Forex Trading In India
Forex trading may be defined as a profitable marketplace where there are a number of traders who earn money by exchanging currencies. This field has a wide scope of profits with less chances of risk as compared to Futures or stock exchange market. However, there is a major issue regarding Forex trading in India. People are in a dilemma regarding the legality of currency exchange in India.
According to the guidelines and regulations set by RBI regarding currency trading – “The Reserve Bank of India has clarified that remittance in any form towards overseas foreign exchange trading through electronic/internet trading portals is not permitted under the Foreign Exchange Management Act (FEMA), 1999. The Reserve Bank has also clarified that the existing regulations under FEMA, 1999 do not permit residents to trade in foreign exchange in domestic / overseas markets. Residents are, however, permitted to trade in currency futures and options contracts, traded on the stock exchanges recognized by the Securities and Exchange Board of India (SEBI) in India, subject to the conditions specified by the Reserve Bank from time to time.”
International Forex exchange market is though legally banned in India, yet there is a way out. There are a number of people in India who earn their living through this trade. Are you wondering how they do it? These ways form a blend of legal and illegal happenings that are required to trade currencies. Till date, there have been a few ways out. The choice is on you. The key to Forex trading in India is as follows:
Discuss about Forex Trading In India from 24 hour International Market:
- Some NRI relative or friend
You cannot trade currencies through your trading account since you are based in India but you can do so with the help of some relative or friend who is based in a country where the exchange of currencies is legal in nature. You can transfer your money to your NRI friend or relative and he can trade currencies for you. In this way, you will be earning from Forex trading in a totally legal manner.
- The ‘Gray’ option
This option is used to trade currencies in terms of virtual quantities like E-Gold. The government holds no record of these things since E-Gold is just a concept and nothing like this exists. So, we can say that this is also a legal way to perform Forex trading in India.
- Trading in black
The semi-legal way or you may call it trading in black. There are no interesting currency pairs that allow you to exchange with INR. So, you can get your INR converted to USD. The range for annual conversion has been extended to 200,000 USD. So, any Indian trader can now trade currencies to a maximum limit of this amount by exchanging currencies with USD. The illegal part starts here. The margin account can be named as ‘Savings for the future’ or ’Investment for the future’ or something like that. This way of Forex trading in India is termed as illegal since you are lying to the government but at the same time, it is not easy to discover.
Legal & Best Way to Trade in Currencies for Forex Trading In India.
RBI + SEBI provided you a platform.
- RBI ( Reserve bank of India) & SEBI ( Security Exchange Board of India) has brought out the mechanism where you can traded in the 4 currencies.
- Along with shareholders they started a new stock exchange named MCX Stock Exchange (MCX-SX) started there operations in Oct – 2008 with only one currency pair i.e USDINR & then onward it has came up with other currencies i.e. EURINR, GBPINR, JPYINR.
- Only in these 4 currencies you can trade legally.
How to Start?
- -> Start you currency trading account from recommended share broker, like – (SMC, Angle broking, Nirmal Bang, Alphari) Refer the web-page here
- Please verify their registration with SEBI before you start your investment. Because if this brokers are not registered then there are highly changes of scam. Details of how to start in Currency Account?
Understand the Brokerage charges for M to M market
- It is must to understand the brokerage charges & how the currency future works?
- Because all broker schemes looks lucrative but in reality it does not?
- If possible get the previous traded data from there client & understand how the trading charges are divided (Actual + other Taxes)
Be with yourself when you start?
- One of the common mistake that we do is we start trading for some-one else
- As your close friend asked you to start with or your Investor suggest this is the best tool to start with & you started.
- Money doesn’t come like this -> You need to give your time & efforts to make it work for you
- Are you really ready for it? Please Ask Ask Ask yourself before making this decision?
- As no doubt this opportunity has huge potential but only when you have guts to stick on your decision?
This one step – choosing a goal and staying to it – changes everything
All my best wishes are with you & along with me our team is here which will help you to understand better.
All those Curios about Currency Trading!!
- who have decided OR want to change their living,
- want to be financially free using CurrencyTrading Concept(Part Time Job)..
- Please join free here below(Forex Trading in India).