Best Trading Platform in India
This is our list of the best online trading platforms in India based on several factors: traders score, commodities you can trade, trading platforms, funding methods, islamic account enabled, minimum deposit and welcome bonus.
- IQ Option – Best for Binary Options Trading – 4.8 Stars
- – Best for Social, Copy Trading – 4.6 Stars
- XTB – Best Forex and CFD Broker – 4.8 Stars
- FXCM – Best Technical Tools – 4.5 Stars
- OandA – Best API – 4.5 Stars
- IG – Best for CFDs, Most Trusted 4.5 Stars
- – 4.5 Stars
- TD Ameritrade – 4.5 Stars
- Dukascopy – Best for Trading Tools, Mobile Trading 4.5 Stars
- CMC Markets – 4.5 Stars
If you are a trader in India, you should choose a broker that is suited for your country. As we firmly believe we are one of the leading resources in the forex community, we delivered you some of the things to look at when choosing your forex broker. There are many things to be mindful about, especially the reliability, service quality and the product as a whole.
Even though India is not amongst the richest countries in the world, it is still a very good place for investment while having a significant role in the global markets. People with some savings want to invest and putting your money into currencies is one of the options. Despite the opportunity, you have to be carefulwhen picking your broker as there are many scammers in the industry. That’s why we will look into the most important things to look at when deciding which broker to trust. Those include picking a regulated brokers, that has a user-friendlyplatform, verifying the broker’scustomer service, competitive spreads, etc.
This is when things start to get interesting. In every country around the globe, you have different regulation, from loose to strict. For example, if you live in the US or EU, you are able to trade any currency pair, and with highleverage as well. The limits in those areas are focused on risk, manipulation, insider trading and so on.
However, Indian regulation is something else. The Indian FX market is regulated by SEBI (Securities and Exchange Board of India). The entityregulates every Indian security or capital market. SEBIs role is becoming more important recently. They are responsible for broker licensing, inspection, auditing and more. Their duties include Indian FX regulation.
When trading currencies in India you have to be aware of the legality aspects as not all currency trading pairs are legal to trade. Legally you are only allowed to trade currency pairs with Indian Rupee (INR) in the pair. If you are an Indian trader you can, therefore, trade only four pairs: USD/INR, GBP/INR, EUR/INR, andJPY/INR.
To understand why is it illegal to trade other pairs you have to look at India’smonetary situation. As INR is weak against the dollar, trading in USD would hurt the Indianeconomy. If a traderbought USD, they would do it from the Indian Central Bank, increasing their dollar shortage. To compensate, the Indian Central Bank would then need to buy USD with INR at worse rates, further lowering the value of the Indian national currency.
That also means Indians are not allowed to use online platforms. International brokers can still offer their service in India. But they have to be SEBI approved and offer only four INR pairs without the use of the online platforms. This means the current situation is not looking too good for Indian FX enthusiasts. On the positive, the governmenthas recently talked about lifting some of the limitations to allow social trading of some of the more popular trading pairs. Hopefully, they will lift the restrictions in the near future.
As Indian residents are not allowed to trade on online platforms we don’t have much to talk about. But keep in mind that non-natives residing in India are still allowed to trade and use online FX platforms. Furthermore, as we are optimistic about the lifting of the trading ban in India so we will mention some of the things to consider when choosing your online broker. If you decide to use a platform that is complicated to use, you could face many unnecessary issues. There were many cases when people wanted to perform one action and accidentally did something else, which resulted in heavy losses. This can happen very quickly if the platform is not user-friendly. At some places is nearly impossible to quickly figure out how to open or close a position. Decent brokers often have a button that allows closing of all of your positions. This is very useful if you want to quickly exit your positions and are not very familiar with the platform.
When looking at platforms you have some options to choose from. It can be platform software you can download like Metatrader 4or an online platform that you can use through your browser. Most brokers offer you to download their app which you can also use on your phone, enabling you to trade wherever you might be.
Trading Fees and Expenses
FX brokers take their money from spreads. The spreads are the difference between ‘buy’ and ‘sell’ or ‘bid’ and ‘ask’ prices. The spreads can be either fixed, variable or fixed with a fee. Fixed spreads are most common amongst brokers. Fixed spreads on the most popular currencies will be in around 2-3 pips. On the other hand, variable spreads change based on market conditions. If the conditions are normal, they will be at around 0.1-0.6 pips, meaning they are pretty cheap. However, you could see the spread widen to as much as 20-30 pips with popular pairs. With less popular ones the variable spreads could be even wider. Another option is a fixed spread with a fee. This means you will have a let’s say 0.5 pip spread plus extra 5$ on a 100k position.
Even if you have a small amount to trade, you can still earn some nice profits as all of the brokers offer leverage. Leverage allows you can to open a muchlarger position compared to your initial deposit. However, be careful as this also carries larger risks. You can easily burn throughyour assets if you don’t take the correct measures to protect yourself. Almost any broker allows you to start trading with as little as 50-100$, opening a micro account. We would recommendhaving a mini account if the deposit is somewherebetween 1000-2000$. And if you go rolling with a larger sum of 10,000$ or more you will most likely get a standard account. There are many different options for accounts, it all depends on the broker. This means you have to carefully read the brokers policy and ask some extra questions if something is not clear.
Should you trade in India, you will expect customer service in your native language or dialect. Customer service is a very important aspectof a broker and can reveal a lot about the brokers’ intentions. If the customer service is only in Eglish you are most likely better off going somewhere else.
Every reliable online broker should havedecentonline customer support. They should be there for you to answer your questions and resolve any issues you might have when trading. Customer service should also give you advice, discuss problems and be respectful and responsive. Slow customer service is a very bad sign and can also result in huge losses if a mistake occurs during trading. You should always stay away from brokers with slowcustomer service.
Additional services are usually expected from a quality broker. Most of the topquality regulated brokers will warn their clients on the risks of trading, offer to learnthe materialon relevant subjectsand provide you with the relevant news on their page. Some also offer an economic calendar so you can see what important events can influence the markets you are trading on.
All in all, there are a lot of things to consider when choosing your broker. As you give them control over your savings, you should always look at all aspects of their service. When you find a broker who has everything we discussed you might find yourself a place to trade. In every case, be careful of the warning signs and always trade with care. Never risk any money you are not prepared to lose.
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