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AuthorBy Jeffrey Cammack
Updated: October 22, 2020

India is one of the largest Forex trading markets in the world, in 2019 the average daily volume of Rupee (INR) trading stood at an astounding 34.49 billion USD. While the majority of the market is made up of large banks and institutional investors, there are many millions of retail Forex traders in the country too and most of the well-respected Forex brokers offer their services to Indian residents.

While most of the best Forex brokers are open to Indian traders, most of them are not regulated by the Securities and Exchanges Board of India (SEBI) – as this would require them to abide by extensive currency exchange restrictions, including a ban on trading with most currency pairs.

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All these brokers are safe, but when choosing one to trade with you should consider trading conditions (spread, commission, leverage), educational support, trading platforms, customer service and deposit/withdrawal fees. Use the filters on the left to narrow down the list to find the perfect Forex broker for you

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Best Forex Brokers in India 2021

Last updated on 22 Oct 2020
Updated 22 Oct 2020
by Editorial Director Jeffrey Cammackby Jeffrey Cammack
Jeffrey Cammack
All Brokers Regulated
All Brokers Regulated
by Trusted Authoritiesby Trusted Authorities
Trusted
1
AvaTrade
Min. Deposit
GBP 100
4.484.48
Min. Spread
0.90 pips
Fx Pairs
50+
REGULATED BY
Overall Rating
11110.54.48/ 5
AlertAccepts UK Clients. Average spread EUR/USD 0.9 pips on trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4 & MT5 platforms supported. AvaTrade Group regulated by ASIC, FSCA, B.V.I FSC & FSA. 72% of traders lose money with this provider.
2
XM
Min. Deposit
GBP 5
4.254.25
Min. Spread
0.60 pips
Fx Pairs
57
REGULATED BY
Overall Rating
11110.54.25/ 5
AlertAccepts UK Clients. Average spread EUR/USD 1.60 pips on trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4 & MT5 platforms supported. XM Group regulated by CySEC, ASIC, and the IFSC. 77.19% of traders lose money with this provider.
3
eToro
Min. Deposit
GBP 200
3.693.69
Min. Spread
1 pips
Fx Pairs
52
REGULATED BY
Overall Rating
1110.503.69/ 5
AlertAccepts UK Clients. Average spread EUR/USD 1 pips on trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. Only eToro proprietary trading platform supported. eToro is regulated by CySEC, FCA, and ASIC. 67% of traders lose money with this provider.
4
Pepperstone
Min. Deposit
GBP 5
4.614.61
Min. Spread
0 pips
Fx Pairs
80+
REGULATED BY
Overall Rating
11110.54.61/ 5
AlertAccepts UK Clients. Average spread EUR/USD 0.69 pips with 0.0 USD commission round turn on the trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4, MT5 & cTrader platforms supported. Pepperstone is regulated by the FCA, ASIC, and the DFSA. 79.3% of traders lose money with this provider.
5
easyMarkets
Min. Deposit
GBP 25
3.983.98
Min. Spread
0.90 pips
Fx Pairs
103
REGULATED BY
Overall Rating
1110.503.98/ 5
AlertAccepts UK Clients. Average spread EUR/USD 2 pips on trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4 & the proprietary easyMarkets platform are supported. easyMarkets is regulated by CySEC, ASIC, and the FSA in Seychelles. 73% of traders lose money with this provider.
6
FXCM
Min. Deposit
GBP 50
4.134.13
Min. Spread
0 pips
Fx Pairs
40
REGULATED BY
Overall Rating
11110.54.13/ 5
AlertAccepts UK Clients. Average spread EUR/USD 1.30 pips on trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4 & Ninja Trader platforms supported. FXCM is regulated by FCA, ASIC, and the FSCA. 76.31% of traders lose money with this provider.
7
CMC Markets
Min. Deposit
GBP 5
4.694.69
Min. Spread
0.70 pips
Fx Pairs
330
REGULATED BY
Overall Rating
11110.54.69/ 5
AlertAccepts UK Clients. Average spread EUR/USD 0.70 pips on trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4 & CMC Proprietary platforms supported. CMC Markets is regulated by the ASIC, FCA, MAS and the FMA. 76% of traders lose money with this provider.
8
Go Markets
Min. Deposit
GBP 200
4.104.10
Min. Spread
0.20 pips
Fx Pairs
50+
REGULATED BY
Overall Rating
11110.54.10/ 5
AlertAccepts Australian Clients. Average spread EUR/USD 1 pips on trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4 & MT5 platforms supported. Go Markets is regulated by ASIC.
9
Tickmill
Min. Deposit
GBP 100
4.124.12
Min. Spread
0 pips
Fx Pairs
60+
REGULATED BY
