In India, forex trading is strictly regulated by the Securities and Exchange Board of India (SEBI) and the Reserve Bank of India (RBI). Only brokers registered with SEBI are legally authorized to offer forex trading services to Indian residents. These brokers provide access to currency derivatives on recognised Indian exchanges like NSE, BSE, and MCX-SX.
This article lists the forex brokers approved by SEBI, explains the regulatory framework, and guides Indian traders on safe forex trading.
What Does SEBI Approval Mean?
- Broker is registered and compliant with SEBI rules
- Authorized to offer trading in currency futures and options involving INR pairs
- Operates under strict KYC, capital adequacy, and disclosure norms
- Trades limited to INR-based currency pairs (USD/INR, EUR/INR, GBP/INR, JPY/INR)
- Provides investor protection and legal recourse in India
SEBI-Registered Forex Brokers in India
1. Zerodha
- One of India’s largest retail brokers
- Offers currency derivatives on NSE and BSE
- User-friendly platform (Kite) and mobile app
2. Angel One
- Strong research tools and low brokerage
- Access to NSE currency futures and options
3. ICICI Direct
- Backed by ICICI Bank
- Provides secure trading platforms and extensive support
4. Upstox
- Discount broker with SEBI registration
- Easy-to-use trading platforms
5. Sharekhan
- Established Indian broker with currency segment
- Provides educational resources and analysis
6. Motilal Oswal
- Institutional-grade research
- SEBI-regulated with currency trading facilities
7. HDFC Securities
- Integrated with HDFC Bank accounts
- Secure trading environment
8. 5paisa
- Discount brokerage offering currency futures and options
Important Notes for Indian Traders
- Forex trading in India is limited to currency derivatives on INR pairs only
- Offshore forex brokers are not approved by SEBI and using them is illegal
- Verify broker registration on the official SEBI website before investing
- Beware of brokers promising trading in non-INR pairs or high leverage
Key Takeaways
- Only trade forex with SEBI-registered brokers for legal safety
- Popular brokers include Zerodha, Angel One, ICICI Direct, and Upstox
- Stick to approved INR currency pairs on NSE or BSE
- Offshore forex platforms are not authorized for Indian residents
Frequently Asked Questions
Which forex brokers are approved by SEBI?
Zerodha, Angel One, ICICI Direct, Upstox, Sharekhan, and Motilal Oswal are among SEBI-registered brokers.
Can Indian traders trade USD/EUR or GBP/JPY pairs?
No, retail trading of non-INR currency pairs is prohibited by SEBI and RBI.
Is it legal to trade forex with offshore brokers in India?
No, only SEBI-registered brokers trading INR pairs are legal.
How to verify SEBI registration of a broker?
Use the Intermediary Search tool on the official SEBI website.
What is the risk of trading with non-SEBI brokers?
Higher risk of fraud, no legal protection, and possible regulatory penalties.
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