How to do Forex Trading in India?
Trading in foreign currency is known as Forex Trading. You might have noticed that the value of the dollar is going up every day. Dollar exchange rate was Rs. 62 before few days and now it is Rs.64. Investors willing to take advantage of this appreciation in short and medium term can participate in currency trading.
Yes, it is legally allowed to trade Forex within Indian Exchanges like BSE, NSE, MCX-SX. As per RBI guideline, all Indian resident including banks and financial institutions can do forex trading in currency pairs. The main currency pairs are USDINR, EURINR, GBPINR and JPYINR. So, if you are trading with brokers who have membership in mention exchange it is absolutely legal.
How Forex Trading Works?
Forex Trading is same as that of equity trading. In equity trading rate of share matters while in forex trading exchange rate matters. You can buy or sell currency pair as per your expectation of movement in currencies. Please refer to the example given below for better understanding.
Suppose you want to take advantage of growing price of a dollar. The dollar is trading at Rs 64, you feel that price is going to appreciate and expected to reach at Rs 67 in few months you can enter into a long position by buying USDINR contract on the exchange. If the price goes to Rs 67, you get the profit of Rs.3 per dollar. So in the single contract of 1000$ you can earn Rs.3000. After entering into the contract if you see that Rupee is appreciating and dollar price is expected at Rs 63, you can ‘short close’ your position by selling currency future contract. If dollar price goes to Rs 63 you can gain Rs 1 per dollar by squaring off your position. Total gain on a 1000$ contract will be Rs.1000. However, if a dollar moves up and reach Rs 67, you lose Rs 2 per dollar. An investor can square off position anytime during the period of the contract.
You can take similar long and short position in EURINR, GBPINR or JYPINR.
Brokers for Forex Trading.
Forex Trading can be done with register Indian brokers. Most commonly used exchanges are MCX-SX – Multi Commodity Exchange and NSE – National Stock Exchange. At the international level exchange, COMEX is used as regulators. The currency market is regulated by RBI and SEBI. Best Brokers offering Forex Trading services in India are –
Forex Trading or Currency Trading is Risky and not for everyone.
Trading in forex carries a high level of risk and it may not suits everyone. Before deciding to do forex you should consider your investment objectives, risk carrying capacity and level of experience.
If you have any queries related to Forex trading it is advisable to take advice from an independent financial advisor.
Do you deal in forex trading if yes; Do share your experience!
Article by Raviraj.
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2 Comments.
Very Informative. The article answered many of my questions. Thanks and keep it up.

How to trade forex from india

H e had an ideal, high-paying managerial job at 23 and did not need to give it up for what is generally seen as a high-risk business.
Yet, Dayanand Gupta quit his job and ventured into foreign exchange trading. The move paid off and two years later, today, Gupta is successful, with a grip on the fundamentals of the business.
Many prefer to stay away from forex trading, the largest financial market globally. Its daily turnover exceeds $3.8 trillion, three times the combined business of the equity and debt markets in United States. Like the commodities' market, the forex market trades round the clock.
Forex trading, simply, is exchanging one currency for another. Most are traded against the dollar. Other highly traded currencies are the euro, pound, yen, Swiss franc and Australian dollar.
The first currency quoted in a currency pair on forex is called base currency, which is generally the domestic currency. The second currency is called the quote currency and is typically the foreign currency.
For example, if you were trading in rupee-dollar, rupee would be the base currency and dollar the quote currency. The price shows how much quote currency is needed to get one unit of the base currency.
In this market, the volume of trade is expressed in the base currency. Example: In a 100,000 rupee-dollar trade, 100,000 is the face value and is a standard contract or a lot. No matter which currency you have in your account, the trading software automatically sets the exchange rate.
The profit or loss in trade is expressed in the quote currency, as the currency pair price is given in it. For instance, if you buy euro-dollar at 1.3000, and sold it at 1.3010, your profit is $0.0010 or 10 pips for each euro. A pip is the smallest measure of price move on an exchange.
Spread: Each trade has two prices - bid and ask. The bid price is the rate at which the broker buys and you get on selling. The ask price is the offer price at which the broker sells and you pay to buy. The difference between bid and ask price is the spread (broker's profit).
In a euro-dollar trade at 1.4000/1.4003, the spread is 3 pips. On trading 100,000 euro-dollar, the broker earns 100,000 x 0.0003 = $30, irrespective of your profit or loss. If the currency pair rises 10 pips (from 1.4000/1.4003 to 1.4010/1.4013), you will earn only 7 pips because you bought at 1.4003 and sold at 1.4010.
Typically, a lower spread is better for traders, as it gives higher profit.
Leverage and margin : In case of a small investor who invests, say, $1,000, if the price moves up by one per cent, you will earn $10 and your broker only $0.30. It's not a great deal for you; worse for your broker. Thirty cents will hardly justify his salary.
Ergo is the concept of leverage financing, where a trader deposits only a presumed risk (margin) and the rest is provided by the broker. Margin requirements vary from one to five per cent, depending on the broker. A margin of one per cent may translate into a trade of up to $100,000, even if you have only $1,000 in your account. The margin corresponds to a 100:1 leverage.
Applying a 100 :1 leverage, as above, your and the broker's profits are multiplied by 100: you get $1,000 (100 per cent of your investment) and the broker gets $30. The flip side -- if the price falls one per cent, your entire capital is lost.
Margin call : On opening a trading position, you can designate a part of your capital as collateral on your margin, which will be set aside and protected. On a capital of $3,000, say, your margin is $1,000. You use $2,000 to trade and if you lose, the broker will close your position and you will get back the collateral.