Overall Rating
11110.54.12/ 5
AlertAccepts UK Clients. Average spread EUR/USD 0.20 pips with 4 USD commission round turn on the trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4 platform support. Tickmill is regulated by CySEC, FCA, FSCA, and the FSA-Seychelles. 73% of traders lose money with this provider.
10
IC Markets
Min. Deposit
GBP 200
4.464.46
Min. Spread
0.10 pips
Fx Pairs
60
REGULATED BY
Overall Rating
11110.54.46/ 5
AlertAccepts UK Clients. Average spread EUR/USD 0.10 pips with 7 USD commission round turn on the trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4, MT5 & cTrader platforms supported. IC Markets is regulated by CySEC and ASIC.
11
HYCM
Min. Deposit
GBP 100
4.184.18
Min. Spread
0.20 pips
Fx Pairs
38
REGULATED BY
Overall Rating
11110.54.18/ 5
AlertAccepts UK Clients. Average spread EUR/USD 1.20 pips on trading account with lowest minimum deposit. Max leverage 500:1. Islamic account available. MT4 platform supported. HYCM is regulated by CySEC, FCA, and the DFSA. 74% of traders lose money with this provider.
12
IG Markets
Min. Deposit
GBP 250
4.694.69
Min. Spread
0.60 pips
Fx Pairs
93
REGULATED BY
Overall Rating
11110.54.69/ 5
AlertAccepts UK Clients. Average spread EUR/USD 0.60 pips on trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4, ProRealTime and L2 Dealer platforms supported. IG Markets Group is regulated by FCA, ASIC, and the FSCA. 75% of traders lose money with this provider.
13
BDSwiss
Min. Deposit
GBP 100
4.324.32
Min. Spread
1.40 pips
Fx Pairs
50+
REGULATED BY
Overall Rating
11110.54.32/ 5
AlertDoes not accept UK Clients. Average spread EUR/USD 1.50 pips on trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4 & MT5 platforms supported. BDSwiss is regulated by CySEC, FSC, and the FSA-Seychelles.*Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75.3 % of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
14
FP Markets
Min. Deposit
GBP 100
4.284.28
Min. Spread
0 pips
Fx Pairs
60+
REGULATED BY
Overall Rating
11110.54.28/ 5
AlertAccepts UK Clients. Average spread EUR/USD 0.10 pips with 6 USD commission round turn on the trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4& MT5. FP Markets is regulated by CySEC and ASIC.
15
Admirals
Min. Deposit
GBP 100
4.244.24
Min. Spread
0.70 pips
Fx Pairs
50+
REGULATED BY
Overall Rating
11110.54.24/ 5
AlertAccepts UK Clients. Average spread EUR/USD 0.50 pips with 0.0 USD commission round turn on the trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4, MT5 & MT4 Supreme Edition platforms supported. Admiral Markets is regulated by ASIC, CySEC, the JSC, and the FCA. 76% of traders lose money with this provider.
16
XTB
Min. Deposit
GBP 5
4.144.14
Min. Spread
0.80 pips
Fx Pairs
49
REGULATED BY
Overall Rating
11110.54.14/ 5
AlertAccepts UK Clients. Average spread EUR/USD 0.50 pips on trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4 & xStation platforms supported. XTB Group is regulated by CySEC CySEC, FCA and the IFSC. 82% of traders lose money with this provider.
17
IronFX
Min. Deposit
GBP 50
4.194.19
Min. Spread
0 pips
Fx Pairs
85
REGULATED BY
Overall Rating
11110.54.19/ 5
AlertAccepts UK Clients. Average spread EUR/USD 1.10 pips on trading account with lowest minimum deposit. Max leverage 1000:1. Islamic account available. Only MT4 platform supported. IronFX is regulated by CySEC, FCA, ASIC, and the FSCA. 75.35% of traders lose money with this provider.
18
TrioMarkets
Min. Deposit
GBP 500
3.643.64
Min. Spread
0 pips
Fx Pairs
63
REGULATED BY
Overall Rating
1110.503.64/ 5
AlertAccepts UK Clients. Average spread EUR/USD 2.40 pips on trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4 & Sirix platforms supported. TrioMarkets is regulated by CySEC and the FSC. 73.6% of traders lose money with this provider.
19
InstaForex
Min. Deposit
GBP 1
3.323.32
Min. Spread
0 pips
Fx Pairs
110
REGULATED BY
Overall Rating
1110.503.32/ 5
AlertAccepts UK Clients. Average spread EUR/USD 3 pips on trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4 platform supported. Instaforex is regulated by CySEC and FSC (British Virgin Islands). 71.71% of traders lose money with this provider.
20
Trade.com
Min. Deposit
GBP 100
3.423.42
Min. Spread
1.80 pips
Fx Pairs
55
REGULATED BY
Overall Rating
1110.503.42/ 5
AlertAccepts UK Clients. Average spread EUR/USD 4 pips on trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4 platform supported. Trade.com is regulated by CySEC, FCA and the FSCA. 71.36% of traders lose money with this provider.

