Currency Trading Account | Forex Trading | Motilal Oswal

Currency Trading Account

When you hear about forex trading for the very first time, it sounds like an exciting prospect. However amazing this financial opportunity may sound to you, it is a challenging way to make investments. Still, investors have found it to be extremely lucrative and you can find out how you can earn profits from it too. The possibility of engaging in trading with huge sums of currencies may spark your imagination, but you have to work hard at it. To be consistently profitable in the foreign exchange market, most investors remain cautious and do their homework while involved in trading. The first thing to do to trade in any assets, whether currencies, commodities, stocks, etc, is to open a trading account , in this case, open a forex trading account. To do this, you must first choose an appropriate broker, one that may guide you in learning the ropes of trading, help you in opening accounts required for trading, and have an easy online trading platform to conduct all this. You can instantly open accounts that facilitate storage of currencies in a Demat account and a corresponding trading account to conduct trades at Motilal Oswal.

No matter what you are trading in, whether you are indulging in currency derivatives trading or any other kind of currency trading, Motilal has you covered for your trading and investing requirements. The foremost thing to do, even before you think of trading, is to open a Demat account that acts as a storehouse of all the currencies you may buy in your trading experience. To open a Demat account and a currency trading account that is linked to it, you can easily visit Motilal Oswal online and have your accounts running in a short time.

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What is Forex Trading?

Forex Trading

Gaining all the advantages of trading in different global currencies is exciting as well as rewarding. It can serve to diversify a portfolio, and some traders trade in Forex or foreign exchange with a view to making the most of dynamic price fluctuations. At such times, fruitful short-term gains may be had through the foreign exchange market. Furthermore, with a versatile investment and trading app, such as the MO Investor or MO Trading app , you may make the most of volatile markets, getting updates so that you earn more profits at opportune times. Online investment and online trading has never been easier than in this digital age. Before you think of going bullish with currency trading, you should have an idea of what it actually entails.

The word ‘FOREX’ is a kind of portmanteau, a blend of the words ‘foreign currency’ and ‘exchange’. If you trade in Forex, you technically trade within the markets of currencies. The currency market precedes all other asset markets, and is the largest in the world today. It is so massive that the estimated daily volume of trading is something to the tune of USD 6 trillion. The currency markets are spread out globally, and are active for all 24 hours of the day. If currency intraday trades are on your mind, you can access this booming market wherever you are around the world, despite differences in time zones. Unlike the commodity or stock markets, Forex trading is all about trading in what are called ‘currency pairs’, in the market’s direction. In contrast to the purchase of stocks, in Forex, investors buy one currency and sell the other. Since there is no real ‘delivery’ of any currency you trade with (only profit if applicable), you may not need a Demat account. However, most brokerages like Motilal Oswal give you a free Demat account with any trading account, so it is good to have one. Back to Forex, most trades are settled through cash, so you must have a trading account linked to your bank account for direct online deposits.

The Basics of Currency Trading

In case you are pondering over whether Forex can add value to your financial portfolio, letting your overall investment have some benefit of price shifts in currency markets, you should be rest assured that Forex trading can yield good earnings if you are smart about it. Players in the foreign exchange market include a variety of banks, government entities, corporations, travellers, amateur and professional investors, and institutional investors. Here are some basics to get you going, in the event you wish to explore currency markets for currency derivatives or other Forex options:

Currency Trading
A Decentralised Marketplace:

The Forex market is decentralised, as it operates in an array of locations around the globe. There are Forex markets in London, Tokyo, New York, and Singapore. If you wish to participate on an international level, you would need an online trading account with a broker that has enough reach to hit such markets.

Rules and Regulations:

When trading in India, the markets are highly regulated, and under FEMA, there are restrictions in trading in currencies that are not INR. However, you may partake in currency derivatives trading via the exchanges of the NSE and BSE. It's best to go through rules before you start.

Trading in Pairs:

Currencies are traded in currency pairs. In Indian bourses, you are permitted to trade in currency derivatives. You may trade in futures in 4 currency pairs. Furthermore, futures and options in 3 cross-currency pairs, such as the GBP-USD, USD-JPY, and EUR-USD are offered for trading in exchanges in India.

Trading Account:

You will need a trading account and Motilal Oswal is the right place to open one. In order to start trading, you will have to make a margin deposit so that trading can start.

Trading Style:

It is recommended that investors trade in a single currency pair, rather than all the pairs available. While you develop a trading pattern as an investor, you will do well if you follow one or a couple of currencies, say the British Pound (GBP) or US Dollar (USD) to start off with.

The Benefits of Opening a Forex Account with Motilal Oswal

Motilal Oswal gives you a range of options to trade on the foreign exchange market. Moreover, the brokerage has a great user interface on its portal and online trading is facilitated smoothly. Here are more key benefits to consider if you sign up with Motilal Oswal:

  • Motilal Oswal has a user friendly portal, easy to navigate and search for what you require.
  • You can trade on the move with the Motilal Investor app downloaded on your smartphone, making the most of currency fluctuations and currency trading on the move, and at any time of the day or night.
  • Your brokerage fees are cut down with a large scale broker like Motilal Oswal. You get optimal security while trading in currency markets and transparency in transactions.
  • Motilal Oswal has a reputation that precedes itself with more than 22,00,000 satisfied customers who will validate the brokerage’s services and benefits.
  • At Motilal Oswal, you get dedicated advisory professionals to help you make all the right moves in your currency intraday trades or currency derivatives trading.
  • Offering you quick and easy processes to open Demat-cum-trading accounts, you can seamlessly undertake tasks fast to open forex trading accounts.

The Advantages of Currency and Forex Trading

You can benefit from Forex trading in more ways than one, especially through an account with Motilal Oswal. The broker with an experience of more than a decade can show you all the ropes of currency trading conveniently online through videos and blogs. Once you know the benefits of online trading in the Forex market, you will be compelled to go along with Motilal Oswal as your preferred broker. Here are the key benefits you get with Forex trading:

  • Commissions are kept low, and trading in Forex gives you lower rates than trading in other asset classes.
  • No middlemen are involved.
  • There is complete fairness as you are only allowed to trade with a standard lot size.
  • With a high degree of leverage and low margins involved, Forex trading lets you have more opportunities to make gains.
  • The markets are open 24 hours per day, letting you leverage buy and sell orders as good opportunities arise.
  • Transaction costs are kept low, minimally at 0.07%.
  • Trading in the foreign exchange market offers investors a huge degree of liquidity.
  • Forex markets are self-regulatory entities that make available transparency in transactions and trading activity.
  • Transactions are done instantly, so the whole activity of trading is quick.
  • No insider trading is involved, so this is a fair market to trade in.

Get Your Trading Act Together

If you wish to diversify your portfolio, then your best bet is to open a Demat account with Motilal Oswal. Why a Demat account? Motilal Oswal lets you open a free Demat account and this is tied to a trading account. Once your trading account is active, you can take advantage of Motilal Oswal’s expertise. With planned exit and entry strategies, Motilal Oswal helps you to strategize your moves, as in the currency markets, no trade can ever guarantee a sure shot.