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Best Forex Brokers in India for 2024

Toni Nasr, CFA, FRM| Updated February 8th, 2024

The foreign exchange market (Forex) is the world’s largest and one of the most popular markets. While trading Forex is legal in many countries around the globe, India has a rather ambiguous position when it comes to trading Forex. Indian authorities permit Forex trading but have very strict rules and limitations.

For instance, were you aware that while many brokers open accounts for Indian residents, you might face penal action if you deal with an unauthorized broker? As a result, it is difficult for Indian traders to find an international Forex broker where they can trade without being vulnerable to penal actions at a later stage.

In this article, we’ll discuss those restrictions and tell you where you can trade Forex if you’re interested in Forex trading in India.

Forex Trading in India

The Reserve Bank of India (RBI) issued the Foreign Exchange Management Act (FEMA) in 1999 as an act to consolidate and amend the law relating to foreign exchange to facilitate external trade and payments and promote the orderly development and maintenance of the foreign exchange market in India. This framework describes, among other things, how the foreign exchange market is managed, who is considered an authorized person, and penalties.

Only authorized persons can engage in Forex transactions and only for permitted transactions. The RBI defines authorized persons who might be money dealers and local or offshore entities, and online forex transactions should be executed through what they call electronic trading platforms (ETPs). They have a list of authorized ETPs that can be checked on the Securities and Exchange Board of India’s (SEBI) website. Indian residents may be subject to penalties if they engage in foreign exchange transactions with unlicensed parties or entities that are not on their approved list.

In short, Forex trading is legal in India and regulated by SEBI, which is also in charge of the registration of Forex brokers in India.

Currency pairs available

Forex trading was only limited to four currency pairs with the Indian Rupee as the base currency:

  • USD/INR (U.S. Dollar / Indian Rupee)
  • GBP/INR (Pound Sterling / Indian Rupee)
  • EUR/INR (Euro / Indian Rupee)
  • JPY/INR (Japanese Yen / Indian Rupee)

However, the Reserve Bank of India allowed three additional currency pairs to be traded:

  • EUR/USD (Euro / U.S. Dollar)
  • GBP/USD (Pound Sterling / U.S. Dollar)
  • USD/JPY (U.S. Dollar / Japanese Yen)

List of restricted brokers

The RBI has released a list that contains brokers which are not authorized to conduct Forex transactions for Indian residents.

AnyFX Ava Trade Binomo
eToro Exness Expert Option
FBS FinFxPro
Forex4money Foxorex FTMO
FVP Trade FXPrimus FXStreet
HotForex ibell Markets IC Markets
iFOREX IG Markets IQ Option
NTS Forex Trading OctaFX Olymp Trade
TD Ameritrade TP Global FX Trade Sight FX
Urban Forex XM XTB

You should be careful, as this list is not exhaustive. Hence, the absence of a broker from this list does not imply that the SEBI authorizes it. The list of authorized individuals and authorized ETPs can only be used to determine the authorization status of any person or ETP.

Best international brokers to trade Forex

After conducting in-depth research, we were able to recommend Interactive Brokers and Fusion Markets, as two of the best international Forex brokers in India. Interactive Brokers, in particular, it is authorized by SEBI under the name “Interactive Brokers (India) Private Limited”. It is a member of various Indian stock exchanges, including the National Stock Exchange of India (NSE) and the Bombay Stock Exchange (BSE).

Interactive Brokers

interactive brokers logo
Visit Interactive BrokersBest Forex Brokers in India for 2024 1

Interactive Brokers at a glance

Number of currency pairs100+
Minimum Deposit$500 (equivalent to INR)
Forex FeesSpreads starting 0.1 pip and tier pricing commission
Authorised by SEBIYes

Founded in 1978, Interactive Brokers is one of the largest international brokers listed on the NASDAQ exchange (Ticker: IBKR) and is regulated by many international top-tier regulators. They are the only broker that we recommend to Indian Forex traders that SEBI authorizes. They are known for their wide range of currency pairs, great research tools, and advanced trading platforms.

There are several account base currencies at Interactive Brokers. For Indian residents, the minimum deposit to open an account is $500, or equivalent in INR, and the only way to fund your account is through a bank wire transfer. They offer one of the tightest spreads on Forex, but you are subject to a tiered commission based on the monthly volume of your trading activity. 

Below is a sample of the spreads applied to major currency pairs:

Currency pair Spreads in pips
EUR/USD spread 0.1
GBP/USD spread 1.5
USD/JPY spread 100
XAU/USD spread 900
XAG/USD spread 70

In addition to low spreads and margin rates, Interactive Brokers does not charge an inactivity fee, and you are entitled to one free withdrawal per month.

