Trading For A Funded Prop Firm Through India | Vkeel - Free Legal Advice

Manoj

Chennai

It is legal to trade through a Funded trading prop firm from India. For example, https://ftmo.com/en/ This site allows to trade NASDAQ stocks through their account and they split any profits that we generate. So no money is spent from our side and the trade is done through a demo account from our side which is placed on a live account of theirs. Is it legal to do it from India as I could see some people from India working through it: or should we have to create an overseas account to get the benefit. I am already aware that it is not legal to trade forex and stocks inside India but in this case, the capital itself is not ours nor is the live account we are going to trade with. The profit split after trading with them is shared as "Consultancy services" or something similar. I got advice from the Zerodha founder that https://nimb.ws/GUpeMn is fine but why would someone do this twice when what we are doing is already the same.

Expert's Answers(3)

Advocate Kishan Dutt Kalaskar
Bengaluru, Karnataka

184 Client Ratings

Dear Sir, You may contact chartered accountant for more details. Anyway it is a risky business.

July 13, 2021
Advocate Ankur Goel
Bangalore, Karnataka

7 Client Ratings

there are losses also and they will come behind you for losses.

July 12, 2021
Advocate Anik
Bengaluru, Karnataka

65 Client Ratings

Hello In India, however, forex trading platforms are banned. While you cannot directly trade in the foreign exchange market, you can still trade in currencies through the stock exchange. Under the Foreign Exchange Management Act (FEMA), binary trading is not allowed. But in your case you are trading for third person which i think would not create any problem as the amount you are investing is not yours neither is the account, you are just sharing the profit. Thanks.

July 12, 2021