Forex trading in India

[Ami.shah]

i found a sticky thread is forex illegal in India or not. but unfortunately that thread has be closed which why i making this one.

what i understand is that forex is illegal, people cannot send money to broker from bank account, if found account will be frozen. but what if i make money from online in USD and trade forex using that money? basically money will not be transfer from my bank account. will it be still consider as illegal?

and if i give my money to other people to do the trade like etoro/hotforex pamm etc will it still consider as illegal?

is there any loop hole or condition that from India people can do forex?

Yes in India it is not permitted to trade in Foreign Currencies . Secondly you need to find a genuine broker over brands because Forex company like alpari fxcm they had declared bankruptcy and all payouts were stucked and many clients loose their money. In India there are other ways where you can trade and precautions can be taken only with ECN Broker as they are tie up with banks and provide bank to bank transaction in terms of deposit and payout and ask them to show the license from where it is regulated .

 

[tamaa]

what keeps on bugging me is there are lots of indians trading forex, like seriously do all of them trade international brokers from outside the country?

 

[Jason Rogers]

Secondly you need to find a genuine broker over brands because Forex company like alpari fxcm they had declared bankruptcy and all payouts were stucked and many clients loose their money.

FXCM is not insolvent, has not filed for any form of bankruptcy, and is in compliance with all regulatory capital requirements in the jurisdictions in which we operate. Additionally, all of our regulated entities except the US provide clients with segregated funds. All of our global client base in our regulated entities minus US clients would be protected under a bankruptcy. Our UK regulated entity through the FSCS even offers clients 50,000 per person in protection. Canada has similar insurance for retail traders of up to $1 million CAD.

Despite the events of January 15th that resulted from the Swiss Franc movements, FXCM today remains in a strong competitive position:

- $303 million in consolidated operating cash
- $1.0 billion in customer equity
- 195,000 active retail FX accounts
- Global regulatory capital of $252 million versus $93 million minimum requirements (an excess of $159 million)

Since we are a publicly-traded company (NYSE ticker: FXCM) the details of our finances including the loan from Leucadia are well known. In fact, in our most recent quarterly earnings presentation, we clearly outlined how we plan to repay this debt. By contrast, most other forex brokers are privately-held companies, so it's hard to know how much debt they have on their books or the state of their finances.

Over the past few years, FXCM has spent over $250 million dollars making strategic acquisitions building up our non-core businesses, mainly the institutional side as we tried to diversify the firm. We are now looking to sell some of those non-core assets; But, we are not in a rush and are looking to get the highest valuations for these assets. We are considering closing or selling smaller regulated entities that require large sums of capital requirements, but that offer increasingly low return on capital. In fact, just recently we announced this news: http://ir.fxcm.com/releasedetail.cfm?ReleaseID=903254

The latter move allows us to free up significant amounts of cash that is currently trapped. We believe that in the near term we can pay down a majority of the loan. That's our goal. We have now repaid $66 million under the credit agreement, and as of April 1, 2015, the outstanding Leucadia loan balance is $244 million.

FXCM is pleased with how our debt reduction plan is proceeding. We are ahead of plan and the results of the FXCM Japan sale exceeded our expectations. With all the increased attention to our other properties, we are expecting robust and competitive auctions for the other non-core assets we have targeted to sell. We anticipate making an additional repayment of approximately $12 million towards the credit facility in the coming weeks.

 

[Avengers]

I'm trying answer all yr questions ... 1 by 1 ...
1. If you earn USD by any mode and if you trade that amount, it is legal. FEMA prohibits resident Indians from converting INR to USD ... If you have earned USD, you can do whatever you want with it ...
2. With the same rule, whether you trade or a fund manager trades on your behalf, it is illegal as you are converting INR to USD ...
3. The one loop hole .... if you can call it a loop hole ... is ... using cash deposits and withdrawals ... That is how I'm trading ... That is how most of the traders I know are trading ...
4. Prop trading is company, which has USD reserves and they hire good traders to manage their accounts. One has to have a live account experience / statement for minimum 6 months and should have explainable and quantifiable strategy.
5. If you want some one else to manage your account, always hire / have some one, with whom you can discuss. With any broker PAM account/s, you might never be in a position to talk to the PF manager.

I hope I answered all your queries ...
Shoot if you have any other doubts ...

Hi Howardroark..Thanks for the great info which you shared. But could you let me know which are the forex brokers who are allowing to deposit funds in a bank account through their employees or by any means and do the same process of withdrawal?
This is a great method as you not converting INR to USD and you withdrawing cash and depositing cash. But which forex broker in India has this facility ?

Please share.

Thanks.

 

[kharikumaar]

Going by the rules is it legal to trade in stock binary options?
I understand you can trade stocks if you buying it at full price and not futures speculation.