What is Forex Trading?
Forex trading is short for foreign currency exchange in a global decentralized market where significant currencies are changed, sold, or bought. It is a vast financial affair gaining many people’s interest as time progresses. Forex trading was an underdog in India until it experienced increased participation from retail traders due to easy accessibility through online trading platforms.
Today, several forex traders in India are participating in safe and authorised trading through SEBI and RBI-regulated broker platforms. Forex trading in India supports only four major currencies, including the Dollar, Euro, Yen, and Pound, but they are high-value and renowned currencies.
Best Forex Trading Platform in India
SEBI-regulated and RBI-approved forex trading platforms are ideal for Indian traders.
Below is a list of the best RBI forex trading online platforms in India:
Angel Broking
This forex broker provides free full-time service to Indian traders with a wide range of trading assets, including commodities, equity, futures, options, and currencies. It also provides technical reports on trading without charging extra money. Angel One’s advanced tools like Speed Pro, trade, app, and Prime are designed to suit different trading needs.
Zerodha
Another well-known broker platform in India is Zerodha, founded in 2010. It is specifically beneficial for discount stock broking but requires a minimum deposit of 300 rupees. The platform has other perks, like access to a free trading calculator, easy deposits and withdrawals without additional charges, and easy transactions through UPI.
Axis Direct
A broker platform associated with Axis Bank, one of the biggest banks in India. It does not require charges for account opening but has high maintenance charges. The best feature of this broker is the provision of a 3-in-1 account combining bank, demat, and trading accounts into one for easy management. It has certain additional features like real-time market updates and free educational resources on trading.
ICICI Direct
The ICICI bank provides free 3-in-1 accounts for Indian traders with access to Equity, Commodity, Currency, Futures, and Options trading assets. Although account opening charges are free, the equity delivery brokerage is high compared to other Indian broker platforms. The perk of trading with ICICI Direct is access to various account types catering to different needs and providing different rewards. Moreover, it provides educational materials through well-researched articles and an i-learn app.
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Forex Trading Strategies
Many online forex trading strategies are often used by traders to enhance their performance and trading skills. Creating a strategy catering to the needs and goals of the trader is the identity of a successful forex trader.
Moving Average Crossover
This strategy best determines the entry and exit time when two different moving average lines merge at one point. The crossover point can help you identify where the trend is about to change so that you can choose the best entry spot in the market.
Gap and Go Trading
Often used in stock trading, the gap and go strategy identifies the gapers, which are points where no trade has occurred. The gap could be due to changed trading strategy, news announcements, etc., but it helps identify the rise or fall of the stocks. If the gap is situated below the trading mark, then there’s been a hike in the stock price and vice versa.
Scalping
This forex trading strategy results in small gains in quick periods and includes keeping a keen eye on the small market movements. This technique is volatile and risky but great for people who like smaller wins in a short time.
Pull Back Trading
Pullback trading, also known as reversal trading, is betting contrary to the present market prices, hoping it will “reverse” later. If you are sure about a currency’s downfall at a specific time, but its current value is much higher, then you can use this strategy to gain profit when the currency value drops.
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Best Forex Trading App in India
Many trading brokers offer a mobile application to soothe the trading experience and make trading convenient and accessible. In India, several global forex trading platforms are accessible through mobile apps, and some are as follows:
Forex4You Mobile App
It is considered one of India’s best forex trading platforms, offering great resources like research tools and educational materials. With this broker, you can access 30 technical indicators, 20 drawing tools, and a wide range of charting options. Moreover, regular alerts, economic calendars, watch lists, and sentiment readings are some of the additional features of this broker.
Bloomberg Business Mobile App
This application does not support trading, but it provides excellent insight into the concept through a wide range of resources. This app can be helpful for beginners in forex trading as it covers fundamental concepts and provides the latest financial news and video content.
Best Books and Courses to Learn Forex Trading
Trading Forex can be challenging without understanding basic concepts and gaining insight into the forex markets. Comprehensive books and courses on trading are great ways to learn the basics of forex trading as well as gain motivation from people’s trading journeys. We have mentioned some of the best Forex Trading books below:
“Japanese Candlestick Charting Techniques” by Steve Nilson
The Candlestick charting technique is a great tool for understanding the highs and lows of forex market prices. It was first introduced to traders by Steve Nilson, and it has now revolutionized technical analysis in forex because it’s flexible and works not only for forex trading but also for other assets like equities, futures, etc.
“Forex Trading: The Basics Explained in Simple Terms” by Jim Brown
This is the best book on Forex Trading for beginners, as it provides a clear and concise overview of basic trading concepts along with Jim Brown’s story of becoming a self-made trader. This book is meant for people looking for inspiration and who are passionate about forex trading. The simple language makes the book more readable.
