11 SEBI / RBI Registered & Regulated Forex Brokers In India 2021

Are you looking for trusted information about SEBI registered Forex brokers? Or RBI approved brokers? I know from first-hand there is not much reliable information out there, and it can get super frustrating when you are new to this industry. 

Worry not! Because in this article, I will be covering what SEBI regulations are, how they work in India – as well as – recommending you a list of trusted international brokers at the end of the article. 

Overview of SEBI

The Securities and Exchange Board of India (SEBI) was established on April 12, 1992, as the Government regulator to supervise and regulate all financial activities in the securities market. It is the principal regulator for stock and securities in India.

The board was established in line with the Security and Exchange Board of India Act, 1992. The SEBI India act gives the board the power to regulate business in the stock exchange and securities market. 

The Board has the power to register and regulate the workings of stockbrokers, sub-brokers, portfolio managers, investment managers, bankers, and other intermediaries associated with the securities market.

SEBI is one of the most influential regulatory boards in the world. It takes the regulation and security of the market seriously. The board strictly prohibits fraudulent and unfair trade practices in the securities market. Furthermore, insider trading in securities is not allowed. 

In simple terms, what the SEBI does is to keep investors like you safe when trading with brokers in India. 

How Does SEBI Protect Indian Traders?

Like I said earlier, the major role of the SEBI is to keep innocent investors like yourself from falling into fraudulent and unfair trades with brokers. Before SEBI can certify a broker, then it must follow all guidelines of SEBI and FEMA (Foreign Exchange Management Acts).

The board responds to the needs of the investors, the issuer of securities, and the market intermediaries. The SEBI functions are divided into Protective, developmental, and regulatory. 

Protective Functions

  • The board prohibits insider trading of any form.  
  • Protects investors from fraudulent or unfair practices from a broker.
  • The board also prohibits price rigging because brokers can use it to cheat investors. 

Developmental Functions

  • The board promotes investors’ education. They make it compulsory for brokers to provide a form of basic training for you.
  • The board trains the intermediaries like brokers of the stock and securities market.
  • SEBI also promotes and regulates self-regulatory organizations. 

Regulatory Functions 

  • SEBI regulates all businesses in the stock exchange and the securities market.
  • It registers and regulates all the workings of stockbrokers, sub-brokers, portfolio managers, and bankers.
  • The board registers and regulates all the workings of depositories, custodians of securities, foreign institutional investors.
  • SEBI regulates shares, stock acquisition, and the taking of over of companies.
  • It also regulates venture capital funds and collective investment funds including mutual funds.

All brokers, whether foreign or domestic in India, must be registered and regulated by the SEBI regulations.

SCORES for Investors Complaints 

The board uses the SEBI Complaint Redress System (SCORES) to handle all investors’ complaints against listed companies. SCORES is a web-based centralized complaint system that you can use to register and track your complaints as an investor against any SEBI registered entities. [1]

SEBI takes complaints related to transfer, non-payment of dividends, and other issues with listed companies and intermediaries. Filing complaints on SCORES is easy and quick. All you need to do is:

  • Register on the SCORES portal.
  • Provide the mandatory details for filling reports. That includes your name, PAN, Address, Mobile Number, and Email ID. Investors are advised on the website to provide their mobile numbers when filling any complaint.

After filling your complaints, you can login and view its status at any time. SCORES facilitate the tracking of your complaints. 

SCORES benefits include effective communication and speedy redressals of your complaints.

Protect Yourself With Regulated International Brokers 

You should know that there are many fraudulent domestic brokers in India. Before you start trading with any Forex brokers in India, make sure they are registered and regulated by the SEBI. This is to protect you from fraudulent and unfair acts. 

SEBI regulated brokers follow the strict rules and regulations of SEBI. In case of any complaints against your broker, first, approach their customer service and complain. 

If you’re not satisfied with their response, then you should file a complaint on SCORES against the company. I explained how to do that in the last section. You can also track the progress of your request with SCORES. 

SEBI enforces strict rules and regulations. If they find the company guilty, it can lead to the payment of heavy fines, legal issues, loss of license, and imprisonment.

However, your broker must be registered and regulated with SEBI to do this. Before you start trading with any broker, check their website for their SEBI license. Some fraudulent domestic brokers use fake licenses on their website, so verify the authentication of the license. [2]

To save yourself from that stress, I’ll recommend you trade with regulated international brokers. You can trust them and ensure safe trading. 

