FBS Regulated Status for Indian Traders

FBS operates through its Belize-incorporated entity, FBS Markets Inc., under a license from the Belize FSC/IFSC. It is not registered with the Securities and Exchange Board of India (SEBI). This means your account is not covered by Indian investor protection rules.

The Regulatory Framework

The Reserve Bank of India (RBI) governs foreign exchange under FEMA 1999. It permits residents to trade only INR-based currency pairs (USD/INR, EUR/INR, GBP/INR, JPY/INR) on SEBI-recognised exchanges like NSE, BSE, and MSE. Trading spot forex or CFDs with offshore brokers is illegal for residents, and remitting funds abroad for margin forex trading is not a permitted purpose under the Liberalised Remittance Scheme (LRS).

Red Flags

Trading non-INR pairs via unregulated foreign brokers breaches FEMA/RBI-SEBI rules. This is a critical point to understand before depositing funds.

Account Types and Costs

FBS offers five account types. Spreads on Standard accounts start from 0.7 pips; ECN accounts start from 0.0 pips with commission.

All accounts are in USD or EUR, not INR. This adds currency conversion risk and complexity for Indian residents. FBS also offers swap-free accounts on Cent and Standard types.

Leverage: Extreme Risk

FBS advertises leverage up to 1:3000 for offshore clients. At 1:3000, a price movement of just 0.033% is enough to wipe out your entire margin.

In India, SEBI does not impose a single fixed leverage cap like ESMA's 1:30. Exchange-traded INR currency derivatives are margin-based with roughly 3-5% of notional value required, translating to effective leverage of around 20-30x. Offshore brokers advertising 100x-1000x leverage operate outside the legal framework for Indian residents.

Funding and Withdrawals

FBS accepts cards, wire, and e-wallets. UPI availability is not verified. Minimum deposits start from USD 5 for Cent accounts and approximately USD 100 for Standard accounts.

Base currencies are USD or EUR only. The lack of INR accounts means banks may hold or reject transactions related to forex trading.

Your Legal Position in India

The RBI publishes an 'Alert List' of unauthorised forex trading platforms. As of 19 November 2025, the list totals 95 entities. The RBI states the list is not exhaustive.

Trading spot forex or CFDs with offshore brokers violates FEMA rules. Remitting funds abroad for margin forex trading is not a permitted LRS end-use. Binary options and offshore CFDs are effectively off-limits for residents. The RBI Master Direction prohibits operating a forex ETP without RBI authorization.

Tax Obligations

Exchange-traded currency futures and options profit is generally treated as non-speculative business income, taxed at your slab rates. Intraday speculative positions are treated as speculative business income, with losses set off only against speculative income and carried forward for 4 years (non-speculative losses carry forward 8 years).

You must declare worldwide income and foreign assets under Schedule FA. A 20% TCS applies on LRS foreign remittances above Rs 10 lakh per financial year. Crypto is taxed separately at a flat 30% plus 4% cess.

Tax authority: Income Tax Department / CBDT (https://incometax.gov.in).

When FBS Is Not a Fit for Indian Residents

The most significant downside is the restricted status. FBS accepts Indian clients, but spot forex trading is not permitted under RBI/FEMA rules for residents.

Alternatives

For Indian residents wanting to trade currency derivatives legally, use SEBI-recognized exchanges (NSE, BSE, MSE) which settle in INR and offer INR-based currency pairs. For international equity or commodity trading, look for brokers regulated by the FCA, CySEC, or ASIC, though forex restrictions remain for residents.