What is Forex Trading in India? Legal or not?

Hi ram, can i plz contact u regarding the procedure of safe procedure of account opening to trade forex, can u specify ur email id. The reports issued by the banks on this evidences also said that only corporations are allowed to trade but the conditionality for the corporations is to use only free dollars from their reserves. Comments Rajendran, So, Individuals should not trade in forex in India?? Utilize an installment processor like paypal, neteller, moneybookers and so forth and utilize that as a center man to store and pull back to your bank and you ought to be fine. However it is illegal for Indian Retail traders to trade with those brokers. If you are doing forex trading in india then consult with your Fx Broker on this issue.

FOREX * The foreign exchange market is a global decentralized market for the trading of currencies. This includes all aspects of buying, selling and exchanging currencies at current or determined prices. * Because of the sovereignty issue when.

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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 This page may be out of date.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? Additional Reading on Forex Trading: 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? 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. The speculators are always to blame for inflation and the accompanying rise in prices. This history goes back thousands of years. In ancient times, whenever a kingdom had more debts than gold the King would recall all coins in the kingdom.

This is why many coins today have ridges around their edges. Even though almost all coins lack any metal content. When Oil prices were rising it was the speculators who caused the problem. When metals prices were rising it was the speculators who were responsible. Forex trading is illegal in about twenty countries. These countries all create the propaganda that a free market that determines the value of a currency is a thing to be feared and chastised because it hurts the citizenry.

In other words, the government is the greatest determiner of value in the universe and anyone who disagrees with that premise should be imprisoned, shamed and humiliated for having the gall to think for themselves. Its illegal because so far RBI restricted to trade in any kind of overseas margin trading segment. You can invest elsewere in the overseas segment except margin trading. The same kind of restriction is there in developed markets like United States, Canada too.

Related Questions Is it illegal for an Indian to trade forex on eToro? Is Forex trading legal in India? Can we trade in all currency? In addition, even with a win there is a certain limit, from which you can not pay tax.

Which broker do you prefer to choose after the above? Registered in offshore or accepted in the Association of forex dealers of Russia? Brokers under the regulation of the Russian Federation will be more controlled and more accountable for their customers. In particular, there is no blacklist of brokers. How to legally trade in the Forex market? In fact, the forex market is not banned in any country in the world ….

There are countries in which Bitcoin and other digital currencies are banned, but I still do not understand how you can prohibit something that can not be controlled ….

Exchange rates are formed solely at the expense of supply and demand. Here, and begins a lot of nuances in which you need to understand.

2. Forex trading gives sure shot returns without any efforts!

Is Forex trading legal in India and how to trade forex in India legally are the questions which have been the point of pressure for people dealing in foreign exchange. Forex Trading is legal in India if it is done through registered Indian forex brokers. We know that forex trading is illegal in india except for trading pairs listed on NSE FEMA prohibits trading in any overseas instrument where margin is invovled. Mar 11,  · The Reserve Bank of India and Securities Exchange Board of India regulate the forex trading in India. It is legal in India if the base currency is INR only, if the forex trade is taking place between two foreign currencies, it is illegal.