Trading Derivatives in USA from India


#22

Did you check with Interactive Brokers India? They seem to allow individual traders to trade on overseas markets using a cash account.


#23

Buying stocks is not an issue. It’s trading in derivatives or anything that requires a margin a/c that’s causing an issue. And yes, I have an active interactive brokers india a/c.


#24

My bad, indeed it’s a margin account that is required. Wonder why so much restrictions a trader has to face in India.


#25

long back i had an account with Smith Barney . By default selling options were allowed and helpdesk guys clarified that to enable option wriitng i need to have minimum 25k USD in the account and need to have some prior experience in derivatives…
not sure about the current scenario… but my guess is derivative trading for retail ahs got many restrictions


#26

I am currently based in Netherlands but would be moving back to India soon. Would it be illegal if I fund my margin account using the Euro account I have currently and then continue trading from India?
I can keep my Euro account active even after moving to India. I would keep enough liquid cash in my margin account to avoid a margin call.


#27

U might have legal issues once u are an Indian citizen. But as long as u are a NRI (holding a OCI card), and have nationality of other country, there should be no issues. You’d be subject ot the host country’s rules on this matter.

Do note though resident indians as per indian laways are those who stay in India for a conntinuous period of 12 months
Whether this applies to NRI is unknown

Therefore, suggest u contact a professional CA in India regarding these matters.

And if u wish to give up ur Abroad citizenship,m then u have to close the margin acc along-with it. SInce Indian citizens can’t trade margin accounts outside india.


#28

Welcome to India.
Where Modi talks about generating employment, and bureaucrats in various branches of govt (Incl SEBI/IT) do retrograde moves


#29

Hi Namit - did you explore the option of opening a proprietorship or small company in a foreign jurisdiction, and using that route to legally trade on margin on overseas exchanges, and TraderVenk had suggested in his Sep 2017 post? Thanks.


#30

Yes I did. Did not find anything better than the options mentioned in this forum. Still, I might be wrong, do share with us if you find anything better :slight_smile:


#31

Hi Namit. I’d like to share an alternative path which looks attractive to me. NSE has announced an extension of trading sessions till late night. This would start later this year - October if I’m not mistaken.

Assuming the transition happens, I would like to believe that activity in S&P futures could see a big increase. They are listed on the NSE. At the very least, this would help us trade the S&P 500 and FTSE live.

Cheers!


#32

Sure I will.

Did you actually explore opening a company in an offshore jurisdiction? If so, what was your take away?