May 22, By Avinash Sawant.

Many a times, we come across discussions questioning the legality of currency trading also known as Forex trading in India. It does create an element of doubt in the minds of potential investors and also young entrepreneurs who wish to step in and earn from this market. Well I hope that this article will surely help you in clarifying your doubts about the legality of Forex trading in India. In the beginning I will like to tell you that Forex trading in India is completely legal if you follow a proper channel.

Now for trading in Forex you have to convert the INR Indian Rupees to the desired currency you want to trade i.

Supposing you are investing US dollars to buy Japanese Yen, then USD becomes your base currency.

Forex trading in India - Legal?. Here is RBI circular

There is no restriction on the frequency of exchange in a financial year. This has been done under the Liberalized Remittance Scheme LRS. Reserve Bank of India has made it clear that remittance in any form which is towards overseas foreign exchange trade through electronic trading portals is not allowed under the Foreign Exchange Management Act FEMA The RBI has also made it clear that the existing regulations under FEMA, do not permit residents of India to trade in foreign exchange in domestic and overseas markets.

Residents of India are, however, granted permissionto trade in currency futures or options contracts, traded on the stock exchanges which have been given recognition by the Securities and Exchange Board of India Rbi approved forex broker in india in India, subject to the terms and money maker album krispy kreme mentioned by the Reserve Bank which may change from time to time.

So one thing that is clear that Forex trading by individuals in India is not permissible by Indian Government. However the amount of USD 2,00, can be utilized what is nifty options trading Forex trading and moreover if your broker provides you with a high leverage then you can trade by investing only a small amount.

Finally we conclude rbi approved forex broker in india it is legal if you follow the right channel i.

The MCX-SX started with monthly contracts in USDINR pair and then expanded its currency derivatives. The above diagram shows example of chart for the 21 May Forex Trading In India.

Forbidden

Following points need to be considered are. Now I hope by this time you must have understood is it legal or illegal? And if it so still how come people from India are doing this, How come I receive calls from different Fx Trading companies to open the trading account.

Then read the below post it shows how Indian traders are trading in International currencies. Avinash Sawant is a professional Forex Trader.

Helped s of people online to achieve their financial freedom. Happy to help people to achieve their dreams.

Learn Best Way to Earn Money!! Arial, Helvetica, sans-serif; text-decoration: Forex Trading In India. Is Forex Trading Legal in India.

Fill the form below. Related posts Must Read: What is currency trading in India?? How to be a successful Forex trader in India?? Forex Home Based Business India Forex Trading Benefits in India.

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