On a global scale, online trading has seen significant growth, and India is no exception. Binary options have rapidly achieved popular appeal in India since their introduction. Nevertheless, the majority of people are still unclear about the use of binary options trading in India. Let’s take a closer look at it to properly understand the topic.
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Binary Options Trading in India
Trading binary options comprises placing trades that enable you to earn from price changes in a variety of assets, such as commodities, equities, indices, and currencies (Forex pairs are also known as currency pairs).
As a binary options trader, you make a decision depending on whether you believe the asset’s price will end up or down a certain price by a certain time period, referred to as the expiry.
Binary trading is made simple with easy-to-execute deals thanks to this basic yes/no scenario. As a consequence, many investors in India are increasingly interested in trading binary options.
Example of Binary Trading
Let’s assume gold is presently priced at $1,900 (roughly 140,000 INR) and you believe it will rise to $1,950 by the end of the day. You can buy a binary option for $1 to $100 and bet on the result you believe is most likely to happen.
Binary options offer the benefit of not having to come up with the capital to acquire or keep the total actual asset, in addition to being a simple way to trade.
In this form of deal, there are just two potential results, as the term “binary” implies. Either the asset’s price rises above the projected level or it does not.
The value of the option and how much you can make trading binary will change according to the odds of the result.
Note
You’ll get your funds back and a hefty return if the asset hits the stated price (also known as the strike price), which is generally more than 60% and even up to 90%.
You will lose your whole money if the asset does not achieve that price. Binary options trading in India is known as an “all or nothing” method because of this.
Best Time to Trade Binary Options in India
When the various financial markets are open, it is the ideal time to trade. Although the schedule in India can be challenging, you can still trade 24 hours a day, seven days a week.
Monday through Friday, from 9 a.m. until roughly 5:15 p.m. EST, is the best period to trade US equities and commodities (eastern standard time). The timings for European markets are 7 a.m. to 3:30 p.m. GMT (Greenwich Mean Time).
Currency markets are open 24 hours a day, but you’ll get the best results if you trade when traders in key nations like Australia, London, and the United States are online and active.
You may figure this out by checking at your brokerage account’s present trading volume.
Is Binary Trading Legal in India?
Binary trading is prohibited in India, unlike in many other nations. Binary trading, or any type of online foreign exchange trading, is not permissible in India, according to Reserve Bank of India standards.
In India, the financial industry is primarily controlled by the Reserve Bank of India (RBI) and the Securities and Exchange Board of India (SEBI), both of which oppose investing in binary options such as IQ options.
Binary trading and forex trading via electronic or online trading portals are illegal in India under the Foreign Exchange and Management Act (FEMA).
Any investor who engages in binary trading in India does so at his or her own risk, as there is no law in place to control binary trading in India.
How to Do Binary Trading in India?
The best part is that it’s not tough to get involved with binary options trading in India. Here’s how to do it step by step:
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Brokers
Remember that you’ll need to go offshore to complete this, although it’s simple to do it online. When choosing a binary options broker, please do your homework.
There are unscrupulous brokers that will take your funds and keep it. Some brokers will keep your money and make it tough for you to collect your gains.
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Checklist for Account Opening
We propose using one of the most prominent binary options platforms to select a trusted binary options broker. Check to see how long the broker has been in business and whether there have been any complaints of binary trading scam in India.
Individual investors were first given access to binary options in 2008, thus you should have some context to compare the experiences of different brokers.
Examine the payouts and types of trades available on each platform. Some binary trading platforms are superior to others in terms of features and functionality.
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Asset Selection
Choose the sort of asset you want to trade after you’ve opened an account with a binary trading broker. Most user interfaces contain an easy-to-navigate list of options and assets.
Make your guesses after analyzing the pricing movements. Interactive tools will be available from the finest brokers, allowing you to gain a sense of the asset’s price volatility.
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Funds & Trade
Decide how much money you wish to put into a binary options trade. When you’re doing binary trading, there’s normally a screening tool that tells you the likelihood of an event, and the cost and possible returns. On the platform, execute the trade.
