Is Octafx Legal in India
The Reserve Bank of India (RBI) this week published a warning list of companies involved in forex trading on unauthorized electronic trading platforms. The RBI noted that several unauthorized platforms lure people by promising high returns. RBI said users of these restricted platforms can be sued from now on. The long list of illegal apps includes OctaFX, the official commercial sponsor of Indian Premier League (IPL) team Delhi Capitals. Previously, the offices of many fintech giants, including Cashfree, Paytm, Razorpay and many others, were raided as part of an investigation involving illegal Chinese loan sharks and the HPZ token case. The central bank said people should not conduct foreign exchange transactions with unauthorized ETPs or transfer or deposit money for such transactions. Those who engage in illegal Forex trading may face liability for legal action under FEMA. The DG claimed that the funds were credited to the bank accounts of various shell companies and transferred in the country to other banks for stratification, after which cross-border transactions were carried out. The said app and its website have not been licensed by the Reserve Bank of India to trade Forex trading. The conduct and operation of Forex trading that is not performed on a recognized exchange is illegal and also violates FEMA regulations,” the agency said. The Enforcement Directorate (ED) has frozen €21.14 billion in account balances of OctaFX and its subsidiaries related to an alleged illegal online Forex trading case. OctaFX is legal in India as long as it does not engage in fraudulent activities.
So far, the broker has maintained an excellent reputation not only in the country, but worldwide. Despite the lack of regulation by SEBI or other major regulators, it has survived the market and continues to evolve. Learn how to trade Forex in India now. From Divyesh Singh: The Law Enforcement Directorate (ED) has frozen several bank accounts with Rs 21.14 crore balances of M/s OctaFX and its subsidiaries due to illegal online foreign exchange (Forex) transactions. This adds to the ongoing saga of ED`s crackdown on several fintech companies, as well as illegal Chinese lending apps. Previously, the ED conducted research at various premises of M/s OctaFX India Private Ltd and related companies for illegal online forex trading through international brokers, namely the OctaFx trading app and the www.octafx.com website. The OctaFX app and its website have not been authorized by RBI to trade Forex. The conduct and operation of Forex trading (which is not conducted on a recognized exchange) is illegal and also violates FEMA regulations.
“OctaFX is not authorized by the RBI to trade in Forex trading, the company`s conduct and operations are illegal: ED” ED has frozen the account balance in the amount of INR 21.14 Cr of M/s OctaFX and affiliates in various bank accounts. Previously, ED had carried out searches of various premises of M/s OctaFX India Private Ltd. and related concerns under FEMA regulations in the case of illegal online forex trading through international brokers, namely the OctaFX trading app and website,” the agency said in a statement. The legality of OctaFX in India is probably the most searched query on the internet. Since the reach of forex trading in India is limited due to RBI restrictions, people may want to be sure that they can trade with OctaFX. Today, I`ve compiled a list of frequently asked questions to address your concerns about OctaFX. The Directorate of Law Enforcement (ED) has frozen Rs 21.4 crore of forex trading app OctaFX in connection with a case related to alleged illegal online trading. The agency had previously conducted searches of various company premises and related concerns under the provisions of the Foreign Exchange Management Act (FEMA) in the case of “illegal online forex trading through international brokers, namely the OctaFx and Website-www.octafx.com trading app.” Yes, OctaFX is legal in India.
