Is binary trading legal in India?
The RBI's answer, in an RTI reply of 13 January 2023: "Binary trading and Contract for Difference (CFD) in foreign exchange are not permitted in India." Binary and fixed-time options are also missing from its list of forex derivatives permitted for retail users, and the apps people ask about are named in its Alert List.
RBI FAQ and Alert List, checked 15–20 Oct 2026
The short answer, in the RBI's words
"Binary trading and Contract for Difference (CFD) in foreign exchange are not permitted in India."
That is from the RBI's reply to an RTI request, dated 13 January 2023, in its public RTI disclosure log. The same reply says that residents may undertake forex transactions only with authorised persons and only for permitted purposes under FEMA 1999.
What the RBI does permit
The RBI FAQ on forex lists the forex derivatives that retail users may use:
- OTC forwards
- FX swaps
- currency swaps
- buying call and put options, and call and put spreads
- currency futures and options traded on an exchange
Binary options and fixed-time options are not on that list.
The same FAQ says where electronic forex trading may happen: only on an RBI-authorised ETP (electronic trading platform) or on a recognised exchange, namely NSE, BSE or MSