By Johnny Smiths
Forex trading is the biggest global financial market in the world. Because of the nature of forex trading it is considered gambling in some countries and made illegal, fortunately India is not one of these countries and many people profit from this activity.
India has recently relaxed its laws and introduced limited currency pairs to the financial markets for trading. The problem is the Rupee is not a very volatile currency which makes it hard to profit from such slow movements. The Rupee is highly protected by the RBI and they do not like it being exchanged for other currencies, which is why forex trading in India is somewhat limited.
The forex market is the same the world over it is still traded 5 days a week 24 hours a day. With trillions of dollars changing hands every day, there is no reason why Indian residence cannot grab a slice of this extremely lucrative market place and become part of this global phenomenon.
Although Indian residences are limited to the number of currency pairs that they can trade in India it does not stop them from using a managed account in a different country. This gives the full benefits of being able to trade the complete forex market. A managed account is the method of someone else trading on your spread betting account.
The process of opening a managed account is not that of an illegal venture and is happening all the time. It is the simple process of opening a recommended spread betting account and allowing a forex account manager to control you’re trading.
Opening and trading a managed account does not need much interaction from you; it is just a matter of signing the account over to the forex account manager and letting them go to work. They will place profitable trades on your account for which you keep the majority of the profits.
By using a managed account you are going to be opening yourself up to a world of benefits. The professional trader using your account is of vast experience and only makes money if he makes you money. Forex trading can be tricky and as India is relatively new to the game it would be wise to seek professional input for your trading.
You do not have to sit in front of the computer all day watching the forex charts that can be the job of the account manager. All you need to do is withdraw the winning from your account each month. The money is safe in the trading account because the money can only be withdrawn to the card or bank that it was first deposited from.
India has no choice but to join the global market of forex trading and open up all the currencies for trading by its individual residence. It will happen eventually but until that day using managed accounts is the best way to get your teeth into this massive market place.
Why not sit back relax and let a professional go to work on your account making you some serious investments.
About the Author
If you are looking to take part in forex trading in India then a forex managed account is often the best way to ensure a profitable investment.
Great article Jonny, the rupee is very much protected if you look at the last few years movement has been limited although inflation is peaking and interest rates have been hampered.
most of the outflow is corporate and inflow is fdi.
we are hoping the government will ease the movement and trading of the currency especially offshore.
on a brighter note overseas exchanges like dgcx and sgx are enhancing their offering.
on a downside to the local currency futures market, the bourses have started charging a commission since August, most recent results show that this has had a negative effect with volumes declining by 40%
I come to know that in India only 9.00 to 500pm is the official time for doing Currency Market business?
Is it true?
I have yet to see statistical hard evidence that a managed fund traded by “whoever” has been consistently profitable for the investor (if at all).
In my honest opinion, the best person to be in control of your money or investment is nobody but you!
All managed funds are not successful or traded professionally – approach prudently I’d say.
India limited to FX trading is not an excuse to let others trade for you unless of course there is hard evidence of the reputation of those managing the fund and are government regulated!