Foreign Exchange Trading
India has a rather strict foreign currency exchange policy – even though many liberalization measures have been taken recently, it’s still an economically isolated, or highly protected country. Indian currency – rupee, is highly regulated by the national banking authority – Reserve Bank of India, and so Indian citizens still cannot freely exchange rupee to other currencies, they have to prove their need and there are annual limits for different needs (more). Even popular money transfer systems such as Western Union – which is spread worldwide and available to everyone, are forbidden in India – residents can only receive money, but not send.
However, because of the globalization there is a definite need to open the economy, so Reserve Bank of India has been softening rules and regulations in recent years.
One of the important changes in regards to Forex trading is that in year 2008 Reserve Bank of India has finally allowed currency futures trading. Speculative trading became a permissible operation too – since it became impossible to ask for a proof of a hedging need.
We at Forex4you are happy that one of the biggest and the most perspective country in the world is finally joining the world of opportunities of Forex trading market!
More details are available on the official website of RBI – here.
Note that Indian brokers are only allowed to provide USD/INR pair at the moment. Since we’re located outside India, in British Virgin Islands, we do provide customers with many more pairs, many of which are much more interesting for traders because of their nature. Rupee, being a highly regulated currency, is not as volatile as other currencies and doesn’t allow as much analysis since movements depend on RBI decisions and not on market events.
Our another advantage over brokers registered inside India is that we don’t have any fees or minimum transactions/deposits. Services are much more affordable at our company!
Even though we’re registered outside India, we do have an office in Mumbai where an Indian company that has a contract with us, provides our Indian stakeholders with support and consultations.