| Broker | Country | Rating | Min. Deposit | Website |
 | US | /5 | $50 | Click for a special offerWebsite |
 | UK, Cyprus, Belize | /5 | $5 | Click for a special offerWebsite |
 | Australia, Cyprus | /5 | $100 | Click for a special offerWebsite |
 | Cyprus, SVG | /5 | $100 | Click for a special offerWebsite |
The Reserve Bank of India is the financial authority that issues licenses to banks and other institutions and authorizes them to act as dealers in the foreign exchange market. In recent years, the Reserve Bank has eliminated some of the restrictions and other regulatory measurements in an effort to make markets more liberal. The Reserve Bank permitted Indian traders to hold a fairly big amount of foreign currency and open foreign currency accounts in India.
The forex market in India is governed by the Foreign Exchange Management Act (FEMA), adopted in 2000 and later revised as part of a broader effort by the Indian government to liberalize the economy and facilitate the remittance of funds both in and out of India. According to the act, Indian residents are free to buy or sell foreign currencies except in cases when the type of the transaction has been explicitly prohibited by the Central Government. However, the list of banned transaction types is quite long.
Officially forex trading in India is restricted to certain currency futures, which are paired against the Indian Rupee and a few cross currencies. Only USDINR, YENINR, GBPINR, EURINR, EURUSD, GBPUSD, and USDJPY futures are available for trading.
Also, under the current regulations currency options are availed to investors with the USDINR pair only.
Spot forex trading is considered illegal under the FEMA. We should also note that FX trade is allowed only through brokers, registered with authorized Indian exchanges such as the National Stock Exchange (NSE), the Metropolitan Stock Exchange of India (MSE), and the Bombay Stock Exchange (BSE).
And yet, international brokers and traders in India have found ways to circumvent those restrictions. Although the Reserve Bank of India had ordered all commercial banks in India to close the accounts of customers, who use credit or debit cards for illegal online forex trading transactions, many traders manage to go around that ban, using e-wallets.
Basically, all transactions to international forex brokers are done via e-wallets like Neteller or Skrill, which are funded with credit cards or bank accounts with Indian banks.
Forex news from India
Major Indian Crypto Exchanges Blamed for Tax Evasion
India’s local tax authorities recently raided some of the nation’s biggest crypto exchanges. The reason was a raised suspicion of tax evasion.
New Indian Bill Will Introduce Private Crypto Ban
Authorities in India were reported to be planning a release of a new legal bill that will ban all private crypto assets
India to Enter Pilot CBDC Phase
India joins ranks of developing countries that are planning to launch a Central Bank digital currency or CBDC. The Reserve Bank of
Proposed Indian Legislation to Impose Heavy Crypto Regulations
India is currently in the middle of reviewing an old legislation according to which all crypto-related businesses are to be regulated and
Reserve Bank of India Examines CBDC Possibilities
The latest addition to the race for a central bank digital currency is none other than India. Currently, the Reserve Bank of
India Considers Imposing an 18% Tax on Crypto Trading
A proposal was recently introduced by the Indian Central Economic Intelligence Bureau (CEIB), presenting for action the possibility of imposing an 18%
India’s central bank proposes FX reforms
The Reserve Bank of India (RBI), India’s central banking institution, proposes a major reform on the India’s currency trading laws. A special
India plans to ban all crypto besides “Digital Rupee”
A draft of a bill has been leaked in India inclining some to believe that the Indian government is considering prohibiting the
FX broker TradeNext sets up TradeNext Securities unit in India
UK-regulated forex and contracts for difference (CFDs) broker TradeNext said on Wednesday it has set up a subsidiary brokerage in India, TradeNext
