Is forex illegal in usa
September 22, by Basavaraj Tonagatti Comments. So let us look at this offer whether this is the legal or not. Forex trading in India is illegal where there is no involvement of Indian Rupee. You can trade with involvement of Indian Rupees like USDINR, EURINR, GBPINR or JPYINR. The reason for sharing this information with you all is, in future you may be under such trap. So thought to share this information and making you aware about what actually are Indian regulations about this Forex Trading. Below is the interesting discussion. Name of executive and Company she represents changed. Company Executive -Hello sir, I am Shilpa here. Working for a Multi National Company named ABC Consultant. I got to know that you are the financial planner, so I wanted to discuss with you business proposal regarding international Commodity and currency trading!! This is the only industry where you can earn huge profits in short terms. Basavaraj -oh sure…let us start now. Company Executive- Can you please send me your contact number so that I can call you up and explain the overall picture of ABC. Basavaraj -Let us discuss first the regulatory issue…. Under which regulation this trading will be performed? Company Executive- we are group company of the ABC International Consortium HICABC is a registered member of the Indonesia Regulatory Agency. Further ABC is also registered with: BAPPEBTI Member of The Indonesian Derivatives Clearing House Member of Jakarta Futures Exchange Member of the Commodity Trading Board With sanctions obtained for Overseas Transactions, HIF we can now offer our clients a broader spectrum of trading and investment opportunities. Basavaraj -I am asking you, to operate in India under which regulation you are registered? Who regulates the trade generated in India? Forget about the Indonesia or other countries, I am living in India and let us discuss who bonds these transactions? Company Executive- Sir we have our headquarters in Jakarta, so we are directly regulated by the exchange. Basavaraj -Jakarta is ok…but money is going to be invested from India…. So ultimately you will come under regulatory. So who regulate you people? Or in future my transactions? Company Executive- RBI, through the provisions under A. Dir Series Circular No. Individuals can also open, maintain and hold foreign currency accounts with a bank outside India for making remittances under the Scheme without prior approval of the Reserve Bank. Basavaraj -so you are claiming to be no one will regulate and according to the law of land this is not legal right? Company Executive- It is legal, we are doing CFD i. Under whose regulation you do this trading? Hope this link will be an eye opener for you personally. Hindu Businessline article dated August 25th Company Executive -no it is legal. We are trading under the instructions of BAPPEBTI ITS LIKE SEBI in India. And we have our regulated by the Jakarta Futures Exchange. Basavaraj -I need Indian regulator not Jakarta or any other unregulated country source. If any issue with your company, default from opposite party or some other technical issue then you mean to say that I need to approach Jakarta Future Exchange or BAPPEBTI? Company Executive- Sir in India whatever traded you take, when you punch the order it goes to Bombay stock exchange and you need not to go to Bombay to trade. So same here we are directly member of Jakarta. I am asking if I need to sue your company or default to my trade then whom I need to approach? Company Executive- As of now such things have not happened. We are registered in India, we have physical offices in Bangalore, whatever queries you have can consult here only. Basavaraj -You might have registered as a company but usa you registered as a broker with SEBI? Also what guarantee you provide that nothing usa happen in future if not happened in the past. Company Executive- We are nothing to do with the Indian market, we are in International market, so we need not to report to SEBI. In fact RBI and SEBI have to report to BAPPEBTI. So we are directly member of that. Tomorrow even if the Harvest is not there BAPPEBTI will give you 2 options like to continue the trading with other broker or you can withdraw the whole amount. Basavaraj -Oh is it? Can you provide the proof of this claim? Company Executive -You will get two copies of documentation from Jakarta so everything will be in the documentation. Basavaraj -I am not asking the documentation…. Please first clear my doubt about the regulator. You said RBI and SEBI will come under BAPPEBTI…. Company Executive -RBI and SEBI related to India, but BAPPEBTI is Asian regulatory body. Anything above that we have to ask the permission from RBI. Basavaraj -But in above lines where they included forex trading? Is BAPPEBTI is regulating the whole Asia? Are so can you provide the proof? Below are a forex links which make sure that the forex trading in India not involving Indian Rupee is illegal. RBI Notification Dated November 17th A complete list of FAQs Forex Facilities for Residents Individuals by RBI last updated on September 30th Hope above links will be providing us a clear indication that such trading using online platform is illegal. But I have doubt about the above-said company, from whose representative I got a call is from Bangalore and how they are so openly offering without fear of regulations. I am a Certified Financial Planner by qualification and currently living in Bangalore. I am using this platform to spread knowledge about Personal Financial Planning. Hope you too join me in spreading this awareness: I think you have no idea about forex. Forex trading is legal. I am a trader. Now I am trading in forex. Priyaranjan-May I know which broker with whom you are doing trading. Let me know whether he is registered with SEBI or not. Then we discuss about who is right and wrong. Now i dont want to trade after i came to know of regulations. It was a trap of international