What is the punishment for forex trading in India?

#31
Hi Saif.... Thanks for bringing this up....

The confusion arises because.... in this notification, RBI has mentioned "Foreign Exchange", whereas under FEMA it is mentioned that we are allowed to trade in "Foreign Exchange Derivatives whether in India or abroad"....

Anyway, I am going through the Act, give me some time and I would get back on this.

Regards.
Yes adiya please clarify it is there any way out?
 

sumeetsj

Well-Known Member
#32
Whatever we say..
Legalities should be left to the relevant people and not for us to decide.
Our job is to do trading and sticking to it is o good and a fair idea.
If such questions arise then i would not like to get into it altogether.

 
#33
They are like the pimps. And you are a prostitute. Since prostitution is illegal, you cannot go and complaint against the pimp. Similarly, if they treat you like trash and play against you or cheat you otherwise, what are you going to tell the police? They are not returning my forex money?
I agree with you; forex should get legalised in india atleast the govt. will earn more in terms of heavy taxes they'll be levying on it & hopefully we'll get better infrastructures!!!

Also, the pimp & prostitute example was excellent but remember one thing, it is we customers coz of whom these brokerage firms earn their bread & butter & they've to maintain a good reputation or else who would go next time to such brokers?? For e.g. a recent example- FXCM had to pay $14.2 millions to clear off the charges (google it, u'll get a full report on it) so even if they got away with the customer's due for 3 years in the end they had to give it back!!:thumb:
 
#34
just use ecurrencies like webmoney and liberty reserve to do all your money transactions. those are anonymous so you will not caught ;) :D feel free enjoy!!
 
#35
Hello PirateTrader and other dude
I am almost agree with you. It might be managed by making the investment from abroad but where should we invest. I googled a lot to get a good platfrom which is really regulated, reliable and trustworthy but I could not found a single platfrom (broker) which has not complain in different forum. So how can I invest my money when I know that I will not get my profit or my trading account will be closed at the time of sending withdrawal request?

Can you recommend a fair site which is known to you.
 

stumper

Active Member
#36
Hello PirateTrader and other dude
I am almost agree with you. It might be managed by making the investment from abroad but where should we invest. I googled a lot to get a good platfrom which is really regulated, reliable and trustworthy but I could not found a single platfrom (broker) which has not complain in different forum. So how can I invest my money when I know that I will not get my profit or my trading account will be closed at the time of sending withdrawal request?

Can you recommend a fair site which is known to you.
Hello

Sadly, you have been getting ill advise in this thread.

As you are already aware, Transferring Foreign Exchange for purpose of Trading is illegal. You CAN trade in forex (Currency Pairs Spot/Futures) as long as it is done in Indian Currency (no Foreign Exchange involved).

FEMA, fortunately is civil legislation, hence you ONLY get fined and not Jail term.

As suggested by some, having a friend abroad and transferring via him/her, looks simple on paper. What you HAVE to consider is the tax implication for you and your friend. Any amount > 50K that you pay friend and in Indian currency by Cheque, will come under IT radar. DO REMEMBER, IT authorities CAN send you Notice any time after the violation (Ex; I got a IT Notice seeking clarification for my Source of Income .... 4 YEARS AFTER i had purchased my home!). They will seek clarification on WHY you have been transferring amounts to your friend locally.

Lastly, Contact Interactive Brokers (IB) India and see if they have global Forex accounts for Indian traders. They do allow Indian Traders to trade in global market (but the prerequisites are very stiff). Kindly use your own discretion and checks with IB.

NOTE: I'm not a IB representative nor do i endorse/recommend IB in any way.

Regards.
 
#37
Hi Guys,

I recently joined a Institute to learn trading but instead of learning Indian market strategy the very first day they gave me Forex software for charting as its free and they continuously giving classes on EURUSD, GBPUSD and all Forex currency pairs. Now I am fully trained on the market but i got to know that Forex is illegal in India and previously they owner of the institute also asked many times to open a account with forex.

Now when I am aware this illegal i stopped trading Forex but started my business in Signals services and i am earning good.

So, guys my request to all of you is whether giving paid signals to my foreign clients is illegal or not as I am not trading Forex and left it when i got to know the scenario.

Please let me know if can run this business and make future clients as I am getting success in Forex paid signals my winning ratio is 85%
 
#38
LOL, DON'T GIVE A DAMN ON THAT, MILLIONS OF PEOPLE ARE TRADING FROM INDIA ,ASK SAVANT GRANDE SIR FOR CLARIFICATION. AND I HIGHLY DOUBT IF ANY ONE WILL GET INTO TROUBLE UNLESS HIS TRANSCATIONS ARE LIKE MILLIONS A MONTH. THE BANK MAY ASK FOR CLARIFICATION THAT WHERE DID THE MONEY COME FROM. I DON'T THINK THAT IS A PROBLEM. I TRADE WITH MY ICICI CREDIT CARD AND I GET A MONTHLY STATEMENT THAT I HAVE CREDITED X AMOUNT TO RETAIL-FX :p . I THINKS BANKS ARE NOT THAT MUCH AWARE OF THE RULE BUT IF LARGE VERY LARGE WITHDRAWAL EVERY MONTH LIKE A CRORE OR IS DONE BANKS WILL ASK YOU THAT FROM WHERE HAS THE MONEY ARRIVED ? then i think you have to make up story :p OR YOU CAN DO IS TO GO OFFSHORE AND FUND FOR FOREX. BTW I DON'T THINK THAT ANYONE WILL GET CAUGHT NO MATTER WHAT! TRY THE ROYAL BANK OF SCOTLAND OR ANY OTHER VERY LESS POPULAR OF FOREIGN BANK IBM AMRO! AND BTW THERE ARE MANY LOOPHOLES LIKE MONEYBOOKERS, NETELLER BUT YOU WILL HAVE LITTLE DIFFICULTY FUNDING TO THEM! SECONDLY AS FOR THE PUNSIHMENT IF CAUGHT NOTHING WILL HAPPEN LIKE JAIL . YOUR PUNSIHMENT AT MAX CAN BE PENALTY!!YOU ARE DOING FX TRADING WHICH IS LEGAL ALL AROUND THE WORLD . YOU ARE NOT MURDERING OR SMUGGLING OK? THESE RULES ARE IMPLIMENTED BECAUSE MANY PEOPLE FROM OUR COUNTRY HAVE LOST A LOT OF MONEY. SO IF YOU MAKE PROFIT THERE IS NO HARM! AND YOU ARE BRINGING THE MONEY INTO THE COUNTRY ALSO. JUST PAY TAXES! ask savant grande sir he can explain u more nicely and tell you which way to do it if heavy withdrawl is there :)
your message really helped me a lot. It makes sense....Thanks a lot.:)
 
#39
Hi, there is no punishment for doing forex trading in india. There is punishment for misusing USDOLLERS from RBI Reserves ( if you think you deposit USDOLLERS from your INR bank account, RBI have to pay USDOLLERS behalf of you) and also It is our responsibility to save our foreign reserves.
 

stoch

Active Member
#40
There are no punishment if you use online payment and withdrawal methods, government can not track your activity if it doesn't see respective transaction flows. For example I trade with Hotforex which status in India is unknown but I use skill for top-ups and withdrawals to keep low profile. You don't pay taxes with this approach.
 

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