hi..friends iam daytrader in nse market for past 3 yrs...now i am very much intrested in forex trading and i want to learn it from genuine mentor ...in googling i find "forexnext.com" founder aravind seems good and honest his website is more appealing....did anybody got trained from him?...is he realy genuine? i want to know..pls help me..........thank u
Attention! - Forex trading is illegal in India!
- Thread starter supaTrade
- Start date
- Status
@profound
yes, you have to send that rate (all fees are included)
but this is cheap compared to others, and for withdrawal, you get your money in your bank in 5 minutes (they have corporate axis bank account).
they're exchanger, they also have to run business, about their quality and support this is fair (even cheap).
Offtopic:
you can call them and fix the price, they give good rate for big deals.
if you contact other exchanger, they they add 5 % exchange fees + 10 % bank wire charge, so totally it become 15 %, also we're not playing game, it's money, so sending money to unknown person is always a risk, but exchangezones is there in business for lot of days and their transaction is reaching near 1 crore per day.
If you still searching for trusted exchanger means, i don't stop you, but how you decide the trust..? decision is always yours
yes, you have to send that rate (all fees are included)
but this is cheap compared to others, and for withdrawal, you get your money in your bank in 5 minutes (they have corporate axis bank account).
they're exchanger, they also have to run business, about their quality and support this is fair (even cheap).
Offtopic:
you can call them and fix the price, they give good rate for big deals.
if you contact other exchanger, they they add 5 % exchange fees + 10 % bank wire charge, so totally it become 15 %, also we're not playing game, it's money, so sending money to unknown person is always a risk, but exchangezones is there in business for lot of days and their transaction is reaching near 1 crore per day.
If you still searching for trusted exchanger means, i don't stop you, but how you decide the trust..? decision is always yours
@profound
yes, you have to send that rate (all fees are included)
but this is cheap compared to others, and for withdrawal, you get your money in your bank in 5 minutes (they have corporate axis bank account).
they're exchanger, they also have to run business, about their quality and support this is fair (even cheap).
Offtopic:
you can call them and fix the price, they give good rate for big deals.
if you contact other exchanger, they they add 5 % exchange fees + 10 % bank wire charge, so totally it become 15 %, also we're not playing game, it's money, so sending money to unknown person is always a risk, but exchangezones is there in business for lot of days and their transaction is reaching near 1 crore per day.
If you still searching for trusted exchanger means, i don't stop you, but how you decide the trust..? decision is always yours
yes, you have to send that rate (all fees are included)
but this is cheap compared to others, and for withdrawal, you get your money in your bank in 5 minutes (they have corporate axis bank account).
they're exchanger, they also have to run business, about their quality and support this is fair (even cheap).
Offtopic:
you can call them and fix the price, they give good rate for big deals.
if you contact other exchanger, they they add 5 % exchange fees + 10 % bank wire charge, so totally it become 15 %, also we're not playing game, it's money, so sending money to unknown person is always a risk, but exchangezones is there in business for lot of days and their transaction is reaching near 1 crore per day.
If you still searching for trusted exchanger means, i don't stop you, but how you decide the trust..? decision is always yours
hello,
As replied by u about exness and moneybookers ,
i know exness , that would fine , but its not regulated.Moreover they manipulate prices on the terminal.
For moneybookers again the same issue funding from debit card which may work but again bank may ask questions and also when withdrawing it has to be a bank wire and again it will ask questions.
So moneybooker is also i think out of question.'
If u can think of anything u know how we can use moneybooker pls tell?
Somebody also told https://exchangezones.co.in/
as a solution.
can u trust this as what happend to netwayexchange?
As replied by u about exness and moneybookers ,
i know exness , that would fine , but its not regulated.Moreover they manipulate prices on the terminal.
For moneybookers again the same issue funding from debit card which may work but again bank may ask questions and also when withdrawing it has to be a bank wire and again it will ask questions.
So moneybooker is also i think out of question.'
If u can think of anything u know how we can use moneybooker pls tell?
Somebody also told https://exchangezones.co.in/
as a solution.
can u trust this as what happend to netwayexchange?
