Hope this information is helpful to you and the questions raised here would be answered as well by other wise Indian forex traders who know what they are doing 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'. Related Questions Is Forex trading legal in India? You can trade in forex currency which is denominated in inr means which is paired with inr. It does not really matter where you live in the world you are always going to find a large range of Forex Brokers who are going to be able to offer you a range of currency pairings and other Forex related trading opportunities. Today we have a large number of websites or brokers abroad who claims to provide with the best trading services and highest leverage on deposited margin money. Top 7 Ways to Transfer Money to India.
Does Overseas Forex Trading From India – Legal or Illegal. Overseas Forex Trading From India is illegal for Indian.
1. Forex trading is the easiest way to make money!
Today, you can see large number of online website that claim forex trading with approved RBI registration. You should beware of such kind of websites. According to RBI circular no. It mean transfer money to a forex trading account with a broker who live abroad is violation of FEMA, Now, the question arises why it is illegal? As per the rbi guidelines indian citizen cannot send directly or indirectly fund to outside india for margin trading purpose.
In order to compensate the losses rbi will purchased more dollar from the market by selling inr in cheap rates. Thus, leads to devaluation of our inr. Rbi also noticed that there are many companies in india who advertised through electronic and internet portals offering trading or investing in foreign exchange with guaranteed high returns. There are also many agents in india who worked for these companies and collect payments from them so as to transfer their funds outside india through illegal route and also offer their clients lucrative returns.
Also exporters in india can do forex trading but for hedging purpose as their profits mainly depend on currency movement. You can trade in forex currency which is denominated in inr means which is paired with inr. Let us see the rules and regulation of derivative. The framework of doing trading in forex derivative is set by sebi and rbi. The legal guidelines is proved by Foreign Exchange Management Act. Below are the rules and legal route of trading forex derivative in india. Forex trading has high return in comparison of other investment instrument in the world.
That is why mostly people attract towards it. Beginner try to achieve maximum returns. They think that they will become rich overnight in dealing with forex trading. But when they suffer big loss, then they realiase investing in forex market is not easy task.
You have to keep many things into mind while trading In forex market. So keeping these problems of beginners investors of forex market, we have written this article that will give you top 10 tips for investing in Indian forex market. To chose a royal and honest broker is one of the difficult task. There are so many fake brokers available in the market. You should aware of it and check the licence.
It is the valid proof of a broker in the market who is authored to deal in forex market. List of countries Forex trading is restricted. 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. Often you'd see some of these countries painting the picture for the west as evil.
With many online brokers who misguide retail investors claiming forex trading performed legally through them. However, many India citizens believe that the main reason is to stop the currency outflow. I meanwhile, believe that RBI will ease in their limits in the coming period as India is going through the financial change. Amandeep Sonewane 11 September Amandeep Sonewane 12 September Amandeep Sonewane 10 September Amandeep Sonewane 13 September Price is what you pay — value is what you get!
Trading signals Technical analysis Fundamental analysis. Trading tools and indicators Forex webinars. Events Services Contact us. I've read that long and informative post on Forex trading legality issue in India Forex trading illegal in India!
I am not a newbie in currency trading but quite knowledgeable and experienced in price action and technical analysis. So I have only opened cent accounts with all of them! It would take years of consistent discipline and hardwork Only difference being in this case, not a NRI friend but an international online company's salary is being used as a deposit. Message me if you want to know how I earn good amount of dollars online.
Don't use Paypal folks. Indians cannot hold funds in PayPal. It automatically gets withdrawn to your connected bank account every 24 hours Many questions were answered in that thread but despite being comprehensive it gave rise to many unanswered questions too in the minds of Indian retail traders. I wish to highlight those questions in this new thread.
Hope the discussion on these questions will further clear up confusion in the minds of traders who still prefer Forex trading of currency pairs not coupled with RBI's son INR. RBI doesnt truly care for traders money I agree it's true inexperienced traders do tend to lose a lot of money in international market as well but trained and experienced ones make tons of money too.
If RBI truly cared for trader's lost money, instead of banning funding margin trading from India, it could've set a limit to the amount of INR one is allowed to invest in forex margin trading per month or per year. So, all you clever Indian traders, how will you trade forex besides this NRI funding route if you don't have any foreigners contact to assist you? A One idea is to fund the trading account with floating online earning from your other non forex business without spending money from your bank account in India.
But eventually you will need to withdraw profits earned from forex. How to handle that? I know most reputed brokers do support e funding. It's not safe to trade with such brokers as transactions will come under RBI's scanner easily.
Please mention trusted Indian brokers to trade with Hope this information is helpful to you and the questions raised here would be answered as well by other wise Indian forex traders who know what they are doing
2. Forex trading gives sure shot returns without any efforts!
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. As per RBI guideline, all Indian resident including banks and financial institutions can do forex trading in currency pairs. The main currency pairs are USDINR, EURINR, GBPINR and JPYINR. So, if you are trading with brokers who have membership in mention exchange it is absolutely legal. Dec 16, · If RBI truly cared for trader's lost money, instead of banning funding margin trading from India, it could've set a limit to the amount of INR one is allowed to invest in .