RBI Rules For Forex Trading – Forex Trading In India Is Legal Or Not
Foreign exchange Trading In India Is Legal Or Not?
Sooner than you proceed studying this publish, get this free gifts from here. NRIs are not regulated by RBI, so they can start trading forex without any further delay.
Can Indians Trade In Forex And Forex Trading In India Is Legal Or Not??
StockManiacs.net strongly discourages Indian nationals to trade in forex, as in order to trade in Forex one has to convert currency first because there are no interesting pairs with rupees, but in India there is no free conversion of the national currency! Luckily, RBI has been softening foreign exchange rules in recent years and now every Indian is allowed to exchange rupees for up to 200,000 USD per year without giving any justification.
But RBI guidelines say that Indian citizens cannot use this 200,000 allowance for margin calls. So basically, you cannot transfer money for Forex trading, even though you can make transfers in general.
So what are the options? Semi-legal option is to specify other reason of transfer – instead of margin call, you call it “investment in futures” or whatever. Another, absolutely legal option is to ask a friend of yours who is either a NRI or a foreigner to transfer money for you, because they don’t have these limitations. There is also a “grey” option – to transfer money under LRS scheme or to use online currencies like e-gold. They are not regulated by any government, legally speaking – they don’t exist. So you can use them without breaking any laws, but your government is not going to help you in case of problems with broker – you simply won’t be able to prove that you had any money on account. You can read official RBI guidelines on their website.
Inspite of this RBI guidelines and knowing forex trading in India is legal or not, if you like to start forex trading in India then read on. WE RECOMMEND FXCENTRAL FOR ACCOUNT OPENING FOR FOREX TRADING IN INDIA (NRIs / POIs and Foreign Nationals). Download FxCentral account opening forms from here. Replenish all pages and signal on the underside proper nook of the entire pages and signal on coipes of all under talked about paperwork (required).
The paperwork required for opening a Trading Account in FXCentral are as Follows:
� Stuffed up account opening form
� ID proof – PAN Card
� Tackle Proof – Passport, Riding License, Phone Invoice, Voter’s ID
� Photograph – 1No
� Financial institution Important points – Cancelled Cheque and Financial institution Remark (Account No, Financial institution Identify, Department Deal with, Phone No, IFSC Code)
Scan the crammed up documents and paperwork and mail the scanned copies at [email protected]. No want to ship any onerous copies.
2017 Update: We are not associated with forex trading anymore.
As soon as your bills are opened, that you would be able to begin forex trading in India in demo money owed. As soon as you’re assured in demo debts that you could switch money to your standard account (we favor minimal $500 bills first of all). As soon as your debts are funded you could begin forex trading in India within the are living account and may begin making money. Remember that trading in forex is a unsafe industry, so don’t make investments a capital that you may no longer have the funds for to lose. For those who like this publish please share it with the social sharing icons under.
Indrajit is a professional blogger and Trading System developer, Amibroker expert, Wordpress expert, SEO expert and Stock market analyst. Trading since 2000, he has started the journey of StockManiacs.net on 2008. He follows Indian and world stock markets closely.