Binary Option Trading in India

Looking for an easy and straightforward to participate in the financial markets that can bring in high and fast returns? You might want to consider binary options trading in India.

In this guide, we’ll share all the details you need to know to get started with binary option trading and our recommendations of where to go to begin trading.

AT A GLANCE: Our Picks for Binary Option Brokers for Indian Traders
  1. Best Trading Platform:Pocket Option
  2. Best for Minimum Trade Amounts:BinaryCent
  3. Best Bonuses:RaceOption

Table of Contents

The Best Binary Option Brokers For Indian Traders

Binary Option Brokers For Indian Traders
Pocket Option
If you're looking for a binary broker that caters to customers around the world, including USA and Europe, then Pocket Option is one of the best options available.
  • Maximum Profit: 96%
  • Min. Deposit: $50
  • Min. Trade: $1
  • Assets: 100+ Crypto, Commodities, Stocks, and Currency Pairs
  • Platform: Web, Android, iOS, and Windows
BinaryCent trading environment is friendly and secure for all traders. This broker comes highly recommended for all types of traders.
  • Minimum Deposit: $500
  • Minimum Trade: $0.10
  • Assets: CFDs, Forex, and Options
  • USA Friendly: Yes
  • Assets: Commodities, Crypto, Forex, Indices, Stocks
This platform is best suited for beginners that are looking for a simple interface that is easy to understand.
  • Minimum Deposit: $250
  • Max Payout: 90%
  • Bonus: 20-100% Deposit Match
  • USA Friendly: Yes
  • Assets: CFDs, Forex, Indices, Stocks, Commodities
The Best Binary Option Trading Broker
If you're looking for a binary broker that caters to customers around the world, including USA and Europe, then Pocket Option is one of the best options available.

What is Binary Options Trading in India?

Binary options trading involves executing trades that allow you to profit from price fluctuations of various assets, including commodities, stocks, indexes, and currencies (also referred to as Forex pairs).

As a binary options trader, you execute a trade based on whether you think the price of the asset will end above or below a specific price by a specific time period, known as the expiration. This simple yes/no scenario makes binary trading very simple with trades that are easy to execute. As a result, many investors are now looking to trade binary options in India.

Here’s how it works:

For example, let’s say the price of gold is currently $1,900 (approximately 140,000 INR), and you think it will rise to $1,950 by the end of the day. You can buy a binary option from anywhere from $1 to $100, betting on the outcome that you think is most likely to occur.

In addition to being a straightforward way to trade, with binary options, you also have the advantage of not having to come up with the funds to purchase or hold the entire underlying asset.

As the term “binary” suggests, there are only two possible outcomes in this type of trade. Either the price of the asset goes above the predicted price, or it doesn’t. Depending on the odds of the outcome, the price of the option and how much you can earn trading binary will vary.

If the asset reaches the specified price (also called the strike price), you would get your money back and a healthy return, often more than 60%, and even up to 90%. If the asset does not reach that price, you lose your entire investment. That’s why binary options trading is often referred to as an “all or nothing” strategy.

Is Binary Trading Legal in India?

You might see some different answers about whether binary trading is legal in India. The fact of the matter is that binary trading brokers and exchanges cannot legally be based in India. However, Indian residents can still participate in this market by working with offshore brokers.

Because the brokers are operating internationally, it means that there is no regulation and little to no protection for individual investors in India. We recommend only trading with a reputable broker, and we’ll share some sources in this guide.

How to Trade Binary Options in India

The good news is that it’s not hard to get started with binary options trading in India. Here’s a step-by-step process:

1. Open an account with an broker. Remember, you’ll have to go offshore to do this, but you can easily do it online. Please do your due diligence when you select a binary options broker. There are scam brokers that will accept your deposit and keep your money. There are also brokers that will hold on to your money and make it difficult to withdraw your profits.  

To find a reputable binary options broker, we recommend the following:

  • Use one of the binary options platforms we’ve already vetted.  Check out our binary option reviews for our top broker list.
  • Check to see how long the broker has been in business and look for any complaints of fraud for binary trading in India. Binary options became available to individual investors in 2008, so that you should give you some context to compare the experience of various brokers.
  • Compare the payouts and trade types offered on each platform. Some binary trading platforms are better and more comprehensive than others.

