Forex Trading is Legal or illegal in India?

This is a very confusing and debate full topic that forex trading is legal or illegal in India? Most of people have many confusion about it. In Today’s article I am going to discuss with you about the legality of forex trading in india. I will try to describe this topic in a very simple way.

If you want to start forex trading, you have two options. Start trading with an Indian regulated broker or start with an International broker.

Start Currency Trading with Indian Brokers

In India, anyone can start forex trading legally with SEBI (The Securities and Exchange Board of India) registered forex brokers. Upstox, zerodha and many other brokers provide forex or currency trading in their platform. But, you can only trade in 4 pairs. (USDINR, GBPINR, EURINR, JPYINR) Although 5 Paisa and Sharekhan provide you some cross currency pairs like EURUSD, GBPUSD etc. Starting forex trading with this brokers will be 100% legal. But, this brokers have many boundation and restrictions. Because SEBI and RBI always monitoring this brokers activities.

Start Forex Trading with International Brokers

You have another option to trade in forex by using International brokers. Like octafx, FBS, fxtm, EXNESS, cabana Capitals and many others brokers. None of this registered or authorised by sebi or Rbi. Some brokers are approve by FCA ( Financial conduct authority) UK or Cyprus securities and exchange commission or any others International Authorization. So the main confusion is if any Indians use this brokers for forex trading, then it will be legal or illegal? If any broker doing fraud with you what you can do? So, let’s explain you in a simple way.

You can also Read :- How to start forex trading in India?

About FEMA Act 1999

At first you need to learn Foreign exchange and management act (FEMA) 1999. FEMA act was passed in Indian parliament in 1999, to regulate inflow and outflow of foreign currency. This act had almost 49 sections. According to FEMA act, if you are an Indian citizens, you have no permission to send money out of India for any margin trading, leverage trading, casino gaming etc. If someone breake this act’s rules then it will be a crime and the crime will kept in civil offence category.

So, if someone using International Broker, then is she or he doing crime or illegal activities?

In this case, most important things is which types of payment method you are using to deposit in this types of International forex broker. If, you are using Local Bank deposit method then, it’s not any types of illegal activities. Because, in this case, money will not go out of India. So, as per my point of view, if you are depositing money to a forex broker by using a local bank transfer payment method, it will not break FEMA act rules. So no need to worry about it. Many International brokers have local bank deposit option. You can use octafx or EXNESS broker to deposit money through local bank account.

watch this video for full details

Disclaimer :- There are very high risk in all types of margin trading platform. So, think before invest real money. This video is only for informative purposes.

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