The Forex Market is one of the most popular and world's largest financial markets because it has an average daily trading volume of approximately $6.6 trillion. Even in India, its popularity has taken a sharp turn in recent times which has made more Indians willing to dive into forex trading. However, it's really important to know when and where they are supposed to start.

If you, too, want to make the most of the opportunities the Forex market provides, this guide is just for you. Below we will discuss all you need to know about starting forex trading in India.

What does Forex Trading mean? 

Forex is a short-term for the foreign exchange. Hence, forex trading is the process of exchanging one currency for another. This exchange can be performed for various reasons, such as fostering international trade, tourism, or commercial purposes. 

Without even knowing it you might be participating in the market with the help of buying foreign products or you can might also also exchanging money during foreign travel. Mostly commercial trading of foreign currency is used to be done mainly to earn profit out of it. The difference between buying and selling is the thing which traders are used to try take advantage to earn some big amount of bucks. 

However, due to the large volume of exchange happening every day, the prices of the currencies are very volatile. So while there is a possibility of generating lucrative returns, there is also a risk factor attached to the forex market. It is what makes the market interesting.

Forex Trading For Beginners- How to Trade Forex in India?

The ease of online trading has made forex trading accessible to all laymen today. Still, the process can be tricky and intimidating, especially to those new to the game. Here's a step-by-step guide to help you get started:

Open an Account with A Reputable Broker

• To begin forex trading, you must first open an account with a regulated broker. Always choose a broker licensed by the Securities and Exchange Board of India (SEBI). SEBI regulations will protect you from unfair or dishonest practices by brokers, which is crucial in risky trading.
• Beginners should start with a micro forex trading account with only low capital requirements. This will allow you to understand the workings of the market before you take a giant leap.

Access a Trading Platform

Trading platforms connect traders to the forex market. Most brokers also offer their custom-built platform for trading forex. You can access them online or install them on your smartphone.

Upstox is one such platform that is easy to use and reliable. It allows you to choose various plans (basic, priority, or pre-paid plans) per your requirements. With minimal fees and no hidden charges, it is one of the best forex trading platforms in India.

Learn Basic Trading Strategies

Forex trading is mainly about forecasting how the exchange rate will move. For instance, if you see signs of the rupee strengthening vis a vis dollar, you would want to buy it. If your prediction goes right, you can sell it on price increment and earn a profit. But if your prediction goes wrong, you may lose your money.

One must understand that forex trading is not a scheme to get rich quickly. Becoming a successful trader takes time, experience, and a solid understanding of the market. As a beginner, it's best to go for a low-risk strategy and trade with small sums of money first.

So now you're all set to begin your forex trading journey. Sign in to your account and select a permissible trading par to start forex trading in India. Some currency pairings available for trading in India are:

• EUR/INR
• USD/INR
• GBP/INR
• JPY/INR
• EUR/USD
• USD/JPY
• GBP/USD

What is the Best Time to Trade Forex in India?

Though forex trading in India is available 24 hours from Monday to Friday, certain times are more favorable than others. Most traders agree that the best forex trading time in India is when the market is most active. Active markets provide you with tight spreads, high volume, and plenty of opportunities for making profits.

Generally, the forex market is most active during the overlap of the two trading sessions, especially the European and North American Sessions. This is because many buyers and sellers are trading currencies during this time.

Look at the global forex exchange timings in Indian Standard Time (IST) and the most traded currency pairs during the session as per the Traders Union Analysis.