Last two years have seen a fast growing interest of Indians in forex trading with huge masses wanting to shift from conventional stocks-trading to the forex-markets, but the time has also witnessed controversies, confusions and disputes as to the issue of the legality of Forex trading in India.
While, I personally believe that that the best of traders come from developing and under-developed countries and not the developed ones and thus the reason why majority of trading Indians are highly-successful traders but the concern is the lack of opportunities, trading-facilities and the lack of awareness of the subject that continues to dissuade Indians from entering, growing and profiting from forex-trading markets. Adding to their miseries is the fact that there is no legal recognition to Forex trading in India, leave aside having regulated brokers, trading-hubs and the forex community groups. Though lately, stocks brokers have been able to push government to open trading Forex future contracts as an alternate investment option for investors but then, it’s only on futures contracts and restricted to only the INR pairs. Even spot Forex trading in India is yet to find an acceptance by financial authorities as the lawmakers are yet to decide on opening this as an alternative growth sector for self-employment and revenue-generation as the government as well as the people still think of forex as a gambling sector which is strictly prohibited by the Indian laws.
However, when the Indians can climb Everest and the Indians can reach the Moon, could there ever be any deterrent to their profiting will and the trading ambitions? The Indian laws allow an Indian to send remittances of up to $25000 annual without asking for much of an explanation, so the shrewd Indian has found his way through to his trading and the first trick in their hat is “offshore online broker account opening and PayPal money transfers”. As most of the transactions involving significant amounts are always reported by Credit card issuing agencies to the Indian law authorities, the shrewd Indian never makes a direct deposit to his forex account. As most of the forex brokers accept PayPal as the source of deposit, the Indians transfer money to their broker’s accounts using their PayPal accounts as PayPal transactions never comes to the notice of the government. Similarly, Withdrawals also are made back to their PayPal accounts and then transferred to their Indian bank accounts, hence keeping their trading and profits risk-free and unnoticed. Lately, Indians are also resorting to Money bookers and other similar online money-transfer websites that can receive and fund their forex broker account for trading purposes.
Well, there’s another breed of the risky participants who are willing to even fight the government but yet do their utmost best to promote Forex trading in India. There have been Indian companies who opened an introducing-broker-office for Alpari brokers of UK in India though they were soon forced to wrap up their operations by the government. A couple of other unregulated brokers came up from Norway, U.S.A and UK and were thrown back but some, like www.4xp.com still continue to operate in spite of the illegality of their nature of work in India. In fact, it’s not only the illegality but Internet is also full of complaints about their fraudulent practices but then, this is India where there’s no listening. As I mentioned in the other article that it’s always a good idea to go to regulatory authorities’ website first and then select your brokers from there but there is no such controlling authority for Forex trading in India, and hence no real place to go and complain. But if you are serious about making your career in Forex, then develop and test your skills on a free Demo account and then consider migrating to a country with legal opportunities for forex traders or forex entrepreneurs. An alternate to this is finding an online remote-based Hedge fund trading contract where the company can invest in your trading account and you can invest your skills with them.
Regulated Brokers with PayPal Deposit/Withdrawal Option: