trading forex with local indian deposits

[howardroark]

I was checking one of the brokers mentioned in the thread. They are accepting local Indian bank deposits. However, the account they mention to transfer fund to belongs to some individual. Apart for the security of the fund, I am more concerned about the tax treatment of such transactions. Effectively I would be transferring fund to some person's account ( pay-in) and would also receive fund from him ( pay-out )... I would like to know what would be the tax implications for such transactions... can anyone throw some light on this please ?

That is the normal procedure ... Transferring to and from either an employee or a third party ... I never faced any issues ... in either the way, including cash transaction ..
Worry about tax implication ONLY if you are planning million dollar accounts ..
I have 70,000$ account spread over 5 brokers ...
Never ever faced any issues ..
Do note I'm paying tax since good 7 years ...

 

[zoomfire]

I was checking one of the brokers mentioned in the thread. They are accepting local Indian bank deposits. However, the account they mention to transfer fund to belongs to some individual. Apart for the security of the fund, I am more concerned about the tax treatment of such transactions. Effectively I would be transferring fund to some person's account ( pay-in) and would also receive fund from him ( pay-out )... I would like to know what would be the tax implications for such transactions... can anyone throw some light on this please ?

you can pay taxes but you cant mention this money as income from forex trading as it might be a problem. you have to show it as some other income source like capital gains or something.

 

[kumi88]

I was checking one of the brokers mentioned in the thread. They are accepting local Indian bank deposits. However, the account they mention to transfer fund to belongs to some individual. Apart for the security of the fund, I am more concerned about the tax treatment of such transactions. Effectively I would be transferring fund to some person's account ( pay-in) and would also receive fund from him ( pay-out )... I would like to know what would be the tax implications for such transactions... can anyone throw some light on this please ?

Can you please tell us which company that u checked told u to deposit this way and if it worked okay for you? is there a way to verify the account?

i am new to forex and want to make sure i stay away from scammers

thanks

 

[fxgood]

In such local funding, you are no authority of funds and your funds are deposited on own name or third party names?

 

[howardroark]

No FX broker (in India) has a current account in their own name.
Most of the times, its the bank account of their employees or bank account of a money merchant.
I'm using both methods and never faced any issue till now.
Hope it helps

 

[MewarLion]

Please avoid all illegal remittances and discussion about this. Forum is not for discussing illegal remittances.

 

[pannet1]

I use Hantec Markets for higher acc sizes ... 25,000$+ ... They are FCA regulated and safest broker in India ...
I use Lite Forex for medium sized acc ... 10,000$+ ... operating in India since 3+ years ..
I use Uniglobe Markets FOR smaller sized acc ... 5,000$+ .. this is new kid on the block .. just about 8 months ...
I use both cash funding and local bank deposits with these 3 brokers ...
I use both Cash withdrawals ... and withdrawals to different bank acc's ..
I never ever faced any problems ... 4 years of regular funding & withdrawals cnt b lame luck ...
There are brokers, who are taking and will take old 1000/500 Re notes till December 31st ... for funding the trading account ...
Hope it helps ..
Shoot if you have further doubts ...
PLZ NOTE THAT I GAVE BROKERS NAMES AS REQUESTED ... I'M JUST A TRADER WITH THEM AND DO NOT HAVE ANY OTHER BUSINESS ASSOCIATION ..
I'M NOT ADVERTISING ABOUT THEM ...

Hi howardark,

Somehow missed this. Uniglobe's spread is very low (saw their website) for the account size. Is it true. Can you advise the spread / commission charged for the Majors.

 

[fxgood]

No FX broker (in India) has a current account in their own name.
Most of the times, its the bank account of their employees or bank account of a money merchant.
I'm using both methods and never faced any issue till now.
Hope it helps

Is not it is pure money laundering ?

 

[Obelixtrader]

Lite forex this firm is regulated in offshore Cyprus and Marshall Islands
Uniglobe Markets also Marshall Islands.
Enforceability of the law is null
Trading FX only as a futures contracts

 

[pradeepgolfer]

safer to use skrill neteller most brokers accept skrill neteller and a few more