Hi,
I'm new to forex trading but hear that it's illegal in India. For those experienced traders here, can you share your thoughts on this, please?
Also, is it difficult to send money internationally for funding the account? How about receiving money from brokers when I withdraw my funds? What's the best funding & withdrawing method I can choose?
Thank you for your guidance in advance!
Abani
I'm new to forex trading but hear that it's illegal in India. For those experienced traders here, can you share your thoughts on this, please?
Also, is it difficult to send money internationally for funding the account? How about receiving money from brokers when I withdraw my funds? What's the best funding & withdrawing method I can choose?
Thank you for your guidance in advance!
Abani
FOREX/ CURRENCY/ CROSS PAIR TRADING IN INDIA IS BANNED. ONLY INR PAIRS TRADING ON INDIAN EXCHANGES ARE ALLOWED
The real truth is CROSS PAIRED FOREX TRADING IN INDIA CANNOT BE DONE, and of course as much as retail investors do wanna trade in the international forex markets on platforms like MT4, OR with ECN Brokers they can't do so due to regulations and some idiotic rules of our government/ RBI / SEBI.
There is so many inter connected or related stuff for people to not to be able to trade in international forex markets sitting in India. I'll try my level best to explain as to why it can't be done, however, please keep in mind that I am no expert, but just a student of the Financial World with interests in the Markets, and hence my explanation is not a Holy Grail.
People in India primarily do not take risks so easily or do not wanna take risks, barring a few exceptions or ppl. Having said that the regulators too don't wanna tread on the path or risk or indirect growth due to various compulsions, which sometimes can't be explained. In the recent past or say last 3-4 years, it has been observed that many brokers put up advertisements of how they very RBI Approved or SEBI Certified or have the licenses to run a Brokerage firm etc., and would provide access to retail investors or traders to the international markets whereby they can trade the Cross Currency Pairs and allow them to make huge profits and become wealthy. There were beautiful Models claiming that they hav made $3000 to $4000 per day etc, and some brokers would say that they would give the guarantee that a min of $500/ day is assured. So why was the Forex trading so catchy and interesting and lucrative to the Normal Person, because the attraction was that, say after trading on the markets and making some profit, when the withdrawal would be placed, the $'s get converted to Rs. and get credited to the account. Which is very nice, considering the dollar's rate has been anywhere between Rs.50 to Rs.70( till date) in the last 4 years. So this is a sure shot attraction. Now how would that happen is of no concern as this whole deal of the International Forex Trading Business for Indian Citizens residing in India is not allowed/ banned / Illegal ( or whatever the word is ). Now, fast forward to today and none of them are even remotely visible in the markets, let alone online as advertisements. Most of these players/ Brokers very supposed to be using some sort of a loophole in the market/ system, whereby they allowed retail investors to pay / transfer funds in Indian Rupees for accounts to be opened for the purpose of forex trading in the international markets, which was a clear violation as RBI has clearly mentioned that Indian Citizens residing in India are not allowed to trade in International markets on Margins or Leverage. Margin/ Leverage is the main motivation for all players in the Forex markets, and seeing the kind of turnovers in the international forex market( Upwards of 4 Trillion/ day - approx, as per latest reprts) the traders cud easily make a killing with some 50 - 100 pips/ day profit( because, wen the funds are withdrawn, they are converted frm dollars to rupees and credited to the traders accnt. Imagine the funds getting converted at Rs.70/ $).
Now why do the regulators/ government not allow the retail investors to trade on international forex markets ?
Well there are so many connections that, explaining as to why they dont allow is a little tricky. Some reasons that the regulators might be thinking could be that :
1. Forex Trading is a highly Risky Business ( LOL - So is walking on the road)
2. All capital invested can be washed away in a matter of minutes as Margins are allowed and people end up trading on leverage, and hence any bad trading call will erode all profits ( if any ) and even the capital invested.
