Trade in oversea forex market from india

[raj521995]

Hi, I'm doing demo trading on some online forex brokers based in UK and now I'm thinking to making investment as I'm profitable from over 6 months. But the problem is RBI as FEMA is preventing me from investment. I've heard that there are some international brokers with whom some indian banks like ICICI have tie ups in which you can invest upto $250K through RBI's LRS schema. So if I remit money through this to this brokers and then trade forex with these brokers is it possible? Is there will be any problems in future? Is there any other good way or loopholes through which I can trade forex with overseas brokers? Sorry for asking too many questions in one single thread..

 

[Riskyman]

Hi!!. First things first.
-Buying/selling currency is not an investment. It's either a hedge or a speculative bet. Never an investment.
- There is no centralized exchange. Only inter bank liquidity.
- You will be trading against some of the best minds with the deepest pockets on the planet. Like large trading houses, central banks and governments.
- Trading on demo accounts is like playing a video game. No harm done even if you lose. Try betting real money and you will have ur sac in your mouth.
- Trading with foreign brokers has its own disadvantages. Example. You fund your trading account with us dollars when rupee is trading at 73. Suppose you make some trading profits but rupee appreciates to 70 against the dollar. You will potentially lose 3 rupees when you make a withdrawal back into your own currency. You can be losing a lot of your profits converting USD back to INR.
- Your foreign broker can just shut shop/declare bankruptcy or simply vanish with your money. What recourse will you have sitting here in India?

I suggest:

Trade USD/INR, EUR/ INR etc in the Indian markets. Get a hang of trading real money. If you are good at the game, you will make money. You can always afford to throw away some cash to a foreign broker to try overseas markets.

Lastly, wake up!!

 

[VJAY]

I don't know why people interested trading in international market that too its not legally correct trading from here...We have many opportunities here as stocks,futures,options ,commodities,correncies which is fully legalised....If one can make money there he can make here too....

 

[raj521995]

I don't know why people interested trading in international market that too its not legally correct trading from here...We have many opportunities here as stocks,futures,options ,commodities,correncies which is fully legalised....If one can make money there he can make here too....

That is correct but the daily volatility in USDINR is very less. It's like market is running flat most of the time. I'm not interested in other things than currency derivative. How one can gain profit with such less volatility?

 

[Newbie Day-Trader]

https://m.rbi.org.in/Scripts/FAQView.aspx?Id=115#Q2

Q 2. What are the prohibited items under the Scheme?
Ans. The remittance facility under the Scheme is not available for the following:

1. Remittance for any purpose specifically prohibited under Schedule-I (like purchase of lottery tickets/sweep stakes, proscribed magazines, etc.) or any item restricted under Schedule II of Foreign Exchange Management (Current Account Transactions) Rules, 2000.
2. Remittance from India for margins or margin calls to overseas exchanges / overseas counterparty.
3. Remittances for purchase of FCCBs issued by Indian companies in the overseas secondary market.
4. Remittance for trading in foreign exchange abroad.
5. Capital account remittances, directly or indirectly, to countries identified by the Financial Action Task Force (FATF) as “non- cooperative countries and territories”, from time to time.
6. Remittances directly or indirectly to those individuals and entities identified as posing significant risk of committing acts of terrorism as advised separately by the Reserve Bank to the banks.

 

[VJAY]

That is correct but the daily volatility in USDINR is very less. It's like market is running flat most of the time. I'm not interested in other things than currency derivative. How one can gain profit with such less volatility?

I don't know about USDINR as am not trading in it...but I think many are trading in it...you need volatility then go with crude or banknifty...whats in it in names as using it for trading

 

[Riskyman]

That is correct but the daily volatility in USDINR is very less. It's like market is running flat most of the time. I'm not interested in other things than currency derivative. How one can gain profit with such less volatility?

Bhai, your information is very wrong. USD/INR has moved up 67% since 2011. In comparision to this, below are some other currencies

EUR/USD - 28%
USD/CHF - 29% Down but now almost flat
USD/JPY - 45% To the top. Now at 35%
GBP/USD - About 40%
USD/CAD 43% to the top, now at 25%

So, you cant be saying that USD/INR doesnt move. You probably need to study further.
My intention is not to discourage you but to make you have a wider perspective.

 

[sanju005ind]

That is correct but the daily volatility in USDINR is very less. It's like market is running flat most of the time. I'm not interested in other things than currency derivative. How one can gain profit with such less volatility?

The daily average movement is .50 paise.GBPINR is .70 paise Once you know that. You can plan your trade around that.
You can develop a system around how many points to capture and tiker with the number of lots.to get your objective.

 

[trade2411]

Bhai, your information is very wrong. USD/INR has moved up 67% since 2011. In comparision to this, below are some other currencies

EUR/USD - 28%
USD/CHF - 29% Down but now almost flat
USD/JPY - 45% To the top. Now at 35%
GBP/USD - About 40%
USD/CAD 43% to the top, now at 25%

So, you cant be saying that USD/INR doesnt move. You probably need to study further.
My intention is not to discourage you but to make you have a wider perspective.

He is not talking about movement in last X or Y years.
He is talking about daily volatility in pips in forex paris
Morever, currency markets in india close at 5 PM which means ,so its nearly impossible to swing trade it, since USD moves many times in the evening due to various things , and you will not be able to close your position in case of it going to your stop loss, but
at the same time, who have access to forex can close out their INR positions in interbank markets.

its totally different trading a market that is open 24x7 , without worrying about gaps ... compared to USDINR futures

 

[trade2411]

Hi, I'm doing demo trading on some online forex brokers based in UK and now I'm thinking to making investment as I'm profitable from over 6 months. But the problem is RBI as FEMA is preventing me from investment. I've heard that there are some international brokers with whom some indian banks like ICICI have tie ups in which you can invest upto $250K through RBI's LRS schema. So if I remit money through this to this brokers and then trade forex with these brokers is it possible? Is there will be any problems in future? Is there any other good way or loopholes through which I can trade forex with overseas brokers? Sorry for asking too many questions in one single thread..

I have never heard this before , keep this thread updated if you find a way out.