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) 😲
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 !!!!
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 :)
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