US Based Trader - seeking advice

[Nacho]

Hi - I am currently based in the US and trading US Equity Index Futures. Due to visa issues, I will have to leave the country by the end of the year. I am seeking input from you regarding the following:

1. It appears that India does not allow individuals to trade international futures. I have spent a long time trading US Index futures and I really want to continue doing this instead of switching to Equities or Indian Index Futures. Is there a way to work around the restriction if one works for a Prop Firm with international access?

2. Assuming one can trade international markets, how big is the internet latency issue? Which cities do I need to look at for fast and reliable internet to trade intraday?

I may have other questions, but these are the two big ones for now.

Thanks

 

[Riskyman]

1.You can trade DJIA, FTSE on our National Stock exchange. Have to remind you that DJIA is not the most liquid instrument on our Exchange and as such scalping or intraday trading is a bit of a problem.. But you can swing trade if you want to hold positions for a few days.

2. Why do you want to work for a prop firm when you can trade your own account from anywhere in the world?

3. Errr... Welll... We have broadband internet in India. There are plenty of service providers who offer good speed depending on how much bandwidth you need. Infact, in a lot of places like Mumbai, Delhi internet is much faster than it is in some US towns. In Mumbai, You can get a 10 Mbps line for as little as 5000/- INR per month.

 

[bpr]

Hi - I am currently based in the US and trading US Equity Index Futures. Due to visa issues, I will have to leave the country by the end of the year. I am seeking input from you regarding the following:

1. It appears that India does not allow individuals to trade international futures. I have spent a long time trading US Index futures and I really want to continue doing this instead of switching to Equities or Indian Index Futures. Is there a way to work around the restriction if one works for a Prop Firm with international access?

2. Assuming one can trade international markets, how big is the internet latency issue? Which cities do I need to look at for fast and reliable internet to trade intraday?

I may have other questions, but these are the two big ones for now.

Thanks

1) its complicated . As you already have trading account and you are using dollar to fund the account which is earned outside(as an NRI) it is all valid.
As long as you are not converting inr to dollar to fund then all is good.
Make sure you keep the trading account and one bank account open.
Change the trading account tax status to W-9 to W-8...as you no longer US resident.
And then whatever profit happens you have to pay tax in India instead of US. US should be tax exempt. Or US might withhold some taxes and you can show and get credit here.Consult some tax expert I am not sure.

Make sure your broker allows that. Some broker and bank account may not allow you to keep the account when the person ceases to be a US person. But most do. Double check anyways.


2) no issue. .I tested with CQG it works fine. They have servers all around the world so you will be connecting to Singapore instead of USA . There should be similar setup for Rithimic/TT/CTS and others. Again double check for whatever you are using.

 

[Nacho]

1) its complicated . As you already have trading account and you are using dollar to fund the account which is earned outside(as an NRI) it is all valid.
As long as you are not converting inr to dollar to fund then all is good.
Make sure you keep the trading account and one bank account open.
Change the trading account tax status to W-9 to W-8...as you no longer US resident.
And then whatever profit happens you have to pay tax in India instead of US. US should be tax exempt. Or US might withhold some taxes and you can show and get credit here.Consult some tax expert I am not sure.

Make sure your broker allows that. Some broker and bank account may not allow you to keep the account when the person ceases to be a US person. But most do. Double check anyways.


2) no issue. .I tested with CQG it works fine. They have servers all around the world so you will be connecting to Singapore instead of USA . There should be similar setup for Rithimic/TT/CTS and others. Again double check for whatever you are using.

I have contacted my broker and they said W-8 will be possible. I am with CQG as well. Guess its just something I will have to test out once I am there.
Thanks for your help.