Forex trading has been rampant in India after the crypto craze fizzled. These apps have been advertising themselves aggressively; some have legitimised themselves by sponsoring IPL teams.
But it is ending; RBI has put out a list of forex apps deemed illegal in India. RBI has put out an 'Alert List' of entities that are neither authorised to operate forex trading platforms nor authorised to deal with forex under the Foreign Exchange Management Act, 1999 (FEMA).
Here is the complete list of apps and websites put on Alert List by RBI:
| Sl No. | Name | Website |
|---|---|---|
| 1 | Alpari | https://alpari.com |
| 2 | AnyFX | https://anyfx.in |
| 3 | Ava Trade | https://anyfx.in |
| 4 | Binomo | https://binomoidr.com/in |
| 5 | eToro | https://www.etoro.com |
| 6 | Exness | https://www.exness.com |
| 7 | Expert Option | https://expertoption.com |
| 8 | FBS | https://fbs.com |
| 9 | FinFxPro | https://finfxpro.com |
| 10 | Forex.com | https://www.forex.com |
| 11 | Forex4money | https://www.forex4money.com |
| 12 | Foxorex | https://foxorex.com |
| 13 | FTMO | https://ftmo.com/en |
| 14 | FVP Trade | https://fvpt-uk.com |
| 15 | FXPrimus | https://fxprimus.com |
| 16 | FXStreet | https://www.fxstreet.com |
| 17 | FXCM | https://www.fxcm.com |
| 18 | FxNice | https://fx-nice.net |
| 19 | FXTM | https://www.forextime.com |
| 20 | HotForex | https://www.hotforex.com |
| 21 | ibell Markets | https://ibellmarkets.com |
| 22 | IC Markets | https://www.icmarkets.com |
| 23 | iFOREX | https://www.iforex.in |
| 24 | IG Markets | https://www.ig.com |
| 25 | IQ Option | https://iq-option.com |
| 26 | NTS Forex Trading | https://ntstradingrobot.com |
| 27 | OctaFX | https://octaindia.net, https://hi.octafx.com, https://www.octafx.com |
| 28 | Olymp Trade | https://olymptrade.com |
| 29 | TD Ameritrade | https://www.tdameritrade.com |
| 30 | TP Global FX | https://www.tpglobalfx.com |
| 31 | Trade Sight FX | https://tradesightfx.co.in |
| 32 | Urban Forex | https://www.urbanforex.com |
| 33 | XM | https://www.xm.com |
| 34 | XTB | https://www.xtb.com |
The central bank has also mentioned in the release that apps or entities not listed should not be assumed to be authorised by RBI. And that the list is not exhaustive and is based on what is known to RBI.
As per the RBI norms, forex transactions should be only undertaken by authorised persons and for permitted purposes, in terms of the FEMA (Foreign Exchange Management Act, 1999).
RBI added, "While permitted forex transactions can be executed electronically, they should be undertaken only on ETPs authorised for the purpose by the RBI or on recognised stock exchanges viz., National Stock Exchange of India Ltd., BSE Ltd. and Metropolitan Stock Exchange of India Ltd".
The central bank has also mentioned that the persons undertaking forex transactions for purposes other than those permitted under the FEMA or on trading platforms unauthorised by the RBI will be liable for legal action under FEMA.
Finally, some regulations on forex trading
Forex trading apps have been going mainstream in India. OctaFX, an app in the Alert list, is the sponsor for the IPL team Delhi Capitals. OctaFX, along with other forex trading apps, has been promoting itself in social media, Youtube, TV and print ads for some time now. And especially with crypto hype going down, these apps, with their get-rich-quick schemes have bumped up on the advertisements and YouTube video collaborations. It has also to be noted that some of these apps have been subject to data leaks too.
But these platforms have been operating by not following the legal requirements in India, and RBI has called them out and has issued a warning for these apps by putting them on Alert List.
Ideally, these apps should have been outright banned if they operated illegally in the country. India has banned many apps and games for many other reasons. If not banned, the common person would not know about these apps deemed illegal by RBI and using them can cause legal action.
