FXTM
FXTM does not accept Indian residents. The broker has no SEBI registration and is not an authorised Indian broker.
India's regulatory framework, specifically RBI and FEMA rules, prohibits residents from trading spot forex or CFDs with offshore brokers. Remitting funds abroad for margin forex trading is not a permitted purpose under the Liberalised Remittance Scheme (LRS). This applies to any offshore broker, not just FXTM.
The legal channel for currency trading in India is the SEBI-recognised exchange system.
Registration Status for India
FXTM (ForexTime) was founded in 2011 in Cyprus and is part of the Exinity group, serving over 2 million clients across 150 countries. However, India is excluded from FXTM's service coverage.
The restriction reflects India's regulatory boundary. RBI and SEBI rules prohibit residents from trading margin FX or CFDs offshore. FXTM lists India as a non-served country. Attempting to register with a false address or other means violates the broker's terms and local regulations.
What the Local Rules Allow
The Reserve Bank of India (RBI) governs foreign exchange under FEMA 1999. The Securities and Exchange Board of India (SEBI) regulates exchange-traded currency derivatives. Residents may trade currency derivatives on SEBI-recognised exchanges: NSE (National Stock Exchange), BSE (Bombay Stock Exchange), and MSE (Metropolitan Stock Exchange).
The permitted currency pairs are INR-based: USD/INR, EUR/INR, GBP/INR, JPY/INR, plus certain cross-currency derivatives.
Exchange-traded currency derivatives use SEBI and exchange SPAN and exposure margins, roughly 3-5% of notional value, which translates to effective leverage around 20-30x. This is the practical ceiling. Offshore brokers illegally soliciting Indian residents advertise leverage up to 100x-1000x, but using them is prohibited.
| Feature | Offshore broker (e.g., FXTM) | SEBI exchange-traded derivatives |
|---|---|---|
| Legal for Indian residents | Prohibited under RBI/FEMA | Permitted on SEBI exchanges |
| Instruments | FX, CFDs on indices, commodities, stocks, crypto | Currency futures and options on permitted pairs |
| Base currency | N/A (no INR account) | INR settlement |
| Effective leverage | Up to 1000x advertised | ~20-30x via margin rules |
| Regulator | No SEBI registration | SEBI, RBI, exchange rules |
Deposits, Withdrawals, and Payment Methods
FXTM cannot onboard Indian clients, so there are no deposit or withdrawal methods, no INR accounts, and no connection to local payment rails.
Do not fall for brokers advertising UPI deposits for offshore spot forex trading. Local payment rails-UPI (PhonePe, Google Pay), IMPS, NEFT, RTGS, and NetBanking-are for settling transactions within the legal framework. They are tied to INR-settled, exchange-traded products, not offshore CFDs.
A common red flag is a fake or cloned broker app that accepts UPI deposits then blocks withdrawals. The RBI publishes an Alert List of unauthorised forex trading platforms. As of 19 November 2025, the list contains 95 entities. The seven entities added in that update were Starnet FX, CapPlace, Mirrox, Fusion Markets, Trive, NXG Markets, and Nord FX. The RBI states the list is not exhaustive.
If You Open an Exchange Account Instead
If currency derivatives on NSE or BSE fit your trading needs, account opening is standardised by SEBI rules. Required documents:
- PAN card (mandatory)
- Aadhaar card
- Address proof (Aadhaar, utility bill, or bank statement, typically within 3 months)
- Bank proof, usually a cancelled cheque
Approval typically takes 24-48 hours after document submission. The base currency is INR, so there is no domestic FX conversion for funding or settlement.
Taxation on Currency Derivatives Profits
Exchange-traded currency futures and options profit is generally treated as non-speculative business income, taxed at your income-tax slab rate. Intraday speculative positions count as speculative business income: losses can only offset speculative income and carry forward 4 years. Non-speculative losses carry forward 8 years.
Residents must declare worldwide income and foreign assets via Schedule FA. The tax authority is the Income Tax Department (CBDT), Government of India.
Red Flags and Scams
Common scams include Telegram and WhatsApp 'signal' and portfolio management scheme (PMS) groups promising guaranteed monthly returns, cloned or fake broker apps, and unauthorised platforms on the RBI Alert List that solicit deposits then block withdrawals. Recovery-agent follow-on scams often target victims of these schemes.
