Forex Brokers in India have increased, despite the fact that retail forex trading is illegal in India. This has never bothered foreign forex brokers in India from offering their services and maintain offices in the country. Forex trading in India is considered illegal since the start of 2000, when the Foreign Exchange Management Act (FEMA) came into effect. Nevertheless, traders and brokers across India found ways to bypass the law and trade the financial markets anyway. According to a couple official statements made by the Reserve Bank of India (RBI), the country’s central banking institution, citizens of India are not allowed to open and transfer money to a forex trading account with a broker abroad. Moreover, local banks are obligated to report any account holders who use their credit cards for such purposes to the RBI.
Fortunately, as with all other things, there are some loopholes that allow the residents of India to fund their accounts without being caught. The most common way is funding an account through a third party. One of the most popular options are e-wallets like Neteller and Skrill. There are forex brokers that can even accept local deposits for Indian residents.
However, people who live in India can still trade forex with the registered brokers for currency derivatives which can be easily on Securities and Exchange Board of India’s (SEBI) website. This comes with the exception that, SEBI Forex brokers are only allowed to offer INR based currency pair options for USD, EUR, GBP, and JPY. Pushing forex brokers aside though, there are of course more legal ways for residents in India to trade forex. This can be done on local exchanges like National Stock Exchange (NSE), Bombay Stock Exchange (BSE) and Metropolitan Stock Exchange (MSEI).
India Forex Brokers List
MAS, JFSA, DIFC