CFD trading can be a great opportunity for both new and experienced traders. However, it is important to be aware of the potential risks involved in this type of online trading in India. Our comparison of the best CFD trading India provides all the information you need to make an informed decision about where to conduct your trading.
Is Cfd Trading Legal in India?
CFD trading is a popular way to trade financial markets, and it's growing in popularity in India. But is CFD trading legal in India?
The answer isn't entirely clear. The Securities and Exchange Board of India (SEBI) is the regulator for securities and commodities markets in India, but there is no specific mention of CFDs in SEBI's regulations.
That said, SEBI has published guidance on "derivatives contracts" that appears to apply to CFDs. In this guidance, SEBI states that derivatives contracts must be traded on a recognized stock exchange, and that they must be cleared and settled through a SEBI-authorized clearing corporation.
Based on this guidance, it would appear that CFD trading is only legal if it takes place on a recognized stock exchange and is cleared and settled through a SEBI-authorized clearing corporation.
It's worth noting that there are currently no Indian stock exchanges that offer CFD trading, so if you want to trade CFDs in India, you'll likely have to do so through an overseas broker. And even if you do find an Indian broker that offers CFD trading, there's no guarantee that your trades will be cleared and settled through a SEBI-authorized clearing corporation.
So, while the legality of CFD trading in India is somewhat unclear, it seems safe to say that it's not entirely legal. If you're interested in CFD trading, you may want to consider doing so through an overseas broker.
Best CFD Brokers in India
After doing extensive research, we have prepared top 5 CFD brokers that accept clients from India.
The top 5 CFD brokers in India are:
The first CFD broker on our list is Libertex. Libertex is a great choice for Indian traders because it offers a wide range of assets to trade, including forex, stocks, indices, and commodities. Libertex also has one of the lowest minimum deposit requirements of any CFD broker at just €10. Libertex has been one of the oldest brokers established in 1997.
Libertex.org is operated by Forex Club International LLC, a company registered in St. Vincent and the Grenadines (Registration No. 1277 LLC 2021), and by MAEX LIMITED, a company registered in the Republic of Mauritius (Registration No. 158250 C1/GBL and Licence No С118023400 issued by the Financial Services Commission, Mauritius).
The entity, which accepts payments from clients and transfers credit card payments back to clients, is Holcomb Finance Limited, a company registered in Cyprus (Registration No. HE 183254).
Libertex is also regulated by FCA and CySEC.
Libertex Trading Platform
Libertex has its own web based trading platform along with MT4 and MT5.
To trade on the web platform, you don't need to download anything. You can do it from their website. In the web based platform you will get charts of all the instruments, some Indicators, News and Live trade. The trade execution is really fast.
If you are comfortable with MT4 and MT5, you can download their MT4 and MT5 from Libertex website. In their platforms they do not allow EAs and copy trading. They also have a proprietary mobile app for both android and iOS.
Libertex provides 250+ trading instruments. Among 250+ instruments, they have 50 currency pairs, 50 cryptocurrency CFDs, and more than 100 Stock CFDs, 5 Metals, 5 oil and gas instruments, 18 indices, 6 Agriculture, and 10 ETFs.
Cost of Libertex
Libertex does not charge any deposit fee.
For withdrawal, they have the following fees:
> Seba/International Bank Wire. Withdrawal Fee 0.5%, Minimum $2, Maximum $10.
> PayPal withdrawal is free of charge.
> Debit Card and Credit Card withdrawal fee is $1.
> eWallet Skrill withdrawal fee is free.
> eWallet Neteller and Jeton withdrawal fee is 1%.
When you trade classic financial instruments in Libertex, they have two types of fees and commissions.
– The First one is the transaction fee. It's taken when you open a trade on Libertex.
– Second one is the roll over/swap fee. It's also called overnight fee as interest. Both commissions and swap vary depending on instruments.
Libertex Customer Support
Libertex has a phone, email and a FAQ section to answer many of your queries.
They also have a live chat option which is available Monday through Friday from 8 a.m. to 6 p.m. In other times you can chat with a chat bot. They give support in different languages.
Pros and Cons of Libertex
√ They are in 25+ years of operation.
√ Minimum deposit 10$
√ No Deposit Fee
√ Accessible by Android and iOS Devices
√ They have very competitive spreads and high leverage up to 1:999
√ They have 3-hour trading course for beginner traders
√ They accept clients almost from everywhere.
