Forex Trading in India

Forex is the largest and most liquid market in the world, with trillions of dollars turnover every day. Try to step into this online trading market in a simple and accessible format with one of the top brokers in India.

Top Forex Brokers in India 2021

MIN. DEPOSIT
FREE DEMO
MT INTEGRATON
BONUSES
FOUNDED
$10
Yes
No
No
2014
WEBSITE

IQ Option broker rating:

FITS FOR BEGINNERS
MIN. DEPOSIT
FREE DEMO
MT INTEGRATON
BONUSES
FOUNDED
$10
Yes
MT4, MT5
No
2008
WEBSITE

Exness broker rating:

MIN. DEPOSIT
FREE DEMO
MT INTEGRATON
BONUSES
FOUNDED
$10
Yes
MT4, MT5
No
2008
WEBSITE

Plus500 broker rating:

What is Forex?

FOREX is a shortening from 'foreign exchange'. The market can be understood as a giant international network that unites the largest world banks. Among the main market participants central and commercial banks, large investing companies, international corporations can be pointed out.

Individuals can be the market participants as well, but they will not be able to access the market directly. Banks, brokers and other contractors provide such access for individuals. The total amount of currencies is more than 150 while some of them are adopted by more than one country (for instance, EUR, USD, etc).
Referring to the Forex market, currencies are not traded on their own. Those are offered in pairs that show interdependence between two different currencies (for instance, EUR/USD, USD/SGD, etc.). Thus, people using EUR/USD purchase US dollars sell Euros. Under the influence of different economic, political and financial events, the rates of currency pairs are constantly changing.

The market participants obtain their profits from currency pairs' volatility.

Basic Principles

Users should understand that FX trading includes no direct purchasing or selling of currencies. A CFD contract is being made between two parties (a broker and a trader). According to the contract, the following conditions are indicated:

  • A trader picks up 'lower' or 'higher' options depending on the technical analysis.
  • If the price movement corresponds to the prediction, a trader obtains profit and can close the deal.

For instance, a user makes a CFD contract for EUR/USD. The rate is 1.8087. The trader selects the 'Buy' option predicting the rate increasing. When the rate is more than the initial one, profits are obtained otherwise, losses are faced.

Is it legal in India?

According to local law, trading on the exchange, including Forex and binary options, is completely legal. An Indian trader has the right to make a profit and withdraw money by paying the necessary taxes.

More information about Forex

The main market common factors
The market is characterized by certain common factors that make the analysis more understandable. Most of those factors are based on Charles Dow postulates:

  • The price has been moving along the trend until the evident signal for the tendency change.
  • The situation is constantly repeated.
  • Each trend has three phases: accumulation, big move and excess.

According to those postulates, the following market peculiarities are recommended being taken into account:

  • A trend strength directly influences the possibility of the rate reverse movement.
  • The strength depends on the interdependence between demand and supply.
  • The flat state frequently precedes the rapid price movement under the influence of significant news.
  • The market changes constantly. The price is moving towards overbought or oversold areas and that helps to understand the best time for the market access.
  • The American and the European sessions are marked by the highest volatility while the Asian session is the least volatile. Time periods must be considered as well while making a deal. The higher volatility is the higher spreads are offered by a broker.
  • The experts' predictions influence the market as well. Apart from the news itself, news anticipation has a particular value.

NOTE!
Those market laws can be taken into account while analyzing currency pairs and their rates movement but a trader should consider particular situations and conditions.
The most effective strategies for FX trading
There exist numerous Forex trading strategies for different time periods, currency pairs and even trading styles. Among the most widespread ones, strategies are distinguished in the followings:

  • Scalping. The style is effective for short-time trading. The profit of several points is expected. A trader opens multiple deals to increase profit. The following strategies are suitable for scalping: MA method, news scalping and Momo trading system.

  • Day Trading. The style is oriented for short-time trading as well (from several minutes to several hours). Impulse or Breakthrough strategies are mostly used for day trading.

  • Swing trading. The style implies positions holding for several days. Buy Low, Sell High; Trade the Range and Trading against the Trend strategies are used within this style.

NOTE!
The indicated strategies can be effective and bring profits but traders should understand that those don't work in all cases otherwise the part of successful traders would be more than 8%. The experts recommend working out personal strategies based on technical analysis and your own experience.
How to start investing?
If you are new to Forex, we recommend to make a first steps on a simple and convenient trading platform. IQ Option is most suitable for beginners. It's a reliable broker, founded in 2014.

