, its customer service is excellent and very responsive to traders' needs.
CMC Markets is thought of as one the best companies, offering some 9,000 asset classes that encompass currencies, commodities, indices, cryptocurrencies, bonds and stocks. The company offers a relatively low spread, the MT4 platform, and fast customer service. It is most suited for traders looking for diversity in asset classes.
Originally founded in New Zealand in 2010, and moving to Australia within the space of their first two years, Think Markets is a global online brokerage focusing on FOREX and CFD trading. In addition to a range of major and minor currency pairs. Think Markets has an array of CFDs on offer. This includes indices, as well as hard and soft commodities.
At the get-go, it is important to learn more about regulatory bodies and their role in the FOREX market. These are government entities charged with regulating the sector. Their role is two-fold:
1. Observing andregulating the work environment in the FOREX market; and 2. Protecting investors and their funds.
FOREX firms must at least obtain one license from a relevant regulatory authority. Otherwise, they should be avoided at all times. In this context, we present the five most important FOREX market regulatory bodies from around the world.
While FOREX market regulatory bodies exist in almost every country, these are the most important five and also the strictest. To learn more about other regulatory bodies, please visit en.arincen.com, where you will find a comprehensive global database.
How to Verify that Your Broker Has Authorization
To check if a FOREX broker is regulated by the SEBI, you simply need to find the SEBI registration number on the broker's homepage. From there, you can look up the licensing number on the financial register available on the SEBI’s Website to confirm if the broker is currently licensed in India.
In this introduction, we looked at the best FOREX brokers in India. We began by identifying the best five FOREX brokers in the country, listing and ranking them by their Arincen trustscore. We then briefly described the regulatory environment governing these companies (more on this later on in the article). Finally, we advised readers how they should go about ensuring that the broker they are looking into is licensed by a tier-1 regulator, such as the ASIC, and, therefore, deemed trustworthy.
The Dos and Don’ts of FOREX Brokers
One of the first things a new FOREX trader ought to do is to check the extent to which the FOREX company abides by the rules and regulations governing its operation. Emphasis must be placed on what it can and cannot do.
There are seven things brokerage firms cannot do:
The FOREX brokerage firm cannot recommend a buy or sell;
The FOREX brokerage firm must not provide price or market expectations (rise/fall);
The FOREX firm cannot control your financial dealings (deposit/withdrawal);
The FOREX brokerage firm should not “manage” your portfolio under any circumstance;
The FOREX brokerage firm cannot grant a client a bonus unless there are clear terms guiding it from beforehand;
The brokerage firm must not use bank accounts not under its name; and
FOREX brokerage firms cannot have or offer the service of account managers.
In short, the role of brokerage firms is strictly confined to facilitating buyers and sellers to come together toward an agreed-upon commission. FOREX brokerage firms that violate any of the aforementioned seven rules should be avoided. However, should the trader wish to receive any of the above-mentioned services, our advice is to seek an expert Website like Arincen, something we will delve into toward the end of this article.
FOREX Trading Scams and How to Avoid Them
The SEBI broadcasts occasional public service announcements designed to educate traders about the pitfalls of trading with sub-standard brokers who expose them to scams. Although India has a large and thriving investor network, it is not always associated with having the most informed trader base. Many scams are known to have taken hold in the country, targeting ill-informed and new traders. Besides the SEBI, other regulators such as the RBI have also been known to share information about scams.
Will Your Money Be Protected If Your Broker Becomes Insolvent?
The Investor Education and Protection Fund (IEPF) was established by the Government of India in 2016 with the main objective of promoting awareness among investors. The IEPF also carries out practical tasks, such as facilitating refunds of shares and unclaimed dividends and matured deposits/debentures to affected investors.
The Investor Education and Protection Fund Authority is responsible for running the IEPF and it works closely with the Ministry of Commerce to adjudicate on a case-by- case basis that investor claims are valid. Therefore, it is not a guarantee that investors affected by broker insolvency will be refunded. This underscores the need to work with well-regulated entities.
What Tools and Platforms Should FOREX Brokers Offer?
Traders of all levels are on the hunt for durable trading platforms with good performance standards that provide an enjoyable and predictable trading experience. When it comes to trading FOREX, brokers must either provide their proprietary platform or an external platform like MetaTrader.
