HOW TO TRADE BINARY OPTIONS IN INDIA
If you are interested in trading binary options, then India will not disappoint you. Like several parts of the globe, the popularity of binary options has increased hugely over the last ten years. Since the financial crisis of 2018, binary trading has been considered a way to make an income following a straightforward method. Binary trading is not yet regulated in many countries and there are confusions about the legality of this type of trading. However, being illegal and being unregulated are not the same things. Most brokers offer trading services to traders from everywhere because there is no rule that can stop them from doing so. So, what about India? Let’s find out.
What is Binary Trading?
Binary options trading in India is a form of ‘all or nothing’ option. This kind of trading is about the payment of a fixed compensation based on expiry of option in money or nothing upon expiry of option. Hence, it is a kind of yes or probability and that is why it is termed as binary. The option holder does not hold the choice of selling or buying the asset because binary trading is done automatically.
Is Binary Options Trading Legal in India?
When it comes to the legalities of binary options, there is a fierce debate regarding India. The main question is, whether it is legal in India or not. To answer this question, it can be said that no, it is not really illegal to trade online. However, binary options trading is not regulated, which is the reason of discrepancies and confusion. You need to understand that there is a big difference between unlicensed and unregulated. Due to the lack of SEBI licensed Indian brokers, it would seem that obtaining European licensing is the prevailing trend.
Licensing and Regulation in India
A lot of binary options brokers are very eager to get CySEC licensing. CySEC stands for the Cyprus Securities and Exchange Commission and it is one of the top-notch financial authorities recognised worldwide. Most of the reputable brokers in Europe are registered and licensed under CyCEC. The best trading platforms in India, IQ Option and Olymp Trade, both have this form of investment license.
Since there are no licensed SEBI brokers, it can be safely assumed that there is no locally based company, at least none that is reliable enough to put your money in risk with it via investment. So, you need to research well online and go through reviews to find out a trusted and reputable broker for trading.
It is important not to be tempted by offers that appear too good to be true. Some brokers may claim to be reputable Indian brokers, and it can be very appealing to use an Indian broker, but you may see that the experience in the long run is far from what you hoped it to be.
How to Trade Binary Options In India?
Indian traders can trade binary options by signing up with an offshore binary options broker because there is no India-based binary trading firm and the trading option is not listed on any of the recognised stock exchanges in India. You can trade binary options in India by following the steps mentioned below
- Open your trading account with the offshore binary options broker.
- Now, select the asset you are willing to trade.
- Next, make predictions regarding the trade.
- Now is the time to choose the amount you want to invest in your binary options trade.
- Now, you can execute the trade of the option.
- The result of the trade would be a direct return on investment or no return on investment at all.
The best binary option broker in India
When it comes to choosing the best binary option broker for India from the list of European brokers, the criteria include language options for the specific geo-location of the clients. India has several languages and regional dialects, so, it is not possible to make everyone happy. However, a broker that offers more widely used languages is a good option. Hindi is one of the specific languages brokers look for, and it is considered among other criteria while choosing the best brokers. Apart from the language, other features that help you choose the best binary options broker in India include
- Licensing and regulation in India
- Ease of use of the platform and if it offers mobile trading
- What customer support is provided and its quality
- How long the broker is trading and its reputation
- Payouts and types of trades the platform offers
- Bonuses, incentives, and demo account of a broker
Judging by all these points, IQ Option is the best binary option broker in India. Aside from matching the criteria mentioned above, the binary option trading software on IQ Option offers high-risk management as well. However, if you want to get into trading, you must know that risk is always involved in each trade so you can try your best to avoid it and also be mentally prepared when you encounter a loss so it does not affect your next trade.
How to start trading with IQ option in India
If you are new to the IQ Option trading platform and do not know how to trade and do not have much experience, it is a good idea to start with IQ Option’s video tutorials. You can practise on your demo account and then continue trading with real funds. IQ Option blog is also a great place to find information about trading.
Binary options trading is involved with deciding if the price of the underlying asset would increase or decrease. If you choose call option, you will get profit if the closing price is higher than opening price. Similarly, by choosing put option, you will get profit is the opening price is higher than the closing price. However, if you predict the price movement of the underlying asset incorrectly, you will face with a loss of 100% of your invested amount. This type of trading results in only two outcomes. The trader either gets profit or loses their investment. The significance of the changes in price does not matter. If the closing price is equal to opening price, the initial investment is returned back to the trader’s balance.
The best time for trading depends on your trading strategy along with several other factors. It is important to pay attention of market schedules because the overlap of European and American trading sessions makes prices more dynamic in currency pairs like EUR/USD. You must also follow market news that may influence the movement of the asset you have chosen for trading. If you are an inexperienced trader, do not follow the news, and do not understand the reason of price fluctuation, it is better for you not to trade when prices are highly dynamic.
How to Deposit & Withdrawal
When you decide that you will start using the real balance on IQ Option, you can make a deposit to the platform. You can do it in various ways, such as:
- Bank card (Credit or Debit) – MasterCard, Visa
- E-Wallets – Skrill, Webmoney, Perfect Money, Advcash, GlobePay
- UPI, Netbanking, Rupay
- BTC deposit (You can convert into fiat money)
To make a deposit to your trading account on IQ Option in India, visit the deposit page and pick one of the available options. Fill in the information about your e-wallet or bank card. After that, choose the amount you want to deposit.
The currency of the account is set at the moment of the first deposit. It means that it is not possible to change the currency later once you choose it for your first payment, be it USD, GBP, or EUR. If your bank card is in your national currency, the funds are automatically converted to the currency of your trading account at the moment of the deposit.
Minimum deposit on IQ Option is 10 EUR/GBP/USD. The platform does not charge any fees for deposits and withdrawals. You can always contact the support if you do not have an e-wallet or if you are having trouble in registering it and need help.
The withdrawal method on IQ Option depends on the deposit method. If you deposit an amount using your bank card, you can withdraw minimum deposit amount back to the card because it is processed as a refund. To say it more precisely, you can withdraw the amount of your deposit in last 90 days to your card. Anything that exceeds this amount has to be withdrawn to an e-wallet such as Neteller, Skrill, Advcash, Webmoney, or Qiwi.
If you deposit using your e-wallet, you can only withdraw to the same e-wallet account. To withdraw funds, you have to make a withdrawal request from the withdrawal page within IQ Option. These requests are processed from the broker’s side within three working days. IQ Option transfers the amount to your bank immediately if you withdraw to the bank card. However, these withdrawals may take up to three weeks to be processed. The minimum withdrawal amount on IQ Option is $2, so, you cannot withdraw less than that. Also, keep in mind that you will require to go through a verification procedure for a withdrawal of funds.
Before you get into binary options trading, it would be a great idea to take time to investigate the rules and regulations regarding trading in India. Do your research well when it comes to investing your money.
Like any other income, binary options trading generates profit and is liable to the laws in India. So, traders need to pay Indian taxes on profits.
Most brokers offer an easy-to-use and intuitive mobile offering that is either a version of the brokers’ website or an app. You can download it easily from either App Store or Play Store and start trading.