Trading through online brokers in Foreign Currency may lead to violation of FEMA. ( Foreign Exchange Management Act ).
2)Reserve Bank of India issued Circular No. 46, RBI/2013-14/265 A.P. (DIR Series) ,dated 17/09/ 2013,prohibiting overseas foreign exchange trading through electronic/internet trading portals and further clarified in the notification that anyone caught dealing in overseas foreign exchange trading would make himself/ herself / themselves liable to be proceeded against with for contravention of the Foreign Exchange Management Act (FEMA), 1999 besides being liable for violation of regulations relating to Know Your Customer (KYC) norms / Anti Money Laundering (AML) standards any kind of transactions in virtual currency is prohibited in India.