companies and i got into it. I am innocent as it is wrongly done. I also transferred dollors, but not yet withdrawal profit, I come to know regarding regulations since eight days, hence i have stopped trading and requesting them for legal documents for further trade, but i a not getting proper answer, so can u help me in this matter, how to outcome from this, if it is legal also please tell how? Hariom Bro, Shall I withdraw with profit made also, or amount deposited only, and if they ask some details for withdrawal, can I give them? I dont know is this a genuine process or not? Could you please give some light in it.? Forex is fake claims. Never ever rely on such claims. If he still insist you for investment, you can complain against him. Thank youI m intrested to know about Forex trading. Thanks for reply, my main concern is we can do or not, FEMA will be an issue or not in this case. Animesh-Many laws can play the roles and skew you. Hence, I said in beginning, go with your own RISK. Rest left with you. Dear All I want to inform you that 2 years ago I started trading in 4xp. Sir how trading start in forex our country not allow so pls authorised broker in India so iam start trading in forex reply me. Hello sir, My question is if some one is using skrill or paypal to indirectly transfering money back and forth for binary trading in trusted broker, How can the bank is suppose to know from where the money is comming. There is no possible way skrill will leak info that it was forex money and they ask us we simply can say it from the services i provided from freelancing ,blog, affiliating etc. But sir you can help us for right broker because you have forex of skills you can compair brokers policeys help us Sir.! You are not broker but you already helping us for aweaness of forex scam.! How is this done? Is it legal and is it regulated. Is it present in our system even illegally? This is regarding Forex trading in INDIA by a company name SIX Capital Singapore Based. SIX Capital is providing training of Forex trading and after training they will select for trading as a trader. But as you have already discussed earlier that Forex trading in INDIA NOT INCLUDING INR IS ILLEGAL and this is absolutely right as per RBI regulation. My question to you is that should I quit this training or question them regarding this issue. Sumit-Please question the issues of what I said above. Let them show the SEBI registration. Otherwise, you inform them that you first write a letter to SEBI about their company. If SEBI have no issues, then you will go ahead. HiI am presently staying 7 months overseas and 5 months in India for any financial year I have an NRI account and receive remittances for my salary from overseas Want to start FOREX trading The income I receive is non taxable and plan to invest in FOREX Can I start forex trading without any legal hassles. Purvi-First illegal whether the broker offering such platform is registered with SEBI or not. That too check with SEBI portal. If he is registered with SEBI, then legal. Get ready if you need that cash back. I hope you got my point about legality of such platforms. Can i convicted of any charges for investing? The company made me sign a couple of forms which made them free of any liability i suppose. Purvi-This is what they do. They take signature and we blindly sign on those papers. You will not be convicted, but if the amount of cash you lost is MORE to you, then I suggest you to take the legal step immediately. I will send money to my friend India account. Open forex account in my friend name and he will fund the account from his foreign account. Withdraw profit to his foreign account. Transfer money to my India account. Then pay income tax on this amount in India stating as other business income like freelancing, consulting etc or as GIFT. Sanjay-First try to find a friend who is ready to help you in this illegal act. If he can join you. Hi is there any legal platform for trading forex in India if not shall i quit forex because i am new to trading thinking to earn some decent money. Forex received a message about a fantastic Opportunity for Investors in Forex Trading: Max 50 lacs investment. For 50 Lacs investor gets 80 lacs after 20 days. Profit of 30 lacs. Kalpana-It is still illegal. Then why he is begging you to invest? Simply understand the basics of investment rules-1 Anything illegal is always dangerous and may leads to lost in your principal too. I am a Mechanical Engineer with over 20 yrs of exp. I want to change my career and planning to persue a career in finance by doing CFP. How is the scope and job prospects for a CFP professional in India? Please give me your frank opinion. At the same time, I am not downing you for not pursuing the CFP. Opportunities are best but CFP is just a door to learn personal finance. Also, considering the dynamic nature of knowledge, regulatory issues, you must opt the ways very sensibly. Brajagopal-If it is SEBI registered then it is legal. Check for the company registration with SEBI and also follow above rules. What if the traders win contest prize money in forex broker and trade with those money? Are such withdrawals accepted in India because there is no deposit from the traders end. Also one can consider to be signal providers through demo accounts and if they are successfully making money through their signal providing service. This has no rules to violate. Ashvini-It is still illegal whether the money deposited from trader end or not. Virtual trading is different and there can be any type of underlying asset to trade and there is no such restriction. Thank you for the fast response. So, providing signal service through demo accounts should serve as analyst job. There are many account managers who manage foreign clients fund and any remittance to India is considered as income which is legal. I made an account in IFOREX website and I told the representative of website on being called over phone