Best forex brokers in India

Broker	Country	Rating	Min. Deposit	Website
	US	4.99/5	$50	Click for a special offerWebsite
	UK, Cyprus, Belize	4.94/5	$5	Click for a special offerWebsite
	Australia, Cyprus	4.93/5	$100	Click for a special offerWebsite
	Cyprus, SVG	4.8/5	$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.

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