How to choose a forex broker in India?

Although there are relatively fewer forex brokers in India, still many of them are good for nothing. Opening an account with a dishonest broker can be the worst thing you may ever experience in your forex journey. Given below are some guidelines that you can follow to make a safe choice.

1) Select a broker with a good reputation

It is paramount to check the broker’s reputation before signing up with it. It involves checking out the broker’s credibility score with independent review websites, reading customer feedback, and making a rational judgment based on your findings. Do not go with a broker known for bad experiences with clients.

2) Choose a broker that is in the business for at least 3 years

Opening an account with a novice broker can have adverse consequences. New brokers have many upfront challenges, including regulatory restrictions, minimum capital requirements, and fund protection plans. Failing in either of the listed segments can cause a broker to become liquidated. Therefore, always select a broker who has survived the market limitations and irregularities for at least three years or more.

3) Check out the regulation of a broker

A broker without regulation means a horse without reins. The reregulation of a broker makes it follow a set of predefined rules. In addition to ensuring maximum liquidity, regulated brokers keep clients’ funds in segregated bank accounts. Some regulated brokers even offer funds insurance plans in case of insolvency. Always make sure that your prospective broker holds a valid license from the concerned regulatory body in India. The principal authorities that regulate forex brokers in India include;

4) Check the deposit & withdrawal process

Always check the available options for deposit and withdrawal before opening an account with any broker. It is also worth checking how fast a broker processes your deposit and withdrawals. Usually, brokers offer quick deposits but may take time to release your funds. However, a reputable broker doesn’t only support fast payment options but allows you to access your funds anytime.

5) International Presence

The international presence of a broker reflects its competency to operate across borders. A substandard broker may not be able to pass the screening process for seeking international clearance.

6) Customer Support

Customer support is one of the most crucial elements to consider while selecting the best forex broker in India. Besides a language barrier, the incompetent customer support staff is often the main reason why many brokers fail in this segment. Make sure that you can access your prospective broker in the local language. Also, check if the broker offers an in-time resolution to your concerns.

Top 5 Forex Brokers in India

Listed are some top forex brokers in India.

Factors that we considered while choosing the best forex brokers in India

Given below are some factors that we considered while selecting the best forex brokers in India.

1) Analyzed broker’s reputation

To ensure if the listed brokers are trustworthy, we have confirmed their reputation on multiple platforms, including Quora and Reddit. We made identifiable patterns after reading feedback and reviews of existing customers on the said platforms. We also cross-checked the rating of the above-mentioned brokers on Independent websites, such as Trustpilot. In the last, we only picked brokers with the highest reliability score.

2) Checked regulations

To confirm the regulations of these brokers, we have verified the authorization status of each broker individually. After finding the company registration numbers from each broker’s webpage, we explored the database of regulated brokers on the RBI’s online portal. We assure you that all these brokers hold valid licenses from the RBI and SEBI.

3) Tested deposit & withdrawals

It is imperative to check real-time accessibility to your funds before funding your accounts with large amounts. Sometimes brokers charge an additional fee to offer a fast deposit and withdrawals process. To check the efficiency of funds deposit and withdrawal, we deposited different amounts with each of the listed brokers and requested instant withdrawal. Honestly, we found no issue while making deposits or having our funds withdrawn instantly.

4) Confirmed demo accounts availability

We have also confirmed the availability of demo accounts with the listed brokers. You can use demo accounts offered by these brokers to practice your trading skills as much as you can. These brokers offer demo accounts with unlimited expiry. Experiments without risking real funds have always been a great help to learn different money management strategies.

5) Explored various features

We explored different features and services to confirm the competency level of each broker appearing in the list. We analyzed trading costs, available leverage, types of accounts, safety tools, and customer services. Honestly, we found them to have value for money.

6) Tested trading platforms

The best forex broker should have a user-friendly trading interface having all basic and advanced trading tools available. To check if the listed broker offers easy-to-navigate trading platforms with all the necessary trading tools, we signed up for a live trading account and tried placing some trades. We experienced instant trade execution with minimal slippage occurrence under highly volatile market conditions. We also employed several risk management tools, such as stop-loss, trailing stops, and negative balance protection, and found them working effectively.

7) Confirmed availability of mobile trading platforms

To facilitate on-the-go users, all our listed brokers offer mobile trading apps compatible with both Android and iOS-based mobile phones. Despite having limited features available as compared to a desktop version, these apps work great when used for basic trading needs. Traders can download the mobile trading apps from the Apple Store or Google PlayStore.

8) Contacted customer support

We also communicated with the customer support staff of these brokers one by one. We asked multiple questions and registered a couple of complaints with them. We were happy to find that the brokers were not only quick to respond but competent to offer in-time complaint resolution management.

Forex Brokers In India – FAQs

Is forex trading legal in India?

Yes, forex trading is legal in India. However, the scope of currency trading in the country is limited due to strict regulatory restrictions.

Do forex traders pay tax in India?

Yes, traders have to pay taxes on their forex earnings in India.

Who regulates forex trading in India?

The Reserve Bank of India (RBI) is the principal authority that regulates the parties involved in the forex industry under FEMA Act- 1999. Besides RBI, the Securities and Exchange Board of India (SEBI) is also responsible to oversee forex brokers in India.

How many forex traders are there in India?

According to information available on, there are nearly 20 Million active account holders in India. However, the stats may differ on other online resources.

Can Indian residents sign up with a forex broker from abroad?

Yes, they can. However, clients have to sign-up with the RBI’s regulated brokers only.


Despite the strict regulatory restrictions, forex trading is becoming increasingly popular in India. As an estimate, nearly 2 Million traders make their earnings from forex in India. However, trading with a regulated broker is a non-bailable offence in India. Hence selecting the best forex brokers in India is crucial. We have handpicked the listed regulated brokers to help you avoid criminal offences or heavy surcharges.