√ They have a Welcome Bonus and Loyalty Program.
- You can not use EAs.
- Very Limited Account types.
- Doesn't allow hedging
- You have to pay Inactivity fee after 90 days
If you want to trade CFD with Libertex, you can use the link below:
Our second CFD broker in India is Vantage. In 2009, Vantage started its journey as Vantage FX. In January 2022, they rebranded Vantage FX as Vantage.
Vantage has four entities.
- Vantage Global Prime LLP in London
- Vantage Global Prime Pty Ltd in Australia
- Vantage International Group Limited in Cayman Islands
- Vantage Global Limited in Vanuatu.
Yes, Vantage is a licensed and regulated broker. All its Four entities are licensed and regulated by different regulatory authorities.
√ Vantage Global Prime LLP is authorised and regulated by the Financial Conduct Authority in London.
√ Vantage Global Prime Pty Ltd is registered in Australia and regulated by ASIC.
√ Vantage International Group Limited registered in Cayman Islands, and regulated by the Cayman Islands Monetary Authority (CIMA).
√ Vantage Global Limited is authorized and regulated by the Vanuatu Financial Services Commission (VFSC) in Vanuatu.
Vantage Trading Platforms
They have Proprietary Web based Platform named ProTrader. They also have the industry standard MT4 and MT5 trading platform for mobile, desktop and web browser. They also have Proprietary mobile app named Vantage App.
Vantage offers Forex, Indices, Precious Metals, Soft-Commodities, Energy and Share CFDs.
Vantage offers 44+ FX pairs, this includes major, minor, and exotic currency pairs.
As Precious, they offer Gold, Silver and Copper.
Vantage offers 5 soft commodities that include Cocoa, Coffee, Cotton, Orange Juice and Sugar Raw.
Vantage offers 5 Energy products that include Oil, Natural Gas, Gasoline, Gasoil and Oil Cash.
Vantage also offers its clients access to some of the largest listed companies in the US, UK, Europe and Australia through its share CFDs. On MT4, you can trade US listed companies and on MT5, you can trade UK, Europe and Australia listed companies.
They have different types of Accounts. Standard STP, Raw ECN, Pro ENC, Swap Free and Demo Account.
They offer leverage from 1:20 to 1:500.
Costs of Vantage
Vantage doesn't have any deposit and withdrawal fee. Minimum deposit is $200 for standard STP accounts, $500 for Raw ECN accounts and $10,000 for Pro ECN accounts. Subsequent minimum deposit is $50.
Commissions of Vantage:
For trading with Standard STP accounts, there is no commission. For Raw ECN accounts, the commission is $3 per lot per side. For Pro ECN accounts, commission is $1.75 per lot per side.
Vantage Customer Support
Vantage has a team of skilled support personnel that can be reached via live chat, email as well as by phone calling. In the live chat, you can get info from the chat bot. If the chat bot is not enough, it will connect you with a live agent. I have checked their live chat. They are quick to respond.
Pros and Cons of Vantage
√ World-class MT4 and MT5 trading platform.
√ Social trading through ZuluTrade, DupliTrade, and MyFXBook auto trade.
√ Spreads from 0.0 pips.
√ Built-in economic calendar and forex sentiment indicator
√ The award-winning broker provides a RAW ECN and PRO ECN account.
- The minimum deposit is $200.
If you want to trade with Vantage, you can use the link below:
Next broker in our list is XM. In 2009, XM Global Limited started its online trading service under the trademark XM. Currently they have over 5,000,000 clients and 600 Professionals working around the world. XM is doing business in 190+ countries.
XM is a multi licensed and regulated broker.
In Cyprus, the company is licensed and regulated by CySEC.
In Australia, XM is regulated by the Australian Financial Services License by ASIC.
And in Belize XM is licensed by IFSC.
XM offers Forex, Cryptocurrencies, CFDs on Stocks, Equity Indices, Commodities, Precious Metals, Energies and Shares.
They have different types of live Accounts. Micro Account, Standard Account, XM Ultra Low Account, Shares Account, Islamic Account and Demo Account.
They offer leverage from 1:1 to 1:888.
XM offers 57+ FX pairs, this includes major, minor, and exotic currency pairs.
They have 31 Crypto to Fiat Currency pairs.
They offer 8 commodities that include Cocoa, Soyabean, Coffee, Corn, Cotton, Copper, Sugar, and Wheat.
