India’s forex trading landscape is strictly regulated by the Securities and Exchange Board of India (SEBI) and governed by the Foreign Exchange Management Act (FEMA). Unlike other countries with hundreds of brokers, India maintains a tightly controlled environment where only authorised entities can operate. In this article, we answer the question: how many forex brokers are in India, which ones are legal, and what trading instruments they are allowed to offer.
Forex Regulation in India: An Overview
Forex trading in India is legal only under specific conditions:
- Only INR-based pairs can be traded (e.g., USD/INR, EUR/INR, GBP/INR, JPY/INR)
- Only SEBI-registered brokers can legally offer forex services
- All trading must occur via recognised exchanges like NSE, BSE, and MCX-SX
- CFDs, spot forex, and non-INR pairs are prohibited for retail clients
How Many Forex Brokers Are There in India?
As of mid-2025, there are approximately 40 SEBI-registered brokers authorised to offer currency derivatives trading services to Indian residents.
Types of Brokers Permitted:
- Full-service brokers offering equity, derivatives, and currency trading
- Discount brokers focusing on low-cost trading in equity and FX
- Bank-affiliated brokers integrated with major Indian banks
Examples of SEBI-Registered Forex Brokers
| Broker Name | SEBI Registration No. | Type | Forex Access via |
|---|---|---|---|
| Zerodha | INZ000031633 | Discount broker | NSE, BSE |
| Upstox | INZ000185137 | Discount broker | NSE |
| ICICI Direct | INZ000000990 | Bank broker | NSE, BSE |
| HDFC Securities | INZ000186937 | Bank broker | NSE |
| Angel One | INZ000161534 | Full-service | NSE, BSE |
| Sharekhan | INZ000171337 | Full-service | NSE, BSE |
| Kotak Securities | INZ000200137 | Bank broker | NSE |
| 5Paisa | INZ000010231 | Discount broker | NSE |
Regulatory Oversight
- All brokers must be approved by SEBI under the Currency Derivatives Segment
- Brokers are required to maintain strict margin and reporting compliance
- Leverage is restricted as per exchange-level margin rules (usually ~1:20)
What About International Forex Brokers?
Many Indian traders mention brokers like Exness, FBS, or OctaFX, but these are not SEBI-authorised. They operate from offshore jurisdictions and allow trading in non-INR pairs, which is illegal for Indian retail clients.
Using these platforms may result in:
- FEMA violations
- Blocked withdrawals
- Fines or account freezes by RBI
Key Takeaways
- India has approximately 40 SEBI-authorised forex brokers operating under strict regulatory conditions
- All legal forex trading must involve INR-based currency pairs and happen on Indian exchanges
- Trusted brokers include Zerodha, Upstox, ICICI Direct, and Angel One
- International brokers offering non-INR pairs to Indian clients are not legal under Indian law
- Always verify a broker’s SEBI registration before opening an account
Frequently Asked Questions
How many forex brokers are officially registered in India?
There are around 40 SEBI-registered brokers that are authorised to offer currency derivatives on Indian exchanges.
Are international forex brokers legal in India?
No. Most international brokers are not authorised by SEBI and are illegal for Indian retail clients under FEMA.
What forex pairs can I trade in India?
Only INR-based pairs are legal: USD/INR, EUR/INR, GBP/INR, and JPY/INR.
Where can I check if a forex broker is SEBI-registered?
You can verify a broker’s registration on the official SEBI website under the ‘Intermediaries’ section.
Can I trade forex legally with Zerodha or Upstox?
Yes, both are SEBI-authorised brokers offering legal access to INR-based currency pairs on NSE or BSE.
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