that FOREX is illegal in india. Sachin-It is purely illegal and if they are making the trade with a combination of INR then let them show the SEBI registration. The link says investment not specify forex. Jaskaran-If it is DEMO without any money transactions like virtual trading platforms then no issues. Hey sir, my sister lives in USA if i deposit money in forex from USA and operate forex trading from india is it legal? Jignesh-How you make sure to come back that money in India? What reasons you say to IT Department or Banker? What will be the tax implications to your sister in USA? Whether you have answers to all these questions? Sir What is the best alternative of Forex Trading in india with Legality and What is the minimum age for doing it. A Private trader in India is asking for some money for doing some forex stuff. I am not at all in finances and dont know any thing about finance. He is known to my relatives. He does not have any office, he is doing trading from his house. RSA-My simple advice is STAY AWAY. More return means more risk. Vinay-Please refer the links I provided then decide whether RBI is particular about this issue or not. Hi I got a call from svsfx. They claimed to have a subsidiary company in india which manages their financials which is as per rbi and sebi norms. Intially I thought this is legal I am a bit dumb!! Later on I understood that what they were doing is actually hawala transactions. They have an account in india and we deposit money in inr which is converted into dollars forex the process is same when we have to make a withdrawal. The problem is I opened an account with svsfx. How should I get out of it What will be the consequences if I dont operate the account or if I withdraw the money I deposited and leave the rest? Arjun-Contact the same officials to close it. Also, hope other readers of this post understand now about my opinion that how these companies running their business illegally. Plz sir tell me many people are trading in forex who lives in India and still no legal action taken by our government why? And tell me can I trade in future currency and bank also involved in foreign transaction and no action taken by them. Kamal-Whether Govt acted or not is left to it. But here I am putting the legality. Rest is left with you to decide. Arun-If big corrupt ministers breaking law means we too? Is the Forex trading only way to earn money? There are enough opportunities for traders in India itself then why this ONLY? Another question is, if i transfer dollar from perfect money to paypal and then to my bank account,is there any problem of indian regulation? Basant-I am not aware that much about Bitcoin legality. Obviously it will be problem if it is illegal money, first your bank itself will ask the source of money. And please suggest what would be safe to tell about source? Basant-Then they want to know whether the source you said so is proper or not. Sorry, I am not here to break the law and help you. Instead, I suggest you opt the legal way. Now it is left with you. Your article gives a clear insight about Fx. Do you have any suggestion or insight about about Kumar sayings on March 1, at Ram-1 Why I have to go to foreign for the sake of Forex Trading? But negating the risks involved. This is how the commmon man be in trap and loose money. Trading is too risky. Also, is it necessary to follow other countries blindly? I am a forex trader and I love trading in forex. I also have traded in Nifty and I have watched USDINR or other currency pairs in Indian exchanges. I usa to tell you. Best volatility and best volumes. If you do not know technical analysis then trading is gambling for anyone in any market. If you know how to trade then you can make money anywhere but if you want make lot of money then only place is forex. AND MOST IMPORTANT EVERYONE KNOWS WHO MOVES INDIAN MARKET. IT IS BETTER TO TRADE IN FOREX WHERE NO ONE CAN MOVE MARKET IN THEIR FAVOUR. You think you re an expert in english? Try to answer the questions rather than asking silly questions. Let the readers of the post decide. I have answers for all your questions 1 Forex markets are extremely volatile and have a lot of money making oppurtunites. This is what you know as an expert? You work for hours in office. You risk obesity and diabetes sitting in the same place. Of course,FOrex trading is where money exchanges hands and there is a good chance you can make money from a small investment. The market cap of Indian equities is simply too small to eradicate such manipulations. Sarath-Volatility is Good or bad? It is not the promoter. You Know why Rasoya protiens trading at 20 fell to 0. You know why Allied Digital Services trading at fell to 20? You Know why India Bulls Wholesale services fell from 30 to 10? You know why gitanjali jems fell from to 40? You know why C Mahendra Exports fell form to 6? You know why Subex fell from to 6? Promoters are manipulators in all these cases. Promoters create bullish sentiment for poor retailers to buy. When everybodys in, the promoters dump the stocks creating panic among retailers again. Thats ho they steal the money. Retail traders who dont have enough money to manipulate anything are the losers finally. This is how stock market works. Helena, Sudan, Syria ,Ukraine Zimbabwe. Rest all the developed countries allow forex trading -France ,Germany, Italy,Spain, England…. Please try to accept. You as a financial expert should know about these more than me about all these manipulations. Nobody Cares about rupee at all. Thats the pitiful situation of our countryequities and ever deteriorating rupee. Sarath-It the lack of knowledge that makes you to invest in such companies which you named. Also, do you feel there is no manipulation in forex trading?? Those companies were really good before promoters started robbing investors money. Its not the lack of knowledge. Well,Can you name a few companies with your great knowledge that will give me returns 