Sit back and wait for the option’s expiry date or time. After that, you can either take and reinvest your profits or cash out.
And, of course, keep in mind that you could lose the money you spent in the transaction, so begin with smaller trades until you’ve mastered this ability.
Regulated Binary Options brokers
You’ll have to trade with an offshore company because there are no licensed binary options trading in India. The government, on the other hand, does not intervene, allowing you to freely trade binary options.
Of course, this means you have no redress if you lose money, so we’ll urge you to select carefully when opening a brokerage account.
Best binary trading App in India
Here are the some of the best Binary trading Apps in India:
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IQ Options
IQ Option is by far the top favorite binary trading app in India. Since its inception in 2014, IQ Option has developed a user base of more than 48 million people who trade a million or more times every day.
Customers of IQ Option say that withdrawal requests are processed in 11 hours on average, so you can retrieve your funds the same day you request it.
Customer service is perhaps the best aspect for individuals looking for binary options trading in India. For consumers in India, they provide customer service by phone, email, and chat, allowing you to speak in your own language and avoid communication hurdles.
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Olymp Trade
Indian traders are also supported by Olymp Trade. They also get credibility by having a 143,000-subscriber YouTube channel and a Facebook page with over a million followers.
The organization is quite active on social media and has a superb reputation for publicly and quickly resolving any client service complaints.
Irrespective of their location, all option traders must produce documents to prove their identification. This is done to keep both you and the platform safe from unlawful trade.
This procedure is also crucial in guaranteeing that no one under the age of 18 is permitted to trade. Olymp Trade also offers a mobile trading app, which is useful for those who wish to trade binary options on the go.
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ExpertOption
ExpertOption isn’t open to everyone in the world, but they do cater to Indian traders. You can open a free demo account, and if you’re ready, you’ll have accessibility to 100 assets and stocks. Customer service is also available in Hindi via email and phone.
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Binomo
Binomo supports Indian traders, and you may get started with a little $10 in your account. They also offer rewards of up to 90%, which is among the largest we’ve observed.
The company also provides free demo accounts as well as a wealth of courses to help you hone your skills and start making low- and no-risk transactions.
Income Tax on Binary Options in India
Yes, to put it succinctly. You must declare your profits on your tax return, whether you used IQ Option or another broker.
These brokerages, on the other hand, will not send you formal paperwork. However, you’ll have to keep track of your own wages and file your taxes using this data.
The way you pay income tax depends on whether you are a full-time or part-time dealer. Your revenues are likely to be assessed as income if you trade for a living.
If you trade for extra money or as an investment, your profits will almost certainly be taxed at the capital gains rate. Don’t hesitate to consult with your accountant to be sure you’re not paying too little or too much!
Conclusion
Although there are no authorized binary option trading platforms in India, if you register an account with a trustworthy nation, you can still perform binary trading in India safely and successfully.
This is all from our side regarding binary options trading in India. Let us know your views in the comment section.
Other interesting blogs related to binary trading India:
Is Forex Trading Legal in India
Cross Currency Trading in India
Frequently Asked Questions
Is trading in IQ option legal in India?
Trading in IQ options is not authorized in India because binary options trading is not regulated there. If an investor wishes to engage in binary trading in India, he must do so at his own risk, as the country has no laws governing such transactions. Taking the risk, on the other hand, may be worth the reward.
Which binary trading is best in India?
IQ Option is by far the favorite binary trading app in India. Since its inception in 2014, IQ Option has attracted a user base of more than 48 million people who trade a million or more times every day.
Is binary option trading profitable?
The majority of investors wonder if binary options trading can actually make them money. The simple answer is YES, but the long answer is that continuously churning out profits from the binary options market needs hard work, effort, and perseverance.
Is binary options trading Legal?
No In India, it is forbidden. It is, nevertheless, lawful in the United States if traded on an authorized exchange. Certain binary options, on the other hand, are listed on registered exchanges or traded on DCMs that are regulated by the CFTC or the SEC.
Is binary trading safe in India?
No, It is not 100% Safe in India as it is not regulated by any government authority. However, if you do it with reputed brokers like IQ Options then you might be able to trade it safely.