2. Once you have an account with a binary trading broker, select the type of asset you want to trade. Most interfaces have a list of options and assets that’s easy to navigate.

3. Evaluate the price trends and make your predictions. The best brokers will have interactive tools that allow you to get a feel for the asset’s price volatility.

4. Choose how much you want to invest in the binary options trade. There’s usually a selection tool that shows you the probability of an outcome as well as the cost and what you can potentially make in returns when you’re doing binary trading.

5. Execute the trade on the platform.

6. Sit back and wait for the expiration date or time of the option. Then, either collect and reinvest your earnings or cash out. And, of course, don’t forget to consider the option that you could lose the amount you invested in that trade, so start with smaller trades until you get good at this skill.

Licensing and Regulation in India

There are no licensed binary options brokers in India, so you will have to trade with an offshore company. However, the government does not step in, allowing you to freely participate in trading binary options. Of course, that also means there is no recourse if you lose your money, so we’ll remind you again to choose wisely when you open a brokerage account.

Frequently Asked Questions

Even though the trades themselves are easy to execute, new traders have many questions about who to trust, how to pay taxes, and if people doing binary trading in India can get in trouble for doing these trades.

What is the Best Binary Trading App in India?

By far, our favorite binary trading app in India is IQ Option. IQ Option has been around since 2014, and the broker has amassed more than 48 million users, executing a million-plus trades each day.

IQ Option users report that the average time for processing withdrawal requests is 11 hours, so you can get your money out the same day you request it.

Perhaps the best feature for those wanting to do binary trading in India is their customer support. They do offer customer support via phone, email, and chat for customers in India, so you can communicate in your native language and not have to deal with communication barriers.

And finally, IQ Option also has a library of video tutorials to make you a better trader as well as free demo accounts. With an IQ Option demo account, you can practice trading without risking any real funds. Trade as long as you want for no money until you feel comfortable.

Is Olymp Trade Legal for Indian Traders?

Like IQ Option, Olymp Trade also supports Indian traders. They also earn legitimacy by having a YouTube channel with 143,000 subscribers and a Facebook page with over a million fans. The company is very active on social media and has earned a stellar reputation for addressing any customer support issues publicly and in record time.

All options traders, regardless of location, do have to submit documentation to verify their identity. This is to protect both you and the platform from illegal trading activity. This process is also instrumental in ensuring that no one under the age of 18 is allowed to execute trades.

Also, just like IQ Option, Olymp Trade also has an app for mobile trading, which is convenient for people who want to do binary options trading on the go.

Is ExpertOption Legal in India?

ExpertOption is not available to residents in all countries, but they do service Indian traders. You can set up a free demo account, and once you’re ready to start trading options, you’ll have access to 100 assets and stocks.

The company also has customer support in Hindi via email and phone.

Do You Have to Pay Income Tax on Binary Options in India?

The short answer is yes. Whether you are using IQ Option or another broker, you are supposed to declare your earnings on your tax return. However, these brokerages will not send you official documents. Instead, you’ll have to track your earnings on your own and file your taxes based on these records.

Depending on whether you are a full-time or hobby trader will also affect how you pay income tax. If you trade for a living, your earnings are likely to be charged as income. However, if you trade for supplemental income or as an investment, then your earnings will probably be charged at the capital gains rate. Don’t forget to check with your accountant to ensure that you’re not under or overpaying!

Is Binomo Legal in India?

Binomo does support traders in India, and you can get started with as little as $10 in your account. The company also offers free demo accounts and plenty of tutorials to allow you to master your skill and begin executing low and no-risk trades.

They also boast payouts as high as 90%, which is some of the highest we’ve seen.

What is the Best Time to Trade Binary Options in India?

The best time to trade is when the different financial markets are open. In India, the timing can be tricky, but you can still potentially trade 24 hours a day, seven days a week.

To trade US-based stocks and all commodities, you’ll want to be active Monday through Friday from 9 am to about 5:15 pm EST (eastern standard time).

For European markets, the hours are 7 am to 3:30 pm GMT (Greenwich Mean Time).

Currency markets offer around the clock trading, but you’ll do best if you time your activity when traders in major countries like Australia, London, and the U.S. are online and active. You’ll be able to determine this by looking at the current trading volume in your brokerage account.

The Bottom Line

Though there are no legal binary option trading platforms in India, you can still execute these trades safely and profitably if you open an account with a reputable country.