withdrawal through skrill

F

forexloser

New Member
#1
#1
hi guys i trade forex and have done good. i tried withdrawing funds from my broker through skrill and from there to my bank with wire transfer. now the bank is asking for the source. what should i tell them? i can't tell the bank that i earn through forex.
 
M

man30885

New Member
#2
#2
The common rule to play safe would be to not fund your trading account directly via your local bank by converting INR to USD. If you haven't funded that way, then you can bring the earned profits in India back as 'capital gain'. Since you used an intermediary online processor for depositing and withdrawing, it doesn't come under RBI jurisdiction. However, if you funded directly via bank wire initially, then you might get into trouble.

Though I have yet to test myself to see whether the bank has no problems with the users saying their forex profits were earned as capital gain in an online business or not...

Now having said that, I think it will be easier if one already does really earn in USD via any non forex related online business and use that EARNED DOLLARS to fund his international forex account instead of buying USD from RBI's depleting forex reserve. That will be perfectly legal as technically you never sent any money FROM India to fund the trading account. And by earning from forex, you are earning from your own hard earned dollars! So you have the right to bring that money in India and say proudly to the bank that you earned from your other NON forex business online. :)

I live in India too and have active trading accounts with multiple ECN brokers!

Luckily I do have my online business on Fiverr and plan to use that money to fund my trading account. Hope everything goes well! :thumb:
 
Last edited:
B

billi

Member
#3
#3
forexloser said:
hi guys i trade forex and have done good. i tried withdrawing funds from my broker through skrill and from there to my bank with wire transfer. now the bank is asking for the source. what should i tell them? i can't tell the bank that i earn through forex.
Click to expand...
I guess you already have got the right answer for that however i think there are a lot many who receive remittance payments, so not sure why are you that much afraid of going to your bank to claim your own money.
 
S

SpecialFx

New Member
#4
#4
forexloser said:
hi guys i trade forex and have done good. i tried withdrawing funds from my broker through skrill and from there to my bank with wire transfer. now the bank is asking for the source. what should i tell them? i can't tell the bank that i earn through forex.
Click to expand...
If Forex is banned or restricted in your country ,telling your bank the funds are from forex would prove some problems for you ,what you can do is request a bank card from your bank and then link your card to your Skrill account which can be done easily by yourself in your account.Right afterwards you could withdraw or spend your funds from bankcard without needing to request for any bank wire.
 
B

billi

Member
#6
#6
SpecialFx said:
If Forex is banned or restricted in your country ,telling your bank the funds are from forex would prove some problems for you ,what you can do is request a bank card from your bank and then link your card to your Skrill account which can be done easily by yourself in your account.Right afterwards you could withdraw or spend your funds from bankcard without needing to request for any bank wire.
Click to expand...
I suggest checking skrill prepaid master card can also be a good option if it is available in your area.
 
A

AirTime

Member
#7
#7
SpecialFx said:
If Forex is banned or restricted in your country ,telling your bank the funds are from forex would prove some problems for you ,what you can do is request a bank card from your bank and then link your card to your Skrill account which can be done easily by yourself in your account.Right afterwards you could withdraw or spend your funds from bankcard without needing to request for any bank wire.
Click to expand...
This is one good direction :thumb:
 
T

trade2411

Active Member
#8
#8
man30885 said:
The common rule to play safe would be to not fund your trading account directly via your local bank by converting INR to USD. If you haven't funded that way, then you can bring the earned profits in India back as 'capital gain'. Since you used an intermediary online processor for depositing and withdrawing, it doesn't come under RBI jurisdiction. However, if you funded directly via bank wire initially, then you might get into trouble.

Though I have yet to test myself to see whether the bank has no problems with the users saying their forex profits were earned as capital gain in an online business or not...

Now having said that, I think it will be easier if one already does really earn in USD via any non forex related online business and use that EARNED DOLLARS to fund his international forex account instead of buying USD from RBI's depleting forex reserve. That will be perfectly legal as technically you never sent any money FROM India to fund the trading account. And by earning from forex, you are earning from your own hard earned dollars! So you have the right to bring that money in India and say proudly to the bank that you earned from your other NON forex business online. :)

I live in India too and have active trading accounts with multiple ECN brokers!

Luckily I do have my online business on Fiverr and plan to use that money to fund my trading account. Hope everything goes well! :thumb:
Click to expand...
Hello sir,

Thanks for sharing the idea of funding the account via an online business. However, sir you say that " Since you used an intermediary online processor for depositing and withdrawing, it doesn't come under RBI jurisdiction. " , i would like to understand how doesnt it come under RBI jurisidiction.

RBI says that
1. we cannot remit money via any route other than authorized dealers which are generally the banks.
2. we cannot remit any money for margin trading.

Please help me understand how to overcome these 2 if we dont have an online business like you .

If we transfer via skrill/neteller and bring the money back as 'overseas captial gain' , wouldnt the Income tax department be concerned of the nature of the transactions for overseas captial gain ( considering the amount is big enough)

The banks allow to wire under LRS , but we have to give a declaration in form A2 which clearly states the money will not be used for margin trading.can the RBI the nature of transactions we do after we have remitted the money out :confused: ?
 
T

trade2411

Active Member
#9
#9
forexloser said:
hi guys i trade forex and have done good. i tried withdrawing funds from my broker through skrill and from there to my bank with wire transfer. now the bank is asking for the source. what should i tell them? i can't tell the bank that i earn through forex.
Click to expand...
I think the banks should not have any problem if you say its capital gain, probably its part of their procedure to ask for the soruce
 
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