do you think FOREX(EURUSD) will be legalised in INDIA

Nov 19, 2012 at 09:13
2,044 Views
17 Replies
Member Since Jan 27, 2012   26 posts
Nov 19, 2012 at 09:13
Indians are facing issues in trading forex, day by day its getting difficult in one form or other,most banks doesnt allow bank wire transaction these days, honest liberty reserve agents are hard to find, seldom we find forex mentor are real traders in market,, they teach but they dont trade,,, this discussion is only to share ur view on FOREX future in india,not for marketing ur products ,liberty reserve agents and forex mentors kindly do not post anything here
live for yourself
Member Since Nov 15, 2012   1 posts
Nov 19, 2012 at 12:11
I dont think they will legalise Forex trading in India.
Its a massive political process to do that.
Member Since Oct 31, 2012   30 posts
Nov 19, 2012 at 20:04
The problem is that FOREX is being transforrmed in a scam by most Introducing Brokers. I can give you as example my country, Romania, here at the moment, FOREX is being called a scam by most people who dont have enough experience. Why? Because here FOREX isnt forbiddent but neither legal (it's in the grey area), we have like a lot of Introducing Brokers offices over here who are calling potential clients non-stop and try to make them deposit with mostly false promises. Some of this people do a deposit and they start trading. Of course, as any begginer, they lose the money. Here, again the IB comes with the rentetion department and tries to convince the client to deposit more in order to get back the losses and to make profit. Of course this new deposit is also lost.

That's the first strategy. There is also another strategy where they give advices to the people how to trade and of course they put people with just a few days experience to trade even with 5 lots on 5000$ deposits. They are doing this beacuse they need volumes in order to get the money from the Market Maker who the do the Introducing Broker job for. Very many people got in this IB's traps and when they hear about FOREX they call it a scam instantly. And of course they say this to other people also.

If Forex would be legalized in India, exactly the same thing would happen.
Member Since Oct 31, 2012   30 posts
Nov 19, 2012 at 20:04
Oh damn it, i wrote my last text with so many mistakes that even I hardly understand it. I hope you people understand what i meant😀 Im just very tired at the moment....
Member Since Jun 24, 2012   27 posts
Nov 27, 2012 at 14:20
Oh Forex isn't legalize in India ??? I really wasn't aware of this. But is there anyone who can explain why it's not possible to trade forex in India ?? Jeevan, why don't you open a brokerage account with a foreign broker then ?? This will resolve the problem isn't it ??
Member Since Jan 27, 2012   26 posts
Nov 27, 2012 at 14:32 (edited Nov 27, 2012 at 14:35)
jpslayer posted:
Oh Forex isn't legalize in India ??? I really wasn't aware of this. But is there anyone who can explain why it's not possible to trade forex in India ?? Jeevan, why don't you open a brokerage account with a foreign broker then ?? This will resolve the problem isn't it ??

although it is illegal,we trade through foreign brokers, we face issues during deposit of funds because we gradually all banks stopped remitting funds outside this country if we cant explain satisfactorily, liberty reserve is the only source which is widely used,, moneybookers also used to some extent
live for yourself
Member Since Jun 24, 2012   27 posts
Nov 27, 2012 at 15:21
Oh okay, i understand now. And what about deposits through credit cards like VISA Cards and Mastercards ?
Member Since Jan 27, 2012   26 posts
Nov 28, 2012 at 06:55
jpslayer posted:
Oh okay, i understand now. And what about deposits through credit cards like VISA Cards and Mastercards ? [/quotei

all modes are under intense scrutiny now,, we fear the existence of liberty reserve in the long run.. could not take anything firmly as of now,,but one thing forex manager are gonna have tough time soon,its better they give back the investor money and trade on their own money because things are pretty bad during withdrawal,so its good if they wait till the situation becomes normal, i myself a fund manager and advising my investors to understand the risk associated with this withdrawal,,brokers are not an issue here only the bankers,,, hope the issue get solved soon
live for yourself
Member Since Jun 24, 2012   27 posts
Nov 28, 2012 at 07:25
Damn that's really harsh. Good luck to Indian investors and traders then !! Thanks for the update Jeevan. Fortunately Mauritius isn't like this and we enjoy a complete freedom and trading, and the best in all these, capital gains are completely tax free !!! :-)
Member Since Aug 13, 2012   8 posts
Nov 28, 2012 at 08:27
Jeevan, I read somewhere that RBI has directed that US$200,000 may be invested by an individual outside of India, but not investments involving a margin call or betting. I can understand how banks may be behaving on remittances, causing grievous headaches!!

