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Saturday, March 5, 2011

India Forex Opportunities

This page details the rise and rise of the Forex system in India and what to expect from an Indian Online Forex Broker.

The Forex market in India has radically grown over the last decade and today transacts over 500 billion USD, a significant rise from the 100 billion USD recorded at the end of the last decade. The monthly transactions of the India Forex market is well over ten times the daily takings in India's largest financial market, the Bombay Stock Exchange.

The growth of the India Forex trade started in the early 1990s when a severe crisis in the Foreign exchange and balance of payments forced the government to liberalize the market operations changing a four-decade old rigid exchange system. Since then, the Reserve Bank of India, the overall currency regulatory body, only intervenes to support the Indian currency (the rupee), but the India Forex market is largely free. Today, the market is open and thriving and India is recognized internationally as a high profile hub in the currency trading business.

Currently, any Indian company or resident including financial institutions and banks can participate in the Forex market. This has opened up the opportunities to invest in the India Forex market to as many people as possible. As an over-the-counter and decentralized worldwide system, the possibilities of engaging in the market are unlimited to buyers and sellers around the country.

Most of the local Forex traders transact individually or through an online trading system, Forex brokers or registered financial institutions. All of these platforms carry both risks and benefits that the trader will need to evaluate. The good news though is that all trading has to be registered by the RBI to regulate the amount of Foreign currency that enters the country. All Indian Forex brokers are also registered with the regulatory bodies and this reduces the risk exposure.

The Forex market has established itself as the most liquid transactional business in the world and this portends amazing business opportunities for any interested trader. Individuals, private companies, international corporations, banks and even governments engage themselves in the business whose daily turnover is reported to be over 5 trillion US dollars. A Euromoney Poll reported a 41% annual growth in the Forex business for the last 3 years. This growth is what has attracted thousands of individuals and companies in the market who are raking in thousands of US dollars monthly.

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