Below is my list of the top SEBI regulated brokers in India that you can trust. 

11 Best SEBI Regulated Forex Brokers List in India 2021

Check out the following list for the forex trading platforms that align with the guidelines of RBI and SEBI below:

  1. Plus500
  2. Forex.com
  3. IG Market
  4. Hot Forex
  5. XM
  6. Pepperstone
  7. etoro
  8. Avatrade
  9. OctaFX
  10. Saxo Bank
  11. Interactive Brokers

Plus500

Plus500 is a trusted international Forex broker that provides online trading services across over 2,000 securities and assets. The company was founded in 2008 with its headquarters in Israel. 

Plus500 is registered and regulated by the Financial Conduct Authority (FCA) and other regulating bodies including SEBI, ISA, ASIC, MAS and so on. The company is listed on the London stock exchange, it is a member of the FTSE 250 index.

The company offers you advanced tools and features like:

  • Stop limit 
  • Negative balance protection
  • Alerts on Price movements and Traders’ sentiments
  • Free email and push notification of market events

The company also offers you a leverage of up to 1:300, with no commission and fast reliable orders. The broker has a 24/7 live customer support to attend to any issue you have.

Read: Plus500 Review

FOREX

FOREX.com is an award-winning online broker that offers Forex and metal trading. They also offer you equity, commodity, and crypto trading with over 4000 instruments to offer.

They have some of the lowest commissions with advanced research and trading tools. FOREX is regulated by FSA and other regulatory bodies like NFA, FCA, and so on. It is listed on the New York Stock Exchange (NYSE). 

They offer you great features like: 

  • No deposit or withdrawal fees 
  • Demo account 
  • A low initial deposit of $50
  • The broker supports MT4 and its proprietary web trader 
  • It offers technical indicators for trading.
  • Calendars, news, and market sentiment indicators

Read: Forex.com Review

IG

IG is one of the oldest and biggest brokers around. It was established in 1974 in the UK. It is registered and regulated by top regulators like FCA and BaFin. It is also listed on the London Stock Exchange.

The broker allows you to trade Forex, ETF, Options, stock, and cryptocurrencies. The broker provides a demo account if you’re interested in practicing before using a live account. They offer several amazing features like:

  • A minimum deposit of $0
  • No withdrawal or deposit fees
  • Deposit with both credit and debit card
  • Deposit with electronic wallets
  • Superb educational tools
  • Web trading platform 

Read: IG Review

HOT Forex

HOT Forex is an award-winning forex and commodities broker, they provide their services to both retail and institutional clients. The company was founded in 2010 as part of the Cyprus Investor Compensation Fund. 

The broker is not publicly traded and doesn’t operate a bank. However, it is regulated by FCA and other top-tier regulators. With HOT Forex you can trade 49 currency pairs, several CFD instruments, and Cryptocurrencies.

They offer you 6 account types, ranging from Micro to Premium including Zero account and Fixed accounts. Other features include:

  • A low minimum deposit of $50
  • Demo account
  • The broker supports MT4 and MT5
  • Technical indicators and Stop loss
  • Economic calendars and Social sentiments

Read: Hot Forex Review

XM

XM is part of Trading Point Holding, a global CFD and FX broker that was founded in 2009. XM is regulated by CySEC, ASIC, and IFSC.

XM offers you the option to trade Stock, Forex, CFD, and Crypto on their platform. They also provide a Demo account and basic educational training. Other features they offer include:

  • Low deposit and withdrawal fees
  • A low minimum deposit of $5
  • Deposit with debit and credit card
  • Deposit with electronic wallets 
  • Fast customer support available in many languages. 

Read: XM Review

Conclusion 

SEBI is one of the influential regulatory authorities in the world. It is designed to make investing activities safe and secure for traders like you. It carries out regular audits of brokers to check out financial malpractices.

To keep your investment safe, always ensure that the broker you are trading with is registered with SEBI. This will give you the power to be able to file a complaint with SEBI in case of any discrepancies. 

On top of that you may also use international Forex brokers that are being regulated from countries with strong financial institutions to ensure your trading activities are secured and safe such as Plus500. Check them out as they offer amazing bonuses and benefits!

Read: Forex Trading In India