Whether FOREX TRADING is legal in India?If so then which company is safe to do a trade from an online?



Whether FOREX TRADING is legal in India?If so then which company is safe to do a trade from an online?
Can any one suggest about doing Forex trading from online from India is legal and also which method of depositing and withdrawal is good to do with Forex trading company which is for a safety purpose and also to cut the taxes?What is the RBI standing for a Forex Trading by Individual in India at now?

Best answer:

Answer by Jacky
There are quite a lot of indians trading in forex, so I assume it is alright (But I am not sure whether it is legal or not).

I personally use AVAFX and for me, it is a good broker. I deposit via PayPal, but there are plenty of other options to deposit (e.g. Credit Card, Moneybookers, Neteller, Wire Transfer….).

Instaforex offers local bank transfer in India, so the transaction cost will be lower.

If you want to make your trading cost low in forex, go google and search snowcatfx, they offer rebates if you open in certain brokers, include AVA and Instaforex.

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2 Comments


  1. ForexAbode.com (January 15th, 2014 at 7:51 pm)

    RBI guidelines keep on changing. Every system has loopholes.

    You need to evaluate many points:

    1) What is the standing of the broker as per the rgulations- regulated or now?
    2) Do they have any necessary approvals required for remittances?
    and many more:

    Suggest to check the RBI gidelines and look for the finer points there:

    1) http://www.rbi.org.in/Scripts/FAQView.aspx?Id=66
    2) http://www.rbi.org.in/scripts/FAQView.aspx?Id=53

    These are covered in the following post:
    http://www.forexabode.com/forum/viewtopic.php?f=5&t=52

  2. Ah Kiat 小杰 (January 15th, 2014 at 8:22 pm)

    Hi,

    It doesn’t really matter whether is it legal to trade from India. This will be true if you do not choose those Forex brokers from India, which are normally have higher spreads. Normally what most Forex traders do is they go for UK, Mauritius Forex brokers as they are regulated by the local financial authority. Look for those broker who offered you segregated accounts meaning the broker doesn’t use your money to pay for their operation cost or whatever company’s investment. You should be able to withdraw your money even though the broker filed for bankruptcy. Second look for broker who can offer you the lowest pips spread for example USDJPY pips spread should at most 2 pips and below. Third, the broker you are looking for should be offering you NO requotes and NO slippage during normal market volatility. Get in and out at the price you want to. Fourthly, it should be a ECN account that you should be applying for. This is because in this account the broker can offer you the tightest pip spreads which is payable to the brokers for their services provided to you.

    As to how to deposit and withdrawal from the broker, normally, we go via credit card so that your govt will not be able to trace where your money comes from and as such they cannot tax you.


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