5 years from now? I am ready to invest. Moreover if I make losses from the names you suggest,will you compensate me for the losses incurred because of your advice. You said I lack Knowledge. Well ,no one can suggest anything. Because RISK is everywhere. Lol,if you invest ,it doesnt matter how the stock moves. He will lose a lot even if stock moves by a small fraction. Whats the guarantee that stock will always move up after you invest? Will you keep the money INVESTED adamantly till you reach 70? And coming to your final question. I already told you its not easy to manipulate forex as it is to manipulate a stock. Simply because huge amount flows in and out. Since it involves huge amount of usa to manipulate forex,even banks are not brave enough to take the risk of manipulating forex,as they appoint qualified traders to trade on their behalf who trade with strict rules. Not like as you said,invest and forget. The current range should matter to you even if you invest. May be as a certified financial planner ,you only throw pieces of advice to your clients to INVEST AND FORGET ABOUT CURRENT RANGE. After a few years your clients will be after you. Sarath-Equity investment meant for 5 years? But it subdue when we invest for long term. When you invest in cheap stocks or the stocks which recommended by the so-called experts who in turn brokers then there is high possibility that usa turn to negative. Look at people who look for value investment. For example Basant Maheshwari and Manekar a person recently in news due to UB. Invest and Forget is not meant for any investment. The difference between you and me is, you are negating the views of stock market TRADING, but I am putting the views of stock market INVESTING. Sarath i like very much your opinions and commentsi agree your comments regarding this issue. Bro, i have read allot about this Forex illegality in INDIA, and fed up reading. I am also a trader earning a good amount. Not only me but there are so many traders earning through forex and withdrawing in lacs per month in INDIA, still no problem. Then tell if i do like this and come back to indiaand use that money here is it still illegal. If it is done in a safe way. Many readers of yr blog they say by opening nri account. And etc… Tell me ways i am confused. Pls reply on my email. I am also a forex trader, a signal provider and pool account manager in forex business from last 4 years and able to develop a very big and good forex earning business model where a comman man easily can earn from 10, INR sitting at home and can improve the life of a comman man or weaker section. After reading all the points above i would like to mention few points here please and need support —. Forex trading from India is illegal and there is no doubt about it but we want to do it legally from India and its legal way is you can be NRI and use the own account into that particular country where forex trading is legally allowed and can remit your profits into NRE account and can show the concern authority about your earnings and pay taxex accordingly and it is legal because you have used your stored capital for the forex trading there not by remitting funds from India. You can form a company out side India where forex trading is legally allowed as a subsidiary of your Indian company Indian company will be parent company but this for those who have already own any company in India and remit funds outside to subsidiary company and subsidiary will do forex trading and will revert you the benefits as a dividend and it is legal. Its my view that most of the Indian Political Parties and Leaders except few leaders but may be they do not know about forex trading potential so could not be focused on this talk about the welfare of the people but never think seriously to do for them because if comman man will be financially strong then never will accept their dirty politics so they think that comman man should be always poor and struggler with there problems. If this usa have not good potential and liking with mass then why millions of millions of people attracting towards it. Very small small countries like Mauritius. Hongkong, UAE ,Indonesia, Japan and many more have allowed forex trading legally in own country then why not India. I think it is the totally matter of intentions and nothing else. Is there not involved risk for the comman man there? I am not a follower of any party but i know the power of aam aadmi comman man its result we have seen in Delhi election so my view is that we should all forex trading lovers should organise and make a common sign letter and give to Shri Narendra Modi sir who is our hourable Prime Minister as he thinks always about comman man and think for the bottom people and when forex all shall be together present our interest and concern then we hope that sure he will re think and talk to the concern authorities to do it legally from India. As he has also own drive for online Digital India concept and Skill Development program. I think Forex Trading skill should be covered into his skill development program. We are also interested to do it legally from India and i am more confident that India has the best tallent in world and best growing your population so we can bring huge capital to our financial institutions through forex trading and can change jointly many comman man life. Already millions of people doing this business by wrong way which is also a huge loss for the government and my view is that indian government can get good revenues through this business if legally allowed. So i think for this program please email me and decide jointly how we can be collective for this concern and can be reach our message to the government. I think huge unemployment can be remove by this illegal. I need your valuable feed back or suggetion please. I agree with your views and ready to support your campaign. Let us make a concrete plan and put before Mr Narendra Modi. If lakhs of Indians support