As you can see, the US dollar is the dominant currency in the forex market, accounting for almost 90% of all transactions. The euro and the Japanese yen are the second and third most traded currencies, respectively, followed by the British pound and the Australian dollar. The foreign exchange market is the world’s largest decentralized marketplace for buying and selling currencies. Millions of people around the world put in their money to make positions in different currencies, aiming to gain some profits from their fluctuating value. LexaTrade is a newly launched, regulated broker that offers CFD trading on currencies, cryptocurrencies, indices, and commodities.

1. The euro and the Japanese yen are the second and third most traded currencies, respectively, followed by the British pound and the Australian dollar.
2. However, they can still trade in foreign currency derivatives on SEBI- and RBI-approved platforms or brokers via centralized stock exchanges, such as the Bombay Stock Exchange (BSE) or the National Stock Exchange (NSE).
3. LexaTrade has a referral program in which you’ll receive up to 50% deposit amount as a commission.
4. There are other platforms that claim to provide high leverage rates and attract users with joining incentives, but most of them aren’t registered or approved by the government.
5. LexaTrade is a financial trading platform that offers a range of financial instruments for traders to choose from, including contracts for difference (CFDs), foreign exchange (FX), and cryptocurrencies.

The forex market is the largest and most liquid financial market in the world, with an average daily turnover of over $6 trillion. Forex trading can be done for various purposes, such as hedging, speculation, arbitrage, or diversification. The main regulator of the country’s securities (such as stock, bonds, and derivatives) market, SEBI, aims to protect investors’ interests and develop/regulate the securities market through fair and transparent practices. The organization mandates that brokers providing forex trading services should be registered. The central bank has added QFX Markets, 2WinTrade, Guru Trade7 Limited, Bric Trade, Rubik Trade, Dream Trade, Mini Trade and Trust Trade to the Alert List of unauthorised forex trading platforms. SEBI, or the Securities and Exchange Board of India, is the country’s main securities regulator.

Despite warnings from regulators, its lower entry barriers and anonymity continue to attract speculators. The central bank said that the above list is not exhaustive and is based on what was known to the RBI at the time of publication. It said that any entity not appearing in this list should not be assumed to be authorised by the RBI. There is no fee to open an account and the fees for deposits and withdrawals are not specified anywhere on the website.

Rules and Regulations for Forex Trading in India

There is no mention of an inactivity fee but we cannot guarantee that you won’t be charged one. Live chat support was available at the time of our visit but a bit slow to answer. The Gold account comes with the web version of MT4, while Platinum and VIP accounts give you access to the full MT4 client.

Full list of unauthorised Forex trading apps and websites: Updated on June 7, 2023

Their aim is to maintain the integrity of the Indian Rupee (INR) and to prevent illicit activities like money laundering and fraud. They even have affiliates who individually promote platforms to others and force them to invest maximum money. LexaTrade provides access to popular cryptocurrencies, including Bitcoin, Ethereum, Litecoin, and more. We are back with our unbiased review of LexaTrade, an online trading broker company. Mutual Funds are one of the most incredible investment strategies that offer better returns… We collect, retain, and use your contact information for legitimate business purposes only, to contact you and to provide you information & latest updates regarding our products & services.

In this blog post, we will cover everything you need to know about Forex trading in India including How to Trade, RBI Approved Forex Trading Apps, Rules and Regulations, Risks and Punishment for Non-Compliance. Moreover these personal manager act as LexaTrade affiliates who enforce clients to deposit more on their platform. Organization and company which provides financial services need to obey various policies and get approval from regulators in every jurisdiction. LexaTrade has a referral program in which affiliates receive up to 50% of the deposit amount as a bonus.

Is Lexatrade a legal broker?

The methods for deposit are Visa, CryptoWallet and e-Payouts and we assume the same methods will be used for withdrawals, although LexaTrade doesn’t mention this specifically. The allowable exchanges are the National Stock Exchange (NSE) and its subsidiary, NSE IFSC, the Bombay Stock Exchange (BSE), and the Multi Commodity Stock Exchange (MCX-SX). While you are putting a strategy in place, it is also important to mark out your own limits. Identify well in advance the point at which you will withdraw from a trade or the point at which it will no longer be sustainable for you to trade.

This is unlike regulations in other regions such as the EU, UK, USA, Canada, and Australia, where traders can freely speculate on dozens of Forex pairs on decentralized over-the-counter (OTC) markets. Before you begin investing, it is always necessary to identify what your investment goals are. This could be anything, from short-term goals that involve a family vacation or long-term goals such as a child’s education or marriage, or even your own retirement. Based on the timeline you have given yourself for meeting these goals, you will be able to zero in on the best strategy to adopt to ensure that your investment goals are met.

RBI Alert List 2023: Updated full list of banned and unauthorised forex trading apps and websites

There are other platforms that claim to provide high leverage rates and attract users with joining incentives, but most of them aren’t registered or approved by the government. In April 2024, RBI issued an alert list with as many as 75 unauthorized entities involved in forex transactions. Last but not least, the forex market operates on high leverage, which generates quite a lot of opportunities for investors but poses equal risks. Additionally, the SEBI restricts the registered broker’s ability to offer trading in four currency pairs, including USD/INR, EUR/INR, GBP/INR, and JPY/INR. While the currency on the left is the base currency, the currency on the right is the quote currency.

For instance, Indians cannot trade in the most common or minor currency pairs. Since very few brokers fulfill the regulatory criteria, they impose high fees on transactions. Lexatrade is an appealing option for traders looking for a comprehensive platform that covers a wide range of financial instruments. While the lack of regulation may be a concern for some, the features and educational resources provided can enhance the trading journey for both novice and seasoned traders.

Overall, Lexatrade stands out as a competitive choice in the online brokerage market. Before beginning, customers need to activate the Currency trading segment in their Zerodha trading account. Forex trading is the act is lexatrade legal in india of buying and selling currencies in the global foreign exchange market.