Why is Forex trading so popular in India?

Why is Forex trading so popular in India?

Powered by the FinTech revolution, Forex trading is a global phenomenon that has been picking up speed in India too. According to data from the Reserve Bank of India, the country’s foreign exchange rose to more than $448 million in November, proving that more and more people see it as one of the best investment options.

At present, the UK and the US remain the two main markets when it comes to Forex trading, but, thanks to the rapid adoption of tech and finance innovations in India, there is now more activity than ever in this field and experts forecast a dynamic future for it.

When analyzing the growing popularity of Forex in India, it’s also important to consider, apart from personal factors, the fact that India has one of the most lucrative FinTech markets. Set to reach $31 million in 2020, Indian FinTech has an impressive adoption rate and India is, in fact, the only country in the world with more than one billion connections. This ecosystem not only favors innovation among organizations but also encourages individuals to explore various investment options, including Forex.

Although the history of the Forex market in India started in 1978, when the Reserve Bank of India decided to allow banks to undertake intra-day trading in foreign currency exchange, and banks were granted more freedom in 1994 with the appointment of the Expert Group Committee, it wasn’t until the early 2000s that Forex became mainstream among regular individuals. For many years, Forex was inaccessible to the non-specialized public, but, as soon as the Internet made online trading widely available, people from all over India started to join the hype. Thanks to professional online trading platforms, traders of all levels of experience can explore the foreign exchange market and learn how to grow their income using tried and tested analysis methods.

The economic and technological context favors Forex trading in India, but the activity itself offers many other benefits that draw public interest.

It’s easy to get started with Forex trading

A while back, delving into the world of foreign exchange might have seemed a bit too complicated for someone who doesn’t have an academic background in finance or a job in a major financial institution. But now, trading Forex is as easy as making an online money transfer to a friend, at least as far as the technical part goes. There are many platforms to choose from, and all you need is your web browser. Some brokers have even developed mobile apps, so you can trade in your free time, without quitting your day job or changing your schedule. As long as you have a debit card that you can connect to your Forex trading account, you’re all set.

You don’t need too many funds to open an account

Forex definitely sounds tempting and opening an account is easy, but the question is: can anyone do it? Isn’t this an activity for finance magnates with almost unlimited funds at their disposal? Not anymore. In the past, Forex was indeed for bankers and wealthy investors, but modern trading platforms have low starting requirements, even as little as $200. This is not to say that it should be taken lightly and that you should redirect savings or subsidence income to your Forex account. Responsibility is key here, but what you should take away is that you don’t have to wait until you’re a millionaire. You can start with smaller amounts and use smart strategies until your initial investment grows.

You can choose a strategy that matches your goals

No two traders are the same. Although Forex is a specialized, technical field, it does have a strong psychological component to it, so your personality will definitely show through your trading strategy. But don’t worry, no matter what kind of trader you are, you will be able to find a strategy that matches your goals. You’re not even limited to a geographical location. Whether you want to open an account with a broker here in India, in the United States, or even open a trading account with a Belizian Forex broker, you can do that. Do you also trade crypto? You can fund your account with bitcoin if you like. Moreover, you can choose a broker depending on your level of experience and desired risk. For example, if you’re just starting out, you may have a risk-averse mentality and stick to a low leverage broker, whereas if you have more experience, you might want to choose a high leverage one, which is riskier but may lead to better profits.

Forex education is easy to come by

All these benefits make Forex very tempting, but also a bit too easy to be true. However, trading Forex is easy to start and hard to master. Anyone can open an account and start trading, but it takes a lot of discipline and education to become an expert and turn it into a long-term source of income. Fortunately, this education isn’t hard to come by. Even if you don’t have a mentor, someone who can introduce you to the science of trading through personal experience, you can still read books about it and join forums where other traders can answer your questions. There are also countless finance blogs that go through Forex from A to Z, explaining basic terms and advanced trading strategies. Then there’s social media, perhaps the best source of real-time information when it comes to the global events that can influence currency fluctuations. Even if at the end of the day experience is the best teacher, Indian traders can find valuable help online and even join social trading networks to replicate the strategies of more experienced traders.

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