Proficient Currency Trading India @ Low Brokerage

By Author: Bruce Parker
Total Articles: 9
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Globally, a huge turnover of money is involved in currency trading. as per the BIS Triennial Survey Report, the global forex market is presently estimated at US$ 3 trillion. Analysts believe that we are still in the nascent stage of achieving the full extent of our inherent trading potential and recent reports conclude that currently the currency trading India market's turnover is more than $400 billion.

Many factors attribute to the sporadic growth in the India’s trading market. The RBI, in 1978, first gave banks approval to undertake intra-day trading in foreign currency exchange and it happens to be the first causative factor. This step resulted in the required 'near square’ or 'square ‘position to be complied with only at the close of business every day. Currency trading was subjected to many restrictions by the RBI in the early 1990s. However, the prologue of most important economic developments by the government, like the implementation of open market policies, provided the much need affirmative enhancement to currency trading India.

As the next significant stride, the government saw the appointment ...
... of a specialist committee to evaluate the balance position. This committee in 1992 looked into introducing Liberalized Exchange Rate Management System or LERMS. A detailed study of the Forex market was made by this committee, so that steps could be taken to widen, deepen and develop the Forex market in India. Consequently, a significant boost was witnessed in currency trading India and banks got the freedom to carry out currency or forex trading operations amongst themselves. The freedom given here is mainly concerned with granting banks being allowed to borrow and invest in overseas markets up to specified limits and the independence of fixing their trading limits.

Firstly, you need to ask yourself which types of investment products you plan on trading. There are stocks, of course, but many day traders also like to trade options, futures, forex currencies and commodities as well. If you think that you might want to try trading some or all of these more sophisticated products, then it is in your best interest to choose a broker with trading privileges in all of these markets.

Picking an online broker based on the fees and expenses is another important consideration. The commissions charged by these financial institutions tend to run the gamut, even though some firms claim to be discount brokers with low brokerage. With many of these discount internet stockbrokers, sometimes you get exactly what you pay for. Therefore, understand the fine print of any brokerage's commission program to notice if their discounts only apply once you have met a monthly quota of trades or if there is always just one flat fee.

Being caught up in the actual cost of each roundtrip trade is something you need to be cautioned about. Sometimes, if you are getting access to better charts, have a robust data feed, and a wealth of filtering and research tools at your disposal, it is worth paying a few cents or dollars more per trade rather than looking just for low brokerage.

About Author:

Bruce Parker is a trading analyst, empowering individual investors to make better investment decisions. He provides industry's best finance decisions on unlimited trading, zero brokerage services on equity, currency trading India and currency derivatives (futures and options). For more information on low brokerage, you can also visit www.rksv.in.