There has been an exponential growth in the popularity of binary options trading on a global level, mainly due to the influx of many online brokerage sites offering binary and other types of trading to users worldwide. When it comes to India, the largest democracy in terms of population, binary options have entered the Indian markets, albeit in a slow and sluggish way. Part of this must be with the unclear and ambiguous rules in place when it comes to trading activity like this, and many traders are still unaware of the legal status of binary options trading in India.
Legal Status of Binary Options Trading in India
In India, binary options trading is classified as securities trading although many contests this. The Securities and Exchange Board of India or SEBI is the regulatory body responsible for regulating the securities market in India. Having received its statutory powers in 1995, the SEBI has authority over the activities of any broker, company as well as any individual investor, ensuring that the integrity of the Indian securities market remains intact. The SEBI has come under criticism in the past, citing its unchecked power as the main reason.
Thus, for Indian traders who wish to trade binary options, they must consider the fact that trading with an international broker without the consent of the Indian regulatory body is against the law. Additionally, the Foreign Exchange and management act have outlawed binary trading and forex trading in India if traded through an electronic or online brokerage service. Despite this, many Indian traders look to trade binary options regardless of its legal status and ramifications.
Choosing an International brokerage service, in this case, maybe the solution, although strict vigilance is advised to avoid fraudulent schemes and scams. An international broker which is licensed &certified under an international regulatory authority and has a good reputation should be chosen. IQ option is an example of a Cyprus based Trading platform that is registered under CySec is a recommended option.
Opening an IQ option Account in India:
The IQ Option offers binary options trading along with a host of other trading options, available in excess of 150 countries worldwide accumulating a large user-base as a result.
For Indian traders, opening an real account with IQ Option requires a national level ID for guarding against money laundering, and to verify their account. Using a PAN ID Card, in this case, is recommended. The following steps explain in brief the whole procedure:
- Filling out the registration form after logging into the website
- After filling in details, head over to the profile section to complete phone number verification.
- Users can also send their national ID as discussed above to their official mail:firstname.lastname@example.org
- A verification mail will soon be received by the user after verification is completed. The wait time is usually 24-48 hours.
- After that the user can deposit and withdraw funds from the trading account. The minimum deposit amount is fixed at $10.
You can also test IQ Option with a free unlimited Demo Account. More information’s and the possibility to open an account you will find on https://www.iqoptionmag.com/
Depositing and Withdrawals:
In case of depositing funds, Indian traders do not have the power to make international payments through debit cards due to RBI regulations. Using Skrill (money bookers) is thus recommended even though there are other options such as Neteller and Web Money.
In case of withdrawals, IQ Option makes timely payments to their users without fail. To ensure this, they provide a withdrawal proof which provides the user with information such as transaction and reference ID, exchange rate used, amount received etc.
Depositing to IQ Option in Case of Master Card Holders:
Users from India along with other countries such as Thailand and Sri Lanka can experience difficulties when using Master card to make deposits to IQ Option. This is mainly due to a recent rule change, where MasterCard changed the Merchant Category for IQ Option. As a result, there can be a few snags and delays in the process.
IQ Option has come up with an alternative for such cases, by providing different payment processing options with Skrill, Netller, WebMoney, ADVCash and AstroPay Card.
With the popularity of binary options increasing as the days go by, a large percentage of traders from countries such as India have been trying to get into the global binary options markets. IQ Option seems to be a verified and legitimate broker you can trade with.