    Is Forex Trading Legal in India

    India is an interesting case for retail Forex traders as there are several laws relating to Forex trading that make it difficult to trade in the country.

    As per the Foreign Exchange Management Act (FEMA) laid down by the Reserve Bank of India (RBI), all Forex trading is effectively outlawed. The only exceptions are four currency pairs that include the INR (EUR/INR, GBP/INR, JPY/INR and USD/INR) and the EUR/USD, GBP/USD and USD/JPY.

    In a further complication, these pairs can only be traded through the three national exchanges, the National Stock Exchange (NSE), the Bombay Stock Exchange (BSE) and the Metropolitan Stock Exchange (MSE), by licenced Indian brokers.

    So, why does the RBI have these restrictions in place? If you were an Indian institutional trader and you were trading the GBP/USD with a foreign broker, if you lost your trade, you would have to purchase USD from the RBI to settle your debt.

    Forex trading is a high-risk venture, and institutional traders can lose money on their trades, and the RBI could stand to lose a significant amount of USD through this process. To counteract this outflow of US dollars, the RBI would be forced to purchase USD by overselling the INR, and this would lead to a devaluation of the INR.

    In effect, the RBI enforces strict regulation on Forex trading to protect the INR from unintended weakness against global currencies.

    But when we are trading Forex CFDs, we are not actually trading the underlying asset (currencies in this case). There is never any ownership of the currency by either party, and no currency ever actually changes hands – so CFD trading manages to sidestep this law. But, in a further blow, the FEMA Act also makes it illegal for Indians to send INR overseas to be converted into foreign currencies – as you would if you were depositing money with an international broker.

    The final nail in the coffin is the outright ban on using online platforms to trade CFDs. This means that the only way to trade Forex in India legally is to place trades directly with a SEBI-regulated broker, without leverage, on the few legal currency pairs. All online Forex trading is effectively outlawed.

    Forex Trading Regulation in India

    In December 1999, the Indian parliament passed the Foreign Exchange Management Act (FEMA) which was to be enforced by the Securities and Exchange Board of India (SEBI) and modernised the laws that governed Indian financial services companies and expanded their reach to include all of India.

    SEBI, under the direction of FEMA, regulates the Foreign exchange market by setting processes for its maintenance and growth, and today SEBI licenses all Indian Forex brokers. SEBI-regulated Forex brokers only offer currency pairs that include the INR against the USD, GBP, EUR and JPY. This law states that a fine will be applied unless authorities have previously granted an exception.

