Is forex trading illegal in india?

[perryfx]

I think it is not only in India. There are some other countries like Bangladesh, Pakistan and Sri Lanka as well. But still traders are doing forex. These warnings are mainly against the scammers. I can only see the warnings by the central banks of the respective countries. Never heard about the legal action taken.

 

[rezaulbappy]

Definitely not.
Forex is global online trading center in the world where anyone from any country easily can make trade here and can make huge sum of profit with in a short time.It is legal in India and all country.i am from bangladesh and i can trade here.

 

[willforex]

Definitely not.
Forex is global online trading center in the world where anyone from any country easily can make trade here and can make huge sum of profit with in a short time.It is legal in India and all country.i am from bangladesh and i can trade here.

Do you have any proof that forex is legal in India ?

 

[Pharaoh]

It would be interesting to see absolute proof of just how legal or illegal Indian law makes forex trading.

 

[Rambo35]

I think it is not only in India. There are some other countries like Bangladesh, Pakistan and Sri Lanka as well. But still traders are doing forex. These warnings are mainly against the scammers. I can only see the warnings by the central banks of the respective countries. Never heard about the legal action taken.

I have come across a similar thread somewhere a few weeks ago. I don't think trading forex is illegal, but there were a few variables which were not allowed (can't remember what they were).

 

[brendyfx]

I have come across a similar thread somewhere a few weeks ago. I don't think trading forex is illegal, but there were a few variables which were not allowed (can't remember what they were).

Forex is not illegal. But declared as illegal by the most of the south Asian countries' central banks. That is due to so many scammers. If you Google you may find some Central bank announcement on the same

 

[itkraze]

you mean there are restriction on online forex trading ? I think this can be the reason and the concept about illegal developed. There must be real forex trader in India as well in real marketplace.

 

[FringFX]

you mean there are restriction on online forex trading ? I think this can be the reason and the concept about illegal developed. There must be real forex trader in India as well in real marketplace.

there are restrictions (and loopholes) but they vary from country to country.

 

[Whitesnake]

Forex trading is "PROHIBITED" in India, but there are certain loopholes like we are not allowed for depositing the money to convert INR to USD. But there are no restrictions to trade with the money which you earn from online sources like the bonus posting or posting money. Go ahead trade and lead a comfortable life.

 

[chancellor87]

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!!!

Hello Rajesh,


It is true, India uses foreign exchange regulation act to control forex reserve. Foreign Exchange Regulation Act - Wikipedia, the free encyclopedia. And it is not only India who has such restrictions, Egypt, Iceland, Argentina, Pakistan, Malaysia, Moroccom, etc Foreign exchange controls - Wikipedia, the free encyclopedia

It is not allowed to transfer the money through bank wire to broker account (some friends who are also Indian say that). Thus, some of indian trader prefer use third party payment (like LR, MB, etc). I don't know exactly how it works.

Why don't use State Bank of India to trade forex? Is it also prohibited?