Forex is a lucrative as well as the complicated financial market and its trading requires proper research before delving into it. There are some main aspects of forex trading that Indian investors need to familiarise themselves with to stay on the safe side. One of those things which forex traders come into contact with while using the best margin forex broker in India are “Margin” and “Leverage.” These are two essential tools according to forex experts that allow traders to make the most out of bigger trading positions. Margin is the amount of money required to deposit by a trader to open and control a leveraged trading position. If leverage is 50:1, it means 1$ of the deposit is required to trade a leveraged position worth $50.
Leveraged trading comes with its own set of associated risks that makes it not the best choice for beginners or new forex traders in India.
Pros and Cons of Trading with Margin
Even though the idea of controlling the trading position of a bigger size by paying just a small size as margin might seem like a golden opportunity but one should proceed with caution with margin trading in forex.
Benefits of Margin Trading:
- Even with low capital, margin trading offers forex traders a chance to trade for profit and make huge returns if things go according to plan. Before leveraged trading concept, only wealthy investors could partake in such trades.
- The chances of making a profit increase with margin trading because leverage allows you to trade with up to $100,000 if you have only $100 deposited as margin. More leverage means more profits for the trader.
- Using margin trading, Indian traders control and maintain trading positions worth a huge amount of money that comes from their forex broker as a loan. But this loan does not incur any interest on the trader.
Risks of Margin Trading:
- Leveraged trading is not for a forex trader who is not ready to get through the losses it brings. When it comes to margin trading in forex, the higher the leverage, the more is the risk of losing your funds. Indian traders have to be quick and attentive to the market change and stop trading once the prices move away from predictions.
- The risk of margin call exists for any trader as a requirement of their forex brokers. Depending on the capital that traders hold, they are needed to deposit some amount of it. But the risk of falling behind the threshold amount set by the broker could liquidate your entire portfolio by instigating a margin call.
- Leverage might seem like a tremendous opportunity to maximise the size of one’s profits but it also a constant liability that traders need to meet by the end of the day. The leverage amount must be equal irrespective of the additional costs to be paid to continue trading without any hiccups.
This is why new forex traders must check the minimum and maximum leverage offered by a broker. Having negative balance protection also helps when you are prepared for margin trading.
6 Best Margin Forex Broker in India for CFD & Leveraged Trading
1. XM
At times, XM seems to hold the top position among forex brokerage service providers in many countries. This is due to its unrivalled trading platform and a regulated background that adds the trust factor in this organised forex broker. XM is a global entity that allows a low amount of deposits for CFD trading. This broker offers three different types of trading accounts like Standard, Micro, and XM ultra-low.
Features:
- Withdrawals made from the XM platform do not incur a fee on traders and relatively inexperienced forex traders can open an account with a $5 deposit amount.
- XM is a good place to venture into leveraged trading and CFD because this world-class broker offers negative balance protection.
- Maximum leverage on XM goes up to 888:1 for $5 to $20,000 worth of trades.
- The platform supports a plethora of payment gateways such as Bank Wire, VISA, MasterCard, Neteller, and Skrill.
- Those considering starting trading with XM can find a collection of detailed educational resources on their website to gain more knowledge about XM and margin trading.
Visit XM for more information.
2. FxPro
If you are looking for a trustworthy broker that provides its customers with a reasonable variation in terms of trading platforms then FxPro would be your first choice. The trading platform is best suited to trade under inconsistent market conditions which can also be customised as per the preference of a forex trader. Maximum leverage on forex pairs is 1:200.
Features:
- Clients can access MetaTrader 4, MetaTrader 5, and cTrader platforms using desktop as well as mobile for more convenience.
- Their integrated mobile platform equipped with multiple advanced charting tools is available on Android and iOS.
- With more than 260 CFDs assets ranging to 6 different classes, FxPro meets most forex traders’ demand through its award-winning service.
- Although it is not currently offering a bonus, its competitive spreads and commissions make it a dependable broker.
Visit FxPro for more information.
3. IC Markets
Whether you have started out trading forex in India or have been an avid trader for years, IC Markets can be considered as a reliable companion. It is one of the most affordable minimum deposit forex brokers where people from several countries can open an account and start trading.
Features:
- IC Markets offers a low spread in all trading conditions with an option of instant deposit and withdrawals. The maximum leverage offered is 1:500 while there is an option for micro lot trading.
- Users get to utilise MT5, MT4, and even cTrader trading platforms through this broker. Their platform is available for trading across various devices like Windows, Android, and iOS.
- Their demo account supports all types of trading, platforms, and products to give customers a definitive experience of leveraged trading.
- Global market assets such as 61 forex pairs, 22 commodities, several indices, bonds, and cryptos are offered to clients who sign up and benefit from Raw Spreads on IC Markets.
Visit IC Markets for more information.
4. Eightcap
Headquartered in Australia, Eightcap is a well-known name among leveraged trading professionals which came to exist in 2009. In the past few years, this broker has opened 5 new offices all over the globe. Eightcap recently sponsored the Formula One Scuderia team in 2019 and 2020.
Features:
- It is known for a broad selection of assets, user-favourite trading platforms, and 2 account types.
- Eightcap account holders get to experience high-frequency trades with an unparalleled cost structure.
- The maximum leverage offered by Eightcap to Australia-based users is 1:30 whereas for non-Australian clients it is 1:500.
Visit Eightcap for more information.
5. Moneta Markets
A subsidiary of a reputed company known as Vantage International Group Ltd, Moneta Markets is a comparatively new addition as a forex broker. As of now, Vantage International Group has processed nearly 1.5 million trades per month which is valued at a whopping $100 billion. Moneta Markets aims to replicate the success of its parent company.
Features:
- This forex and CFD broker provides customers with access to more than 250 CFDs with a maximum leverage of 1:500 at a minimum deposit of $50.
- Users are offered just one customised and proprietary trading platform known as Moneta Markets WebTrader.
- This broker is a great companion for new traders who wish to diversify their portfolios through CFD and leveraged trading.
- Traders can receive up to 50% bonus upon deposits of $1000 but withdrawals on this platform might take 1 to 3 business days.
Visit Moneta Markets for more information.
Before trying out their luck, professional Indian forex traders take time to research and compare to find the most appropriate broker for CFD and leveraged trading that comes with numerous risks.