Since its inception in 2008, binary options trading changed the entire face of online trading. It spread like wild forest fire and became a global phenomenon. There is still some widespread skepticism about this form of trading in India because options trading in India is not regulated by Indian monetary authorities like RBI (Reserve Bank of India) and SEBI (Securities and Exchange Board of India). Well, that should not be a real problem because if you are an Indian resident, you can still trade in options through other registered international brokers. With options trading you can enjoy the flexibility of fast trading with predefined profit and loss ratios. With very low initial investment requirements, you can always kick start your trading career without risking your lifetime’s earning. There is one and only one golden rule of thumb – ‘play wisely without getting greedy’.
Has India Legalized Options Trading?
We already mentioned this but let us build on this concept. Binary options trading is about investing money in options market. There are several countries where options market is regulated by monetary authorities of those respective countries. For instance, in Cyprus, the CySEC or Cyprus Securities and Exchange Commission overlooks the financial transactions and activities in the country to ensure that no fraudulent activities take place and that investors’ interests are safeguarded. Similarly, in the United Kingdom there are Financial Policy Committee and Financial Conduct Authority responsible for regulating the options market. Coming back to India, nor monetary authorities like SEBI and RBI do not regulate options market and neither have banned options trading. This allows Indians to trade in options market and invest money. SEBI and/or RBI will not interfere with financial activities in options market and if anything goes wrong, investors will have to deal with the problem.
Does that Mean Trading Binary Options in India is Risky?
This is a question with no easy or straight answer. Options trading is always risky because odds of losing a trade are always present in any given trade. However, there is another risk. This is nothing but fraud. Because options market in India is not regulated, chances are high that some fraud options brokers will try to take advantage of the situation. So, in case you are really interested in trading options, you must always opt for a reputed and regulated options broker. Chances are very high that you will have to settle with some foreign broker. Many of these brokers will have operational satellite offices located in Indian states to manage and help Indian customers. As long as you choose a reputed and regulated broker, the only risk you face is that of losing a trade because of bad trading but not because of any fraudulent activities.
How to Select Best Binary Options Trading Brokers in India?
As mentioned, the only way to play safe in unregulated options market in India is to sign up with a reputed and trusted broker. It is not true that there are absolutely no Indian brokers who offer binary options trading in India. You can always find a few and as long as they have a reputation that can be counted on, you can go for futures and options trading in India. Whether you are selecting an Indian broker or a foreign broker, there are a few things you need to keep in mind:
- The broker you select needs to have a highly advanced options trading platform.
- The platform offered by the broker should not only be powerful yet user-friendly but should be web-based. This will give you the necessary flexibility to trade from anywhere in the world.
- The platform should offer a wide range of trading financial instruments to trade in. In other words, the broker needs to have a wide selection of currency pairs, commodities, indices and stocks to trade in.
- The platform needs to offer basic and advanced trading strategies.
- The platform should offer 24/7 access to options market because that is the only market that allows trading round the clock.
- The broker should provide dedicated account managers to help you take vital financial decisions and help you with proper money management tips.
- The broker should allow low initial investment.
- Finally, the broker needs to have state-of-the-art and reliable customer support and should be able to give satisfactory resolution to your problems.
Are There Any Specific Options Trading Strategies in India?
No! There is no such thing called India-specific options trading strategies. Trading strategies remain same irrespective of the country you trade from. All or Nothing, Pairs, Option Builder 60 Seconds, On-Touch, No-Touch, Ladder Trading are just a few types of trading strategies that you can use. There other other strategies as well. The strategy you select will depend on your risk appetite. You may even come up with your own trading strategy that suits your style.
Is It Possible to Trade in Indian Rupee?
Yes, you can! Every reputed binary options broker in the world allows trading in Indian Rupee you can trade rupee against USD, EUR, JPY, GBP or any other allowed currency. These brokers will even allow trading in indices like BSE and NSE. In you wish to trade in commodities, you will get the same menu as every other trader in every other country. Gold, silver, wheat, oil etc. are some of the most common commodities you can trade in if you select binary options trading in India.
What Type of Returns Can You Expect?
Returns offered can differ from one broker to another. Some broker may offer 60% on winning trades while others may offer up to 90% returns on winning trades. For trading strategies like One Touch, brokers can offer 400% to 500% returns on winning trades. Before you select a broker, it is essential that you learn about the return rates, bonus policies, minimum investment, deposit and withdrawal options etc.
Binary Options in India is picking up on popularity. Very soon, we may see Indian monetary authorities setting up regulation guidelines for the options market. This market has untapped potential of unlimited earnings but there are risks of losing too! Assess your risk appetite and make wise decisions. After all, it is your money and you should invest wisely.