However, with time, more individuals and smaller financial institutions started indulging in Forex transactions for global businesses and other investment opportunities, which allowed Forex trading to gain immense popularity in the country quickly. A significant portion of the country has millions of expats that work in different countries across the globe, which has resulted in an influx of foreign currencies into India by way of foreign direct investments through its non-resident citizens.

Therefore, Foreign exchange and Forex transactions play an integral part in the Indian economy. India is also highly proactive in its anti-money laundering laws, and the Indian Government is very thorough in its policies that deter its citizens from investing in overseas brokers. While the SEBI and the authorities are tasked with the responsibility of preventing any citizen from trading with international Forex brokers, there are exceptions to the case that may prevent the authorities from doing their job.

Most international Forex brokers in India operate through branch offices, Introducing Brokers, or through affiliates without actually being regulated by the SEBI or any other organization.

Currency Trading in India

These brokers offer their services illegally without any consent from the authorities, which prevent the Government from tracking their activities. Therefore, Forex scams and other financial malpractices are highly rampant in the country, which has forced the Government to intervene and severely limit the freedom enjoyed by Forex brokers.

As a Forex trader in India, you should always make sure to invest your money with Government approved SEBI Forex brokers, as it is imperative from a legal perspective to adhere to the policies and guidelines issued by the authorities. Some SEBI regulated brokers may offer the convenience of investing in other countries, but a majority of Forex brokers in India only allow its traders to trade on INR related currency pairs.

If a broker promises to offer other currency pairs, check the legality of the broker and ensure that their services are in line with the regulatory guidelines imposed on them by the SEBI. There are several penalties and legal ramifications that may affect a person if they are found to be in violation of the existing rules.

Therefore, if you are looking to trade with overseas brokers, you should make sure that you acquire the necessary permissions and get in touch with a professional expert, who can provide you with guidance on your future course of action. If you are indeed choosing an international Forex broker, take your time to research and choose regulated Forex brokers that have an excellent reputation.

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How about offshore brokers which allow you to trade spot forex and even CFD? The short answer is they are not governed by SIBEI or whatever financial institution as they are outside of the jurisdiction of India. But as an Indian nationality, you are not allowed to open an account and trade. Those offshore brokerage websites are easily accessible by anyone located in India, and to open an account is just a matter of a few clicks and days or even hours of waiting.

The question then is, whether it is enforceable by the Indian authority? The answers we got online are they are not. The laws and regulations set out by SEBI are targeting banks and financial institutions at large, and not towards individuals. Individuals who wish to engage in forex trading through an international broker are still taking a risk, although a small one.

But law being law. What we have laid out the factual and you decide what is best for you. Now Trending: Online Trading in Angel Trailing Stop Loss Zerod Currency Trading Exchange.

Open Free Demat Account If you are human, leave this field blank. Enter basic details here and a Callback will be arranged for You! Your Name. Set a Callback. Hw Currency Trading Works? Here We Talked About:.

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Module 2: Demat Account. Module 3: Intraday Trading. Module 4: Derivatives Trading.

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Module 5: Online Share Trading. Module 6: IPO Basics. Module 7: Share Market Analysis. Module 8: Currency Trading.

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Currency Trading Basics. How to Start Currency Trading? Top 7 Currency Trading Strategies. Currency Trading in India. Top Currency Trading Platforms. Is Currency Trading Profitable?