1. There is no illegality in making online forex trading.

2. However the income you generate would be liable to be assessed for income tax in India.

3. Indian citizen can trade in foreign exchanges through a legal online portal.

n India, forex trading is legal if the base currency is INR. A forex trade between two foreign currencies is illegal in India. This means if a forex trader does overseas forex trading from India it is illegal for Indian citizens 

2) you can open a forex trading account in India with a SEBI registered forex broker. 

• Once the account is set up, a person i.e. a forex trader can trade in future and options currency derivatives. 

• In India, currency pair like US Dollar and INR, Euro and INR, Great Britain Pound and INR, JPY and INR, etc.

You can trade but at your own risks 

This is an unregulated sector

So investors do not have protection of market regulator like Sebi

If the broker or exchange defaults or misappropriates your funds, you will find a hard time to recover the money as these exchanges are based out of foreign countries

Even indigenous exchanges operating in India are not covered and monitored by Sebi, so in case of default you will have to file a treacherous commercial suit to recover your money

Forex trading is legal but restricted to pairs.

Forex trading is not completely illegal in India, but it is restricted to certain currencies, which are paired against the INR as well as some of the 'cross currencies'. In India, you can trade within the brackets of USD-INR, YEN- INR, GBP- INR and EUR-INR pairs. In cross currencies, you can trade within EUR-USD, GBP-USD, and the USD- JPY pairs.

Note that you are allowed to trade only through brokers who are registered with the authorized exchanges such as NSE, MCX-SX, and/or the BSE. If you trade in pairs other than those allowed by the RBI, then it is considered illegal under the FEMA act. A foreign broker is required to deposit the funds in USD to trade using the eligible pairs.

1) Yes you can open trade forex account in the FOREX Exchange trading and its allowed. You can open the account from our Nationalised Banks.

Dear Sir,

Yes, it is legally allowed to trade Forex within Indian Exchanges like BSE, NSE, MCX-SX. As per RBI guideline, all Indian resident including banks and financial institutions can do forex trading in currency pairs. The main currency pairs are USDINR, EURINR, GBPINR and JPYINR. So, if you are trading with brokers who have membership in mention exchange it is absolutely legal.

Dear Client,

it is legally allowed to trade Forex within Indian Exchanges like BSE, NSE, MCX-SX. As per RBI guideline, all Indian resident including banks and financial institutions can do forex trading in currency pairs. The main currency pairs are USDINR, EURINR, GBPINR and JPYINR. So, if you are trading with brokers who have membership in mention exchange it is absolutely legal.

And also directly in Forex market.

Hello,

Forex Trading has always been legal in India, restriction is there in trading few currency pairs, but INR pairs were always legal to trade.

A forex trade between two foreign currencies is illegal in India.

The first step in forex trading is to open a forex trading account in India with a SEBI registered forex broker. 

Regards 

Such foreign brokers or exchanges are not admitted by Sebi

If they are soliciting Indians to trade with them then there is no protection to the citizen under any existing law

You trade solely at your risks

See you have to check there affiliation with SEBI if these are not authorised by SEBI then dealing with them is.illegal. Further these kind of solicitation can be scams.

Yes demand there authorisation and license before trading.

1) foreign brokers take advantage of fact that many Indians are not aware that trading in forex is  illegal 

2) you can request them to furnish registration certificate issued by SEBI permitting them to act as forex brokers 

You can start with any amount, There are many brokers in the market who provide with cent accounts also. But to have a trading edge or to earn sufficient profits a trader must start with atleast $200 in his trading account. It is truly said above that with such small investment of $10 it will take lot of time to make noticeable amount of profit. 

The central authorities that regulate forex trading in India are the Reserve Bank of India (RBI) and Securities Exchange Board of India (SEBI). The National Stock Exchange (NSE) and Metropolitan Stock Exchange of India (MSE) are the commonly used stock exchanges in India.

• The first step in forex trading is to open a forex trading account in India with a SEBI registered forex broker. 

• Once the account is set up, a person i.e. a forex trader can trade in future and options currency derivatives. 

• In India, currency pair like US Dollar and INR, Euro and INR, Great Britain Pound and INR, JPY and INR, etc. There are two types of accounts - the personal account and business or corporate account.

Yes, you can ask more information related SEBI from them.

Since many people are not aware about the legality therefore they use this in their favor.

Such activities are illegal and in case of any loss SEBI or RBI will be of no help to you. 

And you will be option-less to lodge a complaint 

 it is illegal to trade in non paired currency and unregistered brokers.

There is no legal blockade to trading in forex

Similarly there is also no legal embargo against trading in bitcoin and cryptocurrency 

Its just not regulated and thus citizen cannot approach the regulatory bodies like Sebi if something adverse happens

person who is found to be engaging in overseas forex trading is held guilty for violating the foreign exchange laws and according to the FEMA Act, Foreign Exchange Management Act those violating the rules can be sentenced to jail or fined

In simple way you can trade in Forex on Indian platform that is in INR and not on foreign platform in dollar or Euro.

Legal issue is that no recourse can be taken by you if in case any fraud is done by those agents 

Only currency pairs involving INR can be traded legally on Indian Exchanges. There are 4 such pairs available to trade. Trading on other pairs is illegal under FEMA Act. ... Its perfectly legal to trade anything with Indian Exchanges(NSE, BSE, MCX-SX) offering Forex Instruments Currently USDINR, GBPINR, JPYINR, EURINR).

Restrictions Imposed On Forex Trading For SEBI Regulated Brokers. ... Under the Foreign Exchange Management Act (FEMA), it is also illegal for the people of India to send the INR to overseas countries for the purpose of currency conversions or investments, unless approved by the Government.

Trading on other pairs is illegal under FEMA Act. Trading in forex market through online broker is a Non-Bailable Offence in India. ... Its perfectly legal to trade anything with IndianExchanges(NSE, BSE, MCX-SX) offering Forex Instruments Currently USDINR, GBPINR, JPYINR, EURINR).

To your subsequent query the reply is that the luring of Indian investors into forex trading by foreign online websites is nothing but one is taking an individual risk by investing in such investments.

Trading on such platforms is completely illegal and not approved in India. Even all such companies never deal in accounted money, they will insist you to deposit and refund in cash only. However, they will provide you fund in their system or say trading software too. Their are several companies that provide such platform, but matter of fact is that many of them are just software only…no such real transactions getting placed in real time. You will be playing like a video game only, and might think that you are part of the international market. 

Forex exchanging India is illicit where there is no inclusion of Indian Rupee.

 Trading on other pairs is illegal under FEMA Act. Trading in forex market through online broker is a Non-Bailable Offence in India. .

 the government of India has not forbidden to trade Forex, but limited the trading for Indian residents to only trade currency pairs bench-marked against INR (Indian Rupee). As a an Indian resident, as long as you are trading through an Indian Brokerage, which allows access to Indian Exchanges such as the NSE, BSE, MCX-SX and providing access to currency derivatives is entirely legal. These tradeable instruments are EURINR, GBPINR, JPYINR, and USDINR.

In both situation you are at loss. Violation of law and SEBI guideline. IN case of fraud or financial misappropriation by unregistered broken, No remedy.

It is legal but beware of fraud websites to avoid cheating.