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RBI Approved Forex Broker in India

Created on 21 Jun 2023

Wraps up in 12 Min

Read by 2.2m people

Updated on 13 May 2025

Forex trading is like a roller coaster ride. It can be thrilling, exhilarating, and rewarding, but also scary, risky, and challenging. Precisely speaking, forex trading is the act of buying and selling foreign currencies in the global market, hoping to make a profit from the fluctuations in exchange rates.

But before you hop on this ride, you need to know one thing: Forex trading is not legal in India. Well, not entirely. You see, India has some strict rules and regulations when it comes to forex trading. And if you don’t follow them, you may end up in legal trouble or worse.

So, how can you trade forex legally in India? The answer is simple: you need to choose an RBI-approved forex broker. 

RBI stands for Reserve Bank of India, which is the central bank and the regulator of the foreign exchange market in India. RBI monitors and controls the flow of foreign currency in and out of the country. It also issues guidelines and rules for forex trading activities in India.

One of the rules that RBI has imposed is that Indian residents can only trade forex through brokers that are registered and regulated by SEBI and the RBI. 

SEBI stands for Securities and Exchange Board of India, which is the government regulator for stock and securities in India. SEBI and the RBI work together to ensure that forex trading in India is legal, safe, and fair.

In this blog post, we will explain why you should choose an RBI-approved forex broker, how to find one, and how to do well in forex trading. We will also share some tips and tricks on how to trade forex successfully in India. So, buckle up and let's get started!

Table of Contents

The RBI-Approved Forex Brokers

Based on the above criteria, here are some of the RBI-approved forex brokers in India that you can consider for forex trading:

  • Zerodha
  • Angel Broking
  • HDFC Securities
  • Sharekhan
  • ICICI Direct 
  • Axis Bank
  • 5paisa
  • Motilal Oswal
  • Upstox
  • Kotak Securities

We will discuss these in detail later in the article. For now, let's understand the importance of choosing an RBI-authorised forex trading platform.

Why Choose an RBI-Approved Forex Broker?

Choosing an RBI-approved forex broker is not only a legal requirement but also a smart decision for Indian forex traders. Here are some of the benefits of trading with an RBI-approved forex broker:

  • You can access a limited but reliable range of currency pairs that are permitted by the RBI for forex trading in India.
  • You can trade with peace of mind, knowing that your broker is authorised and regulated by the Indian authorities.
  • You can avoid legal troubles and penalties that may arise from trading with unlicensed or offshore brokers.
  • You can enjoy better security and protection of your funds, as your broker has to comply with the capital adequacy and customer service standards set by SEBI and RBI.
  • You can get access to local payment methods and customer support, as your broker has to operate within the Indian jurisdiction.

So, if you want to avoid risks in the future, then go with RBI-approved forex brokers in India as they offer a safer, more regulated trading environment.

RBI vs SEBI: Who Regulates Forex in India?

Both the RBI and SEBI are in charge of forex trading in India. Together, they make sure forex trading in India is safe, legal, and well-regulated. However, both play different roles.

The RBI is the main body that controls India's foreign exchange market. It keeps the INR stable, manages the country's forex reserves, and sets the rules for which currency pairs you're allowed to trade. Additionally, it decides which brokers are allowed to offer forex trading legally. These brokers are known as RBI-approved forex brokers in India. 

SEBI, on the other hand, oversees trading on platforms like the NSE and the BSE. It ensures that the broker you use follows fair trade practices and keeps your money safe. For this reason, the best RBI-approved forex broker in India will also be registered with SEBI.

👉You can view the full list of SEBI registered brokers in India here

How to Find an RBI-Approved Forex Broker?

Finding an RBI-approved forex broker is not an easy task, as there are only a few brokers that meet the criteria set by SEBI and RBI. Moreover, some of these brokers may not offer the best trading conditions or platforms for forex traders. Therefore, you need to do some research and comparison before choosing an RBI-approved forex broker.

Here are some of the factors that you should consider when looking for an RBI-approved forex broker:

  • Know the rules: In India, you can only trade forex with brokers that are regulated by both the RBI and SEBI. This is because under the FEMA (Foreign Exchange Management Act, 1999), forex trading is actively controlled. So, if you want to stay safe and legal, opt for an RBI-approved forex broker in India only.
  • Registration and regulation: The broker should be registered with SEBI and RBI and display their license numbers on their website. You can also verify their status on the official websites of SEBI and RBI.
  • Currency pairs: The RBI only allows trading in a few select currency pairs, namely: USD/INR, EUR/INR, JPY/INR, GBP/INR, EUR/USD, GBP/USD, and USD/JPY. A real RBI-approved forex broker will only offer the 7 RBI-allowed currency pairs. So, if your broker offers random or unusual pairs aside from the authorised ones, it might not be approved.
  • Use official lists: The RBI publishes a list of brokers it has authorised and a list that warns investors about which platforms are not allowed to offer forex trading. Only use brokers from this official "RBI-approved forex broker in India" list.
  • Trading platform: The broker should offer a user-friendly and reliable trading platform that supports various features and tools for forex trading. You should also check if the platform is compatible with your device and operating system.
  • Trading conditions: The broker should offer competitive spreads, commissions, leverage, margin requirements, execution speed, slippage, and order types for forex trading. You should also check if the broker offers any bonuses, promotions, or educational resources for forex traders.
  • Customer service: The broker should provide responsive and professional customer service through various channels such as phone, email, chat, or social media.

