Forex offers a 24 hour platform for trading. Since the Forex market is large, worldwide, it is not subject to manipulation. Currency pairs trend fairly well, therefore forex remains an area where trend trading makes money.
For Indian traders, entering the forex market has its difficulties. Here are some ways to participate in this market:
1. The MCX and NSE, both offer futures contracts in Rupee against US Dollar, British pound, Euro and Yen. There are questions of liquidity, but this is an easy to use vehicle since traders probbaly have access to MCX and NSE. Apart from liquidity, there is the problem of limited choice of currency pairs, only 4 and all against the Rupee.
2. Opening an account with a foreign bank / currency trading house. The forex market does not have a forex exchange. large banks and ealers offer trading opportunities by giving buy and sell quotes that enables a trader to buy and then sell to the trading house. Opening an account with the foreign currency house requires remittance of foreign currency. I am not sure if RBI regulations permit payments for speculative transactions.
3. Trading with a Bank which has branches in India. Most corproates trade in Forex through some bank or the other having branches in India, but I do not think that indiidual traders are allowed access to these trading systems.
4. Trading with a representative of a foreign trading house by payment in Rupees. I have ben told that some people take payment in rupee and open an account for the trader with a foreign currency trading house. I think this has some legal difficulties, and, it is best to stay away.
My point is: trading in forex requires platforms that may not be accessible by Indian traders. If readers have more knowledge, please share will all of us