For trading Stocks, you get access to over 1246 major companies from the US and other global stock markets. The trading of shares is executed via CFDs.
You can also trade Indices. They have 14+ Indices including US500, US100, UK100, US30 and more.
You can also trade gold, silver, Crude oil, Natural Gas and WTI oil on XM.
They also have an account for shares trading. With this account, you can buy shares from US, UK and German stock markets.
XM Trading Platforms
Let's check their Trading platforms. Clients of XM are able to begin trading using MT4 and MT5 platforms accessible on both PCs and MAC and several mobile devices. Users can also get trading experience with the XM WebTrader, instantly accessible via your web browser.
Costs of XM
XM doesn't have any deposit and withdrawal fee. It's free, but the minimum deposit with XM is $5 except for a share account. For Shares Account, minimum deposit is $10,000.
XM does not charge any commission except for Shares Trading.. They make profit through spreads and swap fees.
Commission for US Shares 0.04% per share, with minimum $1 Commission per transaction, for UK Shares, it's 0.10% per share with minimum $9 commission per transaction and for German Shares, it's 0.10% commission per transaction, with a minimum of $5 commission per transaction.
XM Customer Support
XM customer service is probably one of the most satisfying customer service experiences we've experienced compared to different forex brokers. XM provides live chat support 24/7 and standard phone and email assistance.
We had the opportunity to talk with a live person via live chat in less than 10 seconds, which is a feat. Additionally the broker also provides customer assistance in 26 different languages.
Pros and Cons of XM
√ Low stock CFD and withdrawal fees.
√ Easy and fast account opening
√ Responsive customer support
√ Low minimum deposit
- Limited product portfolio
- Average forex and stock index CFD fees
If you want to give it a try with XM, you can use the link below:
One of the best brokers for Indian CFD traders is AvaTrade. This broker offers a wide range of currency pairs, low spreads, and a variety of trading platforms to choose from.
AvaTrade id licensed and regulated by numerous regulators around the world:
Ireland and Cyprus: Avatrade is regulated by the Central Bank of Ireland and Cyprus Securities and Exchange Commission in Europe.
Poland: AvaTrade is regulated by the Polish Financial Supervision Authority.
Australia: AvaTrade is regulated by ASIC in Australia.
Global: AvaTrade Global AvaTrade has been supervised by the British Virgin Islands Financial Services Commission for its international operations.
Japan: AvaTrade is regulated by the Financial Services Agency and Financial Futures Association of Japan in Japan.
Middle East: AvaTrade is under the supervision of Financial Regulatory Services Authority (FRSA) for the Middle East.
Israel: AvaTrade is regulated by the Israel Securities Authority in Israel.
AvaTrade Trading Platforms
The broker has a wide range of different trading options that are manual , which include the popular MetaTrader 4. MetaTrader 5, WebTrader, AvaOptions for options trading and AvaTradeGo to trade on the go.
Automated trading is offered by DulpiTrade and ZuluTrade.
They provide a range of over 55 Forex pairs, Options on 55 Forex pairs, 14 cryptocurrency, stocks CFDs of large corporations across the world, ETF, Bonds, Indices and Commodities. Spreads for brokers begin at zero and leverage could be as low as 1:400.
Costs of AvaTrade
AvaTrade is not a fee or charge for trades or transactions. Profits are generated through spreads and swaps that are generated through trading.
The minimum amount to deposit will be 100 USD in your currency of choice.
When you transfer funds to E-wallets or credit cards The minimum amount will be one currency base for your account. If you make a bank transfer withdrawal the minimum amount you can withdraw will be 100 base currencies.
AvaTrade Customer Support
The broker also provides live chat support through chat bots or live chat agents. They also offer WhatsApp help and telephone assistance 24/7. We've checked their chat live. They are very prompt in their responses.
Pros and Pros and AvaTrade
√ A wide range of instruments are available that comprise Cryptocurrencies, Stocks, Commodities.
√ Multi-platform trading platform that includes the highly popular AvaTradeGO application.
√ AvaTrade is a member of EAs
√ They compete in terms of spreads and leverage
√ The client's funds are kept in separate accounts to provide more security.
√ AvaTrade has been licensed to operate for use in Europe, Australia, Japan, British Virgin Islands, UAE and South Africa.
√ Customer support is extremely prompt in responding.
