How To Open Forex Account In India: Free Guide 2024

The retail investing trend that has swept the financial service industry is often associated with stocks, stock options, crypto currency, and ETFs. However, many readers might be surprised to find out that these are not the largest markets. The largest financial market is Forex – or foreign currency exchange. Users can sign up, open Forex account, and make money by investing in various currencies from around the globe. The market is huge and the investments are virtually instantly liquid – making this a great option to diversify a portfolio. 

In this article, we lay out the basic information about the Forex markets including a step-by-step guide to opening a Forex account. Additionally, we analyzed various retail brokers and provided a review of the top two contenders that we recommend you take a look at if you are getting started. As with any investment product, we remind readers that any investment carries risk and that investments should be completed as part of a well-researched and safe investment strategy.

What is a Forex Trading Account?

Forex markets are shorthand for foreign currency exchange markets. Exchange in a way is nearly the same age as the introduction of foreign currency itself. It has grown into the most powerful market on the planet but it was not long since the people were able to easily trade from their homes. Since the beginning of the Internet era in the 1990s, retail Forex brokerages began enabling individual trades of major currency pairs. Quite simply, a Forex account is an investment account where the funds are constantly changing from one currency to another in an effort to keep wealth in the strongest currency or make profits from arbitrage. Forex provides an opportunity for entry to the world’s largest and most liquid market.

Trading Forex can be a powerful way to make money from your savings and investment accounts.  For one thing, Forex is a massive market, in fact, the world’s largest financial market. The large market and the product consisting of simply money means that your investments are almost fully liquid – the exchange is even open 24/7 so you can cash out and move money at any moment. Currency investing is a way to diversify your portfolio as it operates separately from stock markets.

Different Types of Forex Accounts

There are a number of different types of Forex accounts. Among these types are a retail business, professional brokerage account, and institutional. Most platforms offer their customers multiple types of trade accounts, including a demo account, standard account, active trader, or professional account. Each product and service provides traders with a unique range.

Demo Account

A practice account that enables traders to test trading strategies and learn how to utilize a trading platform without putting any real money at risk. It offers a virtual setting that resembles the actual trading circumstances.

Micro/Mini Trading Account

An account type that allows traders to start trading with a lesser quantity of money and has a lower minimum deposit requirement than normal accounts. These accounts frequently offer reduced trading expenses, but there are also fewer potential rewards and hazards.

Standard/Classic Account

A common account type with a larger opening deposit requirement than a micro or tiny account. Standard trading conditions are available with this account type, including with competitive spreads and leverage.

Premium/Professional Account

A type of account created for seasoned investors who need cutting-edge trading tools, smaller spreads, and larger leverage. These accounts are appropriate for traders with larger trading capital because they frequently have higher minimum deposit requirements.

Managed Trading Account

A form of account where a qualified trader overseas trades activity on the client’s behalf. Based on the objectives and risk tolerance of the customer, the trader has the power to make trading choices, including buying and selling positions. The minimum investment requirement and performance fees are frequently higher for managed accounts.

How Much Money Do You Need to Open a Forex Trading Account?

[Many Forex traders require at least $500 initial investment for their standard retail investor accounts to trade, although some brokers offer discount accounts that start at $100. Many trading platforms also offer demo accounts that are a way to practice and complete Forex paper trading which requires no investment. Micro accounts are becoming more popular for those who want to get started with very low investments.

Are Forex Brokers Reliable?

As with every industry, there exists the entire gamut of skills from excellent Forex brokers and those that are not reputable. A broker should be knowledgeable, and ethical, and help you with risk management for your portfolio. One thing that consumers can do is to make sure to check that a potential broker is accredited by an industry association that will oversee the standards for their professionals. For the United States, the Forex market association is the National Futures Association or NFA.

5 Basic Steps to Open a Forex Account In India

Opening a Forex account is actually a straightforward process. Investors will choose a reliable broker, register on the website, log in to an account, select the account type, and then open the account.

Choose a Reliable Forex Broker

The first essential step is to choose a reliable Forex broker. Brokers should be accredited by the overseeing organization. In the United States, this means earning accreditation by the NFA, or National Futures Association.

Register on the Broker’s Official Website

For the next step, you will have to register by entering some personal information and verifying your identity. Navigate to the broker’s official website and there will be a “register” button or link.

Log in to Account

When you are ready to get started, you will then need to log in and open an account. You will create a username and password. When you log in, you will be directed to a dashboard – which will be easy to use and intuitive on the best platforms.

Select The Type of Account

The next step is to choose from the various types of accounts. They include demo, micro, standard, and various forms of pro or advanced levels. Consider your goals and trading style to determine what best suits your needs.

Click The “Open Account” Button

Finally, you engage the account by hitting the “open account” button and link. The account will launch.  You will likely have to answer additional questions like your preferred currency or your initial deposit amount.

The Top 2 Forex Brokers In India

IG Markets

IG Markets is one of the best forex brokers, especially for retail traders and seasoned investors who have experience in the forex markets. Other trading platforms don’t have the same research and tools available to users like IG Markets.

IG Markets is a trusted forex broker, supported by the fact that it’s a public company and highly regulated in the industry. Users of IG Markets can feel confident that they’re using a reliable and trustworthy platform that has high credibility among investors. The overall user experience using their platform is great, and they continue to be one of the leaders in the market for forex traders.

CMC Markets

With over 30 years of experience, CMC Markets is a trusted and well-known Forex trading platform. They provide traders with access to a large selection of financial products, including indices, commodities, and currency. Their Forex trading includes excellent features like fast speed, precision prices, and full order fills. Most impressively, they offer more matched pairs than other similar services. To support traders in developing their abilities and making wise trading choices, CMC Markets also offers a variety of educational resources and tools, such as webinars, seminars, and trading guides. They also provide aggressive pricing and cutting-edge trading capabilities like stop loss orders, trailing stops, and guaranteed stop losses.

Final Thoughts on Forex Trading Account

Those who focus on news of stocks, bonds, or ETFs may have been surprised by this article’s report that the trade of foreign currencies is far and away the largest market in the world. If you wish to diversify your holdings, Forex can give you a separate market that operates independently of stock exchanges.  Experienced and skilled investors can move wealth into the strongest currencies or make money through arbitrage or currency speculation. As we always remind readers – any international market is volatile and you should understand the risks involved. If you do want to enter the Forex market, we recommend using a broker that is easy to use and provides excellent services. For today, we find that eToro and CMC Markets are the best choices to get started in this large liquid market. 

Frequently Asked Questions (FAQs)