Forex trading involves the purchase and sale of currencies in the international foreign exchange marketplace. This market stands as the world’s biggest and most fluid financial arena, boasting an average daily volume exceeding $6 trillion. Individuals engage in forex trading for several reasons, including hedging, speculating, arbitraging, or diversifying.
The RBI also maintains an alert list of unauthorized forex trading platforms, apps, and websites that are banned or blacklisted in India. Using these platforms may land you in legal trouble or expose you to fraud and scams.
Therefore, it is advisable to trade forex only with a regulated and reputable broker that complies with the RBI guidelines and offers adequate protection for your funds.
To help you choose the best forex trading app in India, we have reviewed and compared 10 popular apps based on various criteria such as features, performance, fees, customer support, and reputation.
Consider reading: Beginners Guide to Forex Trading in India
Top 10 Best Forex Trading App in India
|Rank||Forex Trading App||Regulation||Spreads||Commissions|
|1||Zerodha||SEBI, RBI||Low to zero||None to low|
|2||Upstox||SEBI, RBI||Low to zero||None to low|
|3||Angel Broking||SEBI, RBI||Low to zero||None to low|
|4||5paisa||SEBI, RBI||Low to zero||None to low|
|5||Motilal Oswal||SEBI, RBI||Low to zero||None to low|
|6||ICICI Direct||SEBI, RBI||Low to zero||None to low|
|7||HDFC Securities||SEBI, RBI||Low to zero||None to low|
|8||Sharekhan||SEBI, RBI||Low to zero||None to low|
|9||Axis Direct||SEBI, RBI||Low to zero||None to low|
|10||IIFL Securities||SEBI, RBI||Low to zero||None to low|
Note: These apps are not exclusively for forex trading, but they allow you to trade currency derivatives on the NSE and BSE platforms, which are the only legal ways to trade forex in India. You can also trade other instruments such as stocks, commodities, futures, options, etc. on these apps.
Factors to Consider Before Selecting Forex Trading App in India
Before you download and install any forex trading app in India, you should consider the following factors:
- Regulation and Licensing: The forex trading app should be regulated and licensed by a reputable authority, such as the RBI, ASIC, FCA, CySEC, or IFMRRC. This will ensure that the app follows the rules and regulations of the forex market and protects your funds and data from fraud and misuse.
- Features and Functionality: The forex trading app should offer a range of features and functionality that suit your trading style and preferences. For example, you may look for features such as charting tools, indicators, order types, risk management tools, copy trading, social trading, demo account, educational resources, etc.
- Performance and Reliability: The forex trading app should perform well and reliably on your device, without any glitches or errors. The app should have a fast and smooth execution, a user-friendly and intuitive interface, a compatible and secure platform, and a stable and strong connection.
- Fees and Charges: The forex trading app should charge reasonable fees and charges for its services. You should compare the spreads, commissions, swap rates, deposit fees, withdrawal fees, inactivity fees, etc. of different apps and choose the one that offers the best value for money.
- Customer Support and Service: The forex trading app should provide excellent customer support and service to its users. You should be able to contact the support team via various channels, such as live chat, phone, email, etc. The support staff should be responsive, professional, helpful, and multilingual.
You can find a list of authorized companies on the RBI website that are allowed for Forex trading in India
Documents Required to Start Forex Trading in India
To start forex trading in India, you need to have the following documents:
- PAN Card: A PAN card is a mandatory document for opening a bank account, a Demat account, a trading account, or an LRS account in India. A PAN card is also required for tax purposes and identity verification.
- Bank Account: A bank account is required for depositing and withdrawing funds from your forex trading account. You can use any bank account that supports international transactions and complies with the RBI guidelines.
- Trading Account: A trading account is required for placing orders and executing trades in the forex market. You can open a trading account with any registered Indian broker or an offshore broker that offers forex trading services in India.
- LRS Account: An LRS account is required for remitting funds to an offshore broker for forex trading purposes. An LRS account is a special type of bank account that allows you to transfer up to $250,000 per financial year for any permissible current or capital account transaction.
Features in Forex Trading App in India
Some of the common features that you can find in most forex trading apps in India are:
- Currency Pairs: Currency pairs are the basic units of forex trading. They represent the exchange rate between two currencies. For example, EUR/USD is the currency pair that shows how many US dollars one euro can buy. Most forex trading apps offer a variety of currency pairs to trade, ranging from major pairs (such as EUR/USD, USD/JPY, GBP/USD) to minor pairs (such as AUD/NZD, CAD/CHF, NZD/JPY) to exotic pairs (such as USD/ZAR, EUR/TRY, GBP/NOK).
