Forex Trading Platform “FX-Retail” from CCIL & RBI

What is FX-Retail ?

RBI was getting issue of transparent and fair pricing in the retail forex market in various fora and public interactions. In 2017 RBI issued  “Discussion paper on foreign exchange trading platform for retail participants” and based on the feedback received a web based trading platform was developed by Clearcorp which is called FX-Retail.

The web based platform shall provide for trading in Outright CASH, Outright TOM and Outright SPOT instruments in USD/INR currency pair.

This article talks about basic feature of the FX-Retail, benefit, Charges, and Registration process. In the future article we will give further details on various other aspect of FX-Retail.

Benefit of FX-Retail Platform

  1. Customer can directly deal on the platform and have access to current rates, thus moving from phone based trading to electronic trading.
  2. The platform would provide for more transparency. Customer will be able to look at SPOT rate going in market and margin added by bank over the same. Thus customers will get better FX pricing.
  3. Flexibility of booking any time during the day (between 9am to 5pm). This would help the customers when market is very volatile.

Features of FX-Retail

  1. URL: https://www.fxretail.co.in/
  2. Start Date for Registration: 01-July-2019
  3. Start Date for Trading: 05-August-2019
  4. Currency Pair: USD/INR
  5. Trading Days: Monday to Friday
  6. Number of Banks: Multiple bank accounts can be added against one customer.
  7. Holiday’s: Saturdays, Sundays and those days that are declared as holidays under the Negotiable Instruments Act,1881 in the state of Maharashtra and such holidays as Clearcorp may declare from time to time
  8. Trade Type: Outright Cash, Outright TOM, Outright SPOT
  9. Spread: 0.0025
  10. Mark up : Bank will set markup for each customer which would be adjusted with Trade Rate (SPOT + Markup)
  11. SWAP Quote: Bank to Bank market are on SPOT (T+2). Incase of Outright Cash (T) or Outright TOM (T+1), bank will add SWAP charges.
  12. Trading Limit Type : Only Sell Limit, Only Buy Limit, Both
  13. Trading Limit Amount : Limit will be decided by Bank depending on customer category, Import Export turnover etc.
  14. Lot Size: Minimum order size would be USD 1000 and thereafter in multiples of USD 500. (As per RBI Discussion Paper)
  15. Number of Transactions per Day: No limit
  16. Maximum Single Transaction Limit: $ 5 Million
  17. Who can book rates: Corporate, HUF, Individual, NRI, Others, Partnership, Society, Sole Proprietorship, Trust. There are other categories also, please refer link given in reference.
  18. Bank Charges: Banks may charge flat fees towards administrative expense, if any, shall be indicated on the FX-Retail platform.
  19. CCIL Charges : Banks may recover from customers transaction and settlement charges levied by the CCIL.
Particular Charges
One time Customer Registration Charges
a. Individual Rs. 300
b. Non Individual Rs. 1000
Transaction Charges
a. Upto USD 50,000 in a day No Charges
b. Above USD 50,000 in a day 0.0004% on the entire Transaction value in INR terms  (* GST is applicable on the above charges)

Registration Process 

  1. Registration: Fill up registration details and submit the form online
  2. Bank Approval: Bank will either approve or reject the request. If it approves, it was also set up trading limit and mark up. If the application is rejected, the form needs to be resubmitted after rectification.
  3. Trade Activation: Once banks approves it, an email will be received with login credential. With the new login customer can start booking the rates.

We assist in hand holding of the above process. Feel free to contact us on (M) 9825560186 or email us on : sanjaymandavia@gmail.com

Reference

  1. RBI: Discussion paper on foreign exchange trading platform for retail participants: 2017
  2. RBI: Rollout of the foreign exchange trading platform for retail participants – FX-Retail: Dated 20-Jun-2019
  3. List of Customer Category for FX-Retail

Related Article

  1. FX-Retail Platform: Terms and Conditions
  2. FX-Retail Platform – FAQ
  3. Basics of Exchange Rate
  4. Legal Entity Identifier (LEI) Number

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.