Although currency trading can be lucrative, there is no guarantee in it. Nowadays, the influx of people venturing into the forex industry is on the rise. Those in India aren’t exempted as the search on how to trade in Forex market in India is topping the search result. The forex market is a global market that involves the buying and selling of currencies.
The forex market generates an average of $5 trillion per day, which is something enticing for most investors. The market involves buying and selling of currencies. For instance, you want to take a trip to Germany from India; you need to convert your India Rupees into euros. The rate at which you exchange between your rupees and the euro will depend on demand and supply at that moment.
TABLE OF CONTENTS
2. Forex Trading Steps in India for Beginners
Step 2. Deposit Your Funds
Step 3. Build your trading plan
Step 4. Start Forex trading
5. Frequently Asked Questions
What is Forex trading?
As it is popularly known, Forex deals with the selling and buying of currencies to make returns. While the intention is to profit, it comes with huge risks as you stand losing your capital.
Nowadays, you can sit at the comfort of your home and partake in the forex market. Online brokers have simplified things so that anyone with access to the Internet and computer can trade the market. You don't have to leave India for Germany to have your currency exchanged. People now know how to trade in the forex market from India since there is no barrier to trading.
The market is always open, with the largest trading centers, including Singapore, New York, Tokyo, and London. Considering the size and volume traded, the market is highly liquid and distinct from other financial markets.
Forex Trading Steps in India for Beginners
The impact of the COVID-19 pandemic has contributed to the number of persons seeking to learn how to trade forex in India. While everyone can trade, forex trading isn't suitable for everyone looking at the risk involved. However, while new traders are flooding the market, the Indian government has imposed several restrictions to protect these traders.
The first step to becoming an expert trader starts with knowing how to trade. There are essential forex trading steps in India for beginners you need to know. These steps can help fast-track your learning process despite there is no guarantee you would make money. Let’s look at the important steps to start your journey.
Step 1. Open Forex Trading Account
Forex trading is prevalent among residents, but some make mistakes when trying to open an account. While many countries regulate forex activities, the Securities and Exchange Board of India (SEBI) is in charge of the forex market in India. To start your trading, you must open a forex account with a regulated broker, such as PrimeFIn.
You can check the SEBI website to see a list of regulated brokers. Therefore, before you register with a platform, ensure it has backing from the government. To open a forex account in India, you need a telephone bill, voters' card, driving license, ration card, and television bill as proof of your residential address. In addition, you need a driving license or photo ID proof to ascertain your identity.
Step 2. Deposit Your Funds
After creating your account, ensure you complete the verification process that requires certain documents mentioned in step 1. To start your trading, you need to fund your trading account. It’s like your SIM card that must be recharge before you can make calls. You can begin your trading with as little as 100 USD
Brokers offer several payment methods for customers to fast-track the process. There are several good online brokers, including PrimeFin, which provides quality service to clients. Find the best option as per your country. Remember, you have to deposit if you want to trade. The money gives you access to the trading platform to buy and exchange currencies.
Step 3. Build your trading plan
You need a trading plan when trading. Your trading plan is what guides you on when to enter a trade, exit, or the risk you want to take. In addition, your trading play also includes the particular strategy you would implement in different market conditions. For instance, some traders use price action strategy, breakout strategy, and range trading.
Before starting trading forex, you should have built your trading plan because it is paramount to your success in trading. You can check our educational center if you need a guide on building a solid trading plan. Overall, your trading plan must include money management, position-sizing, risk management, and strategy to use.
Step 4. Start Forex trading
Once you get your trading plan ready, you need a platform that gives you access to the market. Most brokers will advise you to download the traditional MetaTrader 4 or 5 platform. Nevertheless, some brokers also have their unique trading platforms. To start forex trading, you need to log in to the trading platform using your credentials.
Once you log in, you can select the pair to trade and enter if the market meets your criteria in your trading plan. Remember, your trading plan is a guideline that will help you determine what trade to enter or not. It is advisable to stick to your trading plan when trading.
Start Forex Trading with PrimeFin
Forex brokers allow you to trade the market and make money even though nothing is guaranteed in the market. Choosing your broker to use must be the last thing to do because it is instrumental to your trading success. While there might be several brokers available, here are a few reasons why PrimeFin is the best place to get your trading started.
Regulated – PrimeFin is not only regulated but also authorized to provide related financial services. There is no risk trading with PrimeFin since everything within the platform is transparent and without any manipulation.
Mobile Trading – With PrimeFin, you have access to trading anywhere anytime. You don't have to sit in a particular place as you can trade on the go using the mobile trading app. There is no limitation or restriction on trading with PrimeFin. Get started today!
Deposit and withdrawal option – PrimeFin offers different deposit and withdrawal options for traders. You can fund your account through a local bank transfer or credit/debit card. Besides this, withdrawal is swift and straightforward.
The exchange market is extremely volatile despite the promising potentials in it. It is essential to understand the global market since it influences the domestic market. The market offers traders the opportunity to buy and sell foreign currencies without physically transacting.
India is not different from a few countries where forex trading is regulated. Traders can only trade currency pairs the RBI approves for exchanges. Recently, there was a strict restriction on trading imposed on non-INR pairs. Despite the ease of these policies, it is illegal to trade other currencies besides those the apex bank approves.
To trade, you need a broker that gives you access to the trading platform. PrimeFin is a reputable online broker with several years of experience in offering several products in the forex market. It is a regulated and technologically driven platform with a mobile platform to make trading easy. Significantly, it doesn't charge its traders any commission on trades. However, the trading fees are inside the spread; PrimeFin offers unique trading tools, including an economic calendar and daily news.
It also has adequate training resources if you want to know how to trade in forex market in India. Overall, PrimeFin understands that it takes time to understand the market, so it offers a demo account for beginners or new traders to practice to succeed. Now you known how to trade in forex market from India, get your journey started with PrimeFin today!
Is Forex trading profitable in India?
There is no correct answer to this question because it would depend on several factors. However, you can be profitable trading forex in India even though it is uncertain, as you also risk losing your capital. Since the market is highly volatile, it's a 50-50 chance of trading profitable.
If you have the right skill, patience, and understand the market, you can make money. Remember, forex trading is not a means to get rich quickly. It's like every endeavor you venture into. It takes time and dedication because success doesn't take place in an hour. Therefore, whether forex trading is profitable in India or not will depend on you as a trader.
Where can I trade forex in India?
Forex trading is illegal in India as the platforms are banned. Although you can't directly trade in the market, you have the option of trading currencies through the stock exchange. Nevertheless, you can trade forex in India legally using PrimeFin.
How to open a forex trading account in India?
To open a forex trading account in India, you need to register on the broker's platform. You have to fill in your details and provide both photo and address proof. Most platforms allow voter's card, Aadhaar card, driving license, and passport for photo ID proof. However, for your address proof, you need one of the following – electricity bill, ration card, bank statement, or telephone bill. With this, your account can be set up with the login details provided.Open account