Let's say you bought 100,000 units of euro-dollar at $1.3217, which rose to 1.3227. You immediately sell those units and get $100 back. But, if the rate declines to 1.3207, you stand to loose $100.
Some losses are inevitable for any trader. However, the key is to limit losses by using stop-loss and controlling risk. If you set a limit order, you would have realised the potential profit without having to monitor the trade closely.
Caution : Making $100,000 from $100 is possible in this trade, provided you follow the rules of the game - be careful. "However, investors tend to equate currency with stocks. A big mistake," said Pramit Brahmbhatt, CEO, Alpari India. The risk factors are more complex here. Any change in macroeconomics is a big hazard, adds Brahmbhatt.
Rekha Mishra, senior research analyst, Bonanza Portfolio, concurs: "Unlike other markets, forex is highly volatile and most liquid. One should follow certain ground rules here in order to manage risk."
"A demo account may expose you to the heat of a fast-paced, decision-making process," said a forex trader. "One can also start trading with mini or micro accounts to reduce risk appetite." But, do not draw conclusions based on earlier trades.
Despite being a 24-hour market, all hours may not be equally beneficial for trading on forex. You may plan your trading to catch the highest trading hour(s) to maximise profits. Freshers can take small exposures till they gain confidence.

How To Start Forex Trading In India?
How To Start Forex Trading In India?
For instance, in Europe the currency in circulation is known as the Euro (EUR) and in america the currency in circulation is referred to as the U. S. Dollar (USD). An instance of a forex trade is to buy the Euro whereas concurrently selling US Buck. That is known as going lengthy on the EUR/USD.
Forex trading in India is in most cases achieved via a broker or market maker. As a forex trader which you could select a currency pair that you simply predict to alter in price and situation a trade hence. As an instance, when you had bought 1,000 Euros in January of 2005, it could have value you round $1,200 USD. All the way through 2005 the Euro’s worth vs. the U. S. Buck’s worth elevated. On the finish of the 12 months 1,000 Euros used to be price $1,300 U. S. Bucks. For those who had chosen to finish your trade at that time, you might have a $a hundred achieve.
Forex trading in India can also be positioned thru a broker or market maker. Orders can also be positioned with only some clicks and the broker then passes the order alongside to a accomplice within the Interbank Market to fill your place. While you shut your trade, the broker closes the place on the Interbank Market and credit your account with the loss or achieve. This will all occur actually inside just a few seconds.
1. LEVERAGE: In Forex trading in India, a small margin deposit can regulate a a lot greater whole contract price. Leverage provides the trader the flexibility to make extra special income and on the similar time maintain chance capital to a minimal. Some Foreign exchange companies supply 200 to 1 leverage, this means that that a $50 buck margin deposit would allow a trader to buy or sell $10,000 price of currencies. In a similar fashion, with $500 bucks, you will trade with $a hundred,000 greenbacks and so forth.
2. LIQUIDITY: Since the Foreign exchange Market is so massive, additionally it is extraordinarily liquid. Because of this with a click on of a mouse that you would be able to right now buy and sell at will. You might be by no means caught in a trade. That you could even set the net trading platform to routinely shut your place at your required revenue stage (restrict order), and/or shut a trade if a trade goes in opposition to you (cease order).
3. PROFIT IN BOTH RISING AND FALLING MARKETS: On the stock markets, that you may best earn money if shares are rising, however in financial recession and falling endure markets, there may be little probability of creating giant cash. Foreign exchange trading in India is totally different. One of the crucial thrilling advantages of FX trading in India is the flexibility to make cash whether or not a currency pair is up or down. A trader can revenue by way of taking a protracted place, (buying the currency pair at one value and selling it later at the next worth), or a brief place, (selling the currency pair and buying it again at a lower cost).
4. 24 HRS: From Sunday night to Friday Afternoon EST the Foreign exchange market by no means sleeps. That is very fascinating for many who wish to trade on an element-time foundation, as a result of you could select when you wish to have to trade morning, midday or night time.
5. FREE DEMO ACCOUNTS, NEWS, CHARTS AND ANALYSIS: Most On-line Foreign exchange companies provide free Demo money owed to observe trading, together with breaking Foreign exchange information and charting services and products. These are very treasured tools for traders who wish to hone their trading talents with digital cash ahead of opening a reside trading account.
6. MINI TRADING: One would possibly suppose that getting began as a currency trader would price some huge cash. The truth is, it would not. On-line Foreign exchange Companies now supply mini trading bills with a minimal account deposit of best $200-$500 without a fee trading. This makes Foreign exchange way more obtainable to the average particular person, with out huge, begin-up capital.
WE RECOMMEND FXCENTRAL FOR ACCOUNT OPENING FOR FOREX TRADING IN INDIA (NRIs / POIs and Foreign Nationals). Download FxCentral account opening forms from here. Refill all pages and signal on the underside proper nook of all of the pages and signal on coipes of all beneath talked about paperwork (required).
The paperwork required for opening a Trading Account in FXCentral are as Follows:
� Stuffed up account opening kind.
� ID proof – PAN Card.
� Tackle Proof – Passport, Using License, Phone Invoice, Voter’s ID.
� Financial institution Small print – Cancelled Cheque and Financial institution Observation (Account No, Financial institution Title, Department Deal with, Phone No, IFSC Code)
Scan the stuffed up kinds and paperwork and mail the scanned copies at [ protected] . No wish to ship any exhausting copies.
