The reason why binary options trading in India is becoming popular is that it is effortless to understand. Online trading is becoming quite popular among Indian traders these days. One of the most lucrative ways to trade online is binary options. Binary trading is legal in India with some rules and regulations.
Numerous binary option and Fixed Time Trade providers accept local payment gateways to aid traders in trading effortlessly. The binary options trading in India concept is plain and simple.
This will be your go-to guide if you want to start trading in binary options. We will tell you how you can trade binary options and is binary options trading is legal in India.
You will require a minimal amount to invest, such as $5; the forex trading can last only 30 seconds. Even though you may find Binary options very easy to understand, you must note that the risks involved are immensely high. If you make a successful trade, you get returns on your investment as high as 70%-95%, but if your trade is unsuccessful, you lose 100% of your investment.
Risk management is an important aspect you need to learn to become a successful trader. On the brighter side, you know beforehand the risk associated with each trade. Therefore you can only lose the amount you have already risked. So let’s jump to our query, “is binary trading legal in India” and find out how binary trading is legal in India.
What is Binary Options Trading?
A binary option is a financial instrument. In binary options trade, the parties involved in the transaction get one of two outcomes, depending on whether the option expires. Binary options trading in India relies on the result of a “yes or no” proposition hence the name “binary.” They have expiration dates and expiry dates. The underlying asset’s price must be on the right side of the strike price (based on the trades made) at expiration for the trader to make a profit.
Binary options are auto-exercised. Once the option expires, any profit or loss from the trade will be automatically credited or debited to the trader’s account. It means that the binary options trade either receives a payout or loses the entire investment in trading. Not in between. Conversely, the option seller must either retain the buyer’s premium or pay the total amount. Binary options automatically exercise.
In other words, once the option expires, the trading profit or loss will be automatically credited or debited to the participating party’s account. Now it’s time to reveal the most asked question on the internet “is binary options trading legal in India” and learn in what circumstances binary trading is legal in India.
Is Binary Trading Legal in India?
There is a heated debate in the Indian online trading community about Is Binary Options Trading Legal in India. Technically the answer to “is binary trading legal in India” is “No.” Unlike forex trading in India, heavily regulated by the Securities and Exchange Commission of India, there are no equivalent legal restrictions on binary trading in India. Moreover, With no locally regulated brokers, many traders in India rely on their offshore brokers. Traders are always searching for someone who can say, “binary trading is legal in India”.
To better understand the regulatory issues surrounding online binary options trading and to understand is binary trading legal in India, let’s take a closer look at the financial industry regulatory landscape. The primary regulators responsible for regulating the financial industry in India are RBI and SEBI.
1. Reserve Bank of India
RBI plays a vital role in the conduct of India’s monetary policy. It also serves as a regulator and supervisor of the Indian financial industry, especially the banking sector. Another essential function of RBI is the management of foreign exchange controls. Specifically, the Indian Rupee will be flowed to foreign facilitate trade payments and maintain stability in the Indian forex market.
2. Securities and Exchange Board of India
SEBI was established in 1988 and served as the regulator of the Indian securities markets. Its primary functions are-
- Protecting the interests of investors in securities
- Promoting the securities market’s development and regulation
- Facilitating related matters
However, SEBI is the regulator of the securities market in India, and it has three roles. It functions as a:
- Quasi-legislative
- Quasi-executive
- Quasi-judicial body
Forex trading in India is severely restricted as the RBI seeks to control the outflow of INR to reduce the country’s current account deficit. When you trade forex, you are dealing with currency pairs. For Indian traders, this means exchanging INR for USD or EUR. Therefore, To stop the outflow of INR from the country, the RBI has ruled that online forex trading could lead to Indian traders violating the Foreign Exchange Management Act (FEMA). The only way an Indian trader can trade forex is if the currency pairs the trades with the INR.
However, all these judgments do not apply to Indian binary trading, as traders are trading derivatives and not the currency itself. However, since there is no legal framework for binary trading in India under SEBI, It does not issue licenses to its binary brokers across the country. This again leads to confusion “is binary options legal in India.”
What to Do If You Get Trapped in a Binary Options Trading Scam in India?
