How to Trade Currency in India?
The foreign currency market attracts traders from all around the world. Different currencies are bought and exchanged. Currency trading involves banks, businesses, central banks (such as the RBI in India), hedge funds, investment management firms, retail forex brokers, and individual investors like yourself. Investing in foreign currencies is a viable strategy to generate income.
Although there are many benefits of currency trading, it includes significant risks. Especially with currency trading in India, things are even more complicated. Indian traders have fewer trading alternatives due to regulatory limitations and other factors.
This article is written to serve as a beginner’s guide to start online currency trading in India. To help you get started, here are a few guidelines.
Step-by-Step Guide to Currency Trading in India
Step 1: Create an account with a recognized and legal broker
Traders are required to register with a licensed broker. Indian exchanges and forex brokers are governed by the Securities and Exchange Board of India (SEBI). As a result, before joining up with a broker, ensure that SEBI regulations are in place.
Step 2: Confirm your account
To make sure that their accounts are authentic, traders must go through the KYC procedure. These documents are acceptable forms of identification for clients.
- A duplicate of your national identification card (Aadhaar Card), passport, or driver’s license.
- Indicator of the bank account or bank statement.
Step 3: Make a money deposit in your account
You must have money in your trading account before you can begin trading any currency. By and large, brokers accept a variety of payment methods. Consult with your potential broker to learn about the various possibilities and then choose the one that best meets your needs.
Step 4: Log in to your trading account’s trading platform
To access the forex market, traders require a trading platform. Brokers, on the other hand, provide the unique trading platforms that they build in-house. A trading platform can be accessed online or on a desktop. Mobile trading platforms are also available for traders’ use.
Step 5: Place your first trade
To begin trading, you must first complete all of the pre-requisite tasks listed above. Use your trading account credentials to log in to your trading platform. Find the legal trading pairs on the market watch after logging into the trade market and start trading.
Don’t miss to check: Most volatile currency pairs in 2022
What Should You Keep in Mind While Trading in the Foreign Exchange Market?
A competent trader understands the basics, has clear goals and manages risk effectively while making full benefits of currency trading. Here are a few things to keep in mind:
- A good way to determine your trading style is to become familiar with the trading styles of other currency traders. This is in line with the risk profile of the trader. Before engaging in frequent online currency trading in India, gain a thorough understanding of yourself.
- When involving yourself in online currency trading in India, it’s important to have a trustworthy broker on your side. When it comes to currency trading in India, a reputable broker will hold your hand and keep you up to date on live currency market news.
- Identify your entry and exit points before engaging in any currency trading. You should always be ready to double down or leave a deal if the odds aren’t in your favour. You’ll be much better off if you have a thorough grasp of the various trade possibilities. Limit the amount of money you lose.
- It is a non-bailable crime in India to open a currency account with an unregulated broker. You could be sentenced to prison as well as face significant financial fines.
GoDoFX is one of the leading broker that offers a safe online trading platform. It stands out because they value honesty, technology, and trust. Traders all across the world prefer GoDoFX for its simple and successful trading services.
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