Best Indian CFD Broker 2022

Trade CFDs in Indian

India is certainly a challenging country where financial matters and laws are concerned, but the fact remains, that at the time of writing, online CFD trading in India is not legal.

In our guide, we will define how the current guidelines stand and tell you which financial instruments you can trade legally right away. Bearing in mind that laws often change, we’ll also go through the ways you can find the best CFD broker in India ready for when that happens.

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82/100

Compare the best CFD brokers in India

Rating
82/100
Minimum Deposit
$100.00
Deposit Protection
Trading Costs
from 0.50%
Mini Contracts
no

Who should make use of this CFD comparison? – A must-read for all Indian traders!

We’ve already mentioned that it isn’t legal to trade CFDs in India right now, but as we’ve witnessed with the US gambling laws, changes can happen very quickly, meaning that it pays to have knowledge in anticipation. For example, having an understanding of the current regulations in place for brokers in India and their implications for traders is essential reading.

Although some parts of our guide are likely to be of particular interest to residents of India, other parts have global appeal. It doesn’t matter whether you’re already engaged with CFD trading in Germany or currently searching for the best CFD broker in Spain, you’ll find plenty of vital information here.

Certain parts of this guide also have universal relevance. It doesn’t matter where you are in the world, whether you’re completely new to the trading, or already have years of experience, understanding how to differentiate between a great broker and a mediocre one is crucial to the quality of your trading experience.

Now is the point where things get a little complicated, because CFD trading in India is not legal, as we mentioned briefly earlier on. However, should changes to the current laws be made, then it would be the SEBI (Securities and Exchange Board of India) which would be responsible for regulation.

SEBI is a statutory body that has been in place since 1992. It has overall responsibility for protecting the interests of investors and preventing fraud. It has power over all things financial in India and in partnership with the Reserve Bank of India ensures that all laws are strictly adhered to.

Top 5 steps for a secure & fair CFD trading experience – the key factors to check out

There may come a point in the future where India’s policy changes, so we thought we’d get you up to spec on how to find the best online trading platform ready for when that time comes.

Licensing

If trading CFDs in India is permitted in the future, it is certain to be rigidly regulated by the Securities and Exchange Board. Although SEBI’s existing regulation does not include issuing licences to brokers, it must approve them before Indian residents can trade certain assets. So, there’s a fair chance a similar ruling would apply to CFDs.

Security

Online security is vital at all times, but no more so than when there is money involved. Before signing up with a broker, it’s essential to check that as many security features are in place as possible.

Assets

A broker is only as good as the assets it offers to CFD traders. Top class assets always have plenty of liquidity, the lowest spreads and lots of trading opportunities. However, in some countries certain assets are restricted, which might be the case for you if CFD trading in India is permitted in the future.

Terms and conditions

One of the most important tasks on the list and also one of the most tedious, is to examine a broker’s terms and conditions. It’s particularly vital to make sure that you are 100% happy before you sign up as they form a legally binding contract between you and the broker. If you have any doubts, reach out to customer support for clarification.

Reviews

We usually recommend reading multiple reviews for any broker you might be interested in and also checking out user reviews on sites like Trustpilot. Obviously, this is not something you can do in advance, but should CFD trading in India become legal in the future, you’ll find it’s a good way to get a feel for how a broker treats its clients.

This is how our experts test CFD brokers – what we test and how we do it

Usability

As well as a general overview of the site layout, we also consider things like page loading speed, ease of navigation and working links. It’s always ideal to find the most important menu options at the top of the page, for quick and easy access. In short, we expect to find a functional and well-designed website, which is really no less than you should expect either.

Platform

There are plenty of variations on a theme where trading platforms are concerned, but having the right tool for the job is often the difference between a great broker and a mediocre one. In an ideal world, a broker will have several different platforms available, but a well-designed bespoke platform can work equally well. In either case, we expect any platform to perform as expected and be suitable for all types of trading ability.

Fees

A part of our review process involves examining a broker’s fee structure. There are several options a broker can take:

  • Commission only – 0% spread fees
  • Spread fees – zero commission
  • A combination of the two

We would then assess the overall cost of various trades and determine if they are competitive. In addition, we find out if the broker routinely charges fees for deposits and withdrawals. Lastly, we make sure there are no hidden or unexpected fees you might encounter.

