LCI Learning

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

Pratik Dubey   19 June 2020

Binary trading


My question is on binary trading. when I search on Google it shows not leagal. but many people in india is doing trading in it.

I want to do Binary trading in 'Binomo' or 'Olymp trade' application in EURUSD.

I want to know that by doing so, am I doing any wrong thing. and will i be charged or any legal case can happen on me.

please help.


 5 Replies

Pooja Gahlot (Student)     19 June 2020

Hello Sir,

Binary trading is illegal in India. As per the guidelines provided by the Reserve Bank of India, binary trading or any form of online trading of foreign exchange is illegal in India. Binary trading or forex trading through electronic or online trading portals is also prohibited in India as per the provisions of The Foreign Exchange and Management Act (FEMA Act) Any investor who takes up binary trading in India does so at his own risk, with no law to regulate dealings of binary trading options in India. Hence, it is legally a crime to involve in Binary trading or  Forex trading in this country. 

4 Like

Pratik Dubey   19 June 2020

Thank you for your reply. But i how many people are using this application also it is advertising in Facebook YouTube and also listed in playstore. When i searched it on Google i found this answer on quora- "( The legality of trading in India is intricate. India’s laws around trading are not easily understood. On one hand, it is illegal to convert your money to trade and on the other, there are taxes in place for such gains. There are ways around this. Traders who earn money in USD or another foreign currency are able to catch a break and can use the simplest loophole. Using another currency to trade forex, options, or any other assets is completely legal. Trading on platforms like Olymp Trade can be a great way to earn some money. Trading in and of itself is not illegal in India. A number of Indian institutions allow access to different markets. There is also tax law in place for money earned trading in foreign currencies. What is illegal is directly converting from INR to another currency to trade. There are many ways around this particular issue. To reiterate, the act of trading forex, stock, commodities, indices, etc. is not illegal. The RBI wants to keep traders’ money in INR to maintain their own forex reserve. Many traders go the NRI route to deposit money into their trading accounts without drawing the attention of the RBI. However, e-wallets are a much simpler workaround and are accepted by most forex platforms. I know Olymp Trade accepts WebMoney, Skrill and other e-wallets which is an easy way to circumvent RBI regulations since your deposit is in INR and the conversion happens digitally. When you withdraw from your trading account it will be sent to your e-wallet then you deposit it to your local account.)" I am very confused, I want to use this application for earning money but i am worrying that will there be any action taken on be by government??

Pooja Gahlot (Student)     19 June 2020

Binary trading has no legal permission in India. Since it is no different from gambling, many countries including India has outlawed the binary option. There are no regulations available for binary trading in India at present. That's why it's considered risky to invest in it. I would advise you to research more on the subject and then only invest.

Pratik Dubey   19 June 2020

Thank you for your reply. Risky is ok for me in finance form Buy I want to know that will there be any case on me? Or any kind of that issue?

Kawmini Liyanage   23 December 2021


binary trading is illegal in India. As per the guidelines provided by the Reserve Bank of India, binary trading or any form of online trading of foreign exchange is not legal in India. The financial sector in India is primarily regulated by the RBI and Securities and Exchange Board of India (SEBI), which do not favour investing in binary options like IQ options in India.

Therefore, there is a possibility and likelihood of getting sued as the Law itself considers it to be illegal. 


Kawmini Liyanage

Leave a reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Popular Discussion

view more »

Post a Suggestion for LCI Team
Post a Legal Query