Forex Trading Companies List with Legal Platforms

Forex trading or foreign exchange trading in India means trading in foreign currencies. And foreign exchange companies are those companies that provide investors with forex services including the purchase of foreign currency in exchange for INR. Since the advancements of communication and access to the global markets has increased, the value of foreign exchange markets has also enhanced. This has led to the increase in the volumes of foreign exchange market in India.

How to Choose the Best Forex Broker App for Trading in India?

Some of the important points that you should consider while choosing the best forex trading company in India include:

Check the Authorization

The foreign exchange company that you choose should be authorized by a national bank which is into dealing with India’s foreign currency market. An RBI authorized company is a preferred option as it regulates and mandates the norms. Moreover, ensure that the company adheres to the guidelines by Foreign Exchange Management Act (FEMA).

Exchange Rate

Second point that you should consider while choosing the top foreign exchange company includes comparing the exchange rate provided by different brokers. Check the current rate of the exchange and then compare it with the price rate offered by other companies. Brokers offer different exchange rates according to their profit margin, so choose accordingly.

Experience and Reputation

While making a choice for a foreign exchange company, make sure you check the reputation of the company. In the market, a company’s goodwill matters a lot when an investor is looking for investing their hard-earned money. Make sure you do not fall prey to hidden scams and frauds like other people have in the name of forex trading.

How to Trade in Foreign Exchange in India? What is the Process?

The simple process to start trading in foreign exchange in India is explained below. But before that, ensure that you have thorough knowledge about forex trading. The steps are:

Step 1 – Select a reliable broker to start forex trading. Ensure that the broker is authorized by SEBI (Securities and Exchange Board of Institute) as well as RBI (Reserve Bank of India).

Step 2 – Create a trading account after choosing the foreign exchange broker.

Step 3 – Start with a demo account for practice in trading with virtual money. This way, investors can get comfortable with the trading platform and test their strategies.

Step 4 – After that, create a trading plan. Meaning, make a roadmap and define your goals. Manage risk tolerance and strategy that should be followed. Moreover, work on the factors such as entering and exiting trades, maximum capital for each trade, and risk management.

Step 5 – Once you have practiced, start trading with small amounts of money.

Step 6 – Use tools like stop-loss to implement risk management. This will help in avoiding big losses on trades and protect your capital.

What Are the Top Risk Factors of Foreign Exchange Trading in India?

Leverage Risk: The initial investment, also known as a margin which is required to start foreign exchange trading to get some leverage. There may be a need for the investors to pay some additional amount as a margin due to the fluctuations in the prices leading to a margin call.

Interest Rate Risk: International investors might look for increasing their investment in the country which leads to an increase in the demand and are capable of boosting the value of the currency of a specific country when its interest rate increases. As a consequence, the currency of that country weakens due to the decrease in the interest rate and withdrawal of investment.

Transaction Risk: This risk is associated with the time period from the starting of a contract until it has been settled. According to the changes in the currency, transaction risk is one of the main issues that are associated with foreign exchange trading. The exchange rates might also differ before the settlement of a trade because of the 24-hour nature of foreign exchange trading.

Counterparty Risk: In foreign exchange, there is another risk known as the counterparty risk wherein the counterparty is a company which sells assets to the investors who are interested. There are times when the counterparty is not able to execute their end of the agreement during a transaction. This is known as the counterparty risk which is basically true when the market conditions are uncertain.

Country Risk: For various emerging countries, the exchanges rates of their currencies depend on the leading currency such as the USD. It is crucial for the Central Bank of these countries to have sufficient reserves to keep the exchange rate stable. In case of frequent payment fails, the specific company might be subject to depreciation.

What Are Some of the Famous Forex Trading Platforms?

There are multiple forex trading platforms including:

AvaTrade

Ava Trade is an online trading platform. Emanuel Kronitz is the founder and CEO of Ava Trade. It was established in 2006. Ava Trade offers trading tools, trading conditions, educational resources, trading instruments. It provides a user-friendly interface to traders.

Octafx

Georgios D.Pantzis is the chief executive officer of OctaFX. It is also a leading online trading platform. It was established in 2011. OctaFX name was revised to Octa and it is a legal platform for forex trading. It is an international broker.

IG

Basically, an IG refers to Investment Grade, also an online trading platform. Henry Varnum Poor, John Knowles Fitch, and John Moody were the founder of this platform. IG offers the great platform to the online buyer and seller of the stock market.

Exness

Exness is a widely popular forex trading platform that provides the facility of trading in financial markets including, forex (foreign exchange) trading, stocks, indices, commodities, currencies and cryptocurrency. It was founded in 2008 by Petr Valov and Igor Lychagov in Cyprus, Europe.

IC Markets

Andrew Budzinski is the founder of IC market, is an Australian billionaire. It was founded on 30th of Jan 2007. It's headquarter is in Sydney, Australia. IC markets offer forex CFDs, commodities CFDs, Stocks CFDs, Bond CFDs and Index CFDs.