definitely we will win. Kumar sir plz contact with me i want to talk with u via phone i m also Forex Trader. Hope u contact me. Kumar, even i would support for your campaign. I have always thought of this but no support. How do we move this forward to the government, please let us know of this. Sir, If I do options trading with ICICI bank, will the bank ask for clarification? ICICI seems to be liberal. Do they oppose forex trading and binary trading? Ashish-Option trading they allow. But forex trading where Rupee not involved is hard for you to get it from ICICI. Is there any amendment made on FMEA.? Is the forex trading still Illegal in India? Recently i am seeing lot of advertisements and people involvements in this trading. What about holding a foreign stock? Consider stock of Accenture which is registered with NYSE…. Is a resident Indian allowed hold that stocks? DIR Series Circular No. I want to ask that is Binary trading legal in India or not? If you are not illegal of above question illegal you suggest me anyone legal person who can answer the question? Ommi-I think Binary trading is a strategy of trading than a platform. If my understanding is correct then you can do so in India. Sir, I want to know basic difference between forex and binary trading. Suppose, if I earn any money using binary then am i suppose to pay any tax? Trading in international commodity market is legal or not. Kiran-Check with your broker before going ahead. Varun-I am not sure about the firm you mentioned. So trade at your own risk. But yes if you do with ICICI then forex problem. Hari-They are registered and you can trade with INR to Dollar like that. So you can do that. Do at your own risk. But what income source your brother shows when they ask for source of income? And earn commissions or service charges from those accounts, will it be treated as legal? Can I do that? Can it be shown in my tax return? Awaiting for your reply soon. Yuvraj-But what you will answer to Bank officials or tax department about the source of transfer? Vikram-What documents are they asking? Also how you arrived to conclusion that there will not be any issue if they are asking for documents?? It is completely an eyewash. Hi, I have a question can we advice forex scrip e. Will it be legal. Sharma-You can give advice if you follow the rules and regulation stipulated for an EXPERT. I am not aware of the regulatory framework of currency expert advisory. I will not comment on any organization or company. It is up to them to take risk and it is your wish to put your money. As of content of the article — A person has to open an International Bank Account in his name and then transfer funds from India to his International Bank Account by using LRS Scheme of RBI, and when your funds trnasferred from India to International, the legality of India is closed. And then open a Trading Account which operated under a regulations by the Same Country. Then all the legalities shall apply in their country and it should be treated as Illegal. VNS-This may be way of avoiding the legality. But how you bring back the earned income to India bank? According to law Funding from India in forex trading is illegal. There are many other ways to fund that can be hide from RBI. Like paypal and money bookers. Funding through money bookers is safe and RBI cant see what you doing from this account. So, Invest it, Trade it and Live it…. Dear Basavarajit is great to share such things. Enlighten me if I may do forex trading with Indian Infoline IIFL, is it legal. Good insight about Forex trading in India and government regulations. One thing which I did not like here is the negative views about Forex trading. The problem with Indian laws and lawmakers particularly in last couple of decades — they lack balanced thinking while making any laws. They lack vision and mostly their thinking is one-sided while framing any law. Laws are meant forex cover almost all situations and almost all people and benefits almost all those come under law. Also, they are supposed to provide checks and balances to make it harder to violate such laws. Of course there will be exceptions and few corner cases but in this Forex laws they are totally ignorant about the people who can successfully trade Forex and change their lives for better. Person from poor background can become financially well-off with Forex trading if he has right skills. I am not suggesting that Forex trading is easy and everybody can trade successfully. But, there are certainly some people those who can Trade successfully. And these so called laws are not fair to these people. Ash-I am also not against Forex Trading but against crossing legality of land. Forex trading illegal not legal in India, however it is one of the most risky business, but I can say that Forex has changed my life! And I would never ever quit forex trading, so I have decided to go abroad to establish my trading Skills. I already have offer from Canada, Australis, UK and Poland. So I have decided to go to Poland! Hi Shivam, you are a lucky one… could you tell me exactly how can i start in forex? I am also intending to migrate USA as I am a Graphic Designer but I am also very interested illegal Forex too, what suggestions you have for me to get successful in future in forex in another country? See i am looking for investment where i could get easy returns. If it is so then think that it is illegal or risk involves is more. First understand your risk appetite then start investing. I am against any such sites which offer these services. Rest is left at you. Dear Amit, threre are lot of ways to trade forex from india. I just act as a working partner and my illegal act as an investor. Arun-In your case I am not aware whether your status is NRI or not. Second thing is, you are acting on behalf of your students and using their account details to do trade. Also you get your share from your students account to your account. Then legally how you can