Binary Option Trading in India

In recent times, binary options have seen a surge in popularity as an online investment option across the world, including in India. It is a simple form of online trading and, for that reason, is easy to get into for beginners.

If you are looking to begin trading binary options in India, there are some critical details that you should know. Here, we provide all the information you need about ​India binary options, including what binary trading is, how to trade binary options if you're from India, as well as taking a look at the legal details.

iq option
  • ​Accept traders from India
  • ​Over 250+ assets including​ options, stocks, ETFs, cryptocurrency, commodities, and forex
  • ​Award-winning platform available on web, Windows, Android, and iOS
  • $10 minimum deposit and payouts up to 95%

What Is Binary Option Trading​?

Binary trading​ is one of the simplest forms of trading investments you can make online. An 'all-or-nothing' option, binary trading is the process of placing a stake on whether the price of an asset will increase or decrease over a certain length of time. It is, therefore, 'binary' trading because the premise of the trade is on a yes-or-no probability. As the option holder, you don't choose whether or not to buy or sell the asset as the trade takes place automatically.

The essential thing to remember is that if your prediction is correct, you—the investor—will get your investment back with a bonus on top according to the rate at which you place your stake. If your prediction is wrong, you lose the entirety of the amount you initially put into the venture.

Is Binary ​Trading Legal in India?

The Securities of Board Exchange of India, established in 1992, prohibits Indian investors from trading in binary options. This prohibition means that, unlike in many other countries, binary options trading is illegal in India.

The Foreign Exchange and Management Act (FEMA) bars all trading of forex and binaries through online trading portals in India. Therefore, no laws exist to regulate binary ​options in India. This legal grey area means that anyone who decides to take up binary trading ​does so at their own risk.

Further, binary options brokers are not legal to operate inside of India, so anyone looking to trade ​digital options ​must choose an offshore broker.

​How To Trade Binary Options

There aren't any regulated binary trading firms based in India for legal reasons, which entails you won't find any binary options listed on recognized stock exchanges in India. Therefore, if you want to trade binary options from India, you need to sign up with an offshore binary options broker.

Step 1: Learn about binary trading

A lot of resources are available to help you with binary trading, and we recommend you use them—particularly if you are just starting. Research-backed trading can help you make less risky investments, and you'll be more likely to see profits than losses.

Consider the following resources to prepare you​:

  • eBooks: There is a wide range of eBooks dedicated to trading binary options. Get expert opinions and tips from people with years of experience.
  • Instruction guides: You can find PDF guides online that give you a simple breakdown of steps to follow. Most of them are free to download!
  • Video tutorials: Online tutorials make the process easy, and you can find them on YouTube for different trading platforms. There are also online seminars where you can ask questions.
  • Forums and chat rooms: Sometimes, the best tips and insights come from other traders just like you. Make use of binary options trading chat rooms to learn and better your practice.

Step 2: Begin trading

Once you feel prepared, ​you can follow the process below to begin trading:

  • Find a reputable offshore binary broker. You should check binary option reviews and make sure it is a legitimate company before proceeding any further.
  • Create an account with the offshore broker or your choice. IQ Option, a European-based company, is a popular choice in India.
  • Choose which asset you want to trade. You can trade binaries in nearly anything, such as forex, stocks, and commodities. It's best to choose something of which you have a strong understanding, whether that's the stock price of Amazon or the price of natural gas.
  • Place your prediction regarding that trade. The advice goes without saying, but do focus on picking an option that will provide you the best chance of success.
  • Select what you want your stake to be on the binary option. You should carefully consider the amount of money you wish to place. On the one hand, the bigger your initial investment, the higher the potential return will be. On the other, you must remember that the whole of your investment is at risk, and you could end up with nothing if your prediction is wrong.
  • Make the trade. When you're happy with the type of asset, your prediction, and your investment, check everything over and confirm your trade.
  • Await the outcome. Once you've made the trade, the result of your investment will be either a direct return on investment or no investment left at all.

Remember that binary options trading is a deceptively simple process, so while it's relatively easy to get into, it can take some time to master.

​Does IQ Option Accept Indian Traders?

Are you looking for an international trading platform ​that accepts clients from around the world? Here we take a look at IQ Option, which has proven to be a popular choice among international traders.

What Is IQ Option?

IQ Option is the best binary option broker ​for Indian clients.  IQ Option is a trading platform that allows you to trade ​over 250+ financial assets. These include Contracts for Difference (CFDs) on cryptocurrencies, stocks, forex, Exchange Traded Funds (ETFs), as well as a variety of digital options. The company is in Cyprus, and it accepts customers from all around the world. It is one of the fastest growing online platforms for trading binary options.

Can I Use IQ Option If I'm in India?

If you're trying to find out whether IQ Option is legal i​n your country, you'll likely run into a lot of contradictory information online. Some will tell you that it is entirely lawful, while others will suggest that it's not. While the Foreign Exchange and Management Act (FEMA) bans all trading of forex and binaries, there are also no laws regulating binary trading. Primarily, financial authorities ​such as SEBI, don't regulate options trading, so it remains easy to trade.

Because of this confusion concerning the regulation and recognition of ​Indian binary options, it can be difficult for ​residents to begin trading. That challenge is why many choose to use European-based brokers, such as IQ Option.

As a European company that accepts international customers, IQ Option has no special legal status in India (with some citing that this makes it legal in India).

How Do I Use IQ Option​?

  • Open a demo account: With the demo account on IQ Option, you can practice binary trading for free. You don't use real money, so it's a great way to get started if you're a beginner. It offers a risk-free way of improving your trading practice before doing it for real.
  • Open an entry-level account: This option involves real binary trading, and you can go ahead and place your investments. With the entry-level account on IQ Option, you get the lowest mimic deposit—meaning that you don't have to invest vast amounts of money.
  • Open a VIP account: The IQ Option VIP account functions in a similar way to the entry-level account, but as the trader, you get a personal manager. The manager can offer you insight and advice on your investments.

​Final Thoughts

It's easy to begin binary options trading in India once you know how. The most important thing to remember is you must use regulated offshore brokers, like IQ Option, to make your investments.

Due to the lack of laws and rules to regulate binary trading in India, you must know that there are scams out there, and you won't get any legal support or remedy in the event of a problem. It's vital to check the legitimacy of any trading site, as there are plenty of fakes and scams on the internet through which you can lose your money and information.

When you trade binary options ​with offshore brokers, the lack of regulation means you are responsible for your investment and returns. As returns vary from broker to broker, you must be sure about the minimum investment option, the return rates offered, and the withdrawal policy to which you agree.