Overseas Forex Trading From India is illegal for Indian. An Indian citizen cannot send directly or indirectly fund to Overseas forex Brokers.Overseas forex trading through electronic / internet trading portals.As per RBI circular RBI/2013-14/265 A.P. (DIR Series) Circular No. 46 Overseas forex trading through electronic or internet trading portals not permitted. let us find out Overseas Forex Trading India–Legal or Illegal.
If someone is found Trading in Overseas forex trading through electronic or internet trading portals by the Reserve Bank of India’s representative he or she is immediately charged with violation of law Act (FEMA), 1999 & may send him to jail for illegal activity.
RBI also found that many Overseas Forex brokers open account in the name of individuals or proprietary concerns at different bank branches for collecting the margin money, investment money, etc. in connection with such transactions. It has been observed By RBI that some banking customers continue to online trading in foreign exchange on portals OR websites offering such schemes wherein they initially remit funds from Indian bank accounts using credit cards or other electronic channels to overseas websites OR entities & subsequently receive cash refunds from the same overseas entities into their credit card or bank accounts.
Banks who offer online banking facilities or credit cards to their clients should advise their customers that any person resident in India collecting & effecting OR remitting payments directly OR indirectly outside India in any form toward overseas foreign exchange trading through electronic OR internet trading portals would make himself OR herself OR themselves liable to be proceeded against with for contravention of the Foreign Exchange Management Act (FEMA), 1999 besides being liable for violation of regulations relating to Know Your Customer (KYC) norms OR Anti Money Laundering (AML) standards
Why RBI not allowed Overseas forex trading?
RBI had noticed that advertisement issued by electronic / internet portals offering trading or investing in foreign exchange with guaranteed high returns. Many companies even engage agents who personally contact gullible people to undertake forex trading/ investment schemes & entice them with promises of disproportionate/exorbitant returns.
The Reserve Bank of India cautions the public not to remit or deposit money for such unauthorized transactions. The advice has become necessary in the wake of many residents falling prey to such tempting offers & losing money heavily in the recent past.
Still Many Indian Trading in Overseas forex trading through electronic / internet trading portals.
Yes, It is right still so many Indian peoples trading in overseas forex trading But actually they are in doing illegal activities. Nowadays RBI is very strict on this issue.
Does NRI Allow to Trade in forex?
Yes, There is no restriction for NRI to trade in forex
What is the Legal way for Indian to Trade in forex?
1) you can trade in Forex currency which is paired with Indian rupees. you can trade in MCX-SX, NSE currency segment. Currently, four currency pairs are allowed(USD-INR, EUR-INR, GBP-INR, JPY-INR)
2) As like overseas Forex Broker, Indian currency brokers also gives good leverage( Trading in USD-INR required only 1%-2% of margin).
Any questions regarding overseas forex trading pls feel free to write in below comments and get a reply to your submitted email id.
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Hello
A am studying in phillipenes can I do online forex trading?
And can I send money to India
Is it legal?
Overseas forex trading by using online forex broker is illegal for indian.
Can I create a company overseas and trade in the name of that company from India with an overseas trader?
Any ways, Overseas forex trading by using online overseas forex broker is not permitted by RBI for Indian resident.
After opening the forex account can I fund my account from NRI who settled outside India?
Overseas forex trading with online Overseas forex broker is not permitted. So u cant open account if you are Indian citizen
Forex trading is illegal in India but many offshore forex brokers have office in India and canvasing the client to open the account company like Bluemax capital,Hantech markets ,Even forex. then what is the legal going too?
Dear Navaneeth.
Decision is yours.
NRI means Indian citizen who live outside India ( resident outside India under FEMA ). NRI also be an Indian citizen. I am confused that Forex trading legal or illegal for NRI ( Indian citizen live Outside India).
Transferring INR and receiving INR is not illegal. We have engaged with one indian bank. It will do every thing… One forex broker told me… Is it true.pls help me
Thank you for sharing. I am still not sure if I should start forex trading in india or no
I do accept as true with all of the concepts you have introduced to your post.
They are really convincing and can definitely work. Nonetheless, the posts are
very brief for beginners. May just you please extend
them a little from next time? Thank you for the post.
Can you suggest platforms dealing in INR pairs through which indian resident citizens can trade in forex?
Hello everyone one…
Till then i know
4 inr pairs and according to 2015 fema act updating
Usd jpy
Eur usd
Gbp usd
Are also allow for forex trading in India.
But my question is I have few overseas forex broker right..