3. Since the forex markets are International and hav multiple currencies and countries involved, there is no single regulator to monitor and keep track of the markets. So absence of any regulator in the international level will cause issues for the Normal Investor or Trader if anything goes wrong and the Broker simply washes his hands. This has happened in the past. Hence the Caution.
4. Countries like US, UK, Australia etc hav rules and regulations and have competent regulators taking care atleast of the working of the Brokers and have some guidelines in place as to how a retail investor needs to tread the path. India has none. So that's another disadvantage.
5. IF Regulatory aspects are to be considered, The RBI, as per the FEMA Act has clearly mentioned that people of Indian Citizenship with residence in India are not allowed to trade/ Invest on Margins or Leveraged products on the International markets. And since forex is a leveraged financial transaction or product its a clear NO - NO as per RBI. I can provide the link to the document from RBI if required, though its been put up in this forum already.
There could be many more reasons involved, however, when we talk Regulators and Governments and some ACT's, that is the end of all explanations, because, they draw the Lakshman Rekha and we aren't supposed to cross it.
Now why doesn't the RBI allow people to take risks as per their choice, and instead apply restrictions on everything?
Well going back in history, India was a developing country/ nation and it is still. So developing countries can be measured by many ways as to their economic strength is concerned, and one of the indicators is also the Currency of Country. Ideally, the Currency Rate, also known as Exchange Rate is known as the total purchasing power of that currency, and since there has to be another country or product or instrument involved to make a comparison, all currencies are written in pairs, Eg: USD/ INR. Lets say today 1USD= Rs. 60/-, then Rupees Sixty is needed to purchase 1 Dollar. Now its is widely known that this value is not a constant and it is flexible or fluctuating. If the currency rate or exchange rate is stable or constant, its called FIXED EXCHANGE RATE, and if it changes and fluctuates then its FLEXIBLE EXCHANGE RATE. Now since the markets are dynamic and rates keep fluctuating, there are a lot of speculators and gamblers in the markets who want to make a big killing by manipulating the markets. Markets can be manipulated if regulators give away everything for free and do not impose any rules and regulations or restrictions, as people start making their own set of rules. And this is not appropriate. And being a developing nation that India is, the Indian Currency rate is a primary indicator showing the current economic condition of the country. Imagine if the speculators and the market manipulators take a free ride of the economy or lets say the currency in this case without any regulations, then the Indian currency will flip flop and become extremely volatile against all the other currencies of the world and this will in turn impact the country and its economy very badly. And hence RBI is so cautious about the exchange rate and the Rupee Value and has not opened up our currency to the world either, and with a lot of controls related to the currency within the RBI itself. Hence all the decisions related to the currency comes from the central bank.
Other Thoughts on this matter:
Even though India has a flexible Exchange Rate Regime, it has still not introduced Full Capital Account Convertibility within the country.
So Wat is Capital Account Convertibility ? Well in simple terms it is a system where a person can go to say SBI Branch near his house and pay Rupees to Buy/ Sell some Dollars at a particular exchange rate, without any prior approval from the RBI, meaning no limits on the total Buying or Selling Value of the underlying Asset. This CAC concept was introduced around 1997, during the east asian crises, when the Tarapora Comittee was set and they advised the Finance Ministry with such an idea. So if the CAC was available fully, then People/ Banks/ Institutions from other countries can simply come and buy and sell dollars or assets in our country and VICE VERSA. So basically this means freeing up the economy so that transactions can go on smoothly, and this in turn will lead to huge liquidity within the system and more liquidity means more speculation and more the speculation the worse will be the risk of any financial product/ system/ method . So in order to Avoid the risk and keep the investors and the normal people safe from any debacles/ losses due to financial products it has been decided in India, tat CAC( Capital Account Convertibility) shall not be allowed and hence all international transactions/ transfers above a certain limit have to be reported to or taken permission from the RBI before made. As of Today the limit is $ 75,000 per financial/ calender year ( which falls under the LRS Scheme) , within which a person can make transactions or transfers to other countries without taking prior approval from RBI, however the Bank facilitating the transfer will still take down the details and shall get a declaration from the person or the entity that there are no FEMA Regulations violated by the person or the entity. And beyond this limit a person or entity has to get an approval from RBI with a valid reason to make fund transfers abroad.
