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Is forex trading illegal in india?

Discussion in 'General Forex Talk' started by rajesh bhujbal, Jul 29, 2012.

  1. rajesh bhujbal

    rajesh bhujbal Recruit

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    HI FRIENDS,

    I AM FROM INDIA. I JUST STARTED TRADING IN FOREX. I HEARD THAT FOREX TRADING IS NOT LEGAL IN INDIA. I ALSO KNOW THAT , RESERVE BANK OF INDIA (RBI) warns against illegal forex trading on internet. (PLEASE VISIT -http://www.indianexpress.com/news/rbi-warns-against-illegal-forex-trading-on-internet/774148/).

    BUT STILL , THERE ARE SO MANY PEOPLE TRADING IN FOREX FROM INDIA. I AM REALLY WORRIED. I DONT UNDERSTAND THE RULES OF RBI.

    SO I ASKED ABOUT THIS ISSUE TO MANY BROKERS , LIKE ETORO, FXCM, TRADING POINT, NORD FX.ETC. BUT EVERYBODY SAID THAT ITS OK TO TRADE IN FOREX WITH THEM. THEN WHAT ABOUT THE RULES OF RBI?

    I AM REALLY CONFUSED AND WORRIED. CAN ANYBODY HELP ME WITH THIS? I WOULD REALLY APPRECIATE YOUR HELP. THANK YOU!!!
     
  2. Pharaoh

    Pharaoh Colonel

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    Interesting article. The second half seems to indicate that forex trading, other than on India's regulated exchanges, is illegal, but the first half's warning is more directed towards "guaranteed return" investments claiming to be forex. That sounds a lot more like HYIP investments than true forex.

    Read this for further info on how those scams work:

    http://www.forexpeacearmy.com/forex...959-ponzi-schemes-hyips-free-money-traps.html
     
  3. ladytrader

    ladytrader Private, 1st Class

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    curious... didn't know about that, despite having made some business in india. Have you come to a conclusion Rajesh?
     
  4. rajesh bhujbal

    rajesh bhujbal Recruit

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    hi, actually the rules of Reserve Bank of India do not give any specific idea. but according to the FEMA , for indian resident, the remittance outside india for forex trading is prohibited . (so besically we should not convert INR in to USD, in order to deposit our trading account.) but still i have not seen anyone having any problem in depositing and withdrawing money(mostly by credit card or third party payment system.)

    so if anybody can give me more information, I WOULD REALLY APPRECIATE YOUR HELP. THANK YOU!!!
     
  5. Pharaoh

    Pharaoh Colonel

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    Let me give my best interpretation.

    The warning is really about HYIP scams masquerading as forex.

    It sounds like forex may be technically illegal in India, but the government doesn't seem to be making any moves towards doing anything about it.
     
  6. rajesh bhujbal

    rajesh bhujbal Recruit

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    i agree with you !!!
     
  7. antonisk

    antonisk Private, 1st Class

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    It may be the same situation with US traders. In this case the NFA is enforcing the regulations set by the government thus brokerages not registered with the NFA cannot accept US customers/traders.
     
  8. VivaForex

    VivaForex Recruit

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    I at least know many many Indians that trade in Forex and the ones I know well are not the types that would take part in illegal activity.
     
  9. weltrade

    weltrade Recruit

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    Hi, I have seen a lot of Indians asking about legitimacy of Forex in India, From the Best of my knowledge, All i can say is You can Trade Forex within India, But there are few rules. Few Forex Brokers 'Guarantee' High Returns, which is not possible as Genuine Brokers clearly say that Forex Trading is high risk business and profits can't be guaranteed, Still Few people like using High Leverages for trading, I believe High Leveraged trading is not allowed in India. This rule is for HYIP's, but you can do normal Forex Trading with some registered Broker.
    If This is really a problem for Indians. I am partner of Weltrade India and We are offering Forex Services in India, We are registered broker.
     
  10. RForex

    RForex Recruit

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    okay thats sound good . But how do we verify that Weltrade is a registered broker in India?

    okay thats sound good . But how do we verify that Weltrade is a registered broker in India?
     

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