Posted by Blyca on October 23, 2019
We all know India is only a developing country; however, forex trading in this country welcomes every citizens and it also has a considerable contribute to the world forex market. This can be seen as good opportunity in investment forex traders in India who want to use a part of their salary to earn more profit. The thing is choosing a decent brokers to give your money is challenging in such a large and quite dishonest industry like forex trading.
This article guide traders how to find a simple platform in trading, how to select a controlled forex brokers, know what is the diversity of forex accounts, decide what are good brokers by the given spreads offered, determine who are potential clients and using others supportive services. They are the forex pros and cons.
Indian rules and worldwide rules in forex trading
India rules are not similar to any others place in the world. In India forex trading market is monitored by Securities and Exchange Board of India (SEBI). This institution was in charge of monitoring capital markets and securities in India. SEBI’s function is becoming more and more valuable by creating rules, providing certificate for brokers, exam and verify brokers, etc. SEBI is also in charge of Indian forex trading market monitoring.
But the important point is not all types of currencies are allowable in India. Forex traders in India are only allowed to trade currency pair including Indian Rupee (INR) which are JPY/INR, EUR/INR, USD/INR, and GBP/INR. Because the US dollar is stronger than INR and there are very little saved US dollar in Central Bank of India so the more traders want to buy US dollars, the more deficiency in US dollars. This will be the most negative scenery due to the losing value of INR and bad rates of USD/INR.
Spread rates and commission fee
Brokers’ income comes from the spreads which is a fee charging clients for all tasks brokers done. This fee is not similar to bid/ask or buy/sell price and it can be charged at many range of number, an exact number, or a specific number with a small additional fee. The most common case in the market is always fixed spread. Some popular currency pairs including USD/JPY or EUR/USD have 2 or 3 pips in case of fixed spreads.
Forex market decide the spreads range diversity. For example, a very few of pips of 0.1 to 0.6 is a normal number in most cases of USD/JPY and EUR/USD. But if the market is suddenly affected by data, the spread will expand its range to even 20 to 30 pips with common currency pair and to a bigger number with less common one. A few brokers require an exact number of spread and an additional fee for your place. An example is EUR/USD require you only 0.4 pip and $5 or $6 respective for a lot position of $100.000
Facility for clients
Providing forex traders in India customer care staff who can guide clients in a wide range of languages, accent, or dialect is a must for Indian forex broker. This crew will tell you whether this broker is a generous one ready to offer more or just a profit-centered one always want to earn more from you. The second statement is quite true if they only offer English language for example.
Beside offline caring, a trustworthy brokers need to offer online caring also. This way can help customers with their trouble, their query, and suitable guidelines as soon as clients give their inquiry. Do not chose brokers with quite low customer caring facility.
All in all, forex traders in India have to think carefully about the above aspects before give your money with any brokers. A trustworthy broker with all good features mentioned previously will support your path in investment and increase your possibility in earning more money. Next, learn how to become a successful forex trader.