If you’re asking why forex trading is illegal in India Quora, it’s likely because many users on Quora highlight that certain types of forex trading are illegal — not all. There’s often confusion between regulated forex trading via Indian exchanges and illegal offshore trading. Here’s the clear explanation:

1. Forex Trading Is Not Entirely Illegal In India

Forex trading is legal in India — but only under strict conditions set by the RBI and SEBI:

• You can only trade INR-based currency pairs:
  • USD/INR
  • EUR/INR
  • GBP/INR
  • JPY/INR
• You must trade through SEBI-registered brokers on Indian exchanges like NSE, BSE, or MSEI.
• This is done via currency futures and options, not spot trading.

2. What Is Illegal? (As Quora Warns)

Forex trading is illegal in India if you:

• Use offshore brokers (e.g. OctaFX, Exness, FBS, IC Markets)
• Trade non-INR pairs like EUR/USD or GBP/JPY
• Deposit funds via crypto or unregulated payment methods
• Trade on platforms not recognised by SEBI or RBI

This violates the Foreign Exchange Management Act (FEMA) and may result in:

• Penalties from the RBI
• Frozen accounts
• Legal action in extreme cases

3. Why These Rules Exist

• To protect the Indian rupee from speculative volatility
• To control capital outflows and money laundering
• To ensure traders stay within India’s regulatory system

4. Why Quora Users Often Say “Forex Is Illegal”

Many Quora responses generalise based on:

• The widespread promotion of illegal forex apps
• The large number of Indians unknowingly using unregulated offshore brokers
• Confusion between legal INR-based trading and illegal global forex speculation

Conclusion

If you’re asking why forex trading is illegal in India Quora, the reality is: only certain types of forex trading are illegal — specifically, trading non-INR pairs via offshore brokers. However, forex trading is legal in India if done through SEBI-registered brokers in INR pairs.

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