Is FOREX trading legal in India?

Yes, trading FOREX trading is legal in India. To operate in the country, the brokerage firm must ensure it is licensed and regulated by the appropriate authorities before it can begin to trade. Indeed, the RBI Website indicates that investors can undertake FOREX transactions only with "authorized persons and for permitted purposes.”

The FOREX market is a place where global currencies are bought and sold. It is a large and active marketplace that requires technologically superior tools if you are to participate as a retail trader. The market operates 24 hours a day and five days a week (Monday through Friday), except international holidays.

What is FOREX trading?

FOREX trading involves buying and selling different worldwide currencies for a profit. Retail traders select a currency pair and, in anticipation of market-driven changes in value, wait for the right moment to make a sale for a profit.

What costs and commissions are associated with FOREX trading?

FOREX brokers charge any combination of commissions, spreads, and financing fees. Brokers can either charge a spread (the difference between the buy and sell price of a currency pair) and include their facility fee in the spread, or they can charge only a market rate spread and levy a commission per trade outside the spread. Financing fees come into play if you hold your position overnight. You must pay a financing cost for the benefit of keeping your positions open for an extended time.

How important is good customer service in FOREX trading?

Reliable and knowledgeable customer service is crucial to FOREX traders as they require immediate assistance in a rapidly-moving marketplace like FOREX. Customer service staff members should be always accessible and must be well-trained to respond with speed and accuracy in times of difficulty.

Is FOREX trading taxable in India?

FOREX trading is taxable in India. Proceeds from this activity must be taxed under “income from other sources” at the rate applicable to individuals. We recommend you speak to a tax expert to understand the full requirements.