Trading via an RBI-approved forex trading company in India makes sure that you and your money are safe. So, before opening an account, always double-check if the platform is listed in the "RBI-approved forex broker in India" list.
Now that you know how to find an RBI-approved Forex broker, let's make your task of finding the best broker easier by telling you some top names in the market.

Top 10 RBI-Approved Forex Brokers

When you trade forex in India, it is important to choose a broker that's RBI-approved and fully regulated. This way, you can protect your money and make sure that you follow the law. 

We've already discussed how you can verify if your broker is RBI-approved. However, if you don't want to go through all the hassle, here's a list of the top 10 RBI-approved forex brokers in India— each of these is checked for the RBI and SEBI compliance, easy use and reliable support:

  1. Zerodha

It is one of India's leading online platforms, and it lets you trade stocks, commodities,   futures, options, and mutual funds. It charges a flat fee of ₹20 on intraday and F&O trades. You can trade RBI-approved pairs like USD/INR and EUR/INR on the NSE and the BSE, making it a forex broker approved by the RBI that many Indian traders trust.

  1. Angel Broking

Now known as Angel One, this is a full-service broker regulated by SEBI and following RBI rules. It offers currency derivatives on the NSE and the BSE with advanced platforms and advisory support. With a flat brokerage of ₹20 per executed order, it is a solid choice for both new and experienced forex traders looking for an RBI authorised forex trading platform.

  1. HDFC Securities

HDFC Securities is backed by HDFC Bank. It provides forex trading in RBI-approved pairs and combines secure banking credentials with smooth trading technology, seamless fund transfers, and in-depth market research. All of this, plus the flat ₹25 brokerage, makes it one of the best RBI-approved forex brokers in India.

  1. Sharekhan

It is one of India's oldest first-service brokers. It is known for its extensive research and user education. For forex trading, it applies a brokerage of 0.02% (for futures) and ₹5 per lot (for currency options). Additionally, its strong customer support and educational resources make it a reliable choice, especially for traders who value guidance.

  1. ICICI Direct

ICICI Direct is ICICI Bank's brokerage arm. It offers integrated banking and trading services, and for forex derivatives, you may be charged anywhere between 0.007% and 0.025%, depending on your brokerage plan. It has a strong online platform and offers easy fund transfers between your bank and your trading accounts, making it a convenient and reliable option.

  1. Axis Bank

Axis Bank provides forex trading through its brokerage platform, Axis Direct. Forex trades typically attract a flat fee of around ₹20 per order or about 0.03% of the trade value, plus GST and other statutory charges. Axis Direct is known for its user-friendly trading interface and seamless integration with Axis Bank's retail banking services.

  1. 5paisa

This is a leading discount broker and is popular for being cost-effective. It charges a flat ₹20 per executed order for currency F&O, and is known as a digital-first platform. Add to the equation a low-cost structure, and you get the perfect recipe for cost-conscious traders who do not want to compromise on essential training features.

  1. Upstox

Upstox brings a combination of affordability and user-friendly technology. It is a solid choice for traders who want advanced tools at a low cost, with a flat brokerage fee of ₹20 only. And the best part is that you can avail its services using its web trading portal and mobile application.

  1. Motilal Oswal

Motilal Oswal brings a research-level approach to its brokerage services. Its strength lies in its in-depth market analysis and personalised advisory. This can help traders make informed decisions. And with a flat ₹20 brokerage, Motilal Oswal presents itself as a considerable option for both new and experienced traders.

  1. Kotak Securities

Kotak Securities is a part of the Kotak Mahindra Bank. It offers a combination of banking infrastructure and trading services. It generally charges a flat brokerage of ₹10 per order for F&O. As usual, statutory charges and GST are also applicable. The platform is known for its reliable offerings, strong research reports, and customer support, which offer a mix of cost effectiveness and service quality.

While most RBI-approved brokers in India offer similar brokerage rates— typically a flat fee of ₹20 per trade— the platform quality, research support, and customer service are what truly make them different. By comparing both cost and value-added features, you can pick the best RBI-approved forex broker in India that matches your training style and financial goals. 

Want to explore and compare these brokers side by side? Check out the full list of the best stock brokers in India.

List of Unauthorised Forex Brokers

Knowing which platforms are unauthorised is more important than knowing which are authorised. So, to keep the investors and traders safe from fraudulent practices, the RBI has a list of 88 unauthorised forex brokers, out of which the top 10 unauthorised forex brokers are: 

  • Alpari
  • Anyíx
  • Ava Trade
  • Binomo
  • eToro
  • Exness
  • Expert Option
  • FBS
  • FinFxPro
  • Forex.com

This is not a comprehensive list, and the RBI regularly updates its alert list, so make sure to check the latest version of the alert list on the broker's website for registration numbers before making any decisions. 

