Check the reputation of the company before opening an account. Regulated market participants are required to have certain minimum capital and follow benchmark standards which result in healthy trade practices. Look for the number of countries under which the firm is regulated. The forex brokerage houses are regulated, market participants.
HOW TO START FOREX TRADING FROM HOME IN INDIA PLUS
Plus the education support and training programs offered. The other factors which count in a selection of the best forex broker in India are the different levels of services & programs offered to differentiate a privileged member and the fees charged. You need to check the spreads offered by the brokerage houses on the currency pairs which you intend to trade. Larger spreads allow more pips to capture or lose.
The difference can be as small as one pip (0.0001), but with large volume, it can make a significant difference. Spread on a currency pairs is what differs from firms to firms. Forex trading deals directly with market makers and not through brokers. Unlike stock trading, you don’t need to pay fees on each forex trade. Brokerage houses have protective stops to prevent an account from going negative. However, losses are also amplified in case the trades go wrong.Įssentially, the higher the leverage, the higher is the level of risk involved. Leverage allows you to make large gains with a small investment. For example, if you have $10,000 in your account and have a 10 times leverage then you can take a $10,000 x 10 times = $100,000 value of the position.įorex brokerage houses provide a varying amount of leverage in a range of 50:1 to as high as 300:1. Leverage is the multiplier, the X times the margin for which you can take a position. If you don’t have a forex trading account, you can check our list of best forex broker in India 2022 Factors to Consider Before Opening a Forex Brokerage Account #1. You need only two accounts, a forex trading account, and a bank account to start forex trading in India. Demat account is not required to start forex trading in India as you won’t get delivery of forex in your account at the end of the day.Īll the trades are cash-settled.