Even I have no deposit bonus
I do profit alot and save in my e-wallet
So now my question is
Regulated Indian forex broker
If I deposited my fund from my e-Wallet which is I earn from else forex
And I don’t even spend single penny of Indian rupees
So after deposited in Indian fx broker
Can I withdraw my money in local bank
This way is legal to rbi or not?
I want to know
Please, anyone, help me…..
please provide me the name of broker provide trading services in India and which are regulated in india. List of legal broker
i’m a NRI residing in Dubai. I’m interested in Forex Trading, please help me with details
sir Olympic trade is legal in india ?
Olymp trade is a Gambling on forex…so it is illegal… you can consider it as both illegal and legal because there is no such gambling laws to say the act is illegal and
Illegal part is trading Forex with online offshore broker is illegal if a person residing in India ! So try to stay away from it ! Or face the consequences by your own risk! Punishment is non bailable …get ready to go for jail
Jaswaanth, explain much better way, you are just scaring people who trading using the overseas forex account.
There are many companies like octafx also options like, olymptrade, iqoptions which are not banned by the government or taken any actions..
Can Indian citizen who work in foreign country, allowed to trade Forex?
Forex Trading is allowed for NRI. Overseas Forex trading through online portal is not permitted for Indian citizen by RBI. It is consider as illegal.
I’m living outside of india, can i trade forex with overseas bank account and with overseas online broker?
Forex trading is not illegal for NRIs. You have to follow the rules of the country where you live and where you make money. Note: Consult your financial advisor before trading
I live in india but as per FEMA definition i am consider as Resident outside india as i work on foreign going ship. Because i earn in USD so i have NRE account. Now my question is can i do forex trading outside india (foreign broker / exchange) during my stay in india (vacation period) payement made to forex broker from NRE account?
Is it illegal to deposit fund in forex account through crypto currencies? Is it also illegal to trade in cfd and world indices?
Firstly forex trading using overseas online forex broker is not permitted by RBI. Still crypto currencies not accepted by india so deposit fund in forex account through crypto currencies is not legal.
second: cfd and world indices trading using overseas online broker is not not permitted by RBI
Hello Mr Amol,
I am grateful for your article.
I have a follow up question,
As it is only illegal to fund my account maintained with foreign broker with INR can I use cryptocurrency to fund my account so that I would not be using up INDIAN FOREX RESERVE.
Dear Rutherford,
even crypto currency is not permitted by Reserve bank of India till date.
If i trade using funded trading account like (FTMO) then it is legal?
its just like managing someone account.
Dear Kishor,
Trading forex using overseas online forex broker is not permitted by RBI for Indian resident.
Hi
I got an offer from overseas broker, to work with them to provide services to thier international clients,
Being in india, not working with Indian client, can I work as marketing specialist for them for out side of India? Not dealing with Indian clients with independent contractor, not receiving any money from any clients to my bank account not sending to any one, only I will receive my salary from the broker, is there any restriction are there to provide professional services?
On the one hand, the Indian Government wants to compete with the world economies and on the other hand, these outdated laws of RBI not allowing Indians to open a/cs with foreign broker companies, who is benefitting by this? Just give it a thought and do some research, friends. I too came across a few such companies, they offer trading in commodity of crude oil one lot @ $ 100 only which is approx Rs 8000/- (100 bbl- same lot size as on MCX, the Indian exchange). But the MCX crude oil same size lot is being given for trading @ a whopping Rs 2,50,000/- (Rs Two lakhs & fifty thousand)!!! There’s no logic for this, when there are proper risk management softwares in place why is such a huge margin required? When the foreign companies can give it for Rs 8000 why we are being charged so high? Another reason on which all Indian retail traders should think upon is regarding the astronomically high taxes being charged from traders. Just for an example for one lot trade of SILVERM, the brokerage is Rs 20/- but after all the taxes, TST, stamp duty, transaction tax, etc. etc., the total charges come around Rs 200 to 250/-!!! So for a brokerage of Rs 20, the Government charges the poor traders, 10 times or 1000% on Rs 20. How insane is this? Whether the trader make a profit or loss, the government calmly takes it slice of the flesh, and only the traders bleed. The government earns lakhs or crores in taxes from the traders, that’s the real reason the RBI has these draconian laws. Traders of India should unite and stop trading for a month or two and then the government will think of them. But alas, unity is one thing which lacks in India, no one cares and all think that it will be of no use, that’s why people are leaving India for foreign countries at a very fast pace, and then the government blame them that they do not think about the country. Does the country do something about this, so that they do not leave the country?