Finally, their trading platform, TWS (desktop version), is one of the best trading platforms with advanced features and a high degree of customisation. Moreover, they offer a web interface, IBKR GlobalTrader, and a mobile app that are also well-designed.

Interactive Brokers trading features

Trading platforms IB Trader Workstation (TWS), Client Portal (Web-based platform), IBKR Mobile and IBKR GlobalTrader (another mobile app).
Limit orders Yes
Stop loss & take profit orders Yes
Negative Balance Protection No
Guaranteed stop loss No

We recommend you check out our comprehensive Interactive Brokers review.

Fusion Markets

Fusion Markets Logo
Visit Fusion MarketsBest Forex Brokers in India for 2024 1

74-89% of retail CFD accounts lose money.

Fusion Markets at a glance

Number of currency pairs90+
Minimum Deposit$0
Forex FeesSpreads starting at 0.0 pips
Authorised by SEBIYes

Founded in 2017,  Fusion Markets is a Forex and CFD broker with offices in Australia, Vanuatu and the Seychelles, but accepting clients from most countries worldwide (exceptions include the US and New Zealand). The broker offers access to 250+ products, including Forex and CFDs on Energy, Precious Metals, Equity Indices, US stocks and Crypto.

On AUD and USD currencies, the commissions offered are $2.25 per side commission, so a standard lot will be $4.50. On the “Zero Account”, spreads start from 0.0 and on the “Classic Account”, the spreads start at 0.9. The main difference between the two is that the latter includes your commissions in each trade. Apart from the trading fees, there are no deposits and some withdrawal fees.

Below is a sample of the spreads applied to major currency pairs:

Currency pair Spreads in pips
EUR/USD spread 0.03
GBP/USD spread 0.14
USD/JPY spread 0.14
XAU/USD spread 1.05
XAG/USD spread 0.80

Finally, Fusion Markets offers several investment platforms in desktop, web and mobile apps, namely MetaTrader 4 and 5, and cTrader. All platforms give you customisable charts, fundamental and technical indicators and an intuitive interface. cTrader presents more advanced market depth options like price depth and VWAP depth.

Fusion Markets trading features

Trading platforms MetaTrader 4 and 5, and cTrader
Limit orders Yes
Stop loss & take profit orders Yes
Negative Balance Protection Yes (under the ASIC-regulated entity only)
Guaranteed stop loss No

We recommend you check out our comprehensive Fusion Markets review.

What Makes a Good Forex Broker?

Whether you are a beginner or an experienced trader, there are numerous characteristics and features that should be taken into account when choosing a good Forex broker. The following are a few of the most important factors to consider:

  • Regulation: This is the most crucial factor because you need to make sure the business is legitimate before depositing your money. As a result, we advise you never to select a broker who is not regulated by a recognized authority.
  • Commissions: Although spreads vary depending on the currency pair, good Forex brokers often provide tight spreads and have reasonable commissions.
  • Deposit and withdrawal methods: A good broker will make it easy and convenient for users to deposit and withdraw funds by offering several methods, such as wire transfer, debit or credit card, or other electronic payment methods such as PayPal or Skrill.

The bottom line

It can be difficult and time-consuming to identify the best Forex brokers in India, as Indian authorities prohibit many international brokers, and you are only allowed to deal with approved brokers. However, our analysts performed this task, outlined the limitations, and identified that Interactive Brokers and Fusion Markets are two of the best Forex brokers for Indians.

We hope this article saves you some time while researching the best Forex brokers in India. We advise you to conduct your own research to determine which online broker is best for you. Keep in mind that a demo account might be helpful for testing the features and practicing.

Other FAQs

Is Forex trading legal in India?

Yes, Forex trading is legal in India. However, you must be aware that the Indian authorities have put restrictions on Forex trading. As such, if you deal with an unauthorised broker, you might be exposed to penal action.

Which currency pairs can be traded in India?

As mentioned earlier, only the following currency pairs can be traded in India:

  • USD/INR (U.S. Dollar / Indian Rupee)
  • GBP/INR (Pound Sterling / Indian Rupee)
  • EUR/INR (Euro / Indian Rupee)
  • JPY/INR (Japanese Yen / Indian Rupee)
  • EUR/USD (Euro / U.S. Dollar)
  • GBP/USD (Pound Sterling / U.S. Dollar)
  • USD/JPY (U.S. Dollar / Japanese Yen)

Is XTB available in India?

Unfortunately, XTB is not available in India.

Is eToro available in India?

No, unfortunately, eToro is not available in India.

Toni Nasr, CFA, FRM
Fintech Analyst

Toni is a Fintech Analyst with over 8 years of experience in the financial industry where he worked as a financial control analyst at a regional bank and later conducted independent investment research analysis.