As traders are always confused regarding “is binary trading legal in India “, lots of scams say that binary trading is legal in India to happen to traders. The SEC and CFTC have received numerous fraud complaints related to websites that allow you to trade binary options through Internet-based trading platforms. Complaints fall into at least three categories-
1. Refusal to credit customer accounts or refunds to customers
As traders are unaware of “is binary options legal in India”, The first category of suspected fraud concerns the refusal of specific Internet-based binary options trading platforms to deposit or withdraw funds after they have been credited to or received from a customer’s account. These complaints usually relate to clients who, after depositing funds into their binary options trading account, have been advised by a “broker” over the phone to deposit additional funds into the client’s account. Suppose the customer later tries to get back the initial deposit or promised earnings. In that case, the trading platform is to cancel the customer’s withdrawal request, refuse to credit the account, or ignore the phone call or email.
2. Identity theft
The second category of suspected fraud concerns identity theft. For example, some complaints allege that specific Internet-based binary options trading platforms may collect customer information, such as credit card and driver’s license details, for unspecified purposes. If an internet-based binary options trading platform asks for a copy of your credit card, driver’s license, or other personal information, do not provide it.
3. Manipulation of software to generate losing trades
The third category of suspected fraud is manipulating software to generate losing trades. These complaints allege that Internet-based binary options trading platforms use trading software to distort binary options prices and payouts. For example, if a client’s trade “wins,” the expiry countdown is arbitrarily extended until the trade becomes a losing trade.
As there are no laws or regulations governing binary trading in India, investors involved in Indian binary alternatives do so at their own risk. Because of the fact that there is no legal remedy for brokers interested in binary trading scams in India. Many fake web portals trick individuals and ultimately steal their personal information and money.
Also, there is no way to know whether betting on a binary options platform is legal. There have been reported cases of manipulating software to distort prices and payments. Such media refuse to return customer funds, making it easy to cut off all contact with customers due to their geographic location. They have fallen victim to it. Why?
The answer lies in the placement of social media ads and articles. Ads direct you to her website, which is well-designed and professional looking. Therefore, it is an urgent request not to do business with financial services companies not licensed by the Indian authorities. Please check all details about the company with the regulator before making an investment decision. You need more than just a regulatory logo on your website.
To avoid these scammers and trade without worry, You must understand “is binary options legal in India” because if you are into any illegal activity, no one can help you.
Implications of Binary Trading In India. Is It Legal?
It often upsets traders when it comes to binary options trading in India. Because of the fact that they are not adequately aware of “is binary trading legal in India”. The legal status of Binary options in India is a grey area. RBI and SEBI do not control Binary Options in India, thus, no one knows whether “Is Binary Options Legal in India or not”
Therefore, Indian traders are hesitant to invest in binary options trading in India. In many parts of the world, Binary Options trading is legal, and the traders in those respective countries can invest in stocks as much as they want in binary options trading in India. So to answer your question, is binary trading legal in India or not? We are afraid we’d have to say, “No.”
How to Trade Binary Options In India?
Do not be upset after knowing the answer to “is binary trading legal in India”; we will tell you about two options that will allow you to trade Binary Options and fixed-time trades in India.
- You need a demo account if you want to carry out binary options trading in India legally. Demo Accounts enable users to trade with legal money in India while eliminating the fear that traders will lose the money or not, as SEBI and RBI do not support.
As a trader in India, you are likely to get great trading experience with demo accounts. Although, trading in Binary Options has seen great growth in the past few years. But, enthusiastic traders are still waiting on the legalization of Binary Trading in India.
- The second way to trade in Binary options is to trade with brokers accepting traders from India. Several brokers, such as IQ option, ExpertOptions, and Olymp Trade, and their job are middlemen.
Although these brokers do not need licenses from SEBI or RBI to do their business, they welcome Indian traders and let them open Binary trading options account with them.
5 Best Binary Options Brokers In India
There are several Binary Brokers in the market, but you can still trust each. Only a few brokers can be trusted in Binary options trading. Although the answer to “is binary trading legal in India” is “No, ” various platforms in India allow you to trade.
