Forex trading on line

#1
Hallow ! I am a new member and am interested in doing FOREX trading on line. I have seen some FOREX on line trading sites and have also tried for about one week to use the DEMO sites for doing FOREX trading on line. I am now feeling a little more confident and would like to know the following.

1. I live in Mumbai . Is it legal to do FOREX trading on line from these sights from Mumbai. I plan to deposit only US$ 500 to start with and check how the trading goes. A friend of mine told me that I have to get Reserve bank permission to do this. Is this true? If so how do I get this Reserve Bank permision.

Are there any reliable and approved sites where we can do FOREX on line trading of currency pairs.

Are there any sites that help you in giving guidance and help in avoiding heavy losses.

Thanks

Reagrds
Kamath
4 December 2011
 

comm4300

Well-Known Member
#2
Mr. Kamath,

welcome to this forum.

the age old question has popped up again "forex trading legal/illegal in India".... [not the INR pairs]

everyone will quote RBI to push his/her view of the vaguely written rule...and don't expect a straight forward answer to your question.

Moderator Savant Garde had put in a few tips about opening a account through NRI relative/friend and then trading....if you are lucky to have such an arrangement, go ahead....

apart from that, i too have been trying to get proper advice on a/c opening - deposit -withdrawal matters + tax implications...but in vain.

One innovative advice by user Preetsgill was to trade forex competion on DEMO accounts, win prize [which is deposited to your live a/c] and if successful, think of withdrawing money. Win-win situation.

and lastly a friendly advice - Forex trading looks very attractive for the leverage it offers and the time duration of the market itself; but bear in mind that blowing one's account would be equally fast, esp when you convert your hard earned rupees to dollars for trading.

Iam no expert, but i have been trading Dukasopy Demo competition for 12 months now - did not even manage to reach top 50; to top it all - my avg. equity at end of month is below 50K [with 100k start]...!!!!

I'd suggest you try demo competition - dukascopy, instaforex + google search results....If you are good - let the prize money get you started....

all the best.
 
Last edited:
#3
Mr. Kamath,

welcome to this forum.

the age old question has popped up again "forex trading legal/illegal in India".... [not the INR pairs]

everyone will quote RBI to push his/her view of the vaguely written rule...and don't expect a straight forward answer to your question.

Moderator Savant Garde had put in a few tips about opening a account through NRI relative/friend and then trading....if you are lucky to have such an arrangement, go ahead....

apart from that, i too have been trying to get proper advice on a/c opening - deposit -withdrawal matters + tax implications...but in vain.

One innovative advice by user Preetsgill was to trade forex competion on DEMO accounts, win prize [which is deposited to your live a/c] and if successful, think of withdrawing money. Win-win situation.

and lastly a friendly advice - Forex trading looks very attractive for the leverage it offers and the time duration of the market itself; but bear in mind that blowing one's account would be equally fast, esp when you convert your hard earned rupees to dollars for trading.

Iam no expert, but i have been trading Dukasopy Demo competition for 12 months now - did not even manage to reach top 50; to top it all - my avg. equity at end of month is below 50K [with 100k start]...!!!!

I'd suggest you try demo competition - dukascopy, instaforex + google search results....If you are good - let the prize money get you started....

all the best.
Thanks for the advise. Please give me details of how to log in and get into the demo competition = dukascopy, intraforex +google search results

Would be grateful if you help in this.
Thanks again
Kamath
 

comm4300

Well-Known Member
#4
Dukascopy Contest December 2011 - click here

Instaforex Contest page - click here

And then, if you still want to register for more, use google to search "forex demo competition"


all the best.
 
#5
you think you are a good enough trader to generate consistent profits in spot forex with 500$. Think again.

Sorry to disappoint you, but you MUST have a minimum of 2-3 years trading spot forex and after that you feel you are confident and a good track record to prove to yourself that you can actually do it consistently , only then i suggest you put in that 500$.

Good luck.
 
#6
Is it legal to do FOREX trading on line from these sights from Mumbai.
Are there any reliable and approved sites where we can do FOREX on line trading of currency pairs.
Are there any sites that help you in giving guidance and help in avoiding heavy losses.
Forex trading is unregulated and is traded via OTC (Over the Counter derivatives). This is the way by which small investors/speculators participate in this market.

It is 24 X 5 market and makes huge moves based on news. Unless you have edge on the news and interpret it properly, losses would be huge. Coupled with that there are frequent false breakouts to lure traders to jump in before it starts moving against you.

Concentrate on one major pair like the EUR/USD and see how it is influenced by news. You could also practice various candlestick patterns, support, resistance coupled with indicators. Once you are confident, you can get in with real money.

Believe $500 won't be enough if you are looking to bet big with a huge leverage like 100:1.

And lastly dont forget to trade with a stop loss (at least a mental stop loss)

Shepherd
 

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