Forex trading in India is strictly regulated by the Reserve Bank of India (RBI) and the Securities and Exchange Board of India (SEBI). Only currency derivatives involving INR-based pairs (USD/INR, EUR/INR, GBP/INR, JPY/INR) are legal for retail investors, and must be traded through SEBI-registered brokers on recognised exchanges (NSE, BSE, MCX-SX).
This article provides a complete list of the top 20 forex brokers in India, separated into two categories: SEBI-regulated legal brokers and international brokers used at traders’ own risk (not legal under FEMA).
SEBI-Regulated Legal Forex Brokers in India
These brokers are authorised to offer INR-based currency pairs through Indian exchanges. They follow RBI and SEBI regulations and are 100% legal for Indian residents.
1. Zerodha
- SEBI Licence: Yes
- Platform: Kite (currency segment)
- Why Top: Largest retail broker, easy onboarding, NSE FX access
2. Angel One
- SEBI Licence: Yes
- Platform: Angel SpeedPro
- Why Top: Strong research tools, low brokerage, fast currency trade execution
3. ICICI Direct
- SEBI Licence: Yes
- Platform: Trade Racer
- Why Top: Backed by ICICI Bank, trusted legacy broker
4. HDFC Securities
- SEBI Licence: Yes
- Platform: ProTerminal
- Why Top: Direct integration with HDFC bank accounts
5. Kotak Securities
- SEBI Licence: Yes
- Platform: KEAT Pro X
- Why Top: Safe for currency derivatives, backed by Kotak Mahindra Bank
6. Sharekhan
- SEBI Licence: Yes
- Platform: TradeTiger
- Why Top: Education-focused with detailed forex tutorials
7. Motilal Oswal
- SEBI Licence: Yes
- Platform: MO Investor
- Why Top: Institutional-level currency research
8. 5paisa
- SEBI Licence: Yes
- Platform: 5paisa Mobile & Web
- Why Top: Discount brokerage for forex futures
9. Upstox
- SEBI Licence: Yes
- Platform: Pro Web and App
- Why Top: Low fees, API trading for currency derivatives
10. Edelweiss
- SEBI Licence: Yes
- Platform: Edelweiss Trader X
- Why Top: FX risk analysis tools and fundamental outlooks
Popular International Forex Brokers (Not SEBI-Registered)
These brokers are widely used by Indian traders for non-INR pairs, leverage trading, and global forex markets, but they are not legal under Indian regulations. Use is at personal risk.
11. Exness
- Regulation: FCA, CySEC (Not SEBI)
- Features: Ultra-low spreads, 24/7 trading, MT4/MT5
- Status: Banned by SEBI/RBI for retail use
12. FBS
- Regulation: IFSC, CySEC
- Features: Micro lots, no deposit bonus, Islamic accounts
- Status: Not approved for Indian traders
13. Octa
- Regulation: CySEC
- Features: Cashback, MT4, low spreads
- Status: Blocked by Indian ISPs; legally restricted
14. XM
- Regulation: ASIC, IFSC
- Features: Bonus accounts, high leverage
- Status: Offshore; not permitted under FEMA
15. IC Markets
- Regulation: ASIC, CySEC
- Features: True ECN, cTrader, fast execution
- Status: Accessible via VPN only; no SEBI licence
16. FXTM
- Regulation: FCA, FSCA
- Features: Copy trading, tight spreads
- Status: Offshore use not legally allowed in India
17. Deriv
- Regulation: LFSA, MFSA
- Features: Synthetic indices, 24/7 markets
- Status: SEBI warns against unregulated platforms
18. InstaForex
- Regulation: BVI FSC
- Features: High bonuses, social trading
- Status: Offshore platform with limited withdrawal routes
19. RoboForex
- Regulation: IFSC
- Features: Multi-platform support, cent accounts
- Status: No RBI/SEBI recognition
20. FXChoice
- Regulation: IFSC
- Features: ECN access, BTC deposits
- Status: Unregulated in India; use at own risk
Key Takeaways
- Only the top 10 SEBI-registered brokers listed above are legal in India
- INR-based currency pairs (USD/INR, EUR/INR, GBP/INR, JPY/INR) are the only legal instruments
- RBI and SEBI continue to ban and block offshore forex apps used for margin/leverage trading
- International brokers are popular but illegal and come with no protection or legal recourse
Frequently Asked Questions
Is forex trading legal in India?
Yes, but only via SEBI-authorised brokers on INR currency pairs traded on NSE, BSE, or MCX-SX.
Which forex brokers are legal in India?
Zerodha, Angel One, ICICI Direct, Upstox, and others regulated by SEBI are legal and safe.
Can I trade EUR/USD or GBP/JPY in India?
No, Indian residents are not allowed to trade non-INR pairs under FEMA regulations.
Are brokers like Exness and XM legal in India?
No, they are not licensed by SEBI or RBI and are banned for retail use in India.
How can I check if a forex broker is SEBI registered?
Visit sebi.gov.in and use the Intermediary Search Tool to verify broker licences.
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