Forex Trading in India

Is Forex Trading Allowed in India？

Forex market has no geographical location, it is an electronically linked network and is open 24 hours a day. In fact, forex has become a daily routine of many Indian lives. But if we are asking about retail forex trading in India, the answer is there are limitations.

Trading non-INR Forex pairs is illegal in India under the Foreign Exchange Management Act (FEMA), 1999. The FEMA prohibits any remittance to overseas forex trading accounts through electronic/online trading portals.

However, as an Indian resident, as long as you are trading through any specified Indian Brokerage allowing access to Exchanges based in India such as the NSE, BSE, MCX-SX and also provides access to currency derivatives, the transactions made for the trade is held entirely legal. Under the supervision of the Securities and Exchange Board of India (SEBI), those Indian exchanges currently offer USD-INR, GBP-INR, JPY-INR and EUR-INR pairs for trading purposes.

Why Does India Need aForex Market ？

The forex market is necessary for international transactions, for example, if an American company wants to import goods from India, it needs to pay in rupees, while its domestic revenue is denominated in U.S. dollars.

Besides, it is also important for traders to invest through currency exchange rates. For many retail traders, trading USD/INR is the main way to make a profit.

USD/INR Today

The dollar held firm on Tuesday, shrugging off selling pressure from a move higher in equities, as investors seemed to temper their bearish bets against the greenback ahead of a Thursday speech from the U.S. Federal Reserve Chair Jerome Powell.

Source: investing.com

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