Forex trading in India – Legal Or Not

is forex trading illegal in India or not?

This is one of the major topics of confusion in India because there are many limitations and restrictions on this. The rules and regulations are made just to keep users away from heavy losses.

What is Forex trading?

The trading of foreign currencies in the global market or simply the foreign exchange is referred to as forex trading and this is the highest volatile market in the world.

Forex trading in India and how does it work?

The investor can invest in forex trading just like BSE, NSE, etc. All you have to do is buy the currency you think will gain the value in near future. Although Forex trading is legal in India it is illegal as per RBI rules, but interested investors can still invest through the forex broker. You can find many forex brokers online, but remember no one is responsible for any loss if it happens.

Forex trading is buying and selling foreign currencies just like investors do in stock markets. Here, investors trade one currency in exchange for another currency. The investment is always done in currency pairs.

For example– You purchase the currency pair USDINR at the time when the market value of USD is Rs. 67 and you expect it to reduce to Rs.66. This will be a short-selling trade as when the USD will become Rs.66, you will get Re.1 profit. And if by chance value increases, you will be at loss.

Is forex trading illegal in India?

The major question arises here is forex trading illegal in India or not? So the answer is no. The forex trading is legal through SEBI registered dealers. The entire list of dealers is available on the website.

You can carry out the forex trading in India only with India exchanges like NSE, BSE and MCX-SX offering foreign instruments and the tradable currency pairs are GBPINR, USDINR, JPYINR and EURINR.

According to the FEMA act, non-currency trading is illegal in India, investors must choose INR as the base currency. RBI and SEBI do not allow any Indian trader to use any online or digital forum for forex trading.

Is forex trading legal in India?

Investors around India are still confused: is forex trading legal in India or not? RBI has set some limitations on forex trading as it can lead to huge losses also but it is not completely banned. It can be a tempting approach for experienced traders but it is banned in India. Investing in forex trading via overseas brokers is something very risky.

Is forex trading legal or illegal in India?

According to RBI guidelines, Forex trading is legal but Indian investors are taking the help of online foreign brokers for trading which is not allowed. If you are a beginner, you must be extra vigilant and understand all the rules and regulations involved in forex trading. If we talk about forex trading is illegal in India, it is just because it is highly volatile and competitive. As USD is higher than INR, in case of losses, people can’t bear losing such a huge amount of money. This is also one of the reasons why Forex trading is illegal in India

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