According to the broker`s website, it is fully compliant with international law and is licensed to operate worldwide. Earlier Thursday, the Law Enforcement Directorate said it had conducted a research operation related to an investigation into tokens based on HPZ apps and other similar apps. An amount of INR 9.8 Cr has been frozen as part of the cross-investigation into several illegal credit apps and the HPZ token scam. This comes days after the RBI issued a public recommendation warning the public against conducting forex trading on unauthorized electronic trading platforms (ETPs). It also issued a “warning list” that included companies that were not authorized to trade foreign exchange. Overall, although OctaFX does not charge commissions for deposits or withdrawals, the choice of payment options is limited, accounts can only be denominated in EUR or USD, and funds cannot be withdrawn to Mastercard. OctaFX offers a deposit bonus program (up to 50% of your deposit), although the withdrawal of the bonus depends on the trading activity, using the following formula: The new developments have raised questions about the connection between Zanmai Labs and Binance. When the agency`s detectives rushed into WazirX`s offices early last month, a public dispute erupted between WazirX and Binance when Binance CEO Changpeng Zhao said his exchange had never acquired WazirX, despite a public announcement in 2019. Zhao later claimed that the deal was never finalized. According to investigations conducted by the authorities under the relevant provisions of the Foreign Exchange Management Act (FEMA), the aforementioned online trading application and website are operated in India in cooperation with M/s OctaFx India Pvt. Ltd. The forex trading platform, which is widely used on social networking sites, follows referral-based incentive models to attract users to their platform.
Yes, the broker does not prevent clients from trading currency derivatives. The RBI also allows Indian traders to trade currency derivatives in pairs involving Indian rupees. This could be one of the reasons why OctaFX has never faced the RBI until now. In February this year, the RBI had warned people against trading Forex on unauthorized platforms after reports of people falling victim to these companies increased. The RBI had said that companies that transact for purposes other than those permitted by the Foreign Exchange Management Act (FEMA) or on electronic trading platforms (ETPs) not authorized by the RBI could face criminal prosecution. The company`s investigation revealed that funds collected from different users were channelled through various shell companies. Subsequently, the amount would have been superimposed on several national accounts in order to finally carry out cross-border transactions. Yes, it is. Thousands of traders have successfully traded with the broker in India. The broker also offers a deposit bonus of up to 50%.
The RBI first noticed in February this year that these unauthorized ETPs were running ads about forex trading service offerings on social media platforms, search engines, over-the-top (OTT) platforms and gaming apps. In some cases, the RBI says, these agents hired by ETPs personally contact gullible people to conduct forex trading or investment programs and lure them with promises of “exorbitant returns.” Many people have lost money trading with authorized platforms, the RBI adds. Our sister site FXScouts also recognized OctaFX Best Forex Copy Trading Platform 2020 for its innovative approach to copy trading. Overall, OctaFX`s educational materials are among the best in the industry, but it could include more appropriate content for advanced traders. OctaFX also has its own trading management app that integrates well with the MT4 and MT5 apps, but we were disappointed that this is only available on Android devices. Scroll down for more details Choice of broker platform Copy OctaFX4.5/5 trading platforms Yes MT4MT5 FXTM4.5/5 Yes MT4MT5 Axi4/5 Yes MT4 Although you cannot trade with the OctaFX Trading app – you must have the MT4 or MT5 app installed for this – it is a functional trading management app with a smooth and easy-to-use layout. But we have a lot of iPhone users on our team, so we were particularly annoyed that the app was only available on Android. During the investigation, it became clear that investors/users saw several accounts from different Indian banks in the OctaFX trading app and fundraising website with the aim of facilitating Forex trading. The accumulated funds were transferred simultaneously to several e-wallet accounts such as Neteller, Skrill or to bank accounts of dummy entities. The list of central banks of these unauthorized companies includes Alpari, AnyFX, Ava Trade, Binomo, eToro, Exness, Expert Option, FBS, FinFxPro, Forex.com, Forex4money, Foxorex, FTMO, FVP Trade, FXPrimus, FXStreet, FXCM, FxNice, FXTM, HotForex, ibell Markets, IC Markets, iFOREX, IG Markets, IQ Option, NTS Forex Trading, OctaFX, Olymp Trade, TD Ameritrade, TP Global FX, Trade Sight FX, Urban Forex, XM and XTB.
Trustpilot Score: With a confidence rating of 4.4, OctaFX enters the category of highly respected brokers. The excellent rating on the Independent Examiner`s website is a testament to the legitimacy of the broker. According to the investigation, the funds were also used for cross-border transactions. The research also revealed the link between international online Forex trading brokers and their Indian partners/agents. OctaFX recently discontinued support for cTrader, one of our favorite trading platforms.
