India is an emerging platform when it comes to forex. However, certain restrictions and legalities come along with forex trading in India. Also, choosing a suitable broker overseen by an elementary financial controller can considerably help you mitigate this process.
You need to remember that not all forex brokerages are formulated equally, and thus as a trader, you need to ensure that your requirements are specifically met. This will safeguard you from facing any potential losses in the future.
Now that you’re well-versed with the basics of forex trading, it’s time you open your forex account. Read on for a step-by-step guide on how to create your forex trading account.
We have compiled a list of the Best Online brokers in India. All have the option to open aa demo account which we consider important if you are new to trading Forex as you can then learn the systems before risking any money.
Best Online Brokers In India
Step-by-step Instructions To Open A Forex Trading Account In India
Confused about how to open a forex trading account in India? Well, by following the below-mentioned steps, you can effortlessly open a free forex trading account online.
Step 1
Visit the official website of forex trading. You will see that there are mainly three types of forex accounts that you can open. They are standard, commission, and direct market access account.
You can use any one of the options that’s suitable for you. However, for this guide, the instructions are exclusively for a standard account only.
Step 2
After you click on the open a Forex.com account option, you will be redirected to the application procedure page. You will see that the application process is further divided into four parts. They are: create an account, about you, trading experience, and finish.
Step 3
Under the create account step, you will have to fill up basic details about yourself. Select India as your country or region of residence option.
Fill in details like title, first name, last name, date of birth, email address, and main phone number. Furthermore, type in a username of your choice and then make a strong password for it. Click save and continue to continue the process.
Step 4
Under the “about you” level, the details inquired by the website will get more personal. You will have to start by typing in your current residential address. Please ensure that the address you type should be accurate and should match the one on your ID.
They may ask you documents to validate your address. You will then have to enter your postal code, select your citizenship, and type in your pan card number.
At the end of this step, you will be requested to verify your identity. You can pick between your driver’s license or voter ID and type in the relevant number.
Step 5
In the next step, you will have to answer questions about your trading experience. These queries asked are extremely simple.
Even if you’re a beginner in this field, you can manage to answer them without any major difficulties. Please note that while answering the questions, you need to be precise. Once all the mandatory questions are answered, you can move on to the next step.
Step 6
This is the last and final step. To wrap up the process, you will have to enter your financial details. Make sure that you don’t bluff in the section. The entire procedure is sizably complete now, and thus after the entry of the last few details, you can have successfully created a forex account for yourself!
Reasons To Open Your Forex Account Online
Here are some of the reasons why opening a forex account online is a suitable alternative for you.
- The application process is straightforward and quick.
- The settlement and execution of trades are less time-consuming.
- To give you a user-friendly experience, all the transactions are taken place in real-time.
- Cuts the middleman out. Therefore, your final traded amount is free of any intermediary expenses.
- The transaction costs are significantly lower. Furthermore, it is combined with zero insider trading.
- 24/7 access to your account from anywhere in the world. Thus, you can flexibly carry out trades anytime as per your convenience.
Risks Involving Forex Trading
During your last few steps of opening your account in forex, you will come across risk disclosures. This segment should be taken seriously as firstly, forex trading is not entirely legal in India. Secondly, forex is a risky and tough business, which can make you encounter heavy losses.
Read the risks involving forex trading in India thoroughly to avoid breaking any laws and also to remind yourself about the possible risks. After your ID is verified, you can start instantly start trading.
Margin: To Use It Or Not?
After you finish signing up for your forex account, things could get trickier from here. You will have to decide if you want to use the margin option or not. Margin is a term for a type of loan given by the brokers to the trader. In return, the trader has to multiply the loan amount or leverage it to complete the trade.
Depending upon your broker and the region your living in, the trader is entitled to access the margin in a ratio ranging from 50:1 to 400:1. The quantity of the margin you want to use directly influences the amount collateral you will have to deposit in the account to continue your trading activities.
The efficient use of margins can drastically increase your profits. However, note that you’re also responsible for covering all the losses you’ve incurred, even if the amount exceeds the initial investment. Therefore, margins also enhance the potential risks in trading activities.
Getting Started With Your Forex Account
Opening your free account online is only the first step of using forex. As beginners, it is normal for you to face difficulties while using forex. To help you get a kick start, here’s how you can find and register with a forex broker.
Finding A Forex Broker
With the air-tight laws and regulations regarding forex trading in India, it can be difficult to find yourself the right broker. However, even with the constraints in your options, it’s imperative that you meticulously research about the brokers before you hire them.
Choose the broker that allows you to carry out the trade-in INR money pairs. Ensure that the selected broker has a website that comprises of vital information from prominent regulatory bodies, for example, the Financial Industry Regulatory Authority (FINRA), Securities Exchange Commission (SEC), and more.
Registering For Your Broker Account
You can directly open your new forex account on the broker’s website. The procedure is simple, and the website usually has a live chat option to assist you. Generally, you’re required to pay a minimal deposit amount when signing up for an account through the broker’s site.
Fund Transfer
After opening an account on the broker’s website, you can immediately start trading forex by transferring your funds. Depending on your regional current and the selected broker, you can finance your account in numerous ways. Some common examples of available fund transfer options are- wire transfers, bank transfer, and debit or credit cards.
Start Your Forex Trading Journey
To commence your journey in the forex trading world, you need to firstly download the trading platform on your smartphone or PC and laptops. Don’t make any trading transactions in haste. Instead, take your time and familiarize yourself with the working of the platform.
Run a demo test by using virtual money to feel confident. This will equip you with sufficient knowledge and experience to work with real money. Moreover, by doing a demo run, you will recognize the rookie mistakes beginner traders usually make. This can help you curtail your losses.
Popular Forex Trading Currencies In India
The following currencies are prominently used by several forex Indian users to generate a maximal amount of profits from trading transactions.
USD
The US dollar is perhaps the most widely accepted form of currency across the globe for commerce purposes. The value per dollar is relatively high when converted into other currencies. Furthermore, due to its liquidity, it has a pair with the other currency in the world.
EUR
The Euro ranks second in the list of the most traded currency in the world, right below the US dollars. Commonly accepted by major bank reserves, this currency has seen a rise in its usage for trading purposes in the prior years.
JPY
The Japanese currency, Yen, doesn’t fall too behind when it comes to trading on a worldwide platform. This currency is widely used in Asia.
GBP
The British Pound has enhanced liquid value due to its integral connection with US Dollars. Therefore, making it the fourth most used currency in the trading world.
CAD
Canadian Dollars is the world’s leading stock currency. It ranks fifth in the list of most used currencies in the world.
Final Words
Stepping into a whole new field can be difficult. It may take time for you to learn and adapt to the fresh new environment. When it comes to commerce and trading, it is critically important that you stay sharp, focused, and educated to excel in the field.
There are sufficient beginners guide online that will help you get a better grip on Forex trading. In the meantime, you can follow the above-mentioned steps to open a free trading account and start practicing with demo runs! If you wish to know more about forex trading, XTB or IC Markets, would be the ideal fit for your requirements!
Alternatively, check out our comparison table below for the top brokers in India