loader2
Partner With Us NRI
Download iLearn App

Download the ICICIdirect iLearn app

Helping you invest with confidence

Open Free Demat Account Online with ICICIDIRECT

How to Open Currency Trading Account?

02 Nov 2021 0 COMMENT

Currency trading in India is still an underpenetrated sector when compared to other financial assets like stocks and commodities. However, it is slowly catching the fancy of more and more investors, thanks to its potential to generate higher returns with a low scale of investment.

Notably, the first thing you need to do to take up forex trading is open a currency trading account. Detailed below is a simple guide on how to open a currency trading account, the documents required, charges to be paid, etc. Knowing the exact procedure before beginning to invest in currencies will ensure that you have a seamless experience.

Where can you open a currency trading account?

You can open a forex trading account with brokers registered with the Securities and Exchange Board of India (Sebi). You don’t need a Demat account as most currency trades are settled in cash and there is no delivery of the currency involved. So, all you need for forex trade is a Trading Account and a bank account from where you can transfer funds.

What are the documents required to open the currency trading account?

You need to submit the following documents to open a forex account:

  • Photo identification proof: This can be your PAN card, voter's ID card, passport, driving licence or Aadhaar card.
  • Address proof: This can be your telephone bill, electricity bill, bank statement, ration card, passport, voter’s ID, registered lease or sale agreement or driving licence.
  • Financial/Income proof: You can submit your current income-tax return (ITR) acknowledgement, current annual accounts, Form 16 (in case of salary income), current net worth certificate, latest salary slips or bank account statements for this proof.
  • Bank account details: Submit details of the bank account to be linked with the trading account by producing details like bank account number, IFSC Code, bank name, branch address and account type.

Additional Read: Protect your Trading Account against Cybercrime/Data Breaches

How to open a currency trading account?

You can open a forex trading account instantly within minutes. Start the process online by visiting the website of your chosen broker or by meeting a company representative at a physical branch nearby. Here’s a look at the step-by-step procedure:

  • You will need to fill up an account opening form along with other customer KYC forms.
  • Submit all the necessary details like your name, date of birth, email ID, mobile number, address, PAN, etc.
  • Also mention your income and occupation details. This is just for the broker’s record and will have no repercussions on your account opening application.
  • Give the details of the bank account with which you want to link your trading account.
  • Upload all the supporting documents (as mentioned above) to verify the details submitted in the forms.
  • If submitting the forms online, you may have to electronically sign the application and documents using the e-signature services.
  • After you submit the forms and documents, due verification will take place either via call or a visit by the company representative (in case of online forms).
  • Once the verification is done, your currency trading account will be activated. You will be provided with a login ID and password to access the broker’s online trading platform where you can start placing your orders.

Additional Read: What is Trading Account Charges & Fees, and Eligibility Criteria?

Benefits Of Currency Trading Account

  • Opening a forex trading account will give you access to an extensive global currency market that gives you the potential to make sizeable profits. 
  • Currency markets are open round the clock. This means that with a forex trading account, you can trade at any time of the day that is convenient to you. 
  • Currency markets are considered among the most liquid markets in the world. Using a forex trading account, you can get a bite of this market. 
  • Currency trading accounts have low margin requirements and an extremely low cost of trading. This makes it an extremely lucrative trade to be in. 
  • There are no restrictions on who can trade in the currency market. If you have an inclination to trade with a currency trading account, you can begin your journey. 

Conclusion

Opening a currency trading account is a fairly easy and transparent process. What’s even better is that usually there are no account opening charges or minimum deposit requirements. You just have to be careful about the broker you choose so that you get all the required support at all important steps of your trading journey.

FAQs

   1.  What is a forex trading account?

A forex trading account or a currency trading account is an online account that enables you to trade in the currencies market. The global currency market is one of the most liquid markets globally, making it a lucrative trade to be in. 

   2.  How much money do you need to open a currency trading account?

While it may differ from one broker to another, the capital required to open a currency trading is minimal. You can check with the broker of your choice to find out how much deposit they require for you to start trading in currencies. 

   3.  What is a currency trading account?

A currency trading account, also known as a forex trading account, is an online account that allows you to trade in currency markets. You can trade in a wide variety of currencies and make a considerable profit if you know the tricks of the trade. 

   4.  What are the benefits of currency trading?

The currency market is one of the largest and most liquid markets globally. It is a good space even for beginners to try their luck with. Currency markets are open round the clock, meaning that you can trade in currencies at any time of your choosing. To begin with, it requires a low capital, and currency account charges are also minimal. 

Disclaimer
ICICI Securities Ltd. ( I-Sec). Registered office of I-Sec is at ICICI Securities Ltd. - ICICI Centre, H. T. Parekh Marg, Churchgate, Mumbai - 400020, India, Tel No : 022 - 2288 2460, 022 - 2288 2470. The contents herein above shall not be considered as an invitation or persuasion to trade or invest.  I-Sec and affiliates accept no liabilities for any loss or damage of any kind arising out of any actions taken in reliance thereon. The contents herein above are solely for informational purpose and may not be used or considered as an offer document or solicitation of offer to buy or sell or subscribe for securities or other financial instruments or any other product. Investments in securities market are subject to market risks, read all the related documents carefully before investing. The contents herein mentioned are solely for informational and educational purpose.