The list of some of the Best Binary Trading Brokers are:
| Name of Broker | Rating | Features |
| IQ option | 8.5 | ● Minimum deposit of $10
● Minimum trade size of $1 ● Maximum returns are 95% ● Works on – proprietary web, Android, and iPhone |
| OptionFair | 8.1 | ● Minimum deposit of $100
● Maximum returns of 100% ● No bonuses ● Works on – proprietary, web, Android, and iPhone |
| Nadex | 9.0 | ● The minimum deposit is $0
● Maintaining balance is $0 ● No bonuses ● Payouts can be higher than 100% of the initial investment ● Works on – The web, Android, and iPhone |
| Binary Tilt | 7.8 | ● The minimum deposit is $250
● Maximum returns are 85% ● Bonuses up to 100% ● Works on – SpotOption, web-based, Android and iPhone |
| OneTwoTrade | 8.5 | ● The minimum deposit is $200
● Maximum returns are 65% to 85% ● Not specified bonuses ● Work on – proprietary, web, Android, and iPhone |
While selecting the best five brokers, you must consider several factors, like customer support, payment gateways, availability of advanced features, ease of trading, and verification methods. Let’s talk about brokers who say binary trading in India is legal in Detail:
1. IQ options
IQ Option was founded in 2014. It has a good internet reputation. Also, it claims “binary trading in India is legal” and uses in-house software for trading. With a maximum redemption rate of 95%, it offers a wide range of web-based and mobile features that make binary trading more transparent, reliable, and efficient.
For example, it provides speed trading services with increments of up to 5 minutes and hourly binary options with increments of 15 minutes. It also provides a trade expiry date of up to 1 month. Additionally, the Digital Options service allows users to trade gold on her 500+ assets.
This famous binary options tool offers a free demo account. The minimum deposit for real accounts is only $10. Premium VIP accounts are also available for customers who make large deposits. You will get customer support via email, phone, and live chat. Finally, this broker offers several convenient deposit and withdrawal methods to facilitate trading.
2. OptionFair
Based in Cyprus, OptionFair found in 2010. Regulated by CySEC and also listed on the London Stock Exchange, it is one of the leading binary options brokers. The broker trades Forex, CFDs, and Binary Options on 118 underlying.
The minimum deposit is $100 with up to 100% return. However, you will not see any bonuses, but you are free to contact support for possible terms. The expiry date is shorter than average, but it guarantees quick returns on short-term trades.
The broker uses a proprietary platform that allows you to switch trading from Forex to Binary and his CFDs via a single interface. Access countless assets and commodities and a wide range of expiration dates. You can trade forex and binary at the same time. Mobile apps are also available for Android and iPhone.
Telephone support is available on five international numbers, including English, Spanish, Italian and French. You will also get Email support with OptionFair.
3. Nadex
Nadex (North American Derivatives Exchange) is a popular binary options trading platform. One of the main reasons is that Commodity Futures Trading Commission (CFTC) regulates it. Another reason is that trading is straightforward to understand. It is thanks to its simplified trading format and intuitive platform. Of course, it also features advanced technical analysis tools such as candlestick charts and a long list of indicators such as Moving Averages (MA), Bollinger Bands, and Stochastics.
The platform allows users to access markets such as forex, stock indices, commodities, and economic events such as unemployment. It is only possible with a single account. Speaking of trading accounts, Nadex has no initial deposits and no balance. So the barrier to entry is almost zero. In addition, the user will enjoy a meager transaction fee of $1.00 per contract and an additional $1.00 for in-the-money trades or profits as a settlement fee. There are no transaction fees when withdrawing money. With this feature, users will only lose what they have deposited in a trade.
Finally, there is also a mobile app NadexGo for Android and iOS users. It allows you to trade or monitor your positions on the go.
4. BinaryTilt
BinaryTilt is an unregulated broker headquartered in London, England. Cyprus-based Depix Holdings own it. Although unmonitored, the broker appears to have a clean record, with rare alerts from authorities that dealers are not accepted. It trades stocks, indices, forex, and commodities on 150 underlying.
