Forex

Forex Brokers in India

 

 

Forex OTC trading has been illegal in India since 2000, when the Foreign Exchange Management Act (FEMA) came into effect, but traders have found ways to circumvent the law and trade financial markets anyway. 

 

According to a couple of official statements made by the Reserve Bank of India (RBI), the country's central banking institution, Indians are formally not allowed to transfer money to a forex trading account with a broker abroad. In addition, local banks are obliged to report account holders who use their credit cards for such purposes to the RBI.

 

Fortunately, there are some loopholes, allowing residents of India to fund their accounts without being caught - like funding it through a third party. One of the most popular options are e-wallets like Skrill and especially Neteller.

 

Of course, there are legal ways of trading forex in India - on local exchanges like National Stock Exchange (NSE), Bombay Stock Exchange (BSE) and Metropolitan Stock Exchange (MSEI) and the list of registered brokers for currency derivatives can easily be found on Securities and Exchange Board of India’s (SEBI) website. However, SEBI Forex brokers are allowed to offer only INR based currency pair options for USD, EUR, GBP, and JPY.

 

Although retail forex trading is illegal in India, this does not bother foreign forex brokers from offering its services there and maintaining offices in the country. Some, like FXTM even accept local deposits for Indian residents.



Forex Brokers in India

Broker Country Regulation Min.deposit Review
Cyprus CySec $5 Review Website
UK, Cyprus FCA, CySEC $100 Review Website
Seychelles FinaCom $10 Review Website
Denmark, UK FSA, FCA, ASIC $10 000 Review
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