- Charting Tools: Charting tools are essential for analyzing the price movements and trends of currency pairs. They allow you to visualize the historical and current data of currency pairs in different formats, such as line charts, bar charts, candlestick charts, etc. Charting tools also enable you to apply various technical indicators, such as moving averages, Bollinger bands, stochastic oscillators, etc. to identify potential entry and exit points for your trades.
- Order Types: Order types are instructions that you give to your broker or app to execute your trades in the forex market. They allow you to specify the price, quantity, and timing of your trades. Some of the common order types are market orders, limit orders, stop orders, trailing stop orders, etc.
- Risk Management Tools: Risk management tools are features that help you control your exposure and minimize your losses in the forex market. They allow you to set parameters such as stop loss, take profit, margin call, etc. to automatically close your trades when certain conditions are met.
- Copy Trading and Social Trading Features: Copy trading and social trading features are options that allow you to follow and copy the trades of other successful traders in the forex market. They enable you to learn from their strategies, performance, and feedback. They also allow you to share your own trades, ideas, and opinions with other traders in the community.
Charges in Forex Trading Apps in India
Forex trading apps in India charge different fees for their services. Some of the common fees and charges are:
- Spreads: Spreads are the difference between the bid and ask prices of currency pairs. They represent the cost of trading in the forex market. Spreads vary depending on the liquidity, volatility, and demand and supply of currency pairs. Generally, lower spreads mean lower trading costs and higher profits.
- Commissions: Commissions are the fees that brokers or apps charge for executing your trades in the forex market. Commissions are usually calculated as a percentage of the trade value or as a fixed amount per lot or trade. Generally, lower commissions mean lower trading costs and higher profits.
- Swap Rates: Swap rates are the interest rates that are applied to your open positions overnight. They represent the cost of borrowing or lending money in the forex market. Swap rates vary depending on the interest rate differential between the two currencies involved in the trade. Generally, positive swap rates mean you earn interest on your open positions, while negative swap rates mean you pay interest on your open positions.
- Deposit Fees: Deposit fees are the fees that brokers or apps charge for depositing funds into your trading account. Deposit fees may vary depending on the payment method, currency, and amount of deposit. Generally, lower or no deposit fees mean lower trading costs and higher profits.
- Withdrawal Fees: Withdrawal fees are the fees that brokers or apps charge for withdrawing funds from your trading account. Withdrawal fees may vary depending on the payment method, currency, and amount of withdrawal. Generally, lower or no withdrawal fees mean lower trading costs and higher profits.
- Inactivity Fees: Inactivity fees are the fees that brokers or apps charge for maintaining your trading account when you do not trade for a certain period of time. Inactivity fees may vary depending on the broker or app’s policy and terms and conditions. Generally, lower or no inactivity fees mean lower trading costs and higher profits.
Closing Thoughts on Best Forex Trading App in India
Forex trading is a lucrative and exciting activity that can offer you many benefits, such as diversifying your portfolio, hedging your risks, speculating on the market movements, or earning extra income.
However, forex trading also involves some challenges, such as finding a reliable and regulated broker or app, choosing the right currency pairs and strategies, managing your emotions and risks, and complying with legal and tax regulations.
In this article, we have reviewed and compared 10 popular forex trading apps in India based on various criteria, such as features, performance, fees, customer support, and reputation.
We have also discussed some of the factors that you should consider before selecting a forex trading app in India, such as regulation and licensing, features and functionality, performance and reliability, fees and charges, and customer support and service.
We have also explained some of the common features that you can find in most forex trading apps in India, such as currency pairs, charting tools, order types, risk management tools, copy trading, and social trading features.
We have also listed some of the documents that you need to start forex trading in India, such as a PAN card, bank account, trading account, and LRS account.
In the market, we see a flood of Apps that are used by traders to trade in forex, but most of the Apps are not authorized by the RBI. Please remember to check the latest RBI rules and regulations to make sure you are always compliant.
Please note that the article uses public data available until September 2023. Readers are advised to refer to the latest RBI and SEBI guidelines before making any financial decisions.
FAQs on Best Forex Trading App in India
Is Forex trading app legal in India?
No, forex trading apps are not legal in India. Although currency trading is allowed on the stock exchange, forex trading platforms are outlawed due to the Foreign Exchange Management Act (FEMA). While trading in foreign currency is legal, there are several restrictions.
Is OctaFX approved by SEBI?
No, OctaFX is not approved by SEBI. However, OctaFX is an international forex broker that operates globally, including in India. Although it is not directly regulated by Indian authorities such as SEBI or the RBI, it is regulated by trustworthy international financial authorities.
Does Zerodha allow forex trading?
Yes, Zerodha allows forex trading. You can open an instant account and start trading in currency derivatives at BSE and NSE exchanges using Zerodha’s trading account. Simply enable the Currency trading segment before trading in currency.