Ask Your Forex Question Here

Yes but reliance is neither some govt authority nor RBI to decide , and if you ask directly at forex dept of any banks you might get clear explanation of what is allowed and what is not and remember sending some 2k or 5k from here to broker abroad is not a issue but bring back under taxation regime become more complicated and crumber some later if serious amount of funds are involved and i am not talking abt experimental trader who dream with 500 $ as well which is not gonna come back any way :d

I have been trading a CMSFX demo account with 1000 USD balance which i have spun to make 8000 USD in a span of three months (i have been trading otherwise for over an year)
Do you think that with real money these trades can reap such results or is it a way to lure traders to show performance of this kind is possible?

I shall enquire with the bank and keep you posted on the issues of remittance!
Many thanks sir!

Read carefully the words "any permissible current or capital account transaction". Forex is not a permisible transaction. You can land in jail if RBI comes to know. Forex tarding is expicitly banned in FEMA and is non-bailable offence. I have confirmed this from forex dept. of 5 banks. Only corporates are allowed to trade in forex - subject to the condition that they can use only their free dollar reserves. i.e. they cant purchase dollars by converting rupees into dollar, they can use only the existing dollars they have earned in normal business. Also another condition is that they cannot use leaverage of more than 10 times.

Individuals, please do not trade forex as it can land you in trouble (jail).

AS in the following the RBI bars you in totallilty from remiting money for forex trradingg:----------

Liberalised remittance scheme of USD 100,000 for resident individuals:

Eligibility
Only resident individuals are eligible to make remittance under liberalised remittance scheme

Limit USD 100,000 per financial year (i.e. April – March)

# Form/ Documents Outward remittance request letter
# Application-cum-declaration under liberalised remittance scheme of USD 100,000
# Form A2
# If the applicant has not maintained the account for a minimum period of one year then
- Copies of bank statement for the previous year or
- Copies of latest Income-Tax assessment order or Return filed by the applicant

# Permissible purposes The liberalized remittance scheme is available for making remittances for permissible current or capital account transactions or a combination of both. Gift
# Donation
# Investment in overseas company through equity shares
# Investment in bonds / debt securities abroad
# Purchase or acquisition of immovable property abroad
# Overseas bank deposits
# Opening, maintain & hold foreign currency bank account outside India for making remittances under the scheme

However, under this facility resident cannot make remittances in the nature of margins or margins calls to overseas exchanges/ overseas counterpart.

Transactions
not permissible under the
scheme a.Under Foreign Exchange Management (Current Account Transaction) Rules, 2000
# Remittances for any purposes specifically prohibited under Schedule –I of the above
# Remittances for any items restricted under Schedule II of the above

b. Remittances made directly or indirectly to Bhutan, Nepal, Mauritius or Pakistan

c. Remittances made directly or indirectly to countries identified by Financial Action Task Force (FATF) as “non-cooperative countries and territories”

d. Remittances directly or indirectly to those individuals and entities identified as posing significant risk of committing acts of terrorism as advised separately by the RBI to the banks

e. Remittances in the nature of margins or margins calls to overseas exchanges/ overseas counterpart

can't this be done fellows:
1.) Transfer the amount to your friend in USA as donation.
2.) Tell him to transfer the amount to your Paypal account.
3.) use ur paypal account to transfer the funds with your broker.

This way there is no need to use RBI's remittance abroad scheme.

we are not talking about just retail forex accts alone what about taxation issues buddy say if you are 100k$ which most of penny $ accts traders dreaming of how you with draw your profit and file your taxes from a biz thats which yet not categoried yet

I suppose that idea would work out with an amount which will not give rise to suspision,but if you are talking of large amounts,then, even paypal reserves the right to investigate the transaction.(protection against money laundering)
In my bit of research i have learnt that forex transactions(with credit card) not exceeding 500 USD do not need documentary evidence to be submitted by the remitter,thereby making Paypal a plausible solution.

take a look at ---(17th clause billing and payments)
http://www.online.citibank.co.in/por...dmemberT&C.pdf

it would be nice to have your views on this!!

i think we should not be bothered by the tax issue. The government has not made the issue clear. we should bank on the opportunity.

Hi

I am working from Sweden.I have to bring the money back to India.I have heard that Swedish Krona is not that widely accepted and since it comes undr misc,I'll get the rate as compared to Dollar which is going down mostly.I have adviced by one of the dealer for foreign exchnage in India that I should get the money in terms of Euro instead.In this case I have to exchange Swedish Kronas for Euro here itself and then subsequently euro to rupees in India.What do you think what I should do in this case?what is the best strategy and why?

Thanks in advance!

I am also trading forex for quite some time and I am doing quite well.I have two questions for Mr jj shah
1) Trading with high leverage say around 10 times in highly volatile currency pairs like gbp/jpy for small profits rather than trading with normal leverage to gain same amount of profit is it advisable?When I say that trading with high leverage I make sure there is enough money in account to act as stop loss.In this method I have found that you dont need to sit long hours looking on charts and take your profit and get away.what do you feel about this type of trading?In this type of trading I utilize about 50% of account money at a time keeping the other 50% in account as stop loss.and I only trade one pair at a time gbp/jpy.I think you can earn about 150% per month with this method.
2) Have you ever tried trading in positive roll over pairs like gbp/jpy,usd/jpy,gbp/chf in their positive direction to give positive long term returns?I was thinking putting about 20% of the profit earned from above method which will give me long term positive returns although the chances of getting it screwed is also there when carry trade unwinds.what is your opinion of such carry trades?
I am impressed by your previous answers and let me tell you this forum has after a long time has seen someone quite informative and educative.The previous one being nautlius.keep your good work going.