NSE has launched Cross Currency pairs like EURUSD etc.

[Trader_Sanky]

As NSE has already launched Crosscurrency pairs, does that mean that Forex trading is now legal in India and we can can open trading account with Forex Brokers which is open 24x7 OR we can only trade with Brokers of India between 9 am to 7:30 pm like Sharekhan, Zerodha etc. Please explain.

 

[NJ78]

As NSE has already launched Crosscurrency pairs, does that mean that Forex trading is now legal in India and we can can open trading account with Forex Brokers which is open 24x7 OR we can only trade with Brokers of India between 9 am to 7:30 pm like Sharekhan, Zerodha etc. Please explain.

No, it simply means that, when NSE actually launches futures trading in EUR/USD etc., you'll be able to trade them with brokers in India, on their existing platforms. These will be Rupee-settled trades.

RBI rules regarding spot forex for Indian residents are the same as before, i.e., overseas remittance for trading in 24x7 forex (spot forex) is not legally allowed for resident Indians.

 

[Hulu Girl]

Is there any chance Forex to be legal in India, in future?

 

[NJ78]

Is there any chance Forex to be legal in India, in future?

Forex futures & options is already legal in India because it is regulated and monitored by SEBI & RBI respectively. Spot forex (24x7 forex) is basically over-the-counter & decentralized in nature so unlikely to be considered legal in India.

Besides, with FX futures trading, information about liquidity, volume and pricing is consistent across brokers and trading terminals. With spot forex, price and volume are what the market maker says they are. So, unless you've got a STP or ECN broker, the chances of a bucket shop broker taking the other side of the trade is high in unregulated spot forex.

 

[Hulu Girl]

Forex futures & options is already legal in India because it is regulated and monitored by SEBI & RBI respectively. Spot forex (24x7 forex) is basically over-the-counter & decentralized in nature so unlikely to be considered legal in India.

Besides, with FX futures trading, information about liquidity, volume and pricing is consistent across brokers and trading terminals. With spot forex, price and volume are what the market maker says they are. So, unless you've got a STP or ECN broker, the chances of a bucket shop broker taking the other side of the trade is high in unregulated spot forex.

But few Forex trading pairs are not allowed, so I am asking about them. Are these pairs are going to be legal for trading in India?

 

[NJ78]

But few Forex trading pairs are not allowed, so I am asking about them. Are these pairs are going to be legal for trading in India?

If you mean currency pairs like AUD/USD, GBP/JPY then I doubt there's an immediate need or demand for these in India since most of the corporate fx exposure here is covered by the availability the major cross currencies. Whether or not they're allowed in the future, I wouldn't hold my breath on that one... It might take a long time to materialize specially given how many years it has taken for the Indian exchanges to introduce trading in EUR/USD, GBP/USD and USD/JPY.

 

[Hulu Girl]

If you mean currency pairs like AUD/USD, GBP/JPY then I doubt there's an immediate need or demand for these in India since most of the corporate fx exposure here is covered by the availability the major cross currencies. Whether or not they're allowed in the future, I wouldn't hold my breath on that one... It might take a long time to materialize specially given how many years it has taken for the Indian exchanges to introduce trading in EUR/USD, GBP/USD and USD/JPY.

Alright, so it going to take to get those pairs for Indian.

 

[trade2411]

Is there any broker in india who has already started providing cross currency futures .. I dont see any of EURUSD , USDJPY , GBPUSD in zerodha . I think its high time india legalises trading forex spot.. We are missing out on the most developed market just because of silly regulations

 

[Hulu Girl]

In search of those brokers.... I wish I can find the one who is providing these currency pairs for trading.

 

[trade2411]

In search of those brokers.... I wish I can find the one who is providing these currency pairs for trading.

motilal oswal provides .. but the volume is very less compared to usdinr futures and the spread is generally 2 Pips on EURUSD + commission and taxes might come to more than 3 pips in trading costs alone..
and spread on usdjpy is 4-5 pips , so almost not tradable intraday