Forex Legality about to solve

[Fxbee]

this thread is a pure marketing for alpari n fxcentral

no fx broker will ever say fx is illegal cause they want your money

STOP ADVERTISING IS ALL I HAVE TO SAY

seems you jump on conclusions quickly
if you see first post of this thread, I requested some experts to go through the NFA manual scanned by Fx central to verify whether they term the deposits as margin or not and yes IB and DBFx decline indian residents to open spot forex leveraged account, please mail or contact them.

again my main aim was to verify the claim made by Fx central so that we can open account with any good NFA regulated broker. central theme was if NFA dont consider the security deposit as Margin, then RBI rules cant be applied! samjhe kya?

 

[Best of Luck]

seems you jump on conclusions quickly
if you see first post of this thread, I requested some experts to go through the NFA manual scanned by Fx central to verify whether they term the deposits as margin or not and yes IB and DBFx decline indian residents to open spot forex leveraged account, please mail or contact them.

again my main aim was to verify the claim made by Fx central so that we can open account with any good NFA regulated broker. central theme was if NFA dont consider the security deposit as Margin, then RBI rules cant be applied! samjhe kya?

Sir ,
I think it is not important what "NFA considers as margin" - what RBI interprets as Margin - that is important.See the difference of opinion between the two giants SEBI and IRDA.we lilliputan will be caught in between.
Best of Luck

 

[Fxbee]

Sir ,
I think it is not important what "NFA considers as margin" - what RBI interprets as Margin - that is important.See the difference of opinion between the two giants SEBI and IRDA.we lilliputan will be caught in between.
Best of Luck

yes a valid point, we need to visit RBI Fx department for this ' Margin ' clarification, people here may consider as why we must be so much bothered? true, even I am not bothered for my personal accounts upto 20K USD, but certainly worried abt the clients who invest a pool of few Mln$

 

[preetksgill]

Trading on an NFA regulated broker following NFA guidelines, simply forget you will ever make money there

FIFO will never allow you to make money.

 

[fxgood]

Trading on an NFA regulated broker following NFA guidelines, simply forget you will ever make money there

FIFO will never allow you to make money.

That mean you say no one in India is making money on NSE or MCX markets traded on futures exchanges? And no trader on earth trading on futures made money????

 

[duster]

Sir ,
I think it is not important what "NFA considers as margin" - what RBI interprets as Margin - that is important.See the difference of opinion between the two giants SEBI and IRDA.we lilliputan will be caught in between.
Best of Luck

Well, trade with 1:1 leverage (meaning no leverage at all) and your problem is solved.

RBI is afraid of people loosing money too fast because of margin trading, but RBI is not against trading in general.

Another issue is that in the era of high technologies it's technically IMPOSSIBLE for a governmental body to "track" or spy on clients - how do they know which leverage you are using? You can change it in real-time in any second on the website.

I would say - if you want to take the opportunities of Forex trading - do it, if you are too scared - you shouldn't. And I think RBI is much less harmful than 1:500 leverage in combination with big lots ;-)

 

[Fxbee]

Today I called RBI forex department and had a word with them and from the talks with my forex banker it was obvious that sending money under LRS for Margin purpose which includes any type of Margin based trading is Illegal.

regarding Alpari, people they make you sign on 1:1 leverage so they would not be in trouble. If you increase the leverage on your own, you could be.
Also RBI does not ban trading on OTC products, but it has only issue regarding Margin trading

yes, I agree that RBI doest not have time to track small accounts like few thousand dollars. But if some one wants to trade Mln$, there could be serious problem as of now!

Conclusion -

Fx spot trading on margin with foreign brokers is Illegal as of now

As per RBI rules
one can trade forex futures , say on CME

so a better route is to open account with CME brokers to trade forex futures

all the best
FxBee

 

[Best of Luck]

FEMA violation

Even though in FEMA the penal provisions of harsh punishments of FERA have been removed - RBI is not stripped of all its powers.Still it has got claws.
Read the PDF file to see what the RBI can do for FEMA violation.
Is it worth the risk trading forex when there is ambiguity.
Dear seniors and Traderji
your esteemed opinions are needed in this long going debate
TO BE OR NOT TO BE ( a forex trader )
Thanks.
Best Of Luck
http://www.bcasonline.org/webadmin/contenttype/attachedfiles/RepresentationonCompoundingAmounts.pdf

 

[fxgood]

Today I called RBI forex department and had a word with them and from the talks with my forex banker it was obvious that sending money under LRS for Margin purpose which includes any type of Margin based trading is Illegal.

regarding Alpari, people they make you sign on 1:1 leverage so they would not be in trouble. If you increase the leverage on your own, you could be.
Also RBI does not ban trading on OTC products, but it has only issue regarding Margin trading

yes, I agree that RBI doest not have time to track small accounts like few thousand dollars. But if some one wants to trade Mln$, there could be serious problem as of now!

Conclusion -

Fx spot trading on margin with foreign brokers is Illegal as of now

As per RBI rules
one can trade forex futures , say on CME

so a better route is to open account with CME brokers to trade forex futures

all the best
FxBee

But according to FMC regulation in India trading overseas futures or operating international terminal for futures is illegal...wow what a super regulator we have

 

[Fxbee]

But according to FMC regulation in India trading overseas futures or operating international terminal for futures is illegal...wow what a super regulator we have

Schedule I

[See Regulation 3 (1) (A)]

Classes of capital account transactions of Persons resident in India


a) Investment by a person resident in India in foreign securities


b) Foreign currency loans raised in India and abroad by a person resident in India


c) Transfer of immovable property outside India by a person resident in India


d) Guarantees issued by a person resident in India in favour of a person resident outside India


e) Export, import and holding of currency/currency notes


f) Loans and overdrafts (borrowings) by a person resident in India from a person resident outside India


g) Maintenance of foreign currency accounts in India and outside India by a person resident in India


h) Taking out of insurance policy by a person resident in India from an insurance company outside India


i) Loans and overdrafts by a person resident in India to a person resident outside India


j) Remittance outside India of capital assets of a person resident in India


k) Sale and purchase of foreign exchange derivatives in India and abroad and commodity derivatives abroad by a person resident in India.

RBI Link

Now tell me as per RBI, is it Illegal to trade forex futures on CME?