As soon as your money owed are opened, which you could begin forex trading in India in demo money owed. As soon as you might be assured in demo bills that you can switch money to your customary account (we favor minimal $500 debts first of all). As soon as your debts are funded which you can begin forex trading in India within the are living account and might begin making money. Remember that trading in forex is a hazardous trade, so don’t make investments a capital which you can no longer come up with the money for to lose.
2017 Update: Forex trading for Indians are now restricted by RBI. However NRIs can still trade in forex.

How to trade forex from india

As we all know that traders in India have not been able to do forex trading in cross currency pairs legitimately due to RBI regulations. So far, all currency pairs are bench-marked against the Indian Rupee (INR). This has an inherent disadvantage if you want to trade international pairs. The US Dollar is on one side of 87% of global forex trading around the world. More than 50% of global forex volumes consist of the 3 big global currency pairs which will soon be launched in India.
Recently, NSE has announced that it will launch cross currency pairs. They will be launching 3 global currency pairs:
1. (EUR/USD) Euro-US Dollar.
2. (GBP/USD) British Pound – US Dollar.
3. (USD/JPY) US Dollar – Japanese Yen.
Points to note about the new forex pairs :
• They will be listing both futures and options contracts.
• The contract size will continue to be 1000 for all the new forex contracts.
• The tick size will be as follows:
So for example, if the last traded price (LTP) of EUR/USD is 1.0914, the next minimum price change can be: 1.0915 or 1.0913.
Futures contracts will have 12 months contracts available in addition to monthly contracts. Whereas options contracts will have:
– 3 monthly expiry.
– 3 quarterly expiry.
The new contracts will be introduced after the expiry of near month contract.
This is an illustration so you can understand better.
The Strike price intervals will differ for USD/JPY but the number of strikes will be the same for all these new forex pairs.
The market hours can actually be a disadvantage as these pairs are traded 24/7 around the world. It starts in the land of the rising sun and during their day hours is when USD/JPY is most active. The second major activity happens during the evening when the American markets open. EUR/USD and GBP/USD are mainly active during European and American hours. Overnight positions can pose a risk management threat during times of great volatility and strong trends.
• These forex contracts shall trade from 9:00 AM to 7:30 PM, Monday to Friday.
• They shall expire 2 days prior to last working day at 12:30 PM.
The existing forex contracts which are benchmarked with the INR (USDINR, GBPINR etc.) will close at 5:00 PM every day. The time extension for the new forex trading pairs are to accommodate for the actively traded hours of the day. However, in spite of this time extension till 7:30 PM, it will not include the American trading hours.
• These forex contracts will be quoted and traded in foreign currency.
• Settlement will be done in Indian Rupees (INR).
• Profit/Loss in foreign currency will be converted using applicable RBI rate for the day.
• RBI rate will be available after 12:30 PM.
• Daily Settlement: t+1 day, Final Settlement: T+2 days.
Take a look at the table below for more clarity.
Example 1 – Futures MTM Settlement :
• On April 20 2016 a participant buys & sells 1 contract.
• Daily MTM shall be converted to INR.
– For EUR/USD & GBP/USD, using USD/INR RBI reference rate.
– For USD/JPY using JPY/INR RBI exchange rate.
Checkout examples of how futures trades will be settled in all 3 forex pairs.
Example 2 – Futures MTM Settlement :
• On April 20, 2016 a trader buys and sells 1 contract and holds till expiry.
• Daily MTM shall be computed in US dollar but settlement shall be in INR.
• Conversion to INR shall be using daily USD-INR RBI Reference rate of 12:30 PM.
#4.9 = (1.0950 – 1.0901) * 1 (No. of contracts) * 1000 (Contract size)
Since the profits are settled in INR, it will be important to track USD/INR pair especially during times when the currency trend is strong in one direction.
Example 3 – Options Premium Settlement :
• Let’s say you trade 2 call option contracts of different strikes in GBP/USD.
• Net premium shall be payable/receivable on T+1 day.
Example 4- Options Final Settlement :
• Let’s say you have 1 call option contract in USD/JPY, which is in the money (ITM).
• Conversion to INR shall be using JPY/INR RBI exchange rate of 12:30 PM.
#830 = (112.83 – 112.0) * 1 (No. of contracts) * 1000 (Contract size).
• Open futures positions are marked-to-market (MTM) at daily settlement price.
• Daily Settlement Price = Last Half Hour Weighted Average Price.
• In the absence of the last half hour trading, the theoretical price shall be considered.
• EUR/USD, GBP/USD and USD/YEN are cross currency rates for India.
• Cross rate is calculated by dividing one of the pairs by the other.
• Final settlement price shall be computed using RBI rate at 12:30 PM on last trading day.
Here is an example of computation of final settlement price:
Value of 1 tick = Tick Size * Contract Size * INR conversion rate.
We are very positive about this new initiative and will provide the necessary facilities to our clients to trade in this these new global pairs when NSE officially launches. Hope this post has answered all your potential queries.
Tejas Khoday.
Tejas is the Co-Founder & CEO fyers. in, the youngest team to get NSE’s broker license. FYERS was started as a mission to enhance the terrain for traders and investors in India. He previously worked at Zerodha, Futures First & has been a professional trader for several years.
Leave a Reply.
When this going to start any information on this please update me ?
I don’t think you are telling us a true story or just you are trying to make this useless website a eyecatcher for people like rangnath?
They were planning since 2014, there is no statement regarding cross currencies are coming.
How you came up with such thing?
Come on Rampage ! simple hai bhai Google it , … will find the NSE circular.. will you . Tejas is absouletly right.
Very informative information sir.. but leverage given by NSE is low. But much better for sure..
It’s been two months since I posted nothing has been come out. You haven’t digg into the matter either.