The minimum deposit is $250, and the win rate is up to 85%. Likewise, bonuses can reach 100%. Trading styles include high/low, one-touch, range and on-demand. Stocks are also mainly US or EU-based companies.
The trading platform is SpotOption, a standard tool, but it needs to be updated compared to today’s newer platforms. The interface is friendly, and it has well-organized elements, making it easy for beginners to start trading. You will get support via chat while using Android and iPhone apps.
5. OneTwoTrade
OneTwoTrade uses the famous SpotOption web-based trading architecture. The company offers the latest technological advances for the benefit of its customers. OneTwoTrade has won awards for providing an efficient and secure trading platform that is relatively easy to use.
It is also heavily regulated by government agencies such as the Malta Gaming Authority. Additionally, OneTwoTrade undergoes numerous tests to ensure accuracy, stability, and quality.
OneTwoTrade offers two trading accounts. The latter, called Privilege Plus, offers users other benefits such as in-depth market analysis, special promotions, and anytime access to Senior Account Managers. A Privilege Plus member will receive iPhone or iPad with a dedicated mobile trading app.
Binary Options Trading in India
binary options trading in India involves trading to profit from price fluctuations of various assets such as commodities, stocks, indices, and currencies (forex pairs are also called currency pairs).
As a binary options trader, you make decisions based on whether you believe the price of an asset will end or fall by a certain period, called an expiration date.
Binary trading is easy, thanks to this basic yes/no scenario. As a result, many investors in India are becoming more and more interested in binary options trading in India.
What is the Best time for Binary Options trading in India
The ideal time to trade is when the various financial markets are open. Schedules in India can be challenging, but you can change 24 hours a day, seven days a week. The best time to trade US stocks and commodities is between 9 am and 5:15 pm, Monday through Friday (Eastern Time). Whereas, European market time is 7 am until 15:30 GMT (Greenwich Mean Time).
The forex market is open 24/7, but you will get the best results by trading when traders in major countries such as Australia, London, and the US are active online. You can find out by checking the current trading volume of your brokerage account.
Conclusion
In brief, the binary Trading Option is a good source of income for many traders, but the only two reasons why traders are hesitant to invest money are the high-risk factor and its legal status in India. Therefore, it is advisable to begin trading with demo accounts. Also, the next time someone asks you, “is binary option legal in India” I hope you know the answer.
Is Binary Options Trading Legal in India – FAQs
How to trade Binary options in India?
Ans. You need a demo account if you want to trade Binary Options legally. Although, Demo Accounts allow users to trade with legal money in India but eliminate the fear that traders will lose the money or not, as SEBI and RBI do not back it. Or you can trade in Binary options with brokers accepting traders from India. Several brokers, such as IQ option, ExpertOptions, and Olymp Trade, and their job are middlemen.
What’s the best binary trading in India, and is binary trading legal in India?
Ans. IQ Option is India’s most popular binary trading app. Since its launch in 2014, 1Q Option has attracted a user base of over 48 million, with over 1 million trades daily. The answer to “is binary trading legal in India” is “No”.
Is IQ Option trading legal in India?
Ans. IQ Options trading is not legal in India because of the fact that binary options trading is not regulated. However, Indian investors wishing to participate in binary trading should play at their own risk, as the country does not have laws governing such trading. On the one hand, the reward might be worth it.
Is binary trading safe in India?
Ans. No, it is not 100% safe in India, as any government agency does not regulate it. However, you may be safe if you trade with a reputable broker like IQ Options.
Is binary options trading profitable?
Ans. Most investors are wondering if he can make money by trading binary options. The short answer is yes, but it needs hard work, effort, and patience to consistently profit from the options market.
Are binary options trading legal?
Ans. No, it is illlegal in India. However, it is legal in the United States when traded on licensed exchanges. On the other hand, specific binary options are listed on a registered business or sold on a CFTC or DCM regulated by the SEC.
Is the binary option legal in India?
Ans. The answer to “is binary option legal in India” is ‘No’ because SEBI and RBI do not regulate it.
How the binary trading in India is legal?
Ans. Various brokers claim that binary trading in India is legal and allows traders to carry out safe trading.