    Trading with Offshore Brokers in India

    As mentioned above, trading online CFDs is currently illegal in India, but so far the government has turned a blind eye to the many millions of retail CFD traders in the country. The easiest way to trade Forex CFDs is to trade with an internationally based broker, also known as an offshore broker.

    Most of the larger international brokers are well-regulated by trusted government authorities, the most trusted authorities in the world are:

    It is crucial to choose a broker that is regulated by at least one of these authorities, and you will find that some are regulated by more than one. The FCA is seen as the most rigorous of these authorities, as they charge a much higher licencing fee and require brokers to have more operating capital than ASIC or CySEC.

    Brokers with regulation from one of these authorities often have regulatory oversight from smaller, more lenient, regulators too. This allows them to offer a different range of products to overseas clients, for instance: The UK’s FCA requires that maximum leverage is set at 30:1, but an FCA-regulated broker with a subsidiary company regulated by the Mauritius Financial Services Commission (FSC) would be able to offer leverage of 400:1 to clients outside UK and Europe.

    While regulators like the Mauritian FSC are not as well regarded as the FCA, ASIC or CySEC, it is important to note that all the brokers we recommend for Indian traders are regulated by at least one of the major regulators alongside any smaller, more lenient authorities.

    How we rate Forex Brokers in India

    There are several factors we asses when rating Forex brokers for Indian traders; we have already discussed the most critical factor (regulation) above, but we also pay close attention to the following areas too:

    Broker Type

    Choosing what broker type you want is probably the most crucial decision you will make a when selecting a Forex broker. Most brokers offer commission-free trading; these are usually market maker brokers – these brokers will create an artificial market and will always be the counterparty to your trade, meaning that when you win, they lose and vice versa. Because this type of brokers sets the market prices, they also tend to offer fixed spreads, which many traders prefer to the volatility of floating spreads.

    Some traders are uncomfortable with the inherent conflict of interest in the market maker model and prefer to use Electronic Communication Network (ECN) brokers. ECN brokers use a network of liquidity providers to be counterparty to your trade, thus ensuring direct market access. ECN brokers will charge a commission per trade for access to the market and spreads are variable but almost always tighter than a market maker. ECN brokers are also known as direct market access (DMA) brokers.

    Some brokers will also offer Straight Through Processing (STP) execution, meaning that there is no dealing desk intervention and your order will be sent straight through to a liquidity provider. STP execution is also much faster than standard execution, ensuring less slippage or requotes on your trades. 

    Trading Conditions

    It is important to find a broker with the trading conditions that will support your trading strategy. Think about how much leverage you want to have available; keeping it low (100:1 or less) is a good idea if you are still learning how to trade. Also, consider what account currencies are supported by the broker and what currency pairs you want to trade, you do not want to be spending a fortune in conversion fees.

    Other trading conditions to consider will be how tight the spreads are on the currency pairs you will want to trade, and what other assets are available that you may wish to trade. Most Forex brokers will also offer CFD trading on commodities (such as oil, gas, etc.), precious metals (gold, silver, etc.), indices (FTSE, DAX, NYSE) and cryptocurrencies (Bitcoin, Ethereum, Monero, etc.).

    Account Types

    Consider the different account types on offer at your broker, most brokers offer swap-free Islamic accounts, and all brokers will offer demo accounts to practice with – the best demo accounts are unlimited and perfectly mirror the real market.

    Other popular account types are copy trading and social trading accounts. These will allow you to copy successful traders, who will then take a cut of your profits. A similar idea is the PAMM (Percentage Allocation Money Management) Account which is a pooled money operation, where the members of the money pool can choose what proportion of their account they want to allocate to a particular trader.

    Trading Platforms

    It is important to choose a trading platform and find a broker that supports that platform. MetaTrader 4 (MT4) is a safe choice as it’s the industry standard, and there is a multitude of online tutorials. However, it is gradually being replaced with MetaTrader 5 – which has a more modern look and feel and has many features missing from MT4. cTrader is another popular platform but is only available via ECN broker, cTrader significantly limits broker intervention and has been praised for its intuitive layout and modern features.