- AvaTrade is not available in Belgium, Brazil, Democratic People's Republic of Korea (DPRK), New Zealand, Turkey, USA.
- Support via telephone is not available 24 hours a day and 7 days a week.
If you'd like to try AvaTrade, You can do so by clicking the following link:
The last CFD broker on our list is XTB. XTB is a great choice for Indian traders because it offers a wide range of assets to trade, including forex, stocks, indices, and commodities. XTB also has one of the lowest minimum deposit requirements of any CFD broker at just $100. Another great thing about XTB is that it offers a demo account so you can try out the platform before risking any real money.
XTB is regulated by different reputable regulatory authorities around the world.
United Kingdom: The Forex broker is regulated by the UK Financial Conduct Authority.
Dubai: XTB MENA Limited is licensed by DFSA (Dubai Financial Services Authority)
EU: XTB Limited is authorised and regulated by the Cyprus Securities and Exchange Commission.
Non EU/UK: XTB International Limited is authorised and regulated by the International Financial Services Commission in Belize.
South Africa: XTB Africa (Pty) Ltd is regulated by the Financial Sector Conduct Authority (FSCA).
Other than that, XTB as a group is also regulated by the authorities including the KNF, and CMB.
XTB Trading Platforms
Trading Platform: xStation (Web Based, Desktop, Android, iOS, Tablet).
There are a myriad of tools for analysis of technical data available on the platform. You can find 27 drawing tools as well as 37 technical indicators.
They offer 1849 CFDs on stocks, 138 ETFs, 23 commodities, 36 indices, 5 cryptocurrencies, and 57 forex pairs.
Cost of XTB
The average spreads on the EUR/USD stood at 0.91 pip and minimum deposit is $250. There are no fees for depositing through bank transfer, credit card and debit cards.
For Indian traders, they charge a 2% fee for Skrill and 1% for Neteller deposit.
XTB Limited doesn't charge any fees for withdrawal if the amount is above €60. Demo account is for a limited time. So if you want you can try multiple demo accounts to test their platform. For forex trading, they have no commission.
XTB Customer Support
Support for customers is available 24 hours a day and If you have any queries, you can reach them through the chat. The platform is brimming with tools for fundamental and technical analysis as well as educational resources.
If you are interested in this broker, you can create an account using the link that is in the below.
Pros and Cons of XTB
- XTB xStation platform suite offers excellent functionality, along with a broad selection of features and tools for trading.
- XTB offers low spreads
- XTB provides a wide selection of comprehensive educational videos as well as written content. It also offers more than 200 lessons through their Trading Academy.
- XTB U.K. recently launched Zero-dollar-commissions for CFDs in shares.
- MetaTrader 4 is not being promoted by the XTB's U.K, Poland, and Cyprus branches, though it is still available to request through the various locations around the world XTB offices.
- The custom investment basket tool was temporarily removed from the xStation 5 platform.
If you want to give it a try with XTB in India, use the link below:
So, there you have it! These are some of the best CFD brokers in India. Be sure to do your own research before choosing a broker and always practice risk management when trading.
What is CFD?
A CFD, or Contract for Difference, is an agreement between two parties to exchange the difference in the value of a financial product between the time the contract is opened and closed. CFDs are traded on margin, meaning that investors only need to put down a small deposit, called margin, to open a position. This makes CFDs an attractive proposition for many investors as they can get exposure to larger positions than would be possible if they were trading the underlying asset directly.
CFDs also offer leveraged opportunities, which means that investors can gain a larger return on their investment than if they had simply bought the asset outright. However, this leverage can also work against investors if the market moves against them and their losses exceed their margin.
CFD trading is not for everyone and it is important to understand the risks involved before deciding to trade. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
CFD trading is becoming increasingly popular, especially among day traders who are attracted to its fast pace and potential for quick profits. While CFD trading may be suitable for some investors, it is not without risks. Before deciding to trade CFDs, be sure to understand the risks involved and always seek independent financial advice if necessary.
In conclusion, the best CFD brokers in India are Libertex, XM, Vantage, XTB, and AvaTrade. These brokers are all well-regulated and offer a wide range of CFD instruments. They also all offer free demo accounts so you can try out their trading platforms before committing to a live account. So, if you are from India and looking for a CFD broker to invest your money with, then the five brokers we have mentioned above should be more than enough. We would love to know which of these brokers do you like the most? Do let us know in the comments section below. Thank you for reading!