To start Forex trading with IQ Option, the following steps are demanded:
  • Open an IQ Option account. Visit iqoption.com to register.
  • After you enter the traderoom, press '+' in the upper menu to an open new asset.
  • Select the currency pair you prefer for trading (40+ pairs are suggested totally).
  • Press the option you've decided to invest in (take into account that different multipliers are suggested for different assets).
  • Indicate the amount you want to invest (starting from $ 1).
  • Pick up 'Buy' or 'Sell' that correspond to price increasing and decreasing consequently.
  • You will be able to close a deal any time you wish in the upper right-hand corner.

NOTE!
Depositing funds is necessary only if you are using a real account, while users are also suggested utilizing a practice account without any limitations.
Which currency pairs are recommended to select?
There exist more than 150 currencies that are united into thousands of trading pairs but the majority of those are not used by professional traders. The more popular pairs are the easier their rate analyzing is expected to be.

The experts recommend concentrating on 1−2 trading pairs to get true profits. Some pairs' rates are almost mirrored. For instance, AUD/USD and NZD/USD are moving almost identically.

Moreover, the rates of different pairs may highly depend on particular news. For instance, any economic news concerning Great Britain influence pairs with GBP. Oil price influences pairs that contain CAD while the pair EUR/USD is extremely volatile under the influence of political news.

Thus, it is much easier to follow more specific information than to keep up with everything.
The main market common factors
The market is characterized by certain common factors that make the analysis more understandable. Most of those factors are based on Charles Dow postulates:

  • The price has been moving along the trend until the evident signal for the tendency change.
  • The situation is constantly repeated.
  • Each trend has three phases: accumulation, big move and excess.

According to those postulates, the following market peculiarities are recommended being taken into account:

  • A trend strength directly influences the possibility of the rate reverse movement.
  • The strength depends on the interdependence between demand and supply.
  • The flat state frequently precedes the rapid price movement under the influence of significant news.
  • The market changes constantly. The price is moving towards overbought or oversold areas and that helps to understand the best time for the market access.
  • The American and the European sessions are marked by the highest volatility while the Asian session is the least volatile. Time periods must be considered as well while making a deal. The higher volatility is the higher spreads are offered by a broker.
  • The experts' predictions influence the market as well. Apart from the news itself, news anticipation has a particular value.

NOTE!
Those market laws can be taken into account while analyzing currency pairs and their rates movement but a trader should consider particular situations and conditions.
The most effective strategies for FX trading
There exist numerous Forex trading strategies for different time periods, currency pairs and even trading styles. Among the most widespread ones, strategies are distinguished in the followings:

  • Scalping. The style is effective for short-time trading. The profit of several points is expected. A trader opens multiple deals to increase profit. The following strategies are suitable for scalping: MA method, news scalping and Momo trading system.

  • Day Trading. The style is oriented for short-time trading as well (from several minutes to several hours). Impulse or Breakthrough strategies are mostly used for day trading.

  • Swing trading. The style implies positions holding for several days. Buy Low, Sell High; Trade the Range and Trading against the Trend strategies are used within this style.

NOTE!
The indicated strategies can be effective and bring profits but traders should understand that those don't work in all cases otherwise the part of successful traders would be more than 8%. The experts recommend working out personal strategies based on technical analysis and your own experience.
How to start investing?
If you are new to Forex, we recommend to make a first steps on a simple and convenient trading platform. IQ Option is most suitable for beginners. It's a reliable broker, founded in 2014.

To start Forex trading with IQ Option, the following steps are demanded:
  • Open an IQ Option account. Visit iqoption.com to register.
  • After you enter the traderoom, press '+' in the upper menu to an open new asset.
  • Select the currency pair you prefer for trading (40+ pairs are suggested totally).
  • Press the option you've decided to invest in (take into account that different multipliers are suggested for different assets).
  • Indicate the amount you want to invest (starting from $ 1).
  • Pick up 'Buy' or 'Sell' that correspond to price increasing and decreasing consequently.
  • You will be able to close a deal any time you wish in the upper right-hand corner.

NOTE!
Depositing funds is necessary only if you are using a real account, while users are also suggested utilizing a practice account without any limitations.
Which currency pairs are recommended to select?
There exist more than 150 currencies that are united into thousands of trading pairs but the majority of those are not used by professional traders. The more popular pairs are the easier their rate analyzing is expected to be.

The experts recommend concentrating on 1−2 trading pairs to get true profits. Some pairs' rates are almost mirrored. For instance, AUD/USD and NZD/USD are moving almost identically.

Moreover, the rates of different pairs may highly depend on particular news. For instance, any economic news concerning Great Britain influence pairs with GBP. Oil price influences pairs that contain CAD while the pair EUR/USD is extremely volatile under the influence of political news.

Thus, it is much easier to follow more specific information than to keep up with everything.