Are Forex Trading Platforms Illegal in India?

Forex trading is a rewarding platform for earning money. However, there is always a doubt in the minds of people regarding the issue of the legality of forex trading. Put a stop to these incertitudes by knowing the truth behind all the clutter of myths.

Transcript

1. Are Forex Trading Platforms Illegal in India? The Truth Behind The Myths
2. Forex Trading  The market of foreign currencies is a global one.  Here, all currencies are accepted and traded.  It is the largest decentralized market in the world, which is why forex trading is so popular.  All countries in the world have different rules when it comes to forex trading.  In India, the laws do not prohibit forex trading, but come with a catch or two.  This is the reason why Indians are confused about the legality of the trade and harbour a lot of doubts.  Let’s clear that up!
3. Legality Of Forex Trading In India  It is foolish for the governance to ban forex trading entirely.  Forex trading is an integral part of the global economy and not having a piece of the pie is not a wise move.  In India, forex trading is regulated by the Reserve Bank of India and Securities Exchange Board of India, two of the apex financial bodies in the country.  The government permits trading foreign currencies in pairs like INR and USD, INR and GBP, INR and EUR and INR and JPY. The catch is that the base currency has to be INR. Any other pair except the mentioned ones are considered illegal.
4. Rules Of Forex Trading In India  Internet portals are strictly prohibited to be used as forex trading portals as per a circular issued by the Reserve Bank of India in 2013.  Instead, anyone wishing to trade in foreign exchange must open a broker account with a registered forex broker in India.  Any deviation from this rule will be held against the individual as illegal and in violation of the laws of the Foreign Exchange Management Act, 1999.  This could be lead to fines or imprisonment, depending on the gravity of the violation.
5. Rules Of Forex Trading In India  Apart from registered forex brokers, individuals can take part in forex through stock exchanges as well.  The National Stock Exchange (NSE), the Multi Commodity Exchange Stock Exchange (MCX-SX) and the United Stock Exchange (USE) are recognized as the exchanges for forex trading in India.  Recently, the Reserve Bank of India has upgraded the rules to include the pairs of USD/GBP, JPY/USD and GBP/JPY as recognized and legal pairs.
6. Why Is Forex Trading Partially Illegal In India?  When an individual faces a loss with a non-Indian broker while trading currencies other than INR, then they would buy foreign currencies from the Reserve Bank of India.  This would result in a deficit of the foreign currency reserve of the apex bank, causing depreciation of the value of the INR.  When the amount of losses piles up, the deficit becomes much worse, resulting in a drastic fall of the exchange rate, devaluing INR.  This will directly affect the economic condition of the country.
7. Steps To Start Forex Trading In India  Pick a broker wisely, someone who has a deep international reach. This will help in making profits in overseas markets. Also, make sure that they are registered with the authorities.  Open a broker account with the company and complete the KYC process.  The minimum margin required to start trading will be informed to you by the broker. Deposit it and start your journey of trading foreign currencies.  Take informed and wise decisions to make better investments and earn bigger profits.
8. Tips For Trading In Foreign Exchange  Thoroughly researching the market allows you to gather a vast amount of data and understand the direction and movements of the currencies under your watch. This will allow you to invest wisely.  Learn from other traders and strategists who have achieved success in the market. Try to incorporate their positives into your strategies.  Limit yourself to only a handful of pairs of currencies to maximize your success rate. This helps to focus better. Giving time reaps better dividends than trying to make a quick profit.  Have a clear idea of what your goals are and manage them accordingly.  Know your limits and never cross them. Learn to accept and move on.
9. Conclusion  Stay alert and be focused on the forex trading scene. The smallest of global incidents can drastically affect the movements in the market. Be aware of all that is going on in the world and be prepared accordingly.  Stick to the laws and regulations of India and avoid shady business practices if you want a long career, filled with profits.
10.  Contact Details:  Web: www.rrsbforex.com  Phone No: 033-22495095/ 7455/ 22176068  Email: info@rrsbforex.com
11. THANK YOU
12. Description Forex trading is a rewarding platform for earning money. However, there is always a doubt in the minds of people regarding the issue of the legality of forex trading. Put a stop to these incertitudes by knowing the truth behind all the clutter of myths.