I am a forex trader now. I've read in some forums currently that forex trading is completely illegal for Indian residents as per RBI guidelines and it may cause to jail. I want to know that how to overcome this problem. Can anybody provide any legal solution on it? Thank you.
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In India only 4 pairs are legally allowed to trade. They are USDINR, GBPINR, EURINR and JPYINR. That too only in futures and options market. No spot trading. Moreover they are not traded using MetaTrader 4/5.
But there is a tricky way to overcome the government restrictions.
If u have a trustable relative/friend who lives abroad and have citzenship of that country(where FOREX trading is legal) . Send money to him to open a account on his name. Then trade from India. Whenever u want u ask your friend to withdraw and send money back to your indian bank account or ask him to instruct his family members in india to give the amount to you (as he can use the withdrawn amount for himself).
Hai, Bro, you are right its illegal to trade online forex indian residents, but i feel its elligal like "no smoking" in public, if you are that much worryed, u go to Dubai and open an International Bank account in HSBC, then open a forex account, trade online from india. mean wile you have to open an NRI account in indian HSBC,
Yes it is illegal for Indian Retail Traders however if you are an NRI some legal possibilities are there. Some brief discussion over here
Forex Trading Legality in India
I think the first thing you will need is a bank account based in another country so transactions cannot be inspected by your government. Once you have that it should be easy enough to open an account with a forex broker based in another country.
I was thinking of a solution to this problem. Do you think if we transfer funds and withdraw using moneybookers/ skrill (without going through a bank account) it will go by undetected by the governement?