To achieve exponential return of money foreign currency trading is growing very fast in India. Forex market is the world’s biggest financial market with a daily turnover of nearly 4.5 trillion $. Currencies of different countries are exchanged for Forex trading in India. Normally RBI works as a regulatory body for Forex trading in India. There are four different layers of Forex market in India.
2) Bank to bank which is also known as interbank rate transaction.
3) Bank to customer and is also known as merchant rate transaction.
4) Online Trading – MCX-SX market, this market is governed by RBI+SEBI. Started in Oct-2008 & it’s functional since 2009
A customer cannot buy or sell foreign currency directly. He can do this work with the help of a bank. When a customer wants to buy or sell the currency, he has to go to bank to do so. In case of forex trading there are two market rates namely bid/ask. Bid is the buying rate and ask is the selling rate. If 1$=50.99/01, it means that bid is 50.99 and ask rate is 51.99.
The two different quotes in the foreign exchange market are direct quote and indirect quote. In direct quote price comes before the commodity. For example Rs.20 per pen means Rs.20 is the price and pen is a commodity. In other words direct quote is the number of units of home currency per unit of foreign currency.For example if we have sterling pound as home currency in London and $ as a foreign currency then 1$=0.2 sterling pound will be a direct quote. In indirect quote, commodity will come before price or you can say indirect quote=1/direct quote.
Spread is the difference between bid and ask. For Forex trading in India, if Rs.44-49 is the quote then spread will be Rs.5. if the market is stable, the spread will be lesser. Many interesting points separate this market from equity market.
Disadvantages of Forex Trading in India (MCX-SX) over Currency traded Internationally (MT4)
- Indian Currency Trading market is 9am to 5pm market. Market is only open for 9am to 5pm That means you can take action (Buy or Sell) in between this time only. This is mxs-sx market. You will get more details through the web-site www.mcx-sx.com
- Indian brokerage – Forex market in India takes brokerage charges starting from 10 rs to 50 rs per lot. Also along with this other charges are included (Service tax+ surcharge +other). Which is really high.
- For most of the brokers trading platform is Diet-Odien or Java based application. Which not yet fully functional.
- Above mentioned Software application is not yet competitive with respect to the international broker software, following are some of the limitation-
– You can not put multiple trades at a time. That means putting Buy Stop/limit & Sell Stop/Limit is really complex.
– Does not have the advanced indicators like – Echimoikhu, Pivot, Remaining candle time
– also drawing the trend line & other price actions pattern on the chart is not that way easy.
- Not an easy way to access your account details directly, that means you need to login to the back-office through the web-site OR need to call your customer care to know the money status & to add, receive money from your currency trading account.
- Software platform is not stable you will see unexpected move in the candles (Very high candle bullish/very low candle bullish) . Software is hung and need to restart your system.
- The software updates are not that way easy to install. Need to contact customer care and then they will install the modified
- There are very few brokers that offering very good customer care services, whereas for others it is just like commodity & equity ..yet they have not understood the importance of currency trading.
- So choosing a reputed broker is headache. Because as per human tendency we do not change the broker as we are rigid to change our mind and switch to other broker services.
- Yet there is not a stable platform to trade using Mobile.
Advantages of Forex Trading In India Over Currencies Traded Internationally
- The only advance of Forex trading in India through MCX-SX platform is it is govern by regulatory frame work SEBI + RBI
- Your money is very secured if your broker is registered under MCX-SX panel.
All those who have decided OR Want to change their living, Want to be financially free using Currency/Forex Trading Concept.
- This is the best place in the world to start making Money.
- Your own choice of Yes and No will make your Destiny!! Take time and understand What you really want from the life? And what all you are missing from your life.
- Feel the following from to receive Free Forex Trading Education.
Life is like an Hour Glass. The grains of sand drop one by one and then it’s all over. Live before you die.