The best brokerage firms develop platforms that can be used by traders with very different requirements. Whether they are Web-based or downloadable, platforms must be trader-friendly and come with helpful features like excellent technical indicators and responsive and informative risk management tools.
Put simply, Arincen is a social networking platform that brings together traders and experts to exchange expertise and ideas. Together, we evaluate the best FOREX companies in the world while offering a compressive suite of services and tools, all in one place, either via a computer or a mobile app. The platform is so rich, one can create his own private portfolio of traders and experts they like and, at the same time, follow their recommendations and investment sentiments.
Further, thanks to Arincen, users can keep an eye on market-price developments, as well as the latest news. Users can also benefit from the network’s educational courses on offer, to say nothing of exciting Webinars, all done in a modern and fast-paced work environment. Get all what you need in one place, not less, not more. In short. Arincen: We Meet to Simplify the Trading World.
If anything, the key message to take away from this article is that the FOREX brokerage firm one picks must be legally licensed and well-regulated. On a final note, it is never advisable to deal with FOREX companies on your own. It is best this is done with the help of industry experts, who can provide you with all the services FOREX companies cannot. Start trading using Arincen and enjoy all the services, advice and tools it has to offer while making your trading experience profitable!
Arincen’s Review Methodology
The team at Arincen collected more than 120 pieces of data covering in excess of 100 licensed FOREX companies. Data collection was done in three ways:
Other Websites that have ranked FOREX companies.
A survey questionnaire (referred to here as Survey “1”) we had sent to the companies invited to participate in the exercise. We have identified 13 criteria for our assessment, each containing several aspects and carrying its own relative weight. These include licensing, deposits and withdrawals, number of assets, etc.
Afterward we validated the data by:
Registering with FOREX companies as a secret shopper and/or as Arincen.
Survey number “2,” in which we asked these companies’ customers for important feedback and past experience.
The next step saw us evaluate and rank each company, relying on the hard work of 15 Arincen employees. We were very careful to ensure the most accurate assessment possible, including taking into account different languages, as well as the various mobile-app operating systems, e.g., Apple, Samsung, etc.
To add credibility to our research project, we sent a final and third survey (referred to here as Survey “3”) to enable participating FOREX companies evaluate our own research and whether it accurately reflects the realities on the ground. We were fortunate enough to receive a mark of 9.9 out of 10! We have kept to a minimum the margin of error, which stood at a measly 1%. To learn more on how we came up with the evaluation, please click here.
Is FOREX trading legal in India?
Yes, trading FOREX trading is legal in India. To operate in the country, the brokerage firm must ensure it is licensed and regulated by the appropriate authorities before it can begin to trade. Indeed, the RBI Website indicates that investors can undertake FOREX transactions only with "authorized persons and for permitted purposes.”
What is FOREX?
The FOREX market is a place where global currencies are bought and sold. It is a large and active marketplace that requires technologically superior tools if you are to participate as a retail trader. The market operates 24 hours a day and five days a week (Monday through Friday), except international holidays.
What is FOREX trading?
FOREX trading involves buying and selling different worldwide currencies for a profit. Retail traders select a currency pair and, in anticipation of market-driven changes in value, wait for the right moment to make a sale for a profit.
What costs and commissions are associated with FOREX trading?
FOREX brokers charge any combination of commissions, spreads, and financing fees. Brokers can either charge a spread (the difference between the buy and sell price of a currency pair) and include their facility fee in the spread, or they can charge only a market rate spread and levy a commission per trade outside the spread.
Financing fees come into play if you hold your position overnight. You must pay a financing cost for the benefit of keeping your positions open for an extended time.
How important is good customer service in FOREX trading?
Reliable and knowledgeable customer service is crucial to FOREX traders as they require immediate assistance in a rapidly-moving marketplace like FOREX. Customer service staff members should be always accessible and must be well-trained to respond with speed and accuracy in times of difficulty.
Is FOREX trading taxable in India?
FOREX trading is taxable in India. Proceeds from this activity must be taxed under “income from other sources” at the rate applicable to individuals. We recommend you speak to a tax expert to understand the full requirements.
Adrian Ashley is a seasoned business and finance writer. With a corporate career spanning over 20 years, he has developed deep experience in such diverse areas as investing, business, finance, technology and macroeconomics.