    Broker Fees

    We always check for additional broker fees that may be charged, and so should you.

    Brokers generally make their money from the spread, or from commission in the case of ECN brokers, but some will also charge additional fees to boost their profits further. The most common charge is withdrawal fees, and it is good practice always to ask your broker if and how much they charge for withdrawing from your account. Generally, withdrawals fees are cheaper or non-existent when online payment systems (such as Skrill) are used for funding your account.

    We always highlight any extra fees charged by brokers in our reviews and will penalise brokers with extortionate fees.

    Customer Service

    Customer service is in your native language is important, and many brokers offer full support in Hindi. The best customer service will be available by live chat, email, messaging apps and over the phone. Many brokers will also offer a call-back service, so you don’t have to make expensive international calls.

    Good brokers offer customers support 24 hours a day, Monday-Friday and a few brokers will also offer weekend service. If you are new to Forex trading, you will want a broker with responsive technical support and customer support representatives with an in-depth knowledge of their products and platforms.

    Education and Research

    High-quality Forex education is essential for new traders, many of the larger brokers offer excellent structured Forex courses for beginners, and a few will also have courses covering more advanced topics, like strategies and indicators. If you want to be a successful Forex trader, you will never stop learning, so having a broker with excellent educational resources is critical.

    Alongside educational support, a good broker will also have an in-house analytical team offering insightful market analysis on a daily, if not hourly, basis. Many brokers often leave market analysis to third-party companies such as Trading Central or TradingView; while these applications are both useful, we find that brokers with internal research teams often provide a more focused analysis of trading opportunities and more helpful information for new traders.

    What you will need to open a Forex trading account in India

    As strange as it may seem, Forex CFD trading is growing incredibly fast across India, despite being effectively outlawed.

    If you are considering starting to trade Forex from India, there are two precautions that you may want to take to avoid any possible repercussions from your bank or the government.

    1. Use an e-Wallet such as Skrill: In 2013, the RBI made it clear in its guidance note RBI/2013-14/265 that banks who allow their clients to send money overseas for the purpose of CFD trading would be in contravention of the FEMA Act and would face prosecution. With an e-wallet, you can avoid the Indian banking sector entirely.
    2. Use a VPN for Trading: If you are concerned that your Forex trading activity may be monitored, then use a Virtual Private Network (VPN) provider to route your activity through an anonymous portal. 

    While the Indian government frowns on Forex CFD trading, the laws are not enforced strictly, and with these methods, you should avoid any issues. It is also worth noting that India is currently undergoing a fundamental change in the way the economy is governed, and these laws are likely to change over the next few years. 

    In addition to taking these precautions, Forex brokers will also require your proof of identity and proof of residence before allowing you to open an account. Some brokers may also want to verify your financial literacy before allowing you to trade Forex – this may take the form of a simple questionnaire and it’s important to pay attention to the outcome of this test. If your financial literacy is weak, you should not be trading Forex – it is a high-risk venture even for those with many years’ experience.

    It is also important to remember that Forex brokers will only let you withdraw via the same method of your original deposit, so make sure that you are willing to pay the withdrawals fees associated with your deposit method.

    Islamic Forex Accounts in India

    Most Forex brokers in India offer Shari’ah compliant accounts to make sure that your trading is not haram – though this does mean that there are a few differences when compared to traditional Forex accounts.

    Islamic Forex accounts have two underlying attributes:

    Other than the above, Islamic Forex accounts usually have the same trading terms and conditions as a regular Forex account. However, some most Forex brokers change the commercial terms of trading with them and might limit the trader from trading cryptocurrencies. 

    Some Forex brokers will widen their spreads on Islamic accounts to compensate for the missed revenue that would otherwise have been generated by collecting interest. Another practice, but is far rarer, is that some Forex brokers charge an up-front commission on trades instead of widening the spreads.

     

    References

    Featured Brokers

    Trading Forex and CFDs is not suitable for all investors and comes with a high risk of losing money rapidly due to leverage. 75-90% of retail investors lose money trading these products. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

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