iForex Account

Guys

I've opened an account with www.iForex.com. I deposited $100 to their account through card and did my first trade and got a profit of $30... Now I did a search in the internet and most of the websites claim that iForex is a scam and they would eat up all our money... Even the money deposited ($100) cannot be withdrawn it seems... Does anyone who use iForex.com share their experiences?

Regards
Ravi

Hi

Can anyone please respond to this?

Regards
Ravi

Looks like you are the only one in TJ who fell for those dumb adds.

Thank God that you only invested 100$, think of it as a dinner for two in some good restuarant and start learning forex trading..

laluji

In what way FOREX trading is different from EQUITIES trading?

Regards
Ravi

forex trading is mostly different from equities trading in the terms of margin or leverage required to trade.

for example- if you want to trade reliance or tata motors or any other big company's stock then you can buy 6 lakhs rupees worth of stocks, for intraday trading, with a margin money of only 1 lakh rupees. Now if you want to buy or sell euro/usd pair worth of 6 lakhs rupees then you only need to pay 6 thousand rupees as margin with your broker on a margin ratio of 1:100 .

Now RBI does not want indian citizens to trade forex on margin but only if they pay the full value of the trade size to the broker, which in the above example is 6 lakhs rupees.

Hi Smartboy

Does this mean that trading FOREX on Margin is banned for Indian citizens? Then how do these brokerage firms ask us to join these crap and ask us to trade on Margin? I'm really surprised... So what is the solution for this? How to trade in FX? If it is not possible then is that the end of the road for we Indians to trade FX with margin Money?

Regards
Ravi

i guess they are all scams

Not sure about iforex, but they are not all scams...

We open accounts in overseas...so no problem in marjin..but trade with lower investment like 5K -10K so noone will interfere..and withdraw little and frequent

Thanks everyone who responded... I just spoke to couple of guys who hold account in iForex and they seem to be kind of OK... But my 100$ account which was 130$ till yesterday has become a 90$ account... "WELCOME TO THE WORLD OF FOREX"

Regards
Ravi

Yes, it is not allowed to trade forex on margin by Individual Indian citizens. The thing is these forex brokers are situated outside of India and do not come under the regulation of RBI and Indian legal system, so they don't care if they are allowing indian citizens to trade on margin against the rules and regulations of India. It is not their legal responsibility if you are the one who is breaking the laws of your country. It is you who is living in India and has to make sure that you follow the rules and regulations of India, both in letter and spirit. Not many Indian citizens follow the law of the land rigorously and you may be one of them and wouldn't care about the law until and unless you are caught and punished by the Indian legal system.

FYI, big forex guys like DBFX ( Deutsche Bank Forex division) won't even open individual accounts for Indian citizens and so is the case with Citi bank's forex subsidiary company.