Anyway what is your update?
Isn’t he Rampage?
Anyway Tejas, lets make your webpage alive and breathing…becoz non in India talking about this stuff at all…laughs.
There is a circular which you might have missed on 20th july, on the day u posted above reply.
accordance with exchange circular download reference no NSE/CD/32008 dated March 1 8 , 2016 issued by NSCCL and circular download reference no NSE/CD/32042 dated March 22, 2016 issued by NSE ; members are hereby advised to note that the changes of strike price (strike price upto four decimal) mentioned in the above circular shall be made effective from August 08, 2016.
Can you go thru and tell us what they mean by 8th of august? ‘
in above both references are regarding cross currency pairs.
keep the thread alive…my friend keep it alive…
Good one.. looks like you guys are a pro-active broker. Haven’t heard this anywhere else so far.
Curious to know is it illegal to trade through existing CFD platforms. Is it a punishable offence?
If you mean forex platforms that give 1:500 leverage. They are illegal dude.. Just not published.
Navdeep is right. Will write a post about it soon.
What do you mean by it is illegal? There is no such rule.. I have worked.
in forex company using MT4 based platform and we had many clients.
Tejash Ji any update on the same?
How come only you guys are writing about this? Why isn’t this big news already? Is there any dal me kala? Or is it because it is not official yet?
Interesting facts. Thanks for your proactiveness sir. Only in comments section I found out why so much leverage is given by forex platforms like IC markets. Before that I didn’t know. Good work sir.
Well, In India anything & everything is possible !
Delay could go beyond your life cycle – that is India.
Hurry could be on the face before even you realized it – that is India.
There is no ‘respect’ to general mentality and its maintenance !
Why Europe/USA/China/Japan are so unique? check their infrastructures, check their roads, check their cleanness & most importantly check how they treat mass mentality – You can’t JOKE there…
This is not a building construction work.. what is sebi? what is nse? what is that is all nonsense.. Once a thing is on its on..I don’t know my friends … Lets eat our food and sleep we only have to worry about mentality of forefathers who aren’t even here! not who are alive..
As one great person called osho said (even people like osho born in India! that is India)
India is dead country, there is no present all is past..nothing is new/nothing new we have to do…become engineers/doctors/rich, who cares about gold medals.. eat sleep reproduce.
now can we trade on forex international borker even they give much leverage but we will not use the high leverage? but my question is , is it legal to trade on international platform on the basis from this RBI Circular dt on 10 dec 2016 what does it mean really?
You think a coin be having both sides alike?
My friend, this kind of forex trading is higly active since ages in great britain, usa, european union, brazil, russia & very many…
its like you are using a Nokia’s 1998 model and yet you are searching steps to maintain it well in year of 2016 :))
When we get cross pairs trading sir.
In India they always take time to launch something new. Always afraid and slow to adapt. U guys should write a request letter to the govt. to request them to launch instead of just announcing.
Every single day I google two terms “Cross currency options trading india” and “Commodity futures options trading india”
It has become my 2nd habbit.
I have left the hope now.
No hope no worry.
Happy man. That’s me.
Sir if NSE starts EURUSD then how much margin , and what 1 point value , exetra in your view (just asking)
Sir I dine a calculation as per that may be 2800 to 3200 rs per 1k unit.
tejas can we expect to trade in cross currencies at the end of this year or not.
Sirji yeh NSE waale nautanki baaz tho nahi kar rahe hai? Kya pataa aise hi maze le rahe honge sabki.. Govt walo pe koi vishwas nahi.. Jaise Jaitley ne bola tha, ki income tax 25% kar denge, sabko laga ki lal hi kar dalenge lekin wo last sentence mein batha raha hai ki 4 saal lagenge. Yeh story bhi aise hi lag raha hai.
it is illegal in india…?? but there are so much forex broker in india & they have so much clients as well….. even i have done forex trading….accoordnig to my view if you know technical and fundaments than you can earn a huge return even you can double you margin within a month.
sir, if we win a demo forex contest. then is that also illegal in india.? or bringing that cash in india is illegal.
Sir is metatrader 4 and metatrader5 platform is legal in india? Which broker is using meta 4 &5 platform in india?
There are always new things coming up but I promise you one thing that our cfd platforms have always existed in india and will continue to exist even after NSE forex trading starts!! Because you brokers cannot give as much leverage.
This article is just completely informative. Many new facts and information which I have not seen before. Keep sharing.
TEjas Khoday, like you said, I have traded with those scamsters before. Good that you are increasing awareness about this subject. If government is so conscious about small investors, why don’t they take action against them I wonder.
Khoday bhai & Aur hamare bhartiya bandhuo,
Ham sab khoday bhai ko leader bana ke koi PM MODI ko request kare ke bhai..ye kab start hona chahiye aur itni deri kyon?
Modi ji ko aur unki office ko ye fyers ka page or comments dikaye aur mehsus karaye ke bhai log frustrated hai!
bhaiyo commect kare aur khoday saab ko manaye…modi ji ko connect karne ke baho sare options hai…
Very well written article Tejas Khoday and good initiative to explain these things in detail. I have given my details please call me so I can open an account with Fyers.
Its now official one year!
Indian government said last year, WE are introducing cross currency pairs.
no cross nor currency has come! even the poor INR got shook up recently lol…
Well as I said, this is INDIA, anything is possible….
People are waiting in q at atm n banks for hours n hours LIKE us here…ROLLs.
Nice article Tejas.. Me too got to know about CFDs only after reading your comments.
thanks for the great infdo.
Please in form me , when the sebi.
