Currency trading in India In the realm of currency trading in India, we can trade only those currencies that are benchmarked against INR. Also, we can 't trade in foreign currency from India. So, RBI allows investors to trade in the following INR currency pairs: USDINR; EURINR; GBPINR; JPYINR; It 's legal to trade with Indian brokers who trade on exchanges like NSE, BSE, MCX-SX, because they provide access to currency derivatives. Foreign Exchange: Basics Foreign Exchange, Forex (FX) as it is called is trading of a single currency for another at a certain price and bank deposits on the over-the-counter (OTC) market place. It simply means buying one currency and selling the other. The values appreciate and depreciate as a result of various economic and geo-political factors. The currency trading in India is highly regulated by RBI and SEBI as trading of currency impacts the entire economy of a country. It is because when an Indian trader loses money in currency trading, the country is losing its money to outside players.