CFD Trading Guide for India Traders

If you're shopping around for a CFD broker and keep hearing the name Fusion Markets, you'll want the full picture before you commit. This guide breaks down what trading CFDs with Fusion Markets actually looks like for someone based in India, from the raw spreads to the regulatory realities you need to weigh up.

Fusion Markets positions itself as a low-cost, raw-spread broker. The core question for any trader, especially one in a market with India's specific rules, is whether the value proposition holds up when you factor in everything else. Let's get into what matters.

What Fusion Markets Offers Indian Traders

The first thing you'll notice is the cost structure. Fusion Markets runs two main account types. You either pay commission on top of raw spreads, or you pay a slightly higher all-in spread with no commission. For high-volume traders, the Zero account often works out cheaper.

There is no minimum deposit to get started. You'll have access to MetaTrader 4, MetaTrader 5, cTrader, and TradingView integration across desktop, web, and mobile. The instrument list includes over 250 assets: 90+ forex pairs, metals, commodities, indices, share CFDs, and crypto CFDs.

Leverage is aggressive-up to 1:500 on FX majors and metals, 1:100 on indices and energies, and 1:20 on crypto CFDs. That's not capped by any Indian regulator, which carries real risks. More on that below.

How Indian Clients Are Onboarded

This is where you need to pay close attention. Fusion Markets does accept Indian retail clients, but not through an Indian-regulated entity. Your account will be served under offshore arms.

Fusion Markets holds no SEBI registration in India. The specific protections and oversight you might expect from a local or top-tier regulator (like FCA or ASIC) do not apply to your account. You're dealing with an offshore entity.

The Legal Landscape for CFD Trading in India

Retail FX and CFD trading is tightly restricted for Indian residents. Under RBI/FEMA rules, residents are permitted to trade only INR-based currency pairs (USD/INR, EUR/INR, GBP/INR, JPY/INR) plus certain cross-currency derivatives on SEBI-recognised exchanges like NSE, BSE, or MSE.

Trading spot forex or CFDs with offshore brokers is not permitted under RBI/FEMA rules. Remitting funds abroad for margin forex trading is not a permitted purpose under the Liberalised Remittance Scheme (LRS). The RBI Master Direction on Electronic Trading Platforms prohibits operating a forex ETP in India without RBI authorisation.

RBI Alert List

The RBI publishes an 'Alert List' of unauthorised forex trading platforms. In the 19 November 2025 update, the list totals 95 entities. Fusion Markets was added in that update. Being on this list means the RBI does not authorise the platform for soliciting Indian residents. The RBI states the list is not exhaustive.

If you choose to trade with Fusion Markets, you are operating outside the permitted framework for Indian residents under RBI/FEMA rules. You are responsible for understanding the legal implications of this choice.

Account Base Currency: A Hidden Cost

Fusion Markets does not offer INR-denominated accounts. Your account will be in USD, AUD, EUR, GBP, JPY, CHF, CAD, NZD, SGD, or HKD.

Every deposit and withdrawal involves a currency conversion from INR. The broker charges $0 for card deposits, but you'll absorb the spread on the INR-USD conversion. This is a recurring cost that eats into your bottom line. International bank wires may also incur fees of roughly USD 20-30.

Deposits, Withdrawals, and Funding Costs

At the time of review, there is no verified UPI or local INR transfer option.

The practical takeaway is that you'll pay a conversion cost on every INR-USD-INR round trip. This is a factor to include in your cost calculations, especially if you're making frequent, small withdrawals.

Leverage and Risk in the Indian Context

Fusion Markets offers up to 1:500 leverage on major FX pairs. Exchange-traded INR currency derivatives on Indian exchanges typically require a margin of around 3-5%, which translates to roughly 20-30x leverage.

High leverage amplifies both gains and losses. A 0.2% adverse move at 1:500 will wipe out your entire margin on that position. If you're not disciplined about position sizing, this kind of leverage can destroy an account quickly.

Tax Implications for Indian Residents

Profits from trading are taxable in India, and classification matters. Exchange-traded currency futures and options profits are generally treated as non-speculative business income, taxed at your slab rate. Intraday speculative positions are classified as speculative business income-losses can only be set off against speculative income with a carry-forward of 4 years. Non-speculative losses carry forward for 8 years.

A 20% TCS (Tax Collected at Source) applies on LRS foreign remittances above Rs 10 lakh per financial year. This threshold was raised from Rs 7 lakh, effective 1 April 2025. TCS is an advance tax credit, not an additional cost, but it ties up cash until you file your returns. Residents must also declare worldwide income and foreign assets in Schedule FA.

Crypto CFDs are taxed at a flat 30% plus 4% cess, and losses cannot be set off against other income.

Islamic Accounts

Fusion Markets offers a swap-free, Shariah-compliant account option available on request. This is relevant for Indian Muslim clients.

Fusion Markets: The Verdict for Indian Traders

After running through the costs, platforms, and the regulatory picture, here's the honest assessment.

Right for you if

You're an experienced trader who understands the legal framework and accepts the risk of trading with an offshore entity. You value low costs and tight spreads, and you're comfortable with the lack of local regulatory oversight. You're disciplined about risk and won't be tempted to over-leverage with the 1:500 available. The absence of an INR account and the associated conversion costs are an acceptable trade-off for you.

Not for you if

You're a new trader who values regulatory protection and the security of a local or top-tier regulated broker. You'd prefer to stick strictly within the permitted framework of exchange-traded derivatives on an Indian exchange, and you're not comfortable navigating the LRS and TCS complexities involved in offshore transfers. You want a broker with a more robust regulatory wrapper like FCA or ASIC, and you'd rather not deal with the ambiguity of the RBI Alert List.