Announce the cross currency legal.
So basically fx trading on platforms such as eToro, etc. is illegal in India?
Explained in great detail. Now I understood why it is not so easy to launch currency product. Overnight risk is high.. Why don’t they keep it open 24/7?
The only reason Indian government does not allow marginal trading in international currencies because USD reserves in India will get over if Indians do marginal trading through international brokers. A way around this is to open an INR account with Neteller and transfer INR abroad and deposit USD through Neteller abroad. In this way it is legal, as US dollars in India are not used. Neteller INR account is located abroad and so INR to USD is done abroad in Europe and not in India which is perfectly legal. Neteller will charge for conversion from INR to USD and deposit in broker’s acccount and same way withdrawal can be done from USD to INR which is from broker’s account to Neteller account which is perfectly legal as traders are not breaking any laws in India.
If forex trading was illegal for so many years why was SEBI not arresting them? Everywhere I go there are ads of some young boy telling “I made some $1000 in one week”. Now just because NSE is launching, they are taking their illegal competition seriously? In India, only the big stuff matters. I lost in lacs that too in 1 month through IC markets. They use to charge me for carrying forward position which I got to know was a scam after trading in Nifty and other futures through stock exchange.
Great article and I’m hoping SEBI starts cross-currency trading in India in the wake of demonetisation. Could you provide us with any sources and links that will help up us get a headstart in cross-currency trading like learning the cypher pattern, etc.? And when the cross-currency market open!! bang!! Money. .. Guys, please use your money wisely, 10% for the poor, 40% for FDs, and 50% for cross-currency trading(hopefully) or our useless equity market.
It’s time for the forex Jhunjhunwalas to rise.
Long time, what is inx? Can you tell us what kind of trading instruments it is going to give? And can Indian citizens trade in it? I meant non nri…
Very nicely explained hope it starts soon…
Very useful info. Tejas.. I have been coming across your site often on google. Let me know when NSE starts it. I have pinged my number in ur registration page.
Read your stuff which is very informative. Let me know when NSE starts with Cross currency futures. Thanx.
Finally someone is discussing sensible things here.. In my guess they will launch Forex after NSE IPO.
Dear Tejas Khoday.
Please inform me when it starts.
Right now brokers in mumbai are calling the persons for cross currency trading by saying that the person will deposit money in rupees and recieve profit in rupees thru them. So there is no legal problem in this, is this right.
Dear Tejas some peoples in India already trading in this these cross currency pair with platform of MT4 terminal trough foreign company’s like liteforex. my point is-it is legal to trade with these type of platform.
Actually one person has contacted to me by saying that we trade in a forex currency, if you invest with us we will return you approx double in a year and that is on monthly basis returns. He is giving 12 PDC of PSU bank. should i look forward to it.
Hello Tejas, Actually one person contacted to me by saying that he is trading in foreign currency platform EURUSD GBPUSD through liteforex company. he offered me by making my money approx double in a year. he showed me liteforex software with MT4 terminal. should i look forward to it.
Superbly written article by you sir. When NSE launches only god can tell.
This is the best-written article so far on forex trading in india. Finally got info. Thanks & good luck.
It is really a great post, I need your advice if I could start with any of these following as I hope all of them are regulated by SEBI.
nord fx, Zerodha.
Please Suggest which platform would be great for online forex trading is good and legal in india and I hope leave of 1:100 would be good.
Looks like NSE has gone to sleep after making big announcement.
Any updates on the currency pairs other than INR. Is it implemented?
Dear Khoday Sir.
I was reading all the coments and your so good infometive response and reply to them. I am really thankfull to you. Sir i want to open online forex trading account with global broker like fxtm or etoro and want fund deposit through neteller as per the justification given by Mr Simon dated 11 Dec 2016. Is it will be permissible as an Indian trader. Please reply sir.
I think NSE is waiting for IPO before they launch this.
How you doing Mr. Tejas.
Am a forex trader here..Good to see you. I have some large fund in Dukascopy Bank. If i give withdrawal request to my Indian bank account is there any issue i might be end up facing. And how about taxing. Plz guide me if you can. Thanx in advance. Good to hear that you worked for zerodha. Am a neighbour of Mr. Nithin from Shimoga, Karnataka.
You seem to really know what you are talking about, my question is about binary trading, is it okay if i do binary trading from india ?
Also what about the tax on the profits from binary options, what should be shown as the income source ?
Thanks In Advance, Please Respond !
The Indian government and securities regulator is very conservative and restricts you Indians from transacting in global markets. Full of restrictions, forex trading is globally recognized and accepted but dealing in India is a big issue as there is a lack of willingness and awareness from your citizens. Lots to learn and advance.
I am been following this post since official one year and above.
The cross currency trading in India is probably mummified issue!
Better trade something liquid like currency as well..
So, guys which stuff giving you good liquidity? Crude oil, gold? Nse futures?
Has NSE forgotten what the hell is this why are they taking so much time? Been waiting since ur blog.
Any update on this. I heard NSE will is planning to launch these instruments after increasing their trading time upto 11:30 pm.
Think so NSE has forgot about it and is planning to make money in IPO first.
Tejas Bhai NSE walo ko bolo ki USDINR move hi nahi karega tho trade kaise karenge? Kam se kam EURUSD mein to kar sakte hain.. Ek product launch karne mein saal bhar lagaenge tho hamaari wat lag jayegi.
FXB Trading has earned the trust of hundreds of brokers and traders as a result of its vast range of analytical tools. In addition, it supplies various types of trading platforms which allow traders to have full control of their trades.
First time I heard of Fyers from friend. Now I read this.. good post and thanks for that.