“Day Trading and Swing Trading the Currency Market” by Kathy Lien
The managing director and currency analyst of BK Asset Management also wrote a book and shared insights into trading and her journey. The book is a mixture of theoretical and practical knowledge while providing in-depth insight into various trading strategies. It is the best educational resource for experienced traders willing to up their trading game.
Now, look at some exciting Forex Trading Courses that let you learn online trading.
Asia Forex Mentor – One Core Program
This program was founded by institutional trader and trainer Ezekiel Chew in 2008 and is recognized as one of the best comprehensive courses on forex trading. Priced at $997, this course offers 26 lessons covering over 60 sub-topics along with free high-quality tutorial videos, which students can save and refer to at any time. Moreover, the course also offers a 7-day trial for learners to see if the course meets their criteria or not.
Traders Academy Club
Found and Developed by Vladimir Ribakov, this course comes at a reasonable price of $297 only. Despite the comparatively lower charges, there is no lack of educational resources, including real-time trading ideas, free training tools, e-books, and more. Traders Academy Club provides an interactive space for learners with chat rooms, group mentoring sessions, and live trading sessions.
How to Start Forex Trading in India?
Wondering how to do Forex Trading in India? You only require a good internet connection and a functional device to register with a forex broker and start trading. To start forex trading in India, follow the steps given below:
Step 1: Find a Broker
In India, finding a good broker is not difficult because there are many options; you must choose a broker that is regulated and approved by RBI or SEBI to practice forex trading legally. We recommend a broker like Equiity for trading in India, and it’s reliable, authorised, and authentic.
Step 2: Sign Up
After selecting a reliable and authorised broker, the next step is to sign up and create an account on the platform by filling in the required information.
Step 3: Add Funds
Once registered with the broker platform, log into your account and add funds as per your preference, but it should not be less than the minimum deposit required by the broker.
Step 4: Start Trading
Now, you can start your trading journey with your demo or live trading accounts. If you are a novice trader, practicing with a demo account before jumping into the real trading world is recommended.
Conclusion
Forex Trading in India has great scope as long as traders adhere to the SEBI and RBI regulations and perform trading authentically. There are plenty of educational resources like books, online courses, etc., which allow everyone the opportunity to learn and trade on forex and other markets.
We wish you good luck on your trading journey!! May you stay safe and mint money.
FAQs- Frequently Asked Questions
What is Forex Trading and How Does it Work?
Forex trading meaning is a foreign currency exchange on the global financial market. It lets you buy, sell, or exchange currencies to gain profit with an increment of currency values. Trading also comes with certain risks as the currency value can also drop down, incurring loss to traders. Forex trading takes place through online trading broker platforms.
What is Leverage in Forex Trading?
Leverage is similar to loans, which traders use to hold a large position with a small capital investment. Trading with extremely high leverage can be risky as the loss incurred will be higher.
How to Open a Forex Trading Account?
To open a Forex trading account, simply select the broker you want to perform trades on, sign up and verify the account, then add funds and start trading. It is that simple!
How to Pay Tax for Forex Trading in India?
Paying forex taxes in India requires a record of all transactions and profit gains and the filing of an annual income tax return using Form ITR-4. Also, be aware of the GST charges, which are typically 5% to 18% of the earned profit.
What is the Margin in Forex Trading?
Margin is a forex trading tool used for opening and maintaining a trade position and holding larger positions with small capitals.
Why is Forex Trading Illegal in India?
Forex trading is not illegal in India, but there is a rule for strict adherence to SEBI and RBI trading rules. The punishment for forex trading in India is severe. People who do not abide by the trading rules will be penalised.
What are Pips in Forex Trading?
The term “pip” stands for “percentage in point” which, apart from being a unit of measure of currency pairs, represents the smallest price movements made during currency exchange rate.
Which App is Best for Forex Trading in India?
Forex4You is considered to be the best forex trading mobile app in India due to its wide range of tools and features.
How to Learn Forex Trading?
There are many educational resources like comprehensive courses, books, video tutorials, etc. Vault Markets provides an array of free learning resources best suited for novice traders.
What is Forex Line Trading?
Line trading is a trading strategy used to analyse the market and predict price movements by observing the trendlines on the chart.
What’s the Forex Trading Time in India?
The Forex Trading Market in India is open from 9 am to 5 pm and seven days a week. However, due to global currency, trading timings can often overlap; as a result, open hours may last up to 7:30 pm.
Is Forex Trading Legal in India?
Forex trading in India is legal but only with strict adherence to the rules of financial regulators such as RBI or SEBI. Failure to do so can have drastic consequences under the Federal Emergency Management Agency or FEMA and even lead to penalisation of the convict.
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