Forex trading in India is regulated by the Reserve Bank of India (RBI) and Securities and Exchange Board of India (SEBI). Due to restrictions on trading in foreign currencies directly through overseas brokers, Indian traders typically rely on brokers that are either regulated in India or those with Indian affiliates. Here’s a list of some of the top forex trading companies that operate in India, providing access to the forex market with local support and services.

1. Zerodha

• Regulation: SEBI Registered
• Key Features:
  • One of the largest stock and commodity brokers in India.
  • Offers forex trading via the NSE and BSE (currency futures).
  • Low brokerage fees and transparent pricing.
  • High-quality educational resources.
• Platforms: Kite, Zerodha Varsity (Educational Platform).

2. Upstox

• Regulation: SEBI Registered
• Key Features:
  • Offers currency trading on the NSE and BSE.
  • Low brokerage fees and robust technology.
  • User-friendly interface.
  • Offers both intraday and positional trading options.
• Platforms: Upstox Pro Web, Upstox Pro Mobile.

3. ICICI Direct

• Regulation: SEBI Registered
• Key Features:
  • One of India’s leading brokerage firms.
  • Offers forex trading through currency derivatives.
  • A trusted name with integrated research tools and investment options.
• Platforms: ICICI Direct Trading Platform, Mobile App.

4. HDFC Securities

• Regulation: SEBI Registered
• Key Features:
  • Provides access to currency futures and options.
  • Reliable customer service with a strong reputation in the market.
  • Research and advisory services for traders.
• Platforms: HDFC Securities Trading App, Web-based platform.

5. Angel One (formerly Angel Broking)

• Regulation: SEBI Registered
• Key Features:
  • Offers forex trading through currency futures.
  • Strong customer support and educational tools.
  • Research-based trading insights.
• Platforms: Angel One App, Angel Speed Pro (desktop trading platform).

6. 5Paisa

• Regulation: SEBI Registered
• Key Features:
  • Competitive brokerage rates.
  • Offers currency trading through the Indian exchanges (NSE and BSE).
  • Access to multiple markets with research tools.
• Platforms: 5Paisa App, 5Paisa Web Trader.

7. Kotak Securities

• Regulation: SEBI Registered
• Key Features:
  • Offers forex trading in currency futures and options.
  • Well-established in India with comprehensive market research.
  • Offers competitive brokerage plans.
• Platforms: Kotak Securities Web and Mobile Trading App.

8. Motilal Oswal

• Regulation: SEBI Registered
• Key Features:
  • A trusted name in Indian trading.
  • Offers forex trading in currency derivatives.
  • Wide range of research tools, including advisory and market analysis.
• Platforms: MO Investor App, MO Trader, and desktop platform.

9. Sharekhan

• Regulation: SEBI Registered
• Key Features:
  • Well-known for its research-driven trading insights.
  • Offers currency futures trading on the NSE and BSE.
  • Access to diverse financial products.
• Platforms: Sharekhan App, Sharekhan Trade Tiger (desktop platform).

10. Fyers

• Regulation: SEBI Registered
• Key Features:
  • Offers trading in currency futures and options.
  • Focuses on providing advanced charting tools and technical analysis.
  • Offers low brokerage rates and good customer support.
• Platforms: Fyers Markets App, Fyers Web Trader.

Key Considerations for Forex Trading in India:

1. Currency Trading Restrictions: In India, you can only trade forex in currency futures and options through regulated exchanges such as the NSE, BSE, and MCX-SX. Direct spot forex trading (in pairs like EUR/USD) with offshore brokers is illegal.
2. Leverage Limits: Due to regulations, Indian forex brokers typically offer lower leverage (maximum 1:10) compared to offshore brokers.
3. Taxation: Profits from forex trading in India are considered income from business and profession and are taxed accordingly.

Conclusion:

Forex trading in India is regulated, and traders typically use brokers with Indian registrations and access to Indian exchanges for trading in currency futures. While the leverage is lower compared to offshore brokers, Indian forex trading platforms still offer competitive tools and educational resources for traders. Always ensure that the forex broker is SEBI registered, and you understand the tax implications and regulatory constraints of forex trading in India.