So irrespective of the option available to make transfers to other countries under the LRS Scheme or otherwise, THE BIG BULLY - namely FEMA ACT, is still the watch dog and its rules says that one cannot use funds from India or the Indian Rupee to trade on Leveraged or Speculative Products or Businesses Abroad, in this case the International Forex Trading. I read in many posts and articles on the internet that LRS scheme is used to fund accounts for the purpose of Forex Trading. This is absolutely incorrect and false. LRS is Liberalised Remittance Scheme and RBI is not stupid not to mention that this scheme cannot be used make speculative or leveraged trades and hence has mentioned the same in the RBI Circulars and Notifications. Read rbi.org for furthers details on LRS.
Well these are many of the reasons why International Forex Trading is not allowed in India. There might be many others aspects as well which I may have inadvertently missed, but this is the gist of the story.
Now if there are rules and regulations in place and RBI or say the Govt doesn't want any individual to burn his/ her hands by investing in dubious and condescending schemes of these so called Brokers then WHY ARE PEOPLE NOT UNDERSTANDING IT and still going in the wrong path? Well only time will tell that answer I guess.
So is RBI or SEBI or Govt against free markets and enterprises ?
The answer is NO.
So wats the solution?
The solution has been in place for the last 5 yeas now since 2008, where we hav currency derivatives trading being allowed in the INR PAIRS, namely, USD/ INR , EUR/ INR, GBP/ INR and JPY/ INR. So whoever is legally trading with NSE/ BSE / MCX/ SEBI and RBI registered Brokers today are safe as the trading happens on Indian exchanges with the above mentioned currency pairs, which is allowed by the regulators. And who ever wishes to do the same pls contact any broker with the above mentioned registrations and carry on further, after making u r respective due diligence. I must say that the current turnovers on the Indian Currency Derivatives Scene are very miniscule in comparison to the International Markets Combined ( Aprrox 2- 4 Billion Dollars in India Against 4 Trillion Dollars Worldwide), but things will improve in the future in terms of turnover.
So finally I request everyone to not fall prey to the dubious advertisements of these fake forex brokers and rather stick to the Indian Brokers with a good track record and please forget trading the International Forex Markets if u r a resident of India and instead if u still are interested in trading currencies, please choose the Indian Option given above.]
Hope u make the Right Decision. Cheers.
Leo
( A Learner for life)
The real truth is CROSS PAIRED FOREX TRADING IN INDIA CANNOT BE DONE, and of course as much as retail investors do wanna trade in the international forex markets on platforms like MT4, OR with ECN Brokers they can't do so due to regulations and some idiotic rules of our government/ RBI / SEBI.
There is so many inter connected or related stuff for people to not to be able to trade in international forex markets sitting in India. I'll try my level best to explain as to why it can't be done, however, please keep in mind that I am no expert, but just a student of the Financial World with interests in the Markets, and hence my explanation is not a Holy Grail.
People in India primarily do not take risks so easily or do not wanna take risks, barring a few exceptions or ppl. Having said that the regulators too don't wanna tread on the path or risk or indirect growth due to various compulsions, which sometimes can't be explained. In the recent past or say last 3-4 years, it has been observed that many brokers put up advertisements of how they very RBI Approved or SEBI Certified or have the licenses to run a Brokerage firm etc., and would provide access to retail investors or traders to the international markets whereby they can trade the Cross Currency Pairs and allow them to make huge profits and become wealthy. There were beautiful Models claiming that they hav made $3000 to $4000 per day etc, and some brokers would say that they would give the guarantee that a min of $500/ day is assured. So why was the Forex trading so catchy and interesting and lucrative to the Normal Person, because the attraction was that, say after trading on the markets and making some profit, when the withdrawal would be placed, the $'s get converted to Rs. and get credited to the account. Which is very nice, considering the dollar's rate has been anywhere between Rs.50 to Rs.70( till date) in the last 4 years. So this is a sure shot attraction. Now how would that happen is of no concern as this whole deal of the International Forex Trading Business for Indian Citizens residing in India is not allowed/ banned / Illegal ( or whatever the word is ). Now, fast forward to today and none of them are even remotely visible in the markets, let alone online as advertisements. Most of these players/ Brokers very supposed to be using some sort of a loophole in the market/ system, whereby they allowed retail investors to pay / transfer funds in Indian Rupees for accounts to be opened for the purpose of forex trading in the international markets, which was a clear violation as RBI has clearly mentioned that Indian Citizens residing in India are not allowed to trade in International markets on Margins or Leverage. Margin/ Leverage is the main motivation for all players in the Forex markets, and seeing the kind of turnovers in the international forex market( Upwards of 4 Trillion/ day - approx, as per latest reprts) the traders cud easily make a killing with some 50 - 100 pips/ day profit( because, wen the funds are withdrawn, they are converted frm dollars to rupees and credited to the traders accnt. Imagine the funds getting converted at Rs.70/ $).
