Why forex trading is banned in india

Why forex trading is banned in india

Forex trading with out of India players, if made legal will become the third demon to plague of already weak currency. That is why RBI allows Forex trading in INR based pairs, which is in turn 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. Forex trading is a global business and you can easily do this from any part of the world including India 27/07/ · Yes, Forex trading is legal in India. In fact, Forex has become a daily routine of many Indian lives. Securities and Exchange Board of India (SEBI) is the body responsible for the Forex trading industry. SEBI regulates all the forex brokers in India regardless of whether they are onshore or offshore brokerage firms

Is Forex Trading Illegal in India? Legal or Illegal?

We are getting many requests from our followers from India asking if Forex trading is allowed in India? So, I wanted to take this opportunity to share my findings with our followers since I am from India too. So, Forex trading in India is allowed as long as you trade with registered local brokers with the state acknowledged trading pairs.

However, international retail Forex Trading in India is illegal. But which is the best forex trading platform in India? I am not a legal expert, hence my answers in this short commentary do not constitute as legal advice.

Neither of these findings serves as an academic reference. My sole purpose with this research is to understand whether Forex trading is illegal in India. Thus, this short research is based on a number of short talks with local experts, why forex trading is banned in india.

Additionally, I have read multiple rulings, the government regulation on ETF trading and Futures trading to find out whether or not Forex Trading is legal in India. Yes, Forex trading is legal in India. In fact, Forex has become a daily routine of many Indian lives. Securities and Exchange Board of India SEBI is the body responsible for the Forex trading industry. SEBI regulates all the forex brokers in India regardless of whether they are onshore or offshore brokerage firms.

Thus Forex trading is legal in India and you can feel safe with SEBI regulated Forex brokers. Why forex trading is banned in india can trade Forex in India with Indian Exchanges NSE, BSE, MCX-SX which offers Forex Instruments. However, Indian Exchanges currently offer USDINR, GBPINR, JPYINR and EURINR pairs for trading purposes.

Many international Forex brokers in India allow currency trading in India. Additionally, some of these brokers even try to have training academies in big Indian cities.

However, if you are an Indian resident and wish to trade Forex, why forex trading is banned in india, you cannot trade all the trading instruments by law. It is true that currency trading in India is decentralized. Theoretically, you can freely buy one currency and sell another one to take advantage of the price movements. However, there are countries seeing this decentralized market as a sovereignty threat.

Thus, due to sovereignty issues the Indian government has limited Forex trading in India. Foreign exchange rules in India used to be even tougher in India a few years back. Now, RBI has slightly eased Forex trading rules. Since India is a net service exporting country, the country needs to ease Forex rules even further. But it is unlikely that we will have completely open financial markets anytime soon.

So, the government has not forbidden Indians to trade Forex. They have limited trading for Indian residents to only trade currency pairs bench-marked against INR Indian Rupee, why forex trading is banned in india. As a an Indian resident, as long as you are trading through an Indian Brokerage, which allows access to Indian Exchanges such as the NSE, BSE, MCX-SX and providing access to currency derivatives is entirely legal.

The following is the list of Indian INR Forex pairs:. But, the Reserve Bank of India on the 10th of December allowed exchanges to offer cross-currency futures contracts and exchange-traded currency options in three more currency pairs. The RBI allowed exchanges to offer cross-currency futures contracts. The exchange-traded currency options in the pairs of EUR-USD, GBP-USD, and USD-JPY with immediate effect.

This results in an increase in the current account deficit lack of foreign currency reserve. Essentially speaking, RBI is artificially claiming to keep Indian Forex Reserves as their main priority. Assuming that you want to trade EURUSD, USDJPY or EURJPY or other possible combinations, but your local exchange does not offer such an instrument.

In this case, you may trade USDINR and EURINR that the INR gets eliminated and technically end up trading USD vs EUR. There is however a big disadvantage of trading Forex via crosses this way and it is the increase in transaction costs and there is often lack of liquidity. Meanwhile, you should note that CFD platforms are not legal in India. Thus from a broader perspective trading on leverage is not allowed in India. You as a trader should know your limits and act accordingly.

So far, the government has not really cracked down on retail traders however there have been major crackdowns on a number of brokers illegally operating in India. There has been regulated and unregulated brokers trying to establish their branches in India under different names, from education academies to training schools or consulting agencies. These entities often get away with their activities from a few months to a few years until someone gets to report them to the local authorities.

Such as the xDirect Indian office raid earlier in OctaFX, which why forex trading is banned in india founded inis the best Forex broker in India as they cater to the various requirements of a wide range of Indian FX traders of varying skill levels.

OctaFX has built an excellent reputation in Forex trading in India, thanks to its unique offer of services that makes them the best Forex trading platform in India:.

OctaFX India supports the Bali Sports Foundation by caring for disabled athletes in Bali and East Indonesia, OctaFX was the proud sponsor of Southampton FC, one of the most outstanding English League teams in England. This broker, as revealed in our OctaFX review India, has reached out to most traders by offering two of the most popular platforms in the forex market: MT4 and cTrader are the two main OctaFX platforms.

And while MT4 is the more popular among the two trading programs, cTrader offers advanced trading features that are suitable for a specific group of retail and institutional traders. CTrader platforms are more suited to the ECN platform, which drastically reduces OctaFX spreads to 0 pips with a low commission per trade. Although it is headquartered in Saint Vincent and the Grenadines, OctaFX is legal in India.

Today, OctaFX is reliable and is leading the foreign exchange market in India as it has obtained an FSA brokerage license as well as an FCA license. Apart from dominating the currency trading in India, this broker accepts clients in over different countries. US traders, however, are prohibited from opening an account with a broker in accordance with current CFTC and NFA regulations. Are you curious about the Forex market opening time in India? It is important to note that the global Forex markets are open 24 hours a day.

Moreover, there is an overlapping of the Forex trading market, within 2 major time zones:. However, that does not mean that participants in the foreign exchange market in India must trade constantly, why forex trading is banned in india.

I believe it is essential for every Indian Forex trader to understand the Forex trading time in India. Moreover, it is necessary to learn how to make the best use of the Forex market time in India. Even though currency market time in India is 24 hours a day, the levels of trading activity can differ drastically. India why forex trading is banned in india not the only country to restrict Forex trading. Indeed, Forex trading is restricted in twenty countries globally.

These countries promote propaganda to push their citizens away from Forex trading online or offline. For India, trading on other pairs rather than defined by RBI is illegal under the FEMA Act. Trading forex in India through an online broker is a non-bailable offense in India. With many online brokers who misguide retail investors claiming forex trading performed legally through them.

However, many Indian citizens believe that the main reason is to stop currency outflow. Meanwhile, I why forex trading is banned in india that RBI will ease in its limits in the coming period as India is going through a financial change.

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Forex trading legal or illegal In India ? आप इंडिया में रहके फोरेक्स ट्रेडिंग कर सकते है ?

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Is Forex trading illegal in India? Can Indians trade Forex Legally? | Updated

27/07/ · Yes, Forex trading is legal in India. In fact, Forex has become a daily routine of many Indian lives. Securities and Exchange Board of India (SEBI) is the body responsible for the Forex trading industry. SEBI regulates all the forex brokers in India regardless of whether they are onshore or offshore brokerage firms 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. Forex trading is a global business and you can easily do this from any part of the world including India Forex trading in India is legal if the base currency is INR. A Forex trade that happens between two foreign currencies is considered illegal in India and Indian citizens are not allowed to trade foreign currencies overseas both directly and indirectly. In order to start Forex trading in India, an individual has to open a Forex trading account with a SEBI registered Forex broker in India