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.

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.

it is not illegal

you can trade

but there is no regulatory body like SEBI which safeguards interests of investors

so all the bourses or exchanges dealing in forex trading carry on their business without any government regulations

in case of any dispute with the exchanges, the investor cannot seek protection or relief from regulatory bodies like SEBI

he will have to file a civil suit against the exchange 

Forex trading is legal in India and it is regulated by the Reserve Bank of India so far any Forex trading you have to take the licence from Reserve Bank of India and maintain the record as per the guidelines

See forex trading is legal in our country though it is regulated by the RBI, the FEMA.

So there are pairs of curriencies against our currency you can trade in.

Forex trading is, of course, legal in India if it is done through a registered Indian Forex broker. The central authorities that regulate forex trading in India are the Reserve Bank of India (RBI) and Securities Exchange Board of India (SEBI). In India, currency pairs like US Dollar and INR, Euro and INR, Great Britain Pound and INR, JPY and INR, etc. are all legal. Forex trading in India is legal if the base currency is INR. A Forex trade that happens between two foreign currencies is considered illegal in India and Indian citizens are not allowed to trade foreign currencies overseas both directly and indirectly.

In order to start Forex trading in India, an individual has to open a Forex trading account with a SEBI registered Forex broker in India. Once the account is set up he\she can start trading currencies in the Forex market.

Hello,

Its perfectly legal to trade anything with Indian Exchanges(NSE, BSE, MCX-SX) offering Forex Instruments Currently USDINR, GBPINR, JPYINR, EURINR). Its illegal because so far RBI restricted to trade in any kind of overseas margin trading segment. You can invest elsewere in the overseas segment except margin trading.

As far as I know ShareKhn gives you the platform for Forex trading as well

Regards 

Yes it's legal and any site which deals in the same will deduct the tax and pay to you.

- A Forex trade between two foreign currencies is illegal in India.

- Indians are allowed to trade "Rupee-Dollar" in options market in domestic stock exchanges but not allowed to send rupee to International countries to trade. 

- In India , this trading is legal if the base currency is Indian Rupees and further if it is done through registered Indian Fox brokers.

- Forex Brokers can be registered from SEBI.

- ONLY four currency pairs can be legally traded in India. Those are:

• USD/INR
• EUR/INR
• GBP/INR
• JPY/INR

In India, Foreign Exchange or Forex trading is not allowed. If someone is found trading Forex instruments on the Forex market by the Reserve Bank of India’s representatives, he/she is immediately charged of violation of law. Hence it is legally a crime to involve in Forex trading and the charges of the crime are imprisonment in jail in this country. The offence is considered immense, the prediction of intensity can be deduced from this fact that it has been labeled to be non-bailable.

However it is legalto trade forex with Indian Exchanges like NSE, BSE, MCX-SX where they currently offer 4 pairs(USD INR, JPY INR, GBP INR, EUR INR) in Derivatives (Futures and Options Segment).

So if you are trading with Indian Brokers whom have membership with the above mentioned Indian Exchanges it is perfectly legal.

And Also it is perfectly legal for Indian Retail traders to invest in overseas equity markets. But margin trading in overseas is suppose to be illegal as per RBI regulation guidelines.

Hello

       forex trading is legal in India, only if it is done through registered Indian forex brokers. 

In 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, then it is illegal for Indian citizens. As Indian citizens are not allowed to send funds to overseas foreign exchange brokers both directly and indirectly.

Regards 

No Indian citizen can undertake forex trading in Indiathrough any electronic or online trading platform. The Reserve Bank of India had issued a circular in 2013 prohibiting overseas forex trading through electronic or internet trading portals.

Forex trading is legal only when done through forex trading platform. A forex trader who is found to be indulged in electronic or online overseas forex trading would be held guilty of violating the foreign exchange laws in India. 

Under the Foreign Exchange Management Act (FEMA), 1999, FEMA act forex trading has the provision of sending such jail or fined. An important thing to note here is that NRIs are not prohibited from trading in foreign currencies.

Forex trading is legal in India as far as it includes Indian Rupee as the base currency, but is a risky trade and must be done after consultation.

Dear Sir,

In India, Foreign Exchange or Forex trading is not allowed. ... However it is legal to trade forexwith Indian Exchanges like NSE, BSE, MCX-SX where they currently offer 4 pairs(USDINR, JPYINR, GBPINR, EURINR) in Derivatives