Forex trading is very popular among traders worldwide. Forex Market alone is a very big market and boasts of trillions of dollars worth turnover in trading. There are numerous pairs of currencies traded comprising of currencies of various countries. The popular among these pairs which are traded globally are EUR/USD, USD/JPY, AUD/USD etc.
Many countries allow Forex trading liberally and do not employ very strict rules for Forex trading. There are many traders in India too who want to participate in this huge market of currency trading. There are however lot of restrictions as far as India is concerned in relation to Currency Trading. RBI has very strict outlook when it comes to outward remittance of Indian Rupee.
RBI has not allowed foreign brokers to set up broking services for trading foreign currency pairs like EUR/USD, CAD/USD etc. This is due to the fiscal policy which India follows in relation to Foreign Exchange. When it comes to trading with Forex brokers outside India then also Indian nationals are not allowed to do so. This is clear from the fact that RBI has explicitly mentioned in their rules regarding outward remittance of Indian currency stating that no remittance is allowed for meeting margin calls in futures or currency trading.
If you want to read the RBI Guidelines regarding remittance then you may See This Link
RBI issued a circular in relation to Forex trading in India which you may be interested in Reading Carefully .
This makes it clear that individuals should take due care in not crossing the boundary of legal norms and should wait till RBI takes some other decisions to allow Forex Trading in foreign currency pairs. There are some methods which unscrupulous people are employing to remit INR to foreign entities through various means for arranging Forex trading opportunities for Indian nationals, but this is not a good practice and one should not fall prey to lucrative offers which can turn out to be devastating for one’s capital and may also land into legal trouble.
Therefore it is better to trade in currency pairs which RBI has approved for trading. These are pairs where one currency is INR [Indian National Rupee] against other popular currencies like EUR, USD , JPY. These are allowed to be traded at Stock exchanges which are recognised by SEBI [Securities and Exchange Board of India] the regulatory authority for looking over trading activity in India.
These currency pairs like USD/INR. EUR/INR, JPY/INR are offered by many brokers which are legally carrying business in India. A trader should make careful research while choosing a broker and lookout for all legal aspects being followed by a broker. How to choose a good broker for trading?
Therefore traders in India can very well be certain that as of now there is no way to find a forex broker in India offering trading in foreign currency pairs lawfully.