be liable for any trading done on behalf of your student. But at the same time doing such set of transactions, do you think you are doing right thing on behalf of student who may face some legal issue if their money is transacting from Indian original bank account? You are claiming to be teacher but before giving suggestion better to understand what will be percussion of your student and whether they are doing such acts within the law of land or not. So think yourself and act. I am trading in forex for 4 years, and till today, there is no problem I faced, I made withdrawal and successfully get money. Last week I made another withdrawal. This time I used another bank account. Today I got call from this bank and they asked about money they received in my name. I told them that this is from forex trading. They said forex trading is not legal in India. Shock time for me, I made another withdrawal in last month and got money without any problem. Sarath-When I said it is illegal to do Forex Trading in India based on facts then how I be affiliate to Forex Company which is purely set up on breaking the rule of land? I saw all u r commends and what I noticed that apart from this legal issue …. Here is small story of my trading history with forex currently I am trading in international market from past 4 years prior to this I was ex employ of Indian commodity company heading regional branches in Karnataka for almost 8 years and m also a financial planner for my respected clients now here is comparison between indian commodities and international commodity Step 1: Madhu-Thanks for sharing your views. But do you think that such complicated product when we look at normal Indian investor will understand product easily and do his own technical and risk appetite things? Also barring such trading in India is due to some money laundering issues. When you say easy to analyse the international market, may I know in what context you are saying this? Regarding regulatory framework, do you feel for retail investor it is very much easy to interact with international regulator to deal? Also Indian market or investor usa to that extent that they can think of international market, because of low penetration to equity market itself. Apart from these for investor there are lot of other options to understand and trade. Why to take such complication and risk your money?? I have bit confusion in financial matters,i need you guidance on how to withdraw and all. I am an indian citizen living in australia on work permit Visa. I have been living abroad from last 2 years and might live for another 2 years. Forex Trading is legal in this country. So If I do forex trading in Australia, will it be legal? I am not paying any taxes in india and not making any remittances from India to Australia account. Jay-If no remittance from India or to India then no question of asking. But you have to act according to Australian law. I might make remittances to India Ultimately when I get any profit. Will it be considered illegal? Jay-Once you get profit then it get transferred to your Australian Bank Account and from Australian Bank Account to Indian Bank means no issue. But your Indian Bank Account is attached for trading then there will be issues. Having an Australian bank account and have work permit visa. Only problem is after working in Australia I came back to india and I am residing in india now. Now can I do forex trading online from india using my Australian bank account only but not any indian bank accounts. Also if I get any profit in forex trading can I transfer the amount from my Australian bank account to NRE account. Do I need to explain the source of income to RBI. Could you please let me know. Rohit-You can do so. But how you bring that money to India? You need to explain the source of such amount if tax authorities asked for the same. Because you are staying here and definitely Indian bank officials raise the issue. Then what you say them? I have stayed more than 6 months outside india. In that case I think I attain NRI status. I would like to know if there is any provision that NRIs can do forex trading while residing in india temporarily. Could you please clarify. Rohit-The status of NRI will not come into picture. Because if you are using money transfer facility of Indian origin like your savings, current or NRE accounts then definitely it will be an issue. I worked for several years in Australia, later became a citizen there and am also an OCI dual citizenship in India. I still have some savings left in my Australian bank account — can I use that for forex trading in an account opened there itself? Can you please explain in detail. Shrikanth-There is no illegality if you do trading using the Australian Bank. But my question is how you justify the source of amount when you remit the cash to Indian? To be frank, I am not a big fan of trading. But a huge fan of equity investment. Regarding the source for remittance to India I will re-check with my bank and CA. Having read and heard abut this a lot there is not doubt that Forex trading is illegal in India. But thousands of Indian traders are still involved in it and the numbers are continuing to increase. Vipul-Place where trading takes place are the countries which have loose law against money laundering. So if RBI permits this then easily a best route for illegal activity. So if money laundering is what RBI is trying to prevent that means Indians are being kept away from an amazing money making opportunity just because there are no proper regulations in India towards Forex trading. What do you think? Vipula-It is not a problem of RBI but the problem of countries where trade get executed. These countries have illegal laws. Hence to safe guard the Indian economy RBI must act so. I wonder why in the US, Europe, Australia and UK the regulating bodies feel otherwise. Vipula-Economical or in other words the countries you mentioned are not reeling under black money