You have taken a lot of time and effort to write this blog sir. Very much appreciated.
Why will I want to shift from IC markets or other brokers will you give enough leverage? I am currently getting 1:500.
Tejas Khoday, Love your Fyers Web.. Keep rocking it. Many broker were struggling but you people are proving to a lot of good things to us. I am proud to see such a young team changing the consensus with your technology.
I agree with Vashisht and I can feel confident you guys But please introduce bracket order soon. You must surpass Zerodha in near future.
I just wan to know if Forex trading through a broker is legal in India? If yes how do we know that the broker is licensed in India?
If it is not legal what is the way out to get back the money and avoid any legal implications later.
I am NRI in dubai. Can I trade in forex?
Arrey kaun aake hamko pakdega? Illegal hai tho bahut pehle rokna chahiye tha! Ham kisise nahi darthe..
Fyers is next big brokerage after zero DHA in near future! Very informative article Mr. Tejas.
How should I open an account with Fyers?
First things first, SeBI needs to publicly announce that forex platforms are banned otherwise how will people know? Even on money control they are advertaising openly.
Hello Tejas and Group Members,
I have just entered in this domain of Forex Trading. I opened a demo account with 20,000 USD on 14-Sep-2017 and in the week from 14-Sep-2017 to 18-Sep-2017, I made a profit of 726 USD by trading only in EURUSD pair.
Since as on date, it is illegal in India to do actual trading, eagerly waiting if it is being started by NSE.
Please keep updating in the forum.
Atleast they could increase the timing of current INR pairs till 21:30 untill they introduce cross currency, we are unable to cut/take any position if a major move happens in US session. I dont think anything is happening soon with this notification.
Very detailed compared to news articles Mr. Tejas Khoday! You are becoming an influencer.
Thank you for the information as we know Currency markets being the largest market in the world. This includes all aspects of buying, selling and exchanging currencies at current or determined prices. Currency markets is a global decentralized or over-the-counter (OTC) market for the trading of currencies. Foreign Institutional Investors (FIIs) to participate in Indian Currency Exchange platform to trade and/or hedge with lower costs and higher leverage in an organized regulated environment as compared to the OTC market.
RBI WAS GOING TO LAUNCH TRADING IN 3 CROSS CURRENCY PAIRS , ANY UPDATES REGARDING THE SAME ?
What is your informed opinion with respect to your contacts within the industry in regard to the articles on the following links –
Dear Tejas it looks like your post was way ahead of time. NSE will take another 3 years to launch.
Which is the right platform for trading currency, commodities in India?
I registered with Iforex. in platform, is it right place for trading in India?
I believe by the time NSe launches this, the world will revolve around the sun one more time.
Will I get 100% brokerage refund up to any limit after winning 30 Day challenge?
Is 30 Day challenge applicable to currency trading?
Please introduce pivot points for Fyers Web. Apart from that that I love Fyers Web and your new 30 Day challenge. Hope I can link my other demat account with Fyers.
How will Fyers make money in 30 Day challenge?
Thank you Fyers for launching 30 Day challenge. It’s a truly great offer for traders.
Truth exposed. Great, thanks for sharing your info.
Rampage, why would we tell you a story? If you have doubts, check out our.
We were in a meeting with NSE officials just before I wrote the post.
We provide valuable information on our website.
Ragnath, we’re waiting for clarity on that. Track developments on fyers. in/circulars/
Thx. Leverage is lower compared to CFD platforms.. needless to mention that CFD platforms.
give a really high leverage for their own benefit. It is important to understand why.
They don’t provide market access, basically they’re taking bets against their own clients.
and giving them a gigantic leverage so that their stop losses are hit quickly and they pocket.
your money that was on the line. Whereas NSE is a legit exchange so you have counterparties.
In the real world of trading, NSE’s leverage is good enough.
Hi there, I am in touch with NSE officials. They don’t have a date as to when it will be launched.
The matter seems to be pending with SEBI. Getting such product approvals does take time with the.
regulator. I shall keep you updated when the good news arrives.
The circulars you quoted in your msg. are operational in nature and less.
relevant to traders. They have said that the changes in Strike prices shall.
be made “effective” by August 8th. It means that this uncertainty around.
Strike prices will be resolved by that date. When we sought.
clarification, they said it is yet on SEBI’s desk waiting for some sort of.
approval and the date of launch is not yet certain.
Dude get your facts straight.. CFD is 100% illegal. First of all it is not a real market.
did you know that they take the opposite side of our trades?
Hi there, we haven’t received an update from NSE yet. But it is going happen.
Just about time..
Hello Thx. Stay tuned. We shall update you as soon as we receive news or a circular.
Bhavik, just making the audience proactive about future developments. Well yeah, since the date of launch hasn’t been decided yet, others are playing it low. Or maybe, we’re just excited about telling you’ll.
Hi, guess you’re really pissed off.. But hey, think about the flipside. 🙂
True. Our markets have been a lag in comparison. However, this time around since it will be made legit, it’s better late than never! 🙂
Generally when there is leverage on the table, traders more often than not, make use of it. That’s where the trouble lies. Overleveraging always kills the trader. Well almost always. No it is not legal to trade with international forex platforms.
Manju, we are anticipating it too. Will notify our readers as soon as we get some new info.
Hi Arun, yeah its true that this has been pending for a while. It makes sense to wait a bit, moreover, its not just us who’s been waiting. Will keep you’ll updated.
Opportunities will never “disappear”. Financial markets are abound with opportunities. Thx, we hope so too.