Now why do the regulators/ government not allow the retail investors to trade on international forex markets ?
Well there are so many connections that, explaining as to why they dont allow is a little tricky. Some reasons that the regulators might be thinking could be that :
1. Forex Trading is a highly Risky Business ( LOL - So is walking on the road)
2. All capital invested can be washed away in a matter of minutes as Margins are allowed and people end up trading on leverage, and hence any bad trading call will erode all profits ( if any ) and even the capital invested.
3. Since the forex markets are International and hav multiple currencies and countries involved, there is no single regulator to monitor and keep track of the markets. So absence of any regulator in the international level will cause issues for the Normal Investor or Trader if anything goes wrong and the Broker simply washes his hands. This has happened in the past. Hence the Caution.
4. Countries like US, UK, Australia etc hav rules and regulations and have competent regulators taking care atleast of the working of the Brokers and have some guidelines in place as to how a retail investor needs to tread the path. India has none. So that's another disadvantage.
5. IF Regulatory aspects are to be considered, The RBI, as per the FEMA Act has clearly mentioned that people of Indian Citizenship with residence in India are not allowed to trade/ Invest on Margins or Leveraged products on the International markets. And since forex is a leveraged financial transaction or product its a clear NO - NO as per RBI. I can provide the link to the document from RBI if required, though its been put up in this forum already.
There could be many more reasons involved, however, when we talk Regulators and Governments and some ACT's, that is the end of all explanations, because, they draw the Lakshman Rekha and we aren't supposed to cross it.
Now why doesn't the RBI allow people to take risks as per their choice, and instead apply restrictions on everything?
Well going back in history, India was a developing country/ nation and it is still. So developing countries can be measured by many ways as to their economic strength is concerned, and one of the indicators is also the Currency of Country. Ideally, the Currency Rate, also known as Exchange Rate is known as the total purchasing power of that currency, and since there has to be another country or product or instrument involved to make a comparison, all currencies are written in pairs, Eg: USD/ INR. Lets say today 1USD= Rs. 60/-, then Rupees Sixty is needed to purchase 1 Dollar. Now its is widely known that this value is not a constant and it is flexible or fluctuating. If the currency rate or exchange rate is stable or constant, its called FIXED EXCHANGE RATE, and if it changes and fluctuates then its FLEXIBLE EXCHANGE RATE. Now since the markets are dynamic and rates keep fluctuating, there are a lot of speculators and gamblers in the markets who want to make a big killing by manipulating the markets. Markets can be manipulated if regulators give away everything for free and do not impose any rules and regulations or restrictions, as people start making their own set of rules. And this is not appropriate. And being a developing nation that India is, the Indian Currency rate is a primary indicator showing the current economic condition of the country. Imagine if the speculators and the market manipulators take a free ride of the economy or lets say the currency in this case without any regulations, then the Indian currency will flip flop and become extremely volatile against all the other currencies of the world and this will in turn impact the country and its economy very badly. And hence RBI is so cautious about the exchange rate and the Rupee Value and has not opened up our currency to the world either, and with a lot of controls related to the currency within the RBI itself. Hence all the decisions related to the currency comes from the central bank.
