India employs various restrictions on currency trading in India. Hence the scope of forex trading is limited for forex traders in the country. However, traders can still find their way to the forex market with registered forex brokers.
In this piece, we discuss the restrictions relating to registered brokers, followed by some tips on how to find reliable forex brokers in India.
Since opening an account with an overseas online broker is a criminal offense in India, traders can sign up with regulated brokers for currency trading.
How to Find Reliable Forex Brokers in India?
While signing up with a forex broker, you need to consider various factors. Below are some tips that may help you find a reliable trading broker.
- Check the regulation status of a broker
The regulation of a broker holds critical significance when trading in a country like India. You can ask the broker to share their registration number and cross-check it on the regulated body website. Ensuring that your prospective broker is licensed will save you, a forex trader from a lot of inconvenience otherwise.
- Reputation check
The reputation of a broker is equally important for a successful trading journey. You can read your prospective broker’s clientele feedback and reviews on renowned public platforms, such as Reddit and Quora. Checking a broker’s reliability score with third-party independent reviewers’ websites like TrustPilot is also an effective method to confirm a broker’s reputation.
- Trading Platforms
A broker with a complex trading interface might not be a good option for currency trading. Clients who feel uncomfortable while navigating through the trading platform are likely to remain confused and underperforming. Therefore, a trading platform should be intuitive, having all the basic and advanced trading tools needed for a profitable trading endeavor.
- Trading fees
Usually, the only trading cost you might need to pay to the broker is a spread charge. However, additional fees, such as commissions, overnight fees, inactivity fees, and charges on deposit and withdrawals, can make forex trading quite expensive. Ideally, your broker should not charge any fee on deposits and withdrawals. An option of swap-free accounts will be a plus.
- Customer Support
Your prospective broker should be accessible round the clock. Try to communicate with your broker and ask different queries. Competitive brokers always ensure to offer an in-time resolution to their clients. On the other hand, a broker with poor customer support isn’t worth your investment.
Institutions can’t act as an arbitrator between clients and brokers. However, it can keep asking a broker to resolve the dispute immediately. To facilitate traders in India, a certain body has launched SCORES.
Traders can register their complaints with the board against the forex brokers using the SCORE module.