The value of 1 tick = Tick Size * Contract Size * INR conversion rate. For EURUSD it will be 0.0001 * 1000 * 67 (Approx.) = ₹6.7 is the value of tick. There is no clarity on the margins yet so can’t be certain.
Please go through the content again. The calculation methodology is mentioned.
End of year is about 90 days away. Since we have not received any official communication from them yet, I doubt it.
Dheeraj Rakhiye Ho Jayega!
Wasim, CFD forex trading platforms are illegal in India. Yeah due to the lack of law enforcement, this menace has survived many years. They provide massive leverage like 1:500 or even 1:1000 on some platforms. That means that even if the contract moves by 0.1% against you, you will be wiped out. A 0.1% movement can happen in a jiffy. Basically, they’re modern day bucket shops which promote the gambling mentality. Also, just for your information, you are trading against them & they are the counterparty. In that sense, it is like a casino. So effectively, they are betting against you. They have several tricks under their sleeves to fleece your hard earned capital. Suggest you wait for NSE to launch it officially and trade in a legitimate manner.
A demo forex contest as in Virtual trading in forex? Why will RBI penalize trading which is not a real exchange of currencies? Practically No 🙂
Hi Dr. Abhi, forex platforms basically run on Metatrader 4 and metatrader 5. It’s not the software that is illegal. It is the business of CFD trading in forex. Moreover, in comparison our trading platforms shine brighter. Suggest you try using Fyers One to see the real difference.
Well don’t know about how long CFDs will continue to exist in India but it is certainly not legit. Moreover, providing crazy leverage only destroys traders’ capital. So the actual truth is that excessive leverage is an obvious disadvantage. Too many people get lured into it too easily. I encourage people to look beyond leverage. Things are changing fast.
Thanks 🙂 I agree. Its beyond everyone’s logic.
True that! Crazy times..
If you trade with an ECN broker then they are not taking a trade against you and are simply providing you an oppurtinity to trade with different banks. In addition to all that u have said about CFD’S u should also tell people about what an ECN/STP broker is. To trade forex we should be looking for an ECN broker which is requlated by financial authorities in countries like america, Australia and England. What you are talking about is a broker who is a market maker.
Yes according to RBI rules it is illegal.
True but it’s not really legal anyways. Unrealistic leverage is dangerous either way.
To know what ECN Broker is, click here.
Hi Manish, you will be notified when it happens. It’s time for the Forex JhunJhunwalas to rise huh 🙂 🙂
Hello again. It was communicated that they will start with futures. Of course Indian citizens will be able to trade in it. That’s the whole point. Yes non NRIs.
Hi Akhilesh, glad you found it useful. Request you to give us your details so we can add you to our subscribers’ list.
i was told by an executive indiainx, is that these newly introduced pairs(eur-usd, gbp/usd, usd/jpy) can be traded from the starting of japan market opening till the closing of US market, which collectively comes around 22hours per day(divided in to two sessions). but iths circular mentions it can be traded only in indian market hours. Confused.
Based on my personal interactions with NSE officials, they have said that they want to start off in Indian hours.
Yes, the profits will be settled in INR. I don’t know what else the brokers told you 🙂
No you should not. The promise of doubling your money in a year is not new. Stay away as far as possible 🙂
As I said earlier, please ignore them. Do not fall prey to such schemes. Trading via CFD platforms through MT4 is not the right way to invest your money. Instead, invest your money in stocks or trade in currency segment on NSE. It makes much more sense..
Hello Mayank, Thanks. I am not sure if Nord FX is regulated. You should ask for a SEBI registration no. and certificate to be sure. With regards to Zerodha, they have the same license that we have. Hence, when NSE launches Cross-currency pairs, we will offer it too. Yes, we will workout a leverage that makes sense to traders of course.
Nope, not yet. Will take an update from the concerned person and update you’ll tomorrow.
Hi Jamal. Thx for appreciating me. It is not legal to trade with CFD based foreign brokers from India. The very concept of cross currency trading is illegal and is prohibited. Keep in mind that these entities that you referred to are not regulated by SEBI in India. I strongly recommend you stay away from cross currency trading unless one of our exchanges launch it. In the meanwhile, you can trade Indian pairs like USDINR and others.
Khoday sir thanks a lot for your so quick response to my post. It is really highly appreciable. Could you kindly suggest me any usd inr pair broker who provide market timing 24 hours. I will be thankfull to you.
Thx Jamal, the currency markets in India (Futures & options) are open from 9:00 AM to 5:00 PM. The physical currencies market is open 24/7 but is not ideal for speculation. I suggest you open a trading account with us for free and trade on our platforms.
To my knowledge is illegal as it does not happen through Indian exchanges. Besides, there is a crackdown on Binary options in several countries. It is best avoided. Please understand that there are better and legitimate ways of doing things.. Why trade binary options? It’s a gambling den to begin with. If you’re a raging speculator, then you rather buy options on NSE. That’s my take.
I am doing binary options trading for the past 2 months and earning $10-$15 daily.
or i have to close it.
Following is the rbi notification in which no comments made on the binary options:
Overseas forex trading through electronic / internet trading portals.
A. P. (DIR Series) Circular No. 46.
September 17, 2013.
All Category – I Authorised Dealer Banks.
Overseas forex trading through electronic / internet trading portals.
Attention of the Authorised Dealer Category – I (AD Category – I) banks is invited to A. P. (DIR Series) Circular No. 53 dated April 07, 2011 and A. P. (DIR Series) Circular No. 46 dated November 17, 2011 wherein AD Category I banks were advised to exercise due caution and be extra vigilant in respect of the margin payments being made by the public for online forex trading transactions through credit cards / deposits in various accounts maintained with banks in India. Further, AD Category-I banks were also advised to exercise due caution in respect of the accounts being opened in the name of individuals or proprietary concerns at different bank branches for collecting the margin money, investment money, etc. in connection with such transactions.
