Alpari UK open Office in Mumbai

But Alpari is Market Maker not ECN broker so they are your counter party like when you win they loose and when you loose they win as broker. As if one seek to trade fx in professional ways i advice to go with ECN brokers of choice available not with market makers unless you are just trading for thrill and fun, and not in professional ways

But Alpari is Market Maker not ECN broker so they are your counter party like when you win they loose and when you loose they win as broker. As if one seek to trade fx in professional ways i advice to go with ECN brokers of choice available not with market makers unless you are just trading for thrill and fun, and not in professional ways

Hi Wetradefx,

I have written a lot on this in my post "Bank wire transfer" and other post and explained in detail how you can remitt funds for capital account transactions. Just for your reference I am copy pasting the same post -

Currency / Forex trading is completely legal in India. You can trade in INR USD through MCX, NSE and BSE. There is a new exchange USE who is also going to offer INR USD. RBI is also in the process of introducing INR EURO and INR GBP from sometime next year.

To trade in other currencies like USD EURO, EURO GBP, GBP USD and all other world currencies you have to open a currency trading account with global currency market makers like spreadco (who has a tie up with Anand Rathi in India (see their websit - http://premiumsecutiry.anandrathi.com), fxcm, alpari.co.in(only global currency company to have an office in India for client support), iforex and numerous others.

To trade in global currencies every resident Indian can remitt funds for Capital Account transactions under the LRS (Liberalised Remittance Scheme) to a tune or USD 200,000 per annum.

You can click the following URL (sinppets from RBI website) which highlights that. http://www.rbi.org.in/scripts/FAQView.aspx?Id=66

However, there are lot of apprehension regarding its legality. I am attaching another document (please read point no K (highlighted in Yellow) in Schedule I (Foreign Exchange Management Regulation Act 2000) which clearly specifies classes of Capital Account transactions of persons residents outside India.
This schedule clearly specifies that it is permissible to trade in foreign exchages. However remittance from India for margins or margin calls to overseas exchanges / overseas counterparty are not allowed under the the LRS scheme.

But to remitt funds for your capital account transactions (like trading in currency, equities and commodities abroad) you will have to remitt your funds through AD1 Banks (which are basically all nationalised and private banks) to your trading accounts abroad. Lot of banks are not aware about the modalities of this scheme and hence confuse customers and traders by giving false information. What you need to do when you are remitting funds to capital account transactions is that you have to ask for an A2 form from the bank, fill in the details and tick in Capital Account Transactions Code No S0001 which is for Indian Investment Abroad in equity capital (shares). (Remember one thing RBI has restricted the AD1 banks from advertising this scheme and product, hence the banks are also not promoting it aggresively and many branch manager of banks are not aware of this scheme although this is under operation since 2004.). Only one requiste in this regard is that you need to have an account with the bank through which you are remitting funds abroad. Normally the funds are credited in your trading account within 24 to 48 hours and then you can start trading. Dont ask any questions to the branch manager. They are all fools and try to go by the book which they have not read.

the proforma of the A2 form (is enclosed in my post Bank wire transfer Pleas go through it) that you need to fill and duly sign it and submitt it to the bank for remitting funds. Only thing is that you need to have a bank account with them. Dont ask any questions to them.

If you have an account with them and fill the form in the way I have mentioned they are bound to remitt funds for you. Dont enquire with them. Just ask for a A2 Form and fill it the way i have mentioned and submit it to the banks.

If you know the swift code of the broker or bank than please mention it. It will help transfer of the funds faster but it is not necessary or mandatory to mention swift code in the A2 From. If you do well and good. Banks cannot refuse to remitt funds because you donot have a swift code.

What i know is that Banks actively donot promote the LRS scheme as they are not too sure how this scheme works and moreover there is a lot of scrutinny in funds going out of the country by RBI. ( I had met a few RBI officials a couple of days back) and the entire onus of remitting the funds and knowing the correct source of origination of the funds lies on the banks hence they try to be very scrutinitive of these type of fund transfer. More over the FX departments of all the banks donot corrdinate with all the branch manager about these schemes and try to achieve their targets by getting in touch with clients directly. Nobody is going to talk or can directly or boldly about these business, even the RBI because the currency trading laws and guidelines has not been written well till date. Even the regulators are still learning from this market operations.

Thanks for such a nice informative and helpfull post. It has solve many of my quries...But I have a query..

Capital Account Transactions Code No S0001 is for investment abroad in "equity capital"....but but we would be trading in forex derivatives so will it not be a breach of law by some way or other....agree that nobody will monitor us if we are trading in shares or derivatives but still wat if they do.......

Please also let me know if have misunderstood the scope of the term "equity capital" as mentioned in the A2 form.......

Also right now I am holding that A2 form....where I need to write the purpose for this transfer...so should we have to mention there "investment abroad in equity capital"......

Thanks...

Thanks for such a nice informative and helpfull post. It has solve many of my quries...But I have a query..

Capital Account Transactions Code No S0001 is for investment abroad in "equity capital"....but but we would be trading in forex derivatives so will it not be a breach of law by some way or other....agree that nobody will monitor us if we are trading in shares or derivatives but still wat if they do.......

Please also let me know if have misunderstood the scope of the term "equity capital" as mentioned in the A2 form.......

Also right now I am holding that A2 form....where I need to write the purpose for this transfer...so should we have to mention there "investment abroad in equity capital"......

Thanks...

thansk for info guys but i am not sure you are corrct.

i have called the RBI who clearly said read the guidleine on thr margin counterparty or margin calls issue.. honestly i dont wanna get put behind bars for this type or trading.. mcx gold is good enough

has anyone had any issues witht he banks?

MCX is another joke. Have you ever met anybody in India who makes good money there? Me - not.