XM

Constantinos Cleanthous is the founder of this platform. Which is a leading platform in the world of trading. And Tasos Anastasiou is the CEO of XMTrading. It is also an international broker.

Vantage

Vintage is the global trading platform, which offers deposit bonus, loyalty program, training account and copy trading. There are multiple founders of this platform such as Kurian Vinod Mohan, Hans Wilsdorf and Alfred Davis. It was established in 1905. And its headquarter is in London. And there are various markets for trade including Forex, Share, Indices, Metals and commodities.

Blackbull

Michael Walker and Selwyn Loekman are the founders of Blackbull market. It was founded in 2014 in Auckland, New Zealand. The company has served thousands of traders from over 180 countries. It is also an international broker that offers to stocks, forex, CFDs and commodities

FP Markets

FP market stands for First Prudential Market. It is a global online investment company. Which offers trading tools, trading platforms, Research materials and so on. Matthew Murphie is the founder of FP Market and an Australian businessman. It was established in 2005. It's headquarter is in Sydney, Australia.

Forex.com

Basically, it is an online US based broker that allows traders to trade in foreign exchange. It offers Fast trade execution, Regulatory licenses, trading platforms and so on. There is no particular founder of this platform but StoneX is the owner of Forex.com.

Check the Reviews Before Choosing a Foreign Exchange App in India

Various factors that we have considered while choosing the aforementioned foreign exchange trading platforms are explained below. According to our research and analysis, the foreign exchange brokers mentioned here are a great fit for new as well as advanced traders. The factors covered:

Account Minimum: The minimum amount that investors need to deposit while creating an account is at zero. This is a great factor which the reviewers have given a thumbs up to. According to the data that we have collected includes about 96.87% positive reviews for this factor.

Fees Charged: Upon research we found out that a good amount of people have rated these foreign exchange companies at 87.90% for the types of fees that they are charging for. The factors included are spread cost, overnight financing costs, guaranteed stops, inactivity fees, and international bank transfers. Few of these brokers have all the factors whereas a few have selective.

Active Trader Discounts: Various of these foreign exchange brokers in India provide investors with Active Trader Discounts. This has been a big 100% positive response from all the traders making it a big win for all the forex trading platforms listed.

Forex Pairs: The foreign exchange pairs that these forex companies cover are more than 50 pairs. Every company has its separate count of forex pairs that they provide to the investors. Due to this vast pool of foreign exchange pairs, these forex trading pairs have received a 90% rating on multiple platforms.

Acceptance of US Traders: Among the list of top foreign exchange companies in India, many companies do not accept traders from the U.S. making the rating drop by 50%.

How to Avoid Forex Trading Scams in India?

Foreign exchange is subject to various scams and frauds. Many investors who do not have all the knowledge about foreign exchange, scams, and how to prevent them have been a target of these frauds. Here are some of the factors that can help you avoid forex scams:

Thorough Market Research: Analyze the market and its trends thoroughly to gain in-depth understanding of how it functions. It is an important step, especially for beginner to avoid face the challenges and risks.

Use Reliable Sources: It is suggested that you use reliable sources to seek advice. They will help you steer clear of various forex frauds and provide various pointers on how to avoid tactics of these scammers.

Avoid Making Hasty Decisions: Beware of those who are asking you to take immediate decisions such as time-sensitive offers. Always remember that the genuine opportunities will not require you to take rushed trading decisions.

Verify Broker Identity: Make sure that the broker you choose is registered under NFA – National Futures Association and CFTC – Commodity Futures Trading Commission. Verification of the legal authorization is of utmost importance to avoid any scams.

Scrutinize Company Instructions: Go through the instructions that the trading company provides you with to ensure safety against potential frauds. This factor will help you keep you safe against frauds.

Check for Flashy Websites: Be cautious of the websites that offer you fast profits and really high ROI. Identify the legit traders because they will very rarely promise high returns in such a short time.

Frequently Asked Questions

Q1. How much money do I need to start trading in Forex?

Ans-There is no any limit or fixed amount that you need to invest in forex, basically it totally depends on the goals, risk tolerance and the broker you choose.

Q2. How can I make money from forex Trading?

Ans-Th initial way to make money from forex is the correct prediction of price movements in the market. If you judge correctly then you will definitely earn money easily.

Q3. Is Forex trading profitable?

Ans- Forex trading can be profitable, because there are several factors that increase the probability of making money online through forex including market knowledge and risk managements.

Q4. Can I start Forex trading with Rs 100?

Ans-Yes, you can start your forex trading after depositing the minimum amount of 100 rupees. Later, it totally depends upon you what amount of knowledge you have to buy or sell the currencies.

Q5. Why is Forex hard to trade?

Ans- Because it needs an adequate amount of knowledge and you need to have patience too for your better growth.

Q6. Does RBI allow forex trading?

Ans-Yes, the Reserve Bank of India allows forex trading in India.