2. However, it has been observed that some banking customers continue to undertake online trading in foreign exchange on portals / websites offering such schemes wherein they initially remit funds from Indian bank accounts using credit cards or other electronic channels to overseas websites / entities and subsequently receive cash refunds from the same overseas entities into their credit card or bank accounts.
3. With a view to further strengthening the restrictions on such online activities which are in violation of FEMA, 1999, AD Category I banks are hereby directed as follows:
(i) All AD Category I banks who offer credit cards or online banking facilities to their customers should advise their customers that any person resident in India collecting and effecting / remitting payments directly /indirectly outside India in any form towards overseas foreign exchange trading through electronic/internet trading portals would make himself/ herself / themselves liable to be proceeded against with for contravention of the Foreign Exchange Management Act (FEMA), 1999 besides being liable for violation of regulations relating to Know Your Customer (KYC) norms / Anti Money Laundering (AML) standards.
(ii) As and when any AD category I bank comes across any prohibited transaction undertaken by its credit card or online banking customer the bank will immediately close the card or account of the defaulting customer and report the same to Chief General Manager-in-Charge, Forex Markets Division, Foreign Exchange Department, Reserve Bank of India, Central Office, 5th Floor, Amar Building, P. M. Road, Mumbai – 400001 in the format provided in the Annex to this circular.
4. If it is observed that the concerned AD category I bank has failed to carry out the measures as outlined above, Reserve Bank of India may proceed against the defaulting bank under section 11(3) of FEMA, 1999 and take any action as may be deemed necessary.
5. AD Category – I banks may bring the contents of this circular to the notice of their constituents and customers concerned. The instructions contained in this circular may also be brought to the attention of the card issuing companies who may also be advised to remain alert against permitting payments for such unauthorized transactions.
6. The directions contained in this circular have been issued under sections 10(4) and 11 (1) of the Foreign Exchange Management Act, 1999 (42 of 1999) and are without prejudice to permissions / approvals, if any, required under any other law.
(Rudra Narayan Kar)
Chief General Manager-In-Charge.
I believe its a good thing that SEBI & RBI have disallowed this. CFDs are not known for the best reasons. You are wrong about financial awareness. A lot of people know about CFDs being illegal. Thanks for your concern 🙂
Your right, Binary options are so blatantly risky and useless.
Hey Rahul, after our interactions with NSE officials, we have come to know that the matter is pending with SEBI & RBI. There are some issues that concern these bodies and hence, the implementation is stalled. The trading time was initially planned till 7:30 PM IST. The stuff that’s on everyone’s mind is NSE IPO as of now.
Come on NSE. please launch this fast. I will trade more and give you more transaction charges lol.
What do you think will be the risk for forex platforms when NSE launches this? Also I heard your trading platform is the best in India… Contratulations to your team for achieving it as a young company. I heard from one more person who is in the trading business said you are launching some web platfrom which is rocking!
After my recent interaction with NSE officials, we have learned that there is an issue with settlements upper cap on dollar-denominated investments. NSE awaits the new boss to take over & IPO is on the horizon so I guess the priorities have shifted.
Firstly thanks Fahad, we’re trying to improve people’s experience when it comes to trading. Far too many hassles have caused the community to become distressed about pursuing trading more seriously. Yes, Fyers web has launched today and this is the link: trade. fyers. in.
I think unregulated forex platforms will face a crackdown in the future. But if there is no crackdown by SEBi they will continue to co-exist because they provide much higher leverage (Although extremely unsustainable).
Vijay, leverage shouldn’t be your sole criteria to join or trade with a brokerage. CFD platfrorms which you mentioned are illegal in India. Secondly, these platfroms are new age bucket shops because they are the counter party. It works like a casino. Their vested interests lie in making you lose! That’s how their money is made. Hence, by giving you unrealistic leverage in forex markets it is a sure shot income stream for them.. Be wise.
As I have mentioned before, Only INR pairs are allowed so far. Cross currency forex trading is not legal and CFD brokers who are doing it might come under the radar. I believe it is a matter of time. It’s best to avoid it and stick to trading on NSE currency segment. I suggest you just request a payout and stay away from it altogether in the future.
Sorry. It is August 2017.
Glad to know you turned a profit. Sure, we will keep everyone informed when NSE introduces it.
Oh thanks Tara, I’m just doing my job 🙂
We haven’t received any updates yet.
Well, currently currencies are traded in the interbank market and RBI is wanting to deepen the market by allowing outside participants to participate as well. Talk has been ongoing since 2015 about a mechanism to introduce not just INR pairs but also cross currency pairs first on the interbank market or simultaneously on the exchanges. But progress has not been at the same pace as expected.
No, it is not! I suggest you trade with us. You can trade all the currency pairs available on NSE with us. We’ll be live with MCX for commodities trading really soon.
Yes, it is appliable to all segments – Equity, Equity F&O, Currency F&O and commodity F&O (in the near future) .
Hello Harindar, We don’t intend to make money via 30 Day Challenge. What we’re really looking for is for you to spread the word and tell you friends about it too 🙂
Yes, we will introduce pivot points in the near future. Yes, you can link your existing demat account with us. Please note that upon linking, you can buy shares through us but you will have to sell through the broker who holds the POA. For more clarity check this post: fyers. in/power-of-attorney-for-demat-account-why-it-is-important/
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