Forex I agree where margin is involved. However you can invest in stock markets but you cannot trade. If I open an account with them, will they trade on behalf of me in the global forex market, so that I can benefit. However it is illegal for Indian Retail traders to trade with those brokers. Awaiting for a good response from the expert.
Mar 11, · Forex trading is not completely illegal in India, but it is restricted to certain currencies, which are paired against the INR as well as some of the 'cross currencies'. In India, you can trade within the brackets of USD-INR, YEN- INR, GBP- INR and EUR-INR pairs.
Still Many Indian Trading in Overseas forex trading through electronic / internet trading portals.
Hi Thanx man, many times I approached to private banks but all forex department informed it its not permissible Vijay, I think you have approached a wrong official in RBI. Go to Reliance Money office near your home and open an account with them. They will do everything legally including taking you to your bank and complete the A-2 form and wire transfer legally permissible investment.
Once you get Reliance Money User ID and password , You can download their forex trading platform and everything is ready. BINGO - you can start trading forex trading. Kindly do not stay in the dark side of information.
Vivek04 New Member Oct 16, Ok but why I mean there is nothing harmful it is like other business as well. Hi Vijay, Forex Trading is not illegal or a punishable offence. Even on the NSE homepage you can find information on the currency markets. Would you need to go anywhere else to know that trading is allowed in currency?
You must log in or register to reply here. Victory Dec 13, Replies: Anyone found to be violating the rules and instructions, shall be penalized under FEMA The person shall also be penalized for violation of KYC policy and money laundering standards. All these transactions are declared to be non permissible under FEMA including foreign currency, remittances marginal trading or exchanges are also punishable. For daily legal news , legal topics , and blogs , visit MyAdvo website or download MyAdvo App on your phone.
Many Corporate houses do FX trading in the name of hedge. To put things into perspective Margin trading is not allowed so if you are doing it without margin, i. Now as with every other law this is bendable too. Transfer your money through paypal, moneybooker or netteller. I believe you will be fine. Well Fx trading is not a criminal offense and nobody is bothered if you are not trading in millions. And if you are get yourself a license by forming a Pvt.
Disclaimer- Fx trading is erratic and takes years to perfect. Things which could go up can go down too in case market go against you. There are 4 such pairs available to trade. Trading in forex market through online broker is a Non-Bailable Offence in India. There is no restriction on the frequency of exchange in a financial year.
As you all know FX trading is grey field area for trading from India. Thousands if not Lacs of traders however trade in Forex from India. This is because sending money outside India for FX trading is not allowed but no one can stop you if you are not sending money outside India from your Bank account. One can successfully trade Forex from India without any issues. Benefits of this method: Out of the above brokers I would personally trade with TradersWay because they have the lowest spreads and commissions and provide ECN platform.
Also because they support Auto Copy service from meta traders which is the cheapest Signal provider. Fxopen is also not bad but its difficult to get past their verification. Why must one trade FX? This page may be out of date. Save your draft before refreshing this page.
Submit any pending changes before refreshing this page. Ask New Question Sign In. Why is forex trading illegal in India? There are many online brokers who misguide retail investors claiming forex spot trading can be performed legally via them, however it is not true. It is generally to prevent retail investors from losing big time this is what RBI claims!
But in my opinion it is just to prevent currency outflow this is my personal opinion. Certain points worth considering regarding forex are: Forex market is very volatile and without proper study, forex trading can be suicidal.
Online forex brokers provide very high leverage, which can wash out your account very soon if you do not have proper technical expertise. Such trades do not happen on a central exchange, they happen Over the counter OTC and so are not very well regulated. So if at all you plan to trade forex, you should perform your Due Diligence and select a highly trustworthy broker to protect your hard earned money.
Thank you for your feedback! How can I legally start forex trading in India? How is forex trading in India? Is it illegal in India? It is illegal in India. Are there better brokers in India for Forex? Additional Reading on Forex Trading:
Why RBI not allowed Overseas forex trading?
In India, Foreign Exchange or Forex trading (Overseas Trading) is not allowed. If someone is found trading Forex on the stock market by the Reserve Bank of India’s representatives, he/she is immediately charged of violation of law. India is not the only country to restrict Forex trading. Indeed, Forex trading is restricted in about twenty countries globally. These countries promote propaganda to push their citizens away of Forex trading (online or offline). The Reserve Bank of India cautions the public not to remit or deposit money for such unauthorized transactions. The advice has become necessary in the wake of many residents falling prey to such tempting offers & losing money heavily in the recent past. Still Many Indian Trading in Overseas forex trading through electronic / internet trading portals.