Forex trading in India: what are the legal route of forex trading in India?
Many people in India are looking for a ways or legal route of doing forex trading in India.
As per RBI guideline, forex trading by investment in the bank of foreign broker is illegal. It does not mean person who lives in India cannot invest in currency trading or forex trading.
One of the popular way to do forex trading in India is to invest by the sebi registered dealer. The registered broker list can be found on the website of sebi limited.
I have seen many people who are very keen desire of investing in forex currency without having basic knowledge about it. These are the very people who have to suffer big losses in this trading. You may have seen many interesting and tempting ads on your television or radio about forex trading where they tell about high return with less retention time. So, now we are going to discuss about some myth of forex currency trading in indian market.
1. Investors think, they can earn high return overnight at forex currency trading. But it is only a myth because every investment needs time whether it is forex investment or stock market investment.
2. People think, there is less risk factor in forex trading. It is a myth because risk is the basic needs of an investment. You will find risk almost every investment whether it is stock market or forex trading.
3. People think that if they invest in forex, they will surely get profit. But it is one of the myth among investors that instigate them to invest maximum money in forex tradimn. Then, when they have to suffer losses, they begin to believe that forex trading is a big scam. Forex trading is not a scam, but you may have to loss your money If you invest without having knowledge about it. It is rule of not of currency trading but other financial instruments like mutual fund, stock etc.
Conclusion: in the end, I would like to say that you can do forex trading in India in legal way with the help of registered forex broker. But you have to get basis knowledge of investing in forex trading. So that, you may not have to face heavy loses