Other Thoughts on this matter:
Even though India has a flexible Exchange Rate Regime, it has still not introduced Full Capital Account Convertibility within the country.
So Wat is Capital Account Convertibility ? Well in simple terms it is a system where a person can go to say SBI Branch near his house and pay Rupees to Buy/ Sell some Dollars at a particular exchange rate, without any prior approval from the RBI, meaning no limits on the total Buying or Selling Value of the underlying Asset. This CAC concept was introduced around 1997, during the east asian crises, when the Tarapora Comittee was set and they advised the Finance Ministry with such an idea. So if the CAC was available fully, then People/ Banks/ Institutions from other countries can simply come and buy and sell dollars or assets in our country and VICE VERSA. So basically this means freeing up the economy so that transactions can go on smoothly, and this in turn will lead to huge liquidity within the system and more liquidity means more speculation and more the speculation the worse will be the risk of any financial product/ system/ method . So in order to Avoid the risk and keep the investors and the normal people safe from any debacles/ losses due to financial products it has been decided in India, tat CAC( Capital Account Convertibility) shall not be allowed and hence all international transactions/ transfers above a certain limit have to be reported to or taken permission from the RBI before made. As of Today the limit is $ 75,000 per financial/ calender year ( which falls under the LRS Scheme) , within which a person can make transactions or transfers to other countries without taking prior approval from RBI, however the Bank facilitating the transfer will still take down the details and shall get a declaration from the person or the entity that there are no FEMA Regulations violated by the person or the entity. And beyond this limit a person or entity has to get an approval from RBI with a valid reason to make fund transfers abroad.
So irrespective of the option available to make transfers to other countries under the LRS Scheme or otherwise, THE BIG BULLY - namely FEMA ACT, is still the watch dog and its rules says that one cannot use funds from India or the Indian Rupee to trade on Leveraged or Speculative Products or Businesses Abroad, in this case the International Forex Trading. I read in many posts and articles on the internet that LRS scheme is used to fund accounts for the purpose of Forex Trading. This is absolutely incorrect and false. LRS is Liberalised Remittance Scheme and RBI is not stupid not to mention that this scheme cannot be used make speculative or leveraged trades and hence has mentioned the same in the RBI Circulars and Notifications. Read rbi.org for furthers details on LRS.
Well these are many of the reasons why International Forex Trading is not allowed in India. There might be many others aspects as well which I may have inadvertently missed, but this is the gist of the story.
Now if there are rules and regulations in place and RBI or say the Govt doesn't want any individual to burn his/ her hands by investing in dubious and condescending schemes of these so called Brokers then WHY ARE PEOPLE NOT UNDERSTANDING IT and still going in the wrong path? Well only time will tell that answer I guess.
So is RBI or SEBI or Govt against free markets and enterprises ?
The answer is NO.
So wats the solution?
The solution has been in place for the last 5 yeas now since 2008, where we hav currency derivatives trading being allowed in the INR PAIRS, namely, USD/ INR , EUR/ INR, GBP/ INR and JPY/ INR. So whoever is legally trading with NSE/ BSE / MCX/ SEBI and RBI registered Brokers today are safe as the trading happens on Indian exchanges with the above mentioned currency pairs, which is allowed by the regulators. And who ever wishes to do the same pls contact any broker with the above mentioned registrations and carry on further, after making u r respective due diligence. I must say that the current turnovers on the Indian Currency Derivatives Scene are very miniscule in comparison to the International Markets Combined ( Aprrox 2- 4 Billion Dollars in India Against 4 Trillion Dollars Worldwide), but things will improve in the future in terms of turnover.
So finally I request everyone to not fall prey to the dubious advertisements of these fake forex brokers and rather stick to the Indian Brokers with a good track record and please forget trading the International Forex Markets if u r a resident of India and instead if u still are interested in trading currencies, please choose the Indian Option given above.]
Hope u make the Right Decision. Cheers.
Leo
( A Learner for life)
- Status
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