When it comes to trading, India still does not offer a lot of opportunities like other countries. There are many regulations by the SEBI and the RBI that both the traders, as well as the brokers must comply with. However, despite all confusions, more and more Indian traders are joining the industry every day. If you are from Hyderabad and wondering if you have any opportunity to choose forex trading as a career, then this guide may help you.
You only need to follow a few tips, get a forex trading course done, and choose a decent and reliable broker to start forex trading in Hyderabad, India. You can learn about all restrictions and regulations from the official website of the RBI and SEBI.
Important Tips for Beginners in Forex Trading
Before you start trading, you need to learn the basics of forex. It is true that the industry offers plenty of opportunities in the financial markets, but it is not very easy to generate earnings. Forex trading is filled with risks, and to overcome those, you need to know about certain things.
So, start with learning the fundamentals before you consider trading currency pairs.
- Learn about the markets
When you are trading a currency pair, you need to know the value of both currencies at the moment. So, it is extremely important to educate yourself about the financial markets. In India, you can trade a total of seven currency pairs. Take your time to study each pair and what affects their value before you put your capital at risk.
- Come up with a concrete plan and stick to it
You cannot make a bigger mistake than entering the forex market without a solid plan. If you want to be successful in trading, you must make a plan considering various factors like your trading goals, risk tolerance, evaluation criteria, and methodology. Now, after making the plan, it is even more difficult to stick to it under any condition, but you must do it. Always remember that your irrational side comes out right after placing a trade, and you can only trust the plan your rational mind came up with before placing the trade.
- Do not let your emotions come in the way
As mentioned in the earlier point, it is quite natural for traders to throw away their logical side under the pressure of losing their money. Whenever the trade is not going in your favour, you may cower due to fear; or when it is going in your favour, you may be led by greed. Do not let any of these happen. The best way to trade logically is to stick to your plan, no matter whatever happens, as mentioned above.
- Monitor the markets thoroughly
Several factors like economic events as well as financial news releases and geopolitical events can affect the price movements. This is why you must monitor the markets and keep yourself updated. This will help you decide which currency pair you should invest into.
- Know where to stop
Although you must watch the markets closely, you cannot do it every minute of the day. You have to be aware of risk management so you can protect your potential profits by placing take profit and stop loss orders. The market can change anytime; so, it is essential to know when to stop and exit the market with whatever profit you can.
- Practice on a demo account
A demo account or a practice account is offered by brokers to allow traders to practise trading in a risk-free environment. You can test your trading strategies, as well as a new trading platform on the demo account with virtual money. So, you will not have to risk losing real money. Before you start trading on a live account, it is recommended to trade on a demo account and gather enough skills and experience.
Top Forex Trading Institutes in Hyderabad
If you know nothing about forex trading, then it is always better to complete a trading course before getting into the field. There are a lot of things you need to learn about, and learning is always easier with the guidance of an expert. There are several institutes in Hyderabad that offer forex trading courses. Some of the top institutes you can choose from are –
- NCFM Academy Hyderabad
This Institute offers a detailed course on forex trading known as “NISM Series I”. The course helps individuals to understand the currency markets better so they can improve in trading and risk control better. The contents of the course include –
- Introduction to currency markets
- Foreign exchange derivatives
- Exchange traded currency futures
- Strategies using currency futures
- Trading
- Clearing, settlement and risk management
- Regulatory framework for currency derivatives
- Accounting and taxation
- Codes of conduct and investor protection measures
Click here to visit the official website of NCFM Academy.
This module is more or less same for other institutes in Hyderabad as well with slight differences. Some other top institutes are:
- Paartha Associates
- Kp Educational Academy
- Csr Academy of Commerce
- Way2tuition
- Ekanzz Investment Consultants
- Forex 2 Trade India
- Smart Academy
- Forex King
- Royce Relic India Pvt Ltd.
Top Brokers to Trade Forex in India
Whether you are from Hyderabad or any other city from India, you need to keep in mind that you can only trade forex with SEBI and RBI approved brokers in this country. Regulated brokers offer protection to your funds, even if they do not have local offices in Hyderabad. Some of the top brokers you can start trading with are –
- Alpari
Licensed by the SEBI in India and regulated by the FSC offshore, you can trade currency pairs on Alpari with ultra-low spreads on ECN accounts starting from 0 pips. The broker also offers a standard account and a micro account. You need to deposit a minimum $5 to open the micro account, $100 for the standard account, and $500 for the ECN account. There are easy payment options like e-wallet transfer and local bank transfer. Click here to visit Alpari.
- eToro
The leading international broker eToro is especially popular among traders and investors who are interested in copy-trading or social trading. The spreads are very low on this broker as well; starting from 1 pip. The minimum deposit to open a trading account with eToro is $200. You can fund the amount by credit cards, bank transfer, or e-wallets. Start trading with eToro by clicking here.
- Forex.com
The well-regulated broker authorised by top-tier financial bodies is ideal for Indian traders that want security for their capital. The broker offers three types of accounts; such as a retail account, a commission-based account, and a direct market access account. The spreads for forex trading start from 0 pips. The minimum deposit for the broker is $50. To start trading with Forex.com, click here.
- FBS
Like eToro, FBS is another great broker for Indian traders that offers social trading and copy-trading services. You can access a wide range of markets with low spreads starting from 0 pips. The broker offers six types of trading accounts, including a micro trading, a copy-trading account, and an ECN trading account. The minimum deposit is very low on FBS, which is one of the main reasons most traders prefer it; especially beginners. Start trading with the broker by clicking here.
Conclusion
Keep in mind that overlooking and disobeying the rules set by the government may lead you to face grave consequences. Not only you can get prison and penalties, but your forex assets can also be confiscated by the government. So, if you are a trader from Hyderabad, India, make sure to trade through SEBI approved brokers only and follow all restrictions at all times.