Forex trading in India is highly-regulated with the Securities and Exchange Board of India (SEBI), one of the world’s most respected regulators, working hard to ensure that everyone obeys its strict rules.
As such, new entrants to the Indian forex market need to work with a reliable broker that will support them and provide them with guidance. A platform where they can easily trade currencies and steer clear of any regulatory infractions.
If you’re keen to enter India’s flourishing forex market, whose currency is the 16th most traded in the world, then read on to find out, how you can find the perfect broker to guide you.
How to Find the Right Broker?
Work Out What You Want
The first stage of your journey into the Indian forex market is to consider what you want from your broker. This means thinking about your investment strategy, and what features it will require from your broker to perform flawlessly. First, consider the features that you will need and then consider the features that you’d prefer them to provide as this will help you narrow your search and find the ones that’ll give you what you need and want.
Understand The Regulations In The Indian Forex Market
The Indian forex market is governed by the SEBI, the Indian government and the Reserve Bank of India, which released the Foreign Exchange Management Act (FEMA) in 1999. Before you start trading in the Indian forex market and look to find a broker, you need to understand the regulations that govern the market and how they will affect you and your investment strategy.
Research The Brokers On The Market
Find all of the best forex brokers trading in the Indian market and search through them to identify the ones that meet your needs the best. Explore their websites and make a note of the features they offer so that you can see which will meet your requirements. This will help you to create a list of the brokers you’d like to find out more about.
Explore All The Benefits Each Broker Offers
Each broker will offer you different solutions and benefits, including access to a variety of trading platforms, the opportunity to invest in several additional assets, and different ways to deposit and withdraw money. Look at all the options you have from each broker and see which one best matches your wants. So, you can find a broker you’ll be happy to work with throughout your time trading in the forex market.
Factor The Fees Into Your Budget
Some brokers charge additional fees, such as trading commission or deposit and withdrawal fees. Therefore, work out how much all these fees will cost per trade based on the average amount of activity you want to undertake. Then compare the prices offered by every broker to see how much each broker will cost you. Then, finalise which will be the most cost-effective.
Be Wary of User Reviews
Many people are tempted to read user reviews to try and assess a broker’s quality. Remember that when reading reviews, you need to be objective and take everything with a pinch of salt. Some reviewers may be bitter because they didn’t make the returns they expected and blame the broker, so be wary of overly negative comments. Equally, exceptionally positive comments could be made by employees of the broker or big investors who are making good returns thanks to their strategy. Look for consistencies in the reviews to identify patterns, and separate the truth from the exaggeration.
Get A Demo Account Before You Commit
Trial each broker that you’re interested in by getting a demo account, if they offer one. This will allow you to see how the platform works before you invest real money on it. See if the functions it offers are as useful as they sound. Practising using a demo account will also allow you to test out your strategy before you invest real money.
Start Small
Once you’ve selected the broker that you want to work with, invest a small amount of money with them and explore the forex trading basics before you make a big investment. This will allow you to get a feel for the broker, their platform and the market itself before you really start to make big trades and put more time and resources into your investment strategy.
Investing in a new market is exciting for any trader. Take the time to research your broker before you commit. This proactive approach will allow you find the perfect broker to suit your needs and drive your investment strategy to success.