The Swiss franc, the Canadian dollar, and the Chinese yuan are also among the top ten most traded currencies, while the Swedish krona and the New Zealand dollar are the least traded currencies in the table. The table shows the percentage share of each currency in the total average daily turnover of the forex market, which was $6.6 trillion in 2023. The table also shows the ISO code of each currency, which is a three-letter abbreviation that is used to identify the currency in the forex market. Forex trading in India offers profitable opportunities, but it is essential to engage in it within the legal and ethical framework set by the authorities. Forex trading, the exchange of one currency for another, is subject to strict regulation in India, overseen by the Reserve Bank of India (RBI) and the Securities and Exchange Board of India (SEBI).
A mobile platform is available but Demo accounts are not; US traders are not accepted. Autochartist signals are available at the bottom of the trading platform and while this is not a game changer, it’s still something worth mentioning, especially because some brokers charge you for Autochartist. Of course, we cannot vouch for the accuracy of the signals but it’s a nice addition. The overall structure of the accounts at LexaTrade is too expensive in my opinion and putting a $10,000 barrier between the trader and MT4 means that the majority of clients will not use this platform.
Lexatrade is a global brokerage firm offering a wide range of trading services in forex, stocks, and cryptocurrencies. With a user-friendly platform and an array of educational resources, Lexatrade caters to both beginner and experienced traders. To trade forex successfully in India, you need to choose a regulated and reliable broker that offers you access to a variety of currency pairs, platforms, tools, and services. You also need to develop a solid trading strategy that suits your goals and preferences. The increasing popularity of the futures and options market has led to an increase in the technical awareness among people, which in turn should make investing in currency derivatives via the NSE and BSE easier.
If a trade position is kept open and carried over to the following day, a commission will be charged to the trading account for using the credit. The commission is based on the size of the transaction and ranges from 0.005% to 0.015% for most instruments, while it is 0.5% for cryptocurrencies. According to RBI, resident persons should undertake forex transactions only with authorised persons and for permitted purposes, in terms of the FEMA (Foreign Exchange Management Act, 1999). The website is translated in 6 languages, the platform is relatively easy to use and offers all the features needed by is lexatrade legal in india an average trader.
Is Forex Trading Legal In India In 2024?
These platforms are popular among traders due to their advanced features, which are defined below. “Members of the public are once again cautioned not to undertake forex transactions on unauthorised ETPs or remit/deposit money for such unauthorised transactions. This type of execution is unusual compared to many other countries, where brokers will often access currency pairs through decentralized OTC markets that do not have centralized exchanges. Any market that you begin trading in is likely to be affected by a range of factors and happenings, both local and global.
Indians cannot use overseas brokers or trading platforms that are not regulated in India to trade currencies. However, it is important to follow authorized brokers and permitted currency pairs to avoid penalties under FEMA. If you want to diversify your portfolio through online forex trading, ensure that you check the credentials of the broker. Lexatrade offers the MetaTrader 4 (MT4) and MetaTrader 5 (MT5) trading platforms.
LexaTrade Account Types
Under the Foreign Exchange Management Act (FEMA), binary trading is not allowed. While trading in foreign currencies is allowed, it does come with certain restrictions. Earlier on 7th September 2022, RBI issued an “Alert List” comprising names of apps and entities that have not been authorised to deal in forex and to operate electronic trading platforms for forex transactions. Many unauthorised platforms lure people by promising lofty returns on investment. However, using such platforms is not just risky but may also land the users in legal trouble. To sum up, Indians cannot directly trade in the global foreign exchange market via unregulated, decentralized platforms as they are considered illegal.
Is Forex trading risky in India?
Trading can occur on a range of commodities and even instruments such as equity or stock. Each account type comes with its own set of perks, with the higher account types offering the best perks and benefits. The first thing that traders should check is whether the broker is registered with SEBI. Other things, such as the broker’s market reputation and any previously committed frauds, should also be considered. Some of India’s best forex trading apps, approved by regulatory bodies, are Zerodha Kite, Upstox, Angel Broking, Groww, ICICI Direct, and HDFC Securities.
Lexatrade charges a spread on trades, which is the difference between the buy and sell price of a financial instrument. The spread varies depending on the account type and the financial instrument being traded. However, there are too many norms and nuances related to it, which compels regular investors away from it and toward easier options like stocks, bonds, mutual funds, etc. Formulated by the central government, the FEMA 1999 Act governs all foreign exchange transactions by setting limits and restrictions. It gives the central government the authority to regulate payments to/from someone outside the country. Furthermore, it also prohibits using unregulated platforms or binary trading options, which involve high risk and volatility.
- Live chat support was available at the time of our visit but a bit slow to answer.
- Engaging with these platforms could result in legal complications or exposure to fraud and scams.
- This type of execution is unusual compared to many other countries, where brokers will often access currency pairs through decentralized OTC markets that do not have centralized exchanges.
- While the currency on the left is the base currency, the currency on the right is the quote currency.
Stock Brokers can accept securities as margin from clients only by way of pledge in the depository system w.e.f. September 1, 2020. I’ve been navigating the investment world since 2005, from stocks to gold, and I’m here to share what I’ve learned. You also need to keep yourself updated with the latest market news and trends that may affect your trading decisions. Forex trading, the process of exchanging one currency for another, is regulated in India by the Reserve Bank of India (RBI) and the Securities and Exchange Board of India (SEBI). Their role is to safeguard the Indian Rupee (INR) and prevent fraudulent activities.