or some other financial threats to that extent than India. Also what is the point in following the so called BIG BOSS blindly? To be frank such forex trading offerings will not be from US, Europe or Australia but from the countries like Indonasia or some other third world countries. Why only from third world countries?? So, when i read about RBI regulations i haapened to see this FAQ. In terms of sub-section 4, of Section 6 of the Foreign Exchange Management Act,a person resident in India is free to hold, own, transfer or invest in foreign currency, foreign security or any immovable property situated outside India if such currency, security or property was acquired, held or owned by such person when he was resident outside India or inherited from a person who was resident outside India. So my first question is can i receive money from a Electronic payment processor like Moneybooker or Skrill instead of individual outside India? I mean it should be like Gift or insurance for sure? Sidhu-You are understanding it wrongly. Please add your shared RBI ruling with what I shared above regarding holding currency derivatives. Then you will find differentiation. If you transfer through any means and mentioned as Forex Investment then they may unearth the source of investment, where it is invested and whether it is legal or not. So you need to answer all those questions. Opening bank account in your name outside India is solution. But will the country where you are intended to open account is so free that any outsider can open account and transfer funds as their wish?? Sir I have already transferred some money in the account of aforesaid company but yet not started any transaction. Can I withdrawn my money safely? Sir my question to use is supppose I withdraw funds from these online brokers via e-banks illegal neteller,moneybookers,etc will it be legal as in forex bank statement it will show these e banks names and then I can pay taxes as income from other sources. Ranmeet-You are right that in bank transactions it will not reflect directly to broking firm. I think only particular comment you are allowing to post on your blog so only i am not able to post the comment so here is my reply from another mail id…you telling about a company rubbish where i invested and getting proper withdrawals. But i have checked about you DSP blackrock where there are lot of withdrawals in pending,so how can you say yourself you are a certified financial planner? Pandian-For your information any new reader who comment on blog will first need to approve by me. This is done to protect genuine commenting. Now you are very much free to view your comment and my reply. Both of yours IP address are same. But for your information DSPBR actually conducted Blogger Meet and I was one of them among top Indian Bloggers whom they called for meet. Because I am independent planner. Since i am not able to comment on the previous mail id replied from another and in usa itself i clearly told that i am replying from another mail address…,So i just checked with the change in name can approve the post in the blog…. Now all same my full name is arun pandian u can check my mail id…and can u explain me about the question i asked in the previous message. Arun Pandian-You can check my reply and for your information, I am not at all connected with any company. I am working independent. So no need to name any one company. You are very much free to raise that particular company issue DSPBR. Please check my previous comment where I already replied. Basavaraj I have invested in the same company which you told and i am getting good returns…and one more thing to be added SEBI have no work with NYSE similarly SEBI have nothing to do with JFX Jakartha Futures Exchange. I have gone through the conversation the executive reply for all your queries is wright…If u keep on asking doubts no one will answer…if the doubt is really good every one will answer…. If something is not as per rule of land then one must not proceed. That is what I pointed. Also may I know what is connection being me being consultant of any trading company and to this issue? Please elaborate more on this so that readers will come know who stands where. As a investor you have rights to ask n number of questions but when the answer is given you have to realize the gen unity of the answer…so from the things i told in previous conversation i think you might have got the knowledge about the participation of sebi in international market…. When a person from abroad coming India to trade in Indian market which SEBI? May I know how it is taxed in India on the gains from such trades? I need to pay tax to Govt as I earned from my investment. Hence let me know which Income Tax rule govern such earnings? Never try divert issue about rising the Canada citizen. If I have any relationship with Indian financial institution also then it will be very much within the legality of Indian law. So I am very much open to this. Can we proceed further on this?? All the the investments Which goes from India comes under NRI scheme of investment. The company Which i have invested is fully regulated and i have never faced any difficulties in withdrawal either the Equity or profit…but when i checked with DSP Black Rock…there are lot of issues in the withdrawal which are pending for such a long time and i saw the review of your concern and the reviews are relay bad. So, how you can be a certified financial planner please explain me…. Arun-According to Income Tax law I am Resident Indian and If I do this trade then suddenly how my status will change to NRI? Also let me know one thing, what type of withdrawal are pending since long with DSPBR? If you are pointing towards mutual fund, then friend please read the redemption procedure set by SEBI-maximum time it will take up is 5 working days. No one can delay the withdrawal apart from genuine reasons. May I know which of my review is bad? If you have any concern on