Hi, there is no punishment for doing forex trading in india. There is punishment for misusing USDOLLERS from RBI Reserves ( if you think you deposit USDOLLERS from your INR bank account, RBI have to pay USDOLLERS behalf of you) and also It is our responsibility to save our foreign reserves.
Can I go to jail for forex trading in India?
If someone is found trading Forex instruments on the forex market by the Reserve Bank of India’s representatives, he/she is immediately charged with violation of the law. Hence it is legally a crime to involve in Forex trading and the charges of the crime are imprisonment in a jail in this country.
What happens if I trade Forex in India?
It is legally allowed to trade Forex within Indian Exchanges like BSE, NSE, MCX-SX. However, you can hit big or lose it all just as easily. If you think a currency will increase or decrease in value, you can buy or sell it accordingly.
Can you get in trouble for forex trading?
Forex trading is legal, but not all forex brokers follow the letter of the law. … Around $6.5 trillion trades each day on the forex markets, according to the 2019 Triennial Central Bank Survey. While forex trading is legal, the industry is rife with scams and bad actors.
Is income from forex trading taxable in India?
A nuanced understanding of what is taxable, what is exempt and what percentage is levied on what amount of earnings is extremely pertinent to the prudent investor. As forex trading gains more and more ground, there are many benefits of currency trading.
Is Forex banned in India?
Yes, forex trading is legal in India. However, currency trading is subject to strict regulatory restrictions in India. Traders are only allowed to trade through exchange-regulated brokers in India.
Is Olymp trade legal in India?
Yes. The trading platform is also a member of the Financial Commission, a regulatory institution in charge of regulating various online trading platforms to ensure that they function in complete accordance with the Indian laws. …
Who is the richest forex trader in India?
This trader has a lot to be proud of at the age of 34. Knowing all trading pitfalls and subtle aspects, Shashikant became the richest forex trader in India.
Who is the best forex broker in India?
Best Forex Brokers India
- IG – Best overall broker 2021, most trusted.
- Saxo Bank – Best for research, trusted global brand.
- Interactive Brokers – Great for professionals and institutions.
- FOREX.com – Great all-round offering.
- AvaTrade – Multiple trading platform options.
- Admiral Markets – 4.0 Stars.
- Capital.com – 4.5 Stars.
Why forex is a bad idea?
The significant amount of financial leverage afforded forex traders presents additional risks that must be managed. … The forex market allows traders to leverage their accounts as much as 400:1, which can lead to massive trading gains in some cases – and account for crippling losses in others.
Is forex a gambling?
You should always have these aspects in mind, and always remember that forex trading is not gambling. When you accept this, your decision-making becomes better, and you can learn to develop strategies on how to make profitable trading positions. Forex trading is very different from spinning a slot machine.
Can forex make you rich?
Can forex trading make you rich? … Forex trading may make you rich if you are a hedge fund with deep pockets or an unusually skilled currency trader. But for the average retail trader, rather than being an easy road to riches, forex trading can be a rocky highway to enormous losses and potential penury.
Why is Forex not allowed in India?
In India, however, forex trading platforms are banned. While you cannot directly trade in the foreign exchange market, you can still trade in currencies through the stock exchange. Under the Foreign Exchange Management Act (FEMA), binary trading is not allowed.
Is Olymp trade taxable in India?
Section 271AAB of the Income Tax Act, 1961 deals with the penalty provisions on undisclosed income. According to various sources, Olymp Trade is not technically illegal in India but it is in no way monitored or controlled by SEBI or RBI. … As per my understanding it will be taxable under business income.
What is the GST on forex?
Value of service in case of purchase/sale of foreign currency to be determined per table below on which GST @18% be applicable.
Service Tax on Forex Transactions.
|Transaction Amount||Value of Service on which GST to be paid|
|Less than or equal to INR 1,00,000||1% of the transaction amount, subject to minimum of INR 250/- i.e. minimum GST payable is Rs. 45.|