Accounts

Some of the brokers we review have just one account type, but implement a tiering system for traders where additional privileges are assigned depending on their trading volume. Conversely, one of the best CFD brokers in New Zealand offers multiple account options, each with different features and benefits. Although CFD trading in India is out of reach at the moment, it’s something you can consider for the future.

Support

We don’t just take it as read that customer support is available, we test out all of the contact options at various times of the day. What we’re looking for is fast response times, even during busy periods and ideally 24/5 availability. We also expect support staff to respond in a professional and courteous manner at all times.

Check out our top-rated CFD Brokers in India:

82/100
Rating
Credit Card
CIMA - Cayman Islands Monetary Authority
FOREX.com CFD
Highlights
  • Regulated by top-tier financial authorities
  • Free-of-charge withdrawals
  • Low stock index CFD fees

Checklist: This is how you find YOUR perfect CFD broker! – Some thoughts for the future

If we were compiling this guide for CFD trading in Germany, it would be a much easier task to put together a list of features to consider, but as CFD trading in India is not yet a reality, we can only surmise what might be available.

Mobile trading

Whether or not SEBI will permit brokers to offer mobile apps to trade CFDs in India remains unknown, but based on the enthusiasm from users in other countries we hope it does. For example, almost 50% of all online CFD trading in New Zealand is done using a mobile device. So, it’s highly likely you might consider mobile trading a crucial feature as well.

Customer support

This is one area of online CFD trading in India that brokers are likely to maintain more control over. CFDs are traded 24 hours per day on weekdays, so a broker that has support available throughout that time is a must for anyone that regularly trades outside of office hours.

Demo platform

When it becomes legal for you to trade CFDs in India, make sure that you are 100% happy with a broker’s platform. It’s quite likely that most brokers will give you the opportunity to make use of a free demo version first and you should definitely take advantage before risking your own money.

What else can you trade online in India? – Slightly limited options

There are two types of financial trading that are permitted under current Indian laws: stock investment and forex. Both are restricted by the Securities and Exchange Board of India and confined to very specific assets. In addition, all trading accounts are regularly scrutinised by the Reserve Bank of India Bank for illegal trading activities.

Stock investment

There are two stock exchanges in India, the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). You can only access company stocks if you have an account with a SEBI-licensed stockbroker that is also a member of one, or both of the stock exchanges.

For a considerable time, Indian residents were only permitted to buy stocks listed on either the NSE or the BSE and were actively encouraged to do so. Earlier this year SEBI announced that Indian investors would also be permitted to purchase US stocks up to a maximum value of $250,000.

Currently, there are only eight selected stocks available, but over the next few months the number will increase to a total of 50 stocks. Buying stock investment is a long-term investment, requiring substantial capital investment and there are annual brokerage fees to consider as well.

Forex trading

Although forex trading is not strictly illegal in India, signing up with an unauthorised broker is a non-bailable criminal offence. Even when using an approved broker, you are only permitted to trade on currency pairs which include the Indian Rupee (INR) as the base (quote) currency and three major currency pairs, which are EUR/USD, GBP/USD and USD/JPY.

Conclusion

We hope our guide has proven useful to anyone who was unclear about the legitimacy of CFD trading in India. At the time of writing, there are no approved online CFD brokers in India and it remains a criminal offence to engage with any unapproved offshore CFD providers.

Naturally this means that we are unable to offer you a recommendation for the best CFD platform in India, or even suggest reading our CFD India broker reviews at the present time. However, as we mentioned earlier, laws can be changed and those changes can happen very quickly sometimes, so be sure to keep checking in with us for news about any updates.

CFD trading India FAQ

🎓Is CFD trading legal in India?

Where anything financial is concerned, India has one of the most complex and stringent regulatory policies in the world. It’s absolutely vital that you understand what is permitted to avoid stepping outside of the law. We have compiled an in-depth guide to CFD trading in India, which contains all of the information you need. It’s a must-read for all Indian traders.

🏆Which is best CFD platform in India?

The trading regulations applicable to India contain many restrictions for certain trading activities. This means there are some crucial facts you need to be aware of before you start looking for a platform to trade CFDs in India. Please head over and read our in-depth guide to online CFD trading in India before you do anything else!

🌎 Can I trade CFDs with an offshore site from India?

Before you start looking at that option, we highly recommend that you familiarise yourself with the many restrictions and regulations that Indian traders are obliged to comply with. Why not begin by reading our guide to CFD trading in India first? It’s full of information and vital facts that all Indian traders need to be aware of to avoid being outside of the law.

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