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URequesting legal opinion on the following:
Its well known that Trading forex directly through international brokers or unauthorized platforms is illegal and may lead to penalties under the Foreign Exchange Management Act (FEMA).
However, what is the legality of trading forex using prop firms, where traders don’t remit their own funds to international brokers. Instead the prop firm gives them a demo account to trade, in exchange for a small fee.
For those unaware about prop firms and how they work:
Prop firms have these challenges. For eg. Traders can buy access to a $5000 funded account by paying $39, do trading on a demo account (paper trading), and if you pass their evaluation criteria, they will give you a 80% share of the profit (real money)
I believe many traders are taking this route and calling it ‘Income from other sources’/ freelance income. How legal is this?
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