wmt to do forex trading....

hello dear friends, i am new to this useful forum and trading also, i know that forex trading is illegal in india, but what if i take a risk with a very small amount like $300? will rbi notice?

Yes RBI will notice it.

plz tell me how to do forex trading with inr and what platform u recommend. what are the aspects in trading with inr vs other currencies? positive or negative? thanks

yes inr pairs are legal to trade , every broker india provides that.

But OP was talking about usd , gbp, jpy ..etc and these are illegal to trade.

Yes, this is correct.

you are taking a risk by trading forex(not inr) pairs by sending money outside india.

But our banks allow it for some strange reason.

I have blown a couple of thousand dollars by trading in forex. I still trade live.

I m waiting for the day when it becomes legal, but i am not sure if it will happen.

yes SG also trades , but i guess he has someone in USA to wire the money to his broker.

The real problem will be if and when you become profitable in forex and you have declare your income for taxation, that is when you will get caught.

This is exactly why we have financial crisis in the world. This so called "smart plans" is what has ruined the savings of so many people in the world.

you must be so proud of yourself.

The phenomenon is so misunderstood that......sorry but even you have misunderstood it!

There is a difference between forex & forex-derivative/future, same difference that is between buying a stock & buying its derivative/future; & what is legal is trading the FUTURES of USDINR, GBPINR, EURINR, JPYINR but trading these forex-pairs is just as "illegal" as EURUSD!

And, under the rules, we CAN buy shares of Intel, Apple, etc but just not on margin!

CFDs on metals, crude, etc are also illegal; what YOU trade on MCX, NCDEX isn't a CFD, its a FUTURE, they are also different things!

I don't know why you think this is so funny that the stupid politicians and bureaucrats have made a perfectly legitimate activity "illegal; considering the opportunities in forex markets, any good trader will only feel sad about this issue, not laugh!

Do you expect people to just be nice little slaves to the government & abide by all the stupid laws created by economically illiterate politicians & bureaucrats? People should use their brains, if one is not stealing, defrauding, coercing or using violence against innocents then there's nothing wrong with it, trading forex doesn't necessarily involve any of those things so people should have the FREEDOM to do it!
It's because of such servile attitude that just a few years ago futures & commodities were restricted on Indian markets under the stupid belief that "speculators (includes you & me too) drive up the prices".
Just remember, if Euro is destroyed (which is likely to happen anyway) & USD plummets then prices,especially of commodities, could explode & then the stupid government may restrict commodity-trading again, in a futile attempt to control the markets, & oil (which is what you seem to be trading) could be the first commodity to be restricted, I wonder whether you will be laughing at that!

So far as going to jail is concerned, of course, forex isn't worth the risk for most people but it would be ridiculous for a GOOD TRADER (like SG for example) to not trade forex because of some stupid economically illiterate politicians & bureaucrats.
A good trader will make enough money from forex to get a good lawyer or even leave for a country that doesn't have such stupid laws!

Besides, there are plenty of ways to get around the "illegality".
SENDING money outside India for trading on margin is "illegal" so someone living in a foreign country can fund the account & a person in India could operate it & receive the profits, which is what TraderDude suggested SG is doing, which would be a grey area.
Moreover, restrictions apply to "Indian Residents" so of course a good trader could make enough money to leave the country for 6 months a year or even permanently!

Again, the fundamental idea of freedom is that we should be able to do what we want as long as we don't steal, coerce, defraud or use violence; people get their freedom when they use it, Gandhiji made salt when it was "illegal" to do so because that's a legitimate freedom people should have, just as freedom to trade one's money as one pleases!

Banks allow it because INR is a "Dirty Float" so people can still buy/sell goods & services, & for that currency-conversion is necessary.

Forex is illegal because of the mindset you exhibit in your next reply - the belief that somebody making profits, even if consensual, is bad just because one can't see its immediate benefit to them & the society.

There's no question of taxes since it's illegal.
Interestingly though, online-gambling in UK, including on forex, commodities, stocks, sports, etc is completely tax-free! Why? Because the government realized that it's going to occur even if made illegal, & since most people lose money anyway, they realized that taxing the profits of gambling-companies (which acts as an indirect-tax on gamblers) is a lot sweeter than trying to make it illegal! :rofl:
May be government of India could take inspiration from that :lol:

More than anything else though, forex will become legal only when enough people understand basic economics, such as the fact that governments issuing more & more money to finance itself is what devalues it & causes high inflation, NOT the speculators, speculators merely act in accordance with supply & demand, so when governments issue more money (supply increases, value decreases), speculators try to foresee the devaluation & start shorting the currency, they keep govt devaluations & inflation (which is indirect-tax by govt on its citizens) in check, which is why governments always blame the speculators for everything!

As I've said earlier, this mindset that making profits or trying is bad because one can't realize its benefits, is the very reason why forex is illegal in India!

Bear in mind, in case you are a commodity-trader, somebody might blame YOU, "the evil speculator" for moving commodity-prices! Somebody might blame YOU for squandering a couple of thousand USD which helped devalue INR!
But of course, any such blame would be unfair & plain wrong, just as blaming Shraddha or those who "supposedly" "caused" the financial crisis would be wrong; just as you should be free to your money where you want, others should be free to put their money where they want! (of course, I don't approve of spamming but that's beside the point)

The crisis was caused by US central-bank keeping interest too low, moreover, the ultra-smart US government (aka politicians & bureaucrats) FORCED banks to make loans to unsound borrowers because they wanted poor people to have houses!
Result was that poor unsound borrowers were unable to repay the loans, which means banks didn't get their money back & they fell; & since US banks have global ties, it affected the banking system of the world.
Interest is the price of capital, it should be freely allowed to be determined by the markets but central-banks insist on controlling it, which leads to gross misallocation of resources which eventually results in inflation, recessions & destroying people savings & their lives.

All because of governments' insistence on (trying to) controlling the markets by use of force! It simply doesn't work!
Such control to "help & protect people" failed miserably, leaving India poor & destitute for half a century after Independence until the markets were opened a little bit which allowed India to grow & increased living-standards of millions of people!

Economics is probably the most important yet the most neglected topic for most people of the world; if only people could understand at least the basics of what prices & profits are & how they help allocate resources in the economy, & realize that government force is NOT the answer, then the world would be a less corrupt, more productive & prosperous place!

Here's a nice 10-part video-series on how markets work & how allowing people to freely & peacefully fulfill their self-interest maximizes goods & services & prosperity for everyone - http://www.youtube.com/watch?v=D3N2sNnGwa4