FAQs
Yes, forex trading is legal in India but with certain restrictions. As stated earlier, forex trading can only be done through a registered Indian broker. Additionally, forex trading is limited to specific currency pairs such as USD/INR, EUR/INR, JPY/INR, and GBP/INR.
Are my forex funds legal in India? ›
Transactions on recognised exchanges like the BSE, NSE, or MSE are permitted, but trading on unauthorized platforms is prohibited. Violations, such as trading in unapproved currency pairs or using illegal platforms, can result in fines up to Rs 10,000 per day, along with potential imprisonment for up to five years.
Which forex trading platform is legal in India? ›
IG is the best broker for forex trading in India. IG accepts residents of India as clients and outranks the competition in many of our most important review categories.
Is forex trading risky in India? ›
On the other hand, if you expect the INR to strengthen against the US Dollar, you can sell US Dollar/Indian Rupee futures. However, it needs to be understood that Forex trading is not for everyone. It comes with a high level of risk.
How much money needed to start forex trading in India? ›
No Minimum Deposit
The minimum amount required for forex trading depends on the broker you choose, with some offering the flexibility of no specified minimum deposit, making it accessible to a wide range of traders. Some forex brokers adopt a flexible approach by not mandating a strict minimum deposit.
Is forex trading legal in India yes or no? ›
Yes, forex trading is legal in India but with certain restrictions. As stated earlier, forex trading can only be done through a registered Indian broker. Additionally, forex trading is limited to specific currency pairs such as USD/INR, EUR/INR, JPY/INR, and GBP/INR.
Can we withdraw money from forex in India? ›
You can withdraw money from a forex account when you have accumulated your profits in that account. Your access to cash through trading in forex is also facilitated by linking your bank account to your trading account.
Which bank is best for forex in India? ›
Top 10 Forex Cards In India
- 1] Niyo Global Card by Equitas Bank. ...
- 2] BookMyForex YES Bank Forex Card. ...
- 3] Axis Bank Multi-Currency Forex Card. ...
- 4] Standard Chartered Forex Card. ...
- 5] HDFC Bank Multicurrency Platinum ForexPlus Chip Card. ...
- 6] ICICI Bank Student Forex Prepaid Card. ...
- 7] State Bank Multi-Currency Foreign Travel Card.
Who is India's biggest forex trader? ›
Shashikant Sharma became the wealthiest Forex trader in India at 34. His journey began as a 22-year-old and followed the same path most traders can relate to. He browsed the internet and came across an article covering Forex. It intrigued him enough to start his Forex journey.
Why is forex trading ban in India? ›
Forex trading is not illegal, but SEBI and RBI highly regulate it. You can only trade in four currency pairs with the INR as the base or the quote currency. You also need to use a SEBI-registered broker or an authorised dealer to trade legally in forex in India.
According to the scheme issued by the RBI, an Indian resident can carry up to USD 3,000 in cash (per trip). Any balance amount can be carried in the form of Traveler's Cheque or Forex Cards. Additionally, Indian residents can carry up to USD 250,000 in Forex Card, FC Demand Draft, or Remittance per financial year.
How much tax is on forex trading in India? ›
What taxes apply to forex trading? According to section 1256, 60% of your annual earnings are consistently taxed at a fixed rate of 15%. However, the remaining 40% is subject to taxation, which may vary based on your income status.
How much can you make with $1000 in forex? ›
First, however, let's assume you started day trading with a capital of $1000. In your strategy, you place a maximum of 15 trades a day (too many), lose 5 and win 10. You are looking at a total of 60 pips per day. As mentioned, you make roughly $20 a day.
What is the penalty for forex trading in India? ›
Fines. Individuals or institutions found to be violating forex trading regulations in India can face hefty fines. The amount of the fine depends on the nature of the violation, but can range from INR 2 lakh to INR 5 crore. Repeat offenders may face even higher fines.
How much forex can I carry from India to USA? ›
For travellers from India to the United States, the legal limit for liquid cash is set at USD 3,000 per person per trip. Amount greater than this can be carried in the form of travellers' cheque, Forex Card or bank transfers.
Is it legal to trade funded account in India? ›
Yes, forex funds are legal in India. However, it is essential to adhere to the regulations put forth by the Reserve Bank of India (RBI) and comply with the Foreign Exchange Management Act (FEMA).
Is FTMo banned in India? ›
Due to regulatory developments and business decisions based on risk management considerations, FTMO does not accept clients in India, the Russian Federation, the Republic of Belarus, the Republic of Indonesia, Cuba, Venezuela, Sudan, and South Sudan.
What countries are banned from my forex funds? ›
At MyFundedFX, while we strive to provide opportunities to traders worldwide, and even though we are only a Sim environment we are unable to accept traders from the following countries due to regulatory restrictions and compliance requirements: Cuba, Iran, Lebanon, Syria, North Korea, Libya, Russia, Sudan, Somalia, ...
Are forex Prop firms legal in India? ›
Is Forex Prop Firm Legal in India? Forex prop firms operate under the same legal framework as other proprietary trading firms in India. As mentioned earlier, they fall under the category of NBFCs and need to register with the RBI and SEBI.