Tips and Tricks for Forex Trading in India

Forex trading in India can be a rewarding and exciting thing if you know what you are doing. However, it can also be a daunting and challenging task if you are not prepared or informed. So, to assist you in this, here are some tips and tricks that can help you trade forex successfully in India:

  • Educate yourself: Forex trading is not a game of luck or chance. It requires proper knowledge, skills, and strategies. You need to learn the basics of forex trading, such as the currency pairs, the market hours, the technical and fundamental analysis, risk management, and trading psychology. You can use various online resources, such as books, blogs, videos, webinars, courses, or podcasts, to educate yourself on forex trading.
  • Practice on a demo account: Before you risk your real money on forex trading, you should practice on a demo account first. A demo account is a virtual account that allows you to trade with fake money in real market conditions. You can use a demo account to test your trading skills and strategies without any fear or pressure. 
  • Choose a reliable broker: As mentioned earlier, choosing an RBI-approved forex broker is crucial for forex trading in India. You should do your research and comparison before choosing a broker that suits your needs and preferences. You should also check the reviews and ratings of the broker from other traders and experts.
  • Start small and grow gradually: Forex trading is not a get-rich-quick scheme. It takes time and effort to master the art of forex trading. You should not expect to make huge profits overnight or quit your day job after a few trades. You should start small and grow gradually as you gain more experience and confidence. 
  • Manage your risk: Forex trading involves high risk and volatility. You can lose more than you invest if you are not careful or disciplined. You should always manage your risk by using proper tools such as stop-loss orders, take-profit orders, trailing stops, hedging strategies, etc. 
  • Keep a trading journal: A trading journal is a record of your trades that helps you track your performance and progress. You should keep a trading journal to analyse your strengths and weaknesses as a trader.

Forex trading may seem overwhelming, but if you take your time to understand the basics, practice with the demo account, choose a trustworthy broker, and keep track of trades, you can work it out.

Conclusion

When it comes to trading in the dynamic world of forex, it is always wise to partner with an RBI-approved forex broker in India. These brokers provide a secure and regulated trading environment, ensuring investor protection and transparency. By choosing an RBI-approved broker, you gain access to reliable platforms, fair trading conditions, and excellent customer support. However, it is essential to conduct your due diligence and select a broker that aligns with your trading goals and preferences. 

To simplify the process of selecting the right broker, you can compare from a pool of 20+ stock brokers in Finology Select. Trade with confidence, and embark on your forex journey with an RBI-approved broker by your side. Happy trading!

Frequently Asked Questions

1. Are there any RBI-approved forex brokers in India?

Forex trading in India happens through currency derivatives on authorised stock exchanges like the NSE and the BSE.

2. How can I trade forex in India?

Several RBI-approved brokers, like Zerodha, Upstox, Angel Broking, etc., offer currency derivative trading platforms. These platforms allow you to trade currency futures and options contracts.

3. How can Indians trade in forex?

Forex trading in India has some restrictions compared to the global market. Here's what you need to know:

Restrictions: 
Direct Forex trading not allowed: Direct participation in the foreign exchange market (forex) is not allowed by Indian regulations. This means you can't trade forex through international platforms

Options for Indians:

  • Currency derivatives on stock exchanges: You can trade currency derivatives on authorised Indian stock exchanges, like NSE, BSE, and MCX-SX. These derivatives are contracts based on currency pairs, similar to stock options contracts.
  • Currencies traded: Only a limited set of currencies can be traded. These typically include the Indian Rupee (INR) paired with the US Dollar (USD), Euro (EUR), British Pound (GBP), and Japanese Yen (JPY)

4. What is the minimum deposit for forex trading?

The minimum deposit for forex trading in India depends on the broker you choose and the type of account you open. Here's a breakdown:

  • No universal minimum: There's no one-size-fits-all minimum deposit amount for forex trading in India. Different brokers have varying requirements.
  • Range: It can range from no minimum deposit to a minimum of $1,000 or more.
  • Account types: Some brokers offer specific account types with lower minimums, like nano accounts requiring deposits as low as $1-$10. However, these accounts might have limitations, like trading smaller trade sizes.

5. Which app is mostly used for forex trading in India?

There isn't one single app dominating forex trading in India due to regulatory restrictions. Here's why:

  • Forex restrictions: Direct forex trading on international platforms isn't allowed in India.
  • Currency derivatives:  Indian traders can participate in currency derivatives on authorised stock exchanges. These exchanges have their own trading platforms, not specific apps for forex.
  • Trading platforms: Some popular trading platforms used by Indian brokers for currency derivatives include:
    • NSE (National Stock Exchange) platform
    • BSE (Bombay Stock Exchange) platform
    • MCX-SX platform

6. Which broker is best for forex trading in India?

Choosing the best forex broker in India depends on your individual needs and preferences.