this then you can very much free to complain to rewarded body. I know this company and believe me investors are making huge money ranging from 25k to 50 k dollars…. Abdul-You are right and are operating in a daylight without any fear or regulators. Dear Sir, I am planning to buy a BDA site in Bangalore and then came to know the original documents are missing from the current seller but all other relevant documents are available like alotment from BDA and sale deeds from the previous seller and EC is OK and in BDA office all the documents are no issue. Ramakrishna-This is not relevant to the above post. Your email address will not be published. Notify me of followup comments via e-mail. You can also subscribe without commenting. BasuNivesh Personal Finance Blog. Insurance Planning Investment Planning Mutual Fund EPF and PPF Tax Planning Banking Real Estate. Basavaraj Tonagatti I am a Certified Financial Planner by qualification and currently living in Bangalore. Comments Raj gowda says: Raj-Simple is to check whether they are registered with SEBI or not. Hariom Bro, What shall I do now, can I withdraw my amount from them, please guide me sir regards devaraj. Devraj-You can withdraw whole amount. Why they ask and why you have to give explanation? I need to know can we do commodity trading with overseas broker as an Indian resident? Chandan-Thanks for sharing your bad experience. Let others at least heed your experience. Bhagat ram jat says: Mayank-First check the TRUST of your trusted broker and then act. Sir Evan you can suggest us legal broker of forex trading.! We are not professional as you.! Jagdeep-There are thousands of brokers. It is your comfort you can chose at the end. HI Basavaraj, Thanks for this. Pls, suggest me about this, waiting for your response. Hello Sir, Please let me know if I will face any issue following below usa, 1. Well according to me it is not illegal act!! Sir, Do you have any idea about the regulations for Binary options trading in India? Hello sir, pls tell me Forex Trading fantastic Opportunity its legal or not? Kindly provide more details or website link, in my case. I know the meaning for RBI…please can you tell me the meaning for SEBI. Dear Mr Basavaraj, I am a Mechanical Engineer with over 20 yrs of exp. Hi Sir, Will suggest me the legal sources of forex and share trading in india. Basavaraj, What if the traders win contest prize money in forex broker and trade with those money? Aman-Any adult can start doing trading. You can trade in currency trading. Hey Please tell me can i do Forex Trading via Nord Forex India Pvt. RAvi-If it is within legal frame which I mentioned above then you can do it. Ravi-Please check whether they are the registered broker with SEBI. Dear Basawaraj, A Private trader in India is asking for some money for doing some forex stuff. Hi Everyone, One thing that I would like to tell you about forex trading legal or not? Rbi circular says forex is allowed but leveraging is illegal. How far is this true. Hi Basavaraj TonagattiYour article gives a clear insight about Fx. I want to tread in forex. Ashish-Trading is trading, whether you do it for business, learning or whatever reason. Friends, I am also a forex trader, a signal provider and pool account manager in forex business from last 4 years and able to develop a very big and good forex earning business model where a comman man easily can earn from 10, INR sitting at home and can improve the life of a comman man or weaker section. After reading all the points above i would like to mention few points here please and need support — 1. Also resident Indian can hold foreign stocks? Sokkan-As of now there is no such amendment and the above post still holds valid. Sokkan-Stocks will come under investment but not trading and hence allowed. Have you read through the following notifications…. Basavaraj, Do you know about binaryoptions? Is it also illegal in India? Yes but in above article it is mentioned for currency trading only. Yuvraj-I am not aware of the ways which are illegal. So not aware of such things. Am highly grateful to you for Creating this Post. Ankit-As I said above, you can only trade with rupee as one currency against rest of currencies. Sir, TradersWay is legal or not legal. Please reply with your best answer. Awaiting your reply very very soon. My one friend is working that like field. I also think that people should get into this business to change their life. What guarantee you provide? Hi, I am trading in forex for 4 years, and till today, there is no problem I faced, I made withdrawal and successfully get money. I start with free money Contest. Shock time for me, I made another withdrawal in last month and got money without any problem, What I need to do to complete this transaction. Just say that you are orking as an affliate for the forex company. HiI saw all u r commends and what I noticed that apart from this legal issue …. Thanks Basavraj, Information you have provided has been very useful. Sir BasavarajThanks for sharing excellent information. I have some questions. Could you please clarify: Thanks for your time. Sorry for the delayed response. I have one more question. In this scenario would it be legal to trade forex? Please advise soonest possible! Many thanks in advance! Shrikanth-But what source you mention when you remit the cash from Australia to India?? I have transferred this way several times without any trouble. Sir, So if money laundering is what Usa is trying to prevent that means Indians are being kept away from an amazing forex making opportunity just because there are no proper regulations in India towards Forex trading. Can a person resident in India hold assets outside India? Ravi-It is better to withdraw immediately, stop trading and if possible close the account.
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Parts that were funny, awkward, difficult to follow, or anticlimactic often lead to interesting and fruitful analysis.