There aren’t many variations between launching a Forex trading business in India and other countries of the world. However, once you begin going, it can prove to be more difficult than you anticipated due to numerous bureaucratic roadblocks. We’ll walk you through everything step by step so you can decide for yourself whether it’s worthwhile to trade forex in India after reading this.
You only need a bank account and a Forex account to start trading Forex as an Indian citizen. With regard to the first, we presume you won’t need any assistance; nevertheless, the second one needs some additional explanation.
Make sure the broker you choose for your needs is FEMA compliant and has a license from SEBI (Securities and Exchange Board for India) (Foreign Exchange Management Act). You might wish to avoid trading through an unregulated brokerage firm in India because doing so is against the law. All other factors are up to you, but these two requirements must be met.
For instance, you might prefer to conduct business with a well-known company with a large selection of account types and dozens of accessible payment options. You should go no further than Just Forex if you want a thorough overview of every facet of Forex trading in India and everywhere else in the world.
Currency laws in India
Although Forex trading is becoming more and more popular worldwide, India is lagging behind due to several regulatory concerns, which we’ll cover in this article.
First of all, you should be aware that all Forex trading in India is strictly regulated and that you are only permitted to trade currency pairs where major currencies are bench marked against the Indian Rupee (INR). The government intends to keep the Indian foreign currency reserve intact by taking artificial measures because the INR is weak against the USD.
In other words, you can only trade EURINR, GBPINR, JPYINR, and USDINR if you’re an Indian citizen. The EURUSD, GBPUSD, and USDJPY are three additional pairings that have been made accessible for cross-currency futures and exchange-traded options from December 2015. The FEMA act forbids trading in all other pairs. However, one cannot claim that it prevents Indian citizens from engaging in Forex trading.
Even with such restrictions, the potential is remarkable, and one is still able to maintain independence while having a stable income thanks to currency market swings.
Why did India begin trading in Forex?
India is well positioned halfway between the major exchanges in Asia and Europe in terms of timezones. Since you won’t have to miss your sleep or work to be there during the peak Forex trading hours if you trade from India, this is crucial for individuals who haven’t yet determined whether or not they can make Forex their main source of income.
Another wonderful benefit is that India is still a relatively untapped market for forex brokers, so they must enter it with competitive terms and alluring promotions to get the business. You would be shocked if you were to compare the advantages available to traders in India with those available to those in the US or Western Europe.
The best part is that, if you treat forex as you should, as your work, it may give you security and independence. You develop information and skills, improve, and grow into a professional. There is no other way to build a successful business, so stay away from anyone who attempts to tell you otherwise.