The Indian financial sector is regulated by the Reserve Bank of India (RBI). The RBI regulates and supervises forex transactions in India while the Securities and Exchange Board (SEBI) is the main regulatory body of the Indian stock market. Indian based forex brokers must register with FEMA to legally operate in the country.
The SEBI-regulated forex brokers include the three major stock exchanges in India are only permitted by law to provide INR-based currency pairs for USD, EUR, GBP, and JPY. Traders are prohibited from trading any other currency pair except those authorized by the Indian government.
While traders can still open an account and trade with a foreign-based broker, they must make their deposit with the use of an electronic wallet service like PayPal, Neteller, and related payment service providers. Using a wire transfer from a bank or other financial institution based in India, credit cards or debit cards issued by Indian companies is illegal.
Due to forex trading limitations in India, ensure you select a forex broker that is regulated by the top world’s regulatory body like the US NFA or U.K.’s Financial Conduct Authority (FCA) or Cyprus Securities and Exchange Commission (CySEC).
In the US on the other hand, The Commodity Futures Trading Commission and the National Futures Association are the two regulatory bodies that oversee the activities of the US forex brokers. To operate in the country, brokers must register with the NFA and CFTC.
The Dodd-Frank Act, signed into law in 2010 is the law that governs the operations of the forex market in the US. The US forex laws are applicable to both U.S.-based forex brokers and brokers anywhere in the world that want to offer service to US clients.
Top forex brokers that provide service to the US and Indian traders are as follows: 1. Forex.com
Forex.com is presently one of the largest forex companies in the US forex market. The trading platform is the property of the GAIN Capital holdings. Forex.com currently dominates the largest part of the US after it acquired the clients of FXCM when they were banned from operating in the US by the US regulatory body. The company is popular among traders in us for its transparency of operations and overall integrity. You may want to check out the company if you are in the US or India where forex restrictions are strict due to their strict observance of regulatory rules.
2. eToro
eToro is a forex trading platform that is regulated by top world regulatory bodies including FCA, CySEC and ASIC. The company was founded in 2007. The original name of the company is RetailFX. eToro is an innovative broker that offers social trading activities.
The company’s Openbook social trading platform brings a big improvement to how newbies can access the financial market. Through the company, anyone can easily trade the market irrespective of your level of experience. It comes with a user-friendly platform that makes it easy for newbies to copy the trades of veteran traders.
3. FXTM
The FXTM is also known as ForexTime. It is a trading platform that is primarily focused on foreign exchange. The exclusive offer of forex trading makes it one of the top brokers for forex trading especially due to Forex focused trading platforms and tools. CFDs can be accessed through more than 50 currency pairs which include major, minor, and exotic pairs. Traders can access leverage up to 1000:1.
They offer competitive spreads and 24-hour trading 5 days every week. The company’s headquarters is in Cyprus and it operates under the regulatory surveillance of the International Financial Services Commission (IFSC), Cyprus Securities and Exchange Commission, and other regulators inside and outside the European Union. They offer demo trading, MetaTrader 4 and MetaTrader 5 trading platforms.
4. FBS Markets Inc.
The FBS Markets is a Forex and CFD broker that provides its services to clients around the world. Launched in 2009, the company has grown in size, capacity, and technology. It provides currency pairs, CFDs, stocks, metals and cryptocurrencies on MT4 and MT5 platforms.
FBS Markets provides users with a lot of tradable assets including 37 currency pairs, 4 metals, 3 CFDs, 4 cryptocurrencies and 32 stocks.
The MT4 and MT5 trading platforms of FBS are offered as WebTrader, desktop apps, and mobile apps. They provide traders with a maximum leverage of 3000:1. The forex company is regulated by CySEC and the IFSC. Traders can access a large number of educational resources.
Conclusions
Forex trading is generally a risky investment. However, when you want to trade from the US or India which strictly regulates the way the forex market operates, it is essential to play by the rules. One of the key steps to succeeding as a trader is getting a reputed forex broker.
So, ensure that you work with a broker that transactions. If you live in India and want to is legally permitted to offer service in your jurisdiction to remain safe. If you are in India trade currency pairs that are paired with Indian Rupee like USD, GBP, JPY or EUR and register with any of the three SEBI-regulated Indian stock exchanges that function as forex brokers.
If you want to trade forex in the US, look for brokers that are registered NFA and CFTC to ensure adequate protection, minimal risks and ensure the safety of your funds.
