Trading Derivatives in USA from India

F&O
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I signed up for an account with Webull, applied for options trading and it got accepted.

Now I’m planning to wire money to their account. I know that it is legal to invest in normal US stocks, but futures and options are not allowed.

Now the thing is, how the hell will anyone get to know if I’m investing in stocks, or buying options with the money I transferred to Webull?

What am I missing?

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234

@siva-reddy any update to include USA market in zerodha , waiting for long time any thing will happended this month

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hey @Riyas_Ahamed now that motilal oswal is launching S&P500 fund, would you recommend investing? hearing different biases from everyone…

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@vishalkhemchandani its good but there is lot of disadvantage is there , theses are FOF that means fund of fund , you want to pay AMC charges (expense ratio) on both side one in USA another one in India Currency risk also is there , if its direct investing in VANGUARD ETF that is more better then Motilal oswal , if we dont have any option we can go though motilal oswal not at all wrong

i prefer Direct investing through Vanguard etf s&p 500, if i dont have any option then only i can go to indian internatonal fund

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This may take some more time, due to this lock down some compliance process is stalled.

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Motilal Oswal S&P500 is direct, they are buying the shares in respective weightage, not FOF like nasdaq, however expense ratio is slightly higher than Vanguard, capped at 0.5%

Will that change your mind?

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@vishalkhemchandani Hai not at an a bad idea , i will invest for diversification in my portfolio sure

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240

thanks for your view :slight_smile:

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thanks @Ravi_Raj

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hi @nithin, @TraderVenk,
requesting you views as well please, thanks

243

It is grey, you are just creating another layer to get over the regulations. Not in spirit of the law.

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@st.kumar4

  1. You will remit funds to invest in your company… as a partner or shareholder…
  2. LLC is a separate legal entity…& a corporate citizen of country where it is incorporated It does/can do all kind of approved business in that country… Its not you… but the company
  3. You however is totally eligible for dividends from the that separate legal entitiy… i,e… LLC for the money you have invested in that “separate legal entity”

This is not grey,

Last but not least

Indian elites enjoy grey, white and black… and common man is expected to follow the “spirit” wherever it goes…

ANND …@nithin will never share with you what are the kind of activities his companies incorporated abroad do… :innocent:

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Don’t know about overseas s***… But this is true… You nailed it. :+1:

I posted a video on how big fish do shady stuff… That too by ambareesh baliga. … Some moral spirited soul got it flagged…

I was like wow… ROFL…

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247

Hi All,

This thread has been quite informative. My situation is a bit different so need your help.

Background:

  1. Born in India and now I am a Canadian Citizen with an OCI.
  2. Moved back to India in June 2019.
  3. Under the RNOR status, i am going to be a resident starting April 2020.
  4. All my bank accounts in India are still NRE and NRO (thanks to the lockdown)
  5. Have bank account in Hong Kong (was in HK for 3 years) and Canada as well.

Now i want to trade in Options in USA. I have opened an account with Tastyworks and am looking to open one with TD Ameritrade as well.

I can wire transfer funds from my ICICI bank account and it wont be considered under the LRS scheme. I can remit back my funds anytime without any limitations.

Can i trade in options? Main concern is how will i get the funds back in India? Will RBI create an issue?

thanks,

Kushal

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Your situation is way to complex for me to help. But you said your transfers won’t be under LRS. I don’t understand how, but every restriction we talked about in this forum had to do with us falling under the LRS scheme as the restrictions are clearly mentioned in the LRS documents. If your situation allows you to transfer money without any LRS restrictions, then margin trading shouldn’t be a problem.

But again I don’t understand how that would be once you’re and Indian citizen. You’ll have to talk to some expert for this.

249

Hi, I didnt quite follow. I believe you meant you are transferring funds from ICICI india to your TD Ameritrade USA account. How come it wont come under LRS scheme?

From what I have understood LRS will NOTT let you transfer money outside india for the purpose of margins/derivatives etc.

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I will never be an Indian citizen. Will just change to be an indian resident.

I have an NRE account which was funded with funds transferred from Canada / HK. Hence I can repatriate funds anytime without them coming under LRS. Even when i am transferring the funds, the only option i have for the description is repatriation.

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NRE= Non- resident Indian external account

u r neither an Indian nor a non resident…

When u r not an Indian… U have full financial freedom… u r free to trade forex and anyother ex…

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LRS, as far as I know, is for Indian citizens and not residents. You should be free from this without any scrutiny.

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. @namitjain2890 @siva-reddy Guys, I just saw Tom’s from tasty trade interview Harvinder kaur(uk resident) for his rising star segment. In last two minutes, he mentioned he was in India for conference on options trading in January arranged by Quantsapp. He specifically mentioned, thogh options trading is outside purview of Indian laws everyone in room of 400-500 had tasty trade account. So I think RBI is not after retail investors. We can probably show it as investment gains. Chances of IT scrutiny is very low and we can show investment transaction as all transactions that took place, also managing ITO is very easy. I would like to receive thoughts on this from experts?? Pls

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