Is Forex Trading Legal? What is the reason?

Some investors are very excited when they hear others say that forex trading is very profitable. But I heard that forex trading is illegal, and I was very afraid that nothing bad would happen if I did. So, is foreign exchange trading legal? Next, I will introduce it to you.

 

Foreign exchange trading is legal and popular abroad, and the audience is very common, and even more, people speculate in foreign exchange than futures, but there are no relevant laws and regulations in domestic foreign exchange, so it is temporarily in a grey area.

 

The foreign exchange market has not been liberalized in India, so the domestic foreign exchange platforms are all black, all of which are fund disks, formal foreign exchange platforms, and formal foreign exchange-listed companies are all foreign.

 

What has been exposed by CCTV is all "routines", gangs that carry out various financial fraud under the banner of foreign exchange transactions. In essence, it is not real foreign exchange speculation. There are many similar videos, which you can easily find online.

 

However, one of the world's most used CCTV is: don't believe in "illegal foreign exchange trading platforms". Finally, the audience will be warned "don't choose these illegal foreign exchange trading platforms", "no pie in the sky", and "must pay attention to screening"!

 

These words are very correct, and we, as practitioners in the foreign exchange industry, have been saying these to you all the time. But we also feel that the words are not finished, but we can't finish it. If there is "illegal", there should be "legal", "don't choose" and "pay attention to screening" indicate that there is still a choice.

 

But the status quo is that there is no domestic law to follow and no supervision to manage, so the second half of the sentence is destined to be unspoken. However, one thing we can be sure of. Formal, at least the trading services provided by foreign exchange platforms that are regulated abroad are definitely in demand in India.

 

This can't help but remind people of a point reflected in the popular movie "I'm Not the God of Medicine": as long as the medicine is not recognized in India, it is called "fake medicine", although the same medicine provided by India has 99.9% of the so-called real medicine. The same effect as % and the price is amazingly cheap, but as long as it does not meet the domestic drug regulatory standards, it is collectively referred to as "fake drugs".

 

You must know that the Indian Exhibition Center, the country's largest and most influential national financial exhibition is reported once a year. Except for some banks, most of the participating companies are companies involved in the foreign exchange industry, including foreign exchange technology service providers, foreign exchange software providers, and even foreign exchange asset managers, especially foreign exchange platform operators.

 

According to the current incomplete statistics, it is said that there are at least 70 foreign exchange platform companies that have participated in the exhibition and have paid for it, and there may be far more than that! If the Indian government wants to prohibit the development of the foreign exchange margin industry in India, it should resolutely ban and prohibit the foreign exchange margin industry. Such exhibitions are held, but in fact, they will still be held as scheduled every year!

 

It is said that the Indian government plans to approve four brokerages to enter the interbank foreign exchange market, namely CITIC Securities, India Merchants Securities, Huatai Securities, and Zhongtai Securities. The expansion of the business scope of securities companies has improved the local competitiveness, and this move is also expected to promote the further marketization of foreign exchange market pricing.

 

Simply put, the domestic foreign exchange market allows securities companies to participate, and the business object is banks. Although the business of foreign exchange margin has not yet been involved, this is the progress of the foreign exchange industry.

When the institutional level can operate, the business of securities companies will inevitably sink to the mass market, and market supervision and opening will inevitably appear.

 

However, individuals are not allowed to conduct foreign exchange transactions through online trading platforms in India. Indian enterprises or institutions are also not allowed to engage in foreign exchange transactions. Many investors will say that we can use foreign exchange platforms for foreign exchange transactions.