Only large corporations can do futures trading with their Dollar accounts, that too within a limit.

I think it will be allowed to small investors only when the Rupee is fully convertible.
jiggykapadia@
Member Since Feb 19, 2011   61 posts
Nov 22, 2013 at 09:49
I guess it won't be legal for a long time in India as the Indian govt. doesn't get any tax benefits from the profits made by the traders.

Its more of a political game currently.

Use moneybooker to deposit / withdraw funds.

Or trade with others who are outside of india.
Be among the very successful Forex Account Managers.
Member Since Nov 02, 2009   85 posts
Nov 22, 2013 at 13:39
valentine posted:
The problem is that FOREX is being transforrmed in a scam by most Introducing Brokers. I can give you as example my country, Romania, here at the moment, FOREX is being called a scam by most people who dont have enough experience. Why? Because here FOREX isnt forbiddent but neither legal (it's in the grey area), we have like a lot of Introducing Brokers offices over here who are calling potential clients non-stop and try to make them deposit with mostly false promises. Some of this people do a deposit and they start trading. Of course, as any begginer, they lose the money. Here, again the IB comes with the rentetion department and tries to convince the client to deposit more in order to get back the losses and to make profit. Of course this new deposit is also lost.

That's the first strategy. There is also another strategy where they give advices to the people how to trade and of course they put people with just a few days experience to trade even with 5 lots on 5000$ deposits. They are doing this beacuse they need volumes in order to get the money from the Market Maker who the do the Introducing Broker job for. Very many people got in this IB's traps and when they hear about FOREX they call it a scam instantly. And of course they say this to other people also.

If Forex would be legalized in India, exactly the same thing would happen.

THIS is exactly whats happenin in Mexico and south america the law doesnt even talk about forex markets gains/taxes, because of this some people think that the word 'forex' means a pyramidal scam (company) 😲
Preservation of capital and home runs.
Member Since Jun 24, 2012   27 posts
Nov 22, 2013 at 18:00
Actually, if they allow professional Indian traders to trade forex, even if they don't get tax benefits from it, they could be able to add stimulus in the economy as traders will spend more. So, unless they really have a perfect reason why not, I cannot understand why they do not allow it overthere !!!!
Member Since May 22, 2012   106 posts
Nov 24, 2013 at 06:10
the way as i understood,

if forex is made as legal in india, most people will try to trade, as usual, 95% of the traders fail, so india will lose USD. right?

here is my explanation

Most forex brokers accept USD, EUR or max AUD, JPY as deposits. So an indian trader has to deposit these currencies only. What happens when he deposit, 1000 USD, Indian governement needs to pay that 1000USD to the other governement from the forex reserves that it accumulated. When the trader loses, Govt loses that much forex reserves (even though the indian trader is paying the money, that will be in INR and Indian govt loses the forex reserves). 1000s traders like this will give a huge impact on the indian forex reserves. As india does not have a big reserves and even those reserves are used for buying oil and gold, India cant afford.

If the traders make money, they always bring in USD or EUR to india, but mostly it wont be the case,

This is my own interpretation, no facts nothing else :)
Member Since Feb 19, 2011   61 posts
Nov 24, 2013 at 07:58
@vijayinvites India buys anywhere between 8-10 Bn $$ worth of oil every month. This is single most import of a commodity purchased by India from overseas.

No amount of trading can reach this large scale. So this is not the reasoning behind govt. for not giving access to retail forex trading.

They want to promote their own Forex Exchange Trading and would try to divert traders to use their platform.
Be among the very successful Forex Account Managers.
Member Since May 22, 2012   106 posts
Nov 24, 2013 at 11:06
dxnation posted:
@vijayinvites India buys anywhere between 8-10 Bn $$ worth of oil every month. This is single most import of a commodity purchased by India from overseas.

No amount of trading can reach this large scale. So this is not the reasoning behind govt. for not giving access to retail forex trading.

They want to promote their own Forex Exchange Trading and would try to divert traders to use their platform.

Thanks
Member Since Dec 12, 2011   11 posts
Jan 14, 2015 at 07:06
The infrastructure is not there in India, also monitoring is hard in such a big country, look at how turkey regulates fx
try then you will find out
Member Since Oct 11, 2013   775 posts
Jan 25, 2015 at 21:12
I didnt know it was illegal in India, but I guess countries will modernize and make it regulated.
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