Can I work for US Trading Company ?

Hello,

I am receiving training from a US based propreitary trading company.

The training I received for trading in futures and options was very good.

But, I have a doubt, if some experienced ones here can help me, I will be very much grateful.

Q1. Is it considered legal to work for trading companies in the US from India from home ? I am absolutely new to this trading business. That is why I am asking.

They will put some capital in my trading account and I will have to work for them to get salary 50-1lakh per month via wiretransfer. My focus is entirely on Futures and Options in US Market.

Q2. What should I say to the bank and tax people if they ask how I am getting the money ?

This is my first job. I have no idea about income tax. I never earned more than 2lakh before. That's why please suggest. My career hangs in the balance now! Please help!!!:sos:

Well, what is the name of that company which will put some money in your trading account after you received some training in future and option trading from them, but not can answer such questions to you"?

Very obscure.

There are many Proprietary trading firms in India that does this.

Not sure about your specific company that provides training and money to trade.

Prop firms that i worked for in Pune - Capstone would give us form 16 at end of each financial year. So your earnings are legal and you can file taxes as usual.

Thanks a lot com4300. The trading firm is Main Street USA Company. They helped me understand the technical analysis and they have traders from stocks, futures, options and forex also. Google it and click the first result! They have big names I guess ( I think so because you can see one of their senior traders featured on bloomberg!! on homepage). May be this is normal!! I don't know since I am new to this business

I heard many saying that forex trading is somewhat messed up in India. Since I am new, I decided, why take the trouble and restricted myself to futures and options. Its their money I will be trading with anyway... May be you could give your opinion on this!

Thanks for the help. I really appreciate it comm4300.

:annoyed: I'm new to this Dan!!! Come on!! Actually they gave me the option to trade any one of Futures/Forex/Options/Stocks in the US, but they don't know that RBI has some restrictions with respect to forex trading in India. For eg. trading forex only paired with INR. They didn't knew that!! I had to tell them

I may be wrong! I may be right! The problem is... my knowledge is not complete. You guys are experienced (I can see the no. of posts you made). That's why I asked.

Forex trading is not illegal, its a grey area though. Trading INR vs other free floating currencies is illegal in India since RBI and FinMin artificially regulate the exchange rates for INR locally (though Oanda does offer trading of INR).

Anyway this is out of the scope of discussion here. In your situation, I would be concerned with: 1. why would a foreign entity not find people to trade in their own country and look for netizens abroad; and 2. how would you be sure that you will receive your fair share of the profits? In the latter case, you cannot do anything legally against a firm in different jurisdiction.

You should instead go to local firms with the training you received and work for them, or if you are young and can afford to lose a few months, then go ahead and start trading on their accounts but do not keep your hopes too high and be prepared for whatever lays ahead.

Hmm.

Any amount of posts has nothing to do with what ever or to show annoyed. But one answer in which you would be able to say:

No, nothing obscure about it Dan, as the name of the company is Main Street USA Company and that is how they let non pros trade there own (or customers money).

such a post would do much.

But its fine and you also show your mentality about this: Its their money I will be trading with anyway.

Ok, would you seriously give your money to such kind of a person which not even has any track recording and even is overseas? And if yes, then how much do you care about your money? or would it be any way customer money and even the companie does not care about that?

Companies which work like what you explained ARE OBSCURE.

I've gone through your posts. Best person to ask about tax is a CA. Find a good one or approach one that is known within your circle.

IMHO, Trading firms will provide you with capital as long as they think you are sincere about it.

With the kind of statements you've made here, If I was your trainer or mentor, I'd be alarmed!!!

First of all, thanks for sharing your knowledge to everyone. I really and sincerely understand your concern about the statement I made.

The only reason why I made that statement is... to make it clear to the experienced traders here that I am not trading with my own money... the important point you guys could not read is... "Since I am not trading with my personal money, will it be considered inappropriate if any time in future if I wanted to trade on FOREX.

I should have asked this question directly.

Moreover, I like to use emoticons as they are fun to me Don't pay much attention to them.

Yes... I paid for training. No, it is not a scam. I don't care about reviews of other people whom you never saw or knew before. I am saying so because there are well respectful people there, with whom I interacted during training.