Indian Traders Guide
Like many parts of the globe, the popularity of binary trading in India has experienced massive growth.
Binary options are used as a way to make an income in a manner that is both straight-forward and enjoyable. Many traders make extra cash or even operate full-time as investors. To get started you'll want to register with a safe and secure broker and test them out, use the demo account or educational tools to start trading.
In this article, you will learn:
- The brokers best suited to your needs
- What local payment methods are accepted
- Taxes and fees that apply to IN residents
Traders in India
With India seen as a prime growth economy, with growing manufacturing and service industries, online trading has become a welcome choice to many residents who view this as a viable way to make a profit or earn an income. With Indian assets being more widely available on the many broker platforms and the increased use of smartphones, Indian binary options trading is now more accessible than ever.
Unfortunately, due to the lack of recognition and regulation of binary options in India, by the government, it is hard for Indian companies to enter the market place, so many top brokers tend to be European based, for example, IQ Option or Olymp Trade. So how do you choose the best broker for your trading needs?
Licensing And Regulation
Choosing an offshore broker is fine as long as they are licensed and regulated. As many tend to be European, you should be looking for CySEC, FCA or MiFID licensing and regulation. This way you will feel more comfortable about investing your money.
Top Range of Assets
If you have particular assets or currency pairs that you want to trade in, you need to make sure that the broker offers these assets. Some only provide a handful, unless you open a premium account, and some offer hundreds. Make sure they offer those that you want to trade in and those that you might want to trade in when you have more experience.
The Greatest Payouts
We say reasonable because often payouts that seem too good to be true can be. Look out for an average of between 70-85%. Don't settle for too low and don't get enticed by payouts that are too high, unless they are related to a VIP account.
Good Customer Support
One of the things that may be of concern using an offshore broker is what happens if something goes wrong. What if you have a question or need help with an issue? Look at the customer support options that they offer. Good brokers have customer support advisors that will be able to help you via live chat, telephone or email.
There is one thing lacking when it comes to trading options, and that is the language barrier. While the average binary options broker offers their site in a variety of different languages from Spanish to Arabic, there are not many that provide the chance to trade in Bengali or Hindi. Despite this, it doesn't appear to have deterred traders, and more and more trading platforms are translating their trading software to get an edge in the Indian market.
Broker Fees And Tax
Having had much focus on the profits from binary trading, India last year introduced a government crackdown on black money. Offshore bank accounts were the target of this new action, and there was a 90-day compliance window from 1st July to 30th September 2015 for people to declare their earnings and pay the relevant tax due. Much the same as Russia, the Indian government is keen to stop this outflow of money from the country.
With regards to the tax due on binary option trading, like any other income, it is profit and liable to the laws in your country. Binary brokers have no duty to declare the earnings on your behalf, so it is up to the individual to report it as part of staying legal in India.
Besides having to pay Indian taxes on profits the only other fees to consider are those for making deposits and withdrawals. If you are depositing and withdrawing in a foreign currency, then you will be subjected to the usual currency conversion fees. Also when using a credit card or web wallet, there may be fees per transaction.
Consider whether it is cheaper to make fewer transactions of a higher amount rather than making lots of small actions. If your payment facility charges a fixed amount per transaction as opposed to a percentage, then it is a good idea to make a small number of withdrawals and deposits.
When looking at the legalities of binary options, India is a hotly debated topic. Is it illegal to trade binary options in India? The short answer is "No" it is not illegal to trade online. However, it isn't regulated, and this is where the discrepancies and confusion lie. There is a big difference between unregulated and unlicensed. With no SEBI licensed Indian brokers, it would seem that the prevailing trend is to obtain European licensing.
Many binary options brokers are very keen to obtain CySEC licensing. CySEC is the Cyprus Securities and Exchange Commission and is the best license to have that is recognised worldwide. The majority of reputable brokers become licensed and registered in Europe via this method. The best trading platform in india, IQ Option or Olymp Trade, both have this form of investment licence.
With the lack of licensed SEBI brokers, one can safely assume that there are no locally based companies, at least none that you would want to risk with investing your money. You are much better off looking through our list of recommended licensed brokers to ensure that you are going to be trading via a trusted and reputable company.
Don't be lured in by offers that seem too good to be true by brokers claiming to be legitimate Indian brokers. While the prospect of using an Indian broker is very appealing, you will probably find that the experience is not all you hoped it would be in the long term.
If you're into trading binary options, then India doesn't disappoint.
How we Recommend Brokers
It doesn't matter if we're reviewing brokers from the world over, say Thailand or even Brazil, how we rate and review India binary options brokers is no different in one country to another. As most of the best out there are European brokers, what we're looking for is what they offer to each particular user. Our criteria include the language options for your specific geolocation.
With some countries like China and India having several different languages or regional dialects, not everyone will be happy, but it tends to be the more widely used languages that are recognised. Hindi and Bengali are specific languages we look for, and we are considering them amongst other criteria when recommending particular brokers.
We focus heavily on the main relevant features to find the best broker in India, including:
Our team spend hours, weeks even months researching the various binary option brokers to ensure that they only bring you the best that the market has to offer.
And we don't stop there. We are continually updating our information to ensure that everything is up to date and relevant at any time. If you look at all the top brokers available and feel confused, then our reviews and recommendations will help you to at least build up a carefully considered choice.
Frequently Asked Questions
Is binary trading in India legal and safe?
It is perfectly legal to trade in India. Although there are no licensed Indian brokers at present, brokers from outside India can offer their services to people wishing to trade there.
Do I need to pay fees and taxes on my profits?
Every country has tax laws, India is no exception. If you make money from trading, this money is subject to the tax rules of the country. It is up to you to declare your earnings.
Can I test brokers before trading with real money?
Many brokers offer a demo account to allow first time traders to practise with dummy funds before risking real money trading. Another opportunity to trade without risk is to take advantage of a welcome bonus.
Is it easy to make deposits and withdrawals?
Making deposits and withdrawals to a trading account is straight forward. Binary option brokers accept most popular methods of payment. Withdrawals can take around 3-5 days from the moment requested.
Can I trade using my mobile or tablet device?
You will find that most brokers have an easy to use, intuitive mobile offering that is either a version of their website or an app that is available to download from either Play Store or App Store.
Jacob has been an author for us since our launch in 2012. He has over forty years’ experience in the financial sector and has held a variety of positions within financial services corporations and venture capitalist organisations.