FXTM
FXTM offers a lot size calculator for its global clients, but the broker does not accept Indian residents, so the tool is not available for compliant use from India. The only legal way to trade currency derivatives for Indian residents is through SEBI-recognised exchanges like NSE, BSE, or MSE, where position sizing works differently.
A lot size calculator is a practical tool that tells you how much margin you need and what your pip value will be before you enter a trade. Most global brokers, including FXTM, provide these free on their websites. But when a broker is off-limits in your country, the tool becomes theoretical rather than actionable.
This page breaks down how FXTM's calculator works globally, why it cannot be used legally by Indian residents, and how you can replicate the same position-sizing math on compliant exchange-traded currency derivatives.
How the Tool Works
FXTM's lot size calculator takes three inputs: your account base currency, the currency pair you plan to trade, and your trade size in lots. It then returns the pip value and margin required. For a standard account, the industry standard is that one standard lot equals 100,000 units of the base currency. A mini lot is 10,000, and a micro lot is 1,000.
The math is straightforward. If you trade one standard lot of XAU/USD and the price moves 1 pip (0.0001), your profit or loss is roughly USD 10. Most brokers use this same calculation, so FXTM's calculator is not unique. What differs between brokers is the spread, commission, and leverage applied to that position.
For FXTM specifically, the ECN account offers raw spreads from 0.0 pips plus a commission, while the Standard account charges about 1.6 pips on XAU/USD with no commission. These are figures offered to eligible markets; they do not apply to India.
Why India Is Excluded
FXTM does not accept Indian residents. The broker lists India as a non-served country, meaning you cannot open an account, deposit funds, or use any of its trading tools, including the lot size calculator. There is no SEBI registration for FXTM, and it is not an authorised Indian broker.
This exclusion reflects RBI and FEMA rules. Indian residents are not permitted to trade spot forex or CFDs with offshore brokers. Remitting money abroad for margin forex trading is not a permitted purpose under the Liberalised Remittance Scheme (LRS). The regulatory framework restricts residents to INR-based currency pairs (USD/INR, EUR/INR, GBP/INR, JPY/INR) and permitted cross-currency derivatives on SEBI-recognised exchanges (NSE, BSE, MSE).
The lot size calculator on FXTM's website is therefore useful only for traders in other jurisdictions. For Indian residents, the same position-sizing logic applies to the compliant market you can legally access.
Position Sizing on Exchanges
On SEBI-recognised exchanges, currency derivatives are margin-based, not leverage-based in the offshore sense. The margin requirement is set by SEBI and the exchanges using SPAN and exposure margins, typically around 3–5% of the notional value. This translates to effective leverage of roughly 20–30 times, far below the 100x to 1000x that offshore brokers advertise illegally to Indian residents.
Here is how lot sizes work on Indian exchanges compared to the global standard:
| Parameter | FXTM (Global) | NSE/BSE Currency Derivatives |
|---|---|---|
| Standard lot | 100,000 units | USD/INR: 1,000 units |
| Mini lot | 10,000 units | EUR/INR: 1,000 units |
| Micro lot | 1,000 units | JPY/INR: 100,000 units |
| Margin basis | Broker-defined leverage | SEBI SPAN + exposure margins |
| Effective leverage | Up to 1:1000 | Roughly 1:20 to 1:30 |
| Settlement currency | USD or account base | INR |
The lot sizes are smaller on Indian exchanges, which suits retail traders with modest capital. One standard lot of USD/INR on NSE is 1,000 units, not 100,000. This is a deliberate design choice by SEBI to keep retail participation accessible while limiting systemic risk.
To calculate your margin on an exchange-traded position, multiply the contract value by the margin percentage. For a USD/INR lot of 1,000 units at INR 85 per dollar, the notional value is INR 85,000. At a 4% margin, you need about INR 3,400. This is a transparent, regulated calculation, and you can verify current margins in SEBI circulars.
| Trade Size | Notional Value (USD/INR at 85) | Margin at 4% |
|---|---|---|
| 1 lot (1,000 units) | INR 85,000 | INR 3,400 |
| 2 lots (2,000 units) | INR 170,000 | INR 6,800 |
| 5 lots (5,000 units) | INR 425,000 | INR 17,000 |
Tax Treatment on Currency Trades
Exchange-traded currency futures and options profits are generally treated as non-speculative business income and taxed at your income tax slab rate. Intraday speculative positions are treated as speculative business income, with losses that can only be set off against speculative income and carried forward for four years. Non-speculative losses can be carried forward for eight years.
This tax clarity is a significant advantage of using regulated exchange platforms. For tax filing, you must declare all income and foreign assets in Schedule FA of your return. The Income Tax Department and CBDT are the relevant authorities (incometax.gov.in). Consult a chartered accountant for advice on your specific situation.
Regulatory Warnings and RBI Alert List
The RBI publishes an alert list of unauthorised forex trading platforms. As of 19 November 2025, the list totals 95 entities; RBI states it is not exhaustive. Being on this list means the platform is not authorised to operate in India, and trading through it falls outside the legal framework.
For a trader, practical risks of using an offshore broker from India include blocked withdrawals, no regulatory recourse through SEBI or RBI, and issues with income tax declarations. The RBI and SEBI websites provide verification tools. Verify any broker's status before depositing money at https://www.rbi.org.in and https://www.sebi.gov.in.
The compliant alternative is SEBI-recognised exchanges, where currency derivatives offer transparent margins, INR settlement, and regulatory oversight. Leverage is lower, but the structure is sound and the legal position is clean.
International Brokers and Global Standards
If you are evaluating international brokers for use in jurisdictions where they operate, focus on regulatory strength: oversight by FCA, CySEC, or ASIC; client fund segregation; transparent fee structures; and a lengthy track record.
FXTM, founded in 2011 in Cyprus and part of the Exinity group, serves over 2 million clients across 150 countries, excluding India. For eligible markets, the broker offers MT4 and MT5 platforms, over 1,000 CFDs across forex, indices, commodities, and stocks, plus Islamic swap-free accounts.
For Indian residents, however, international broker criteria are irrelevant because no offshore broker can legally serve you. Your choice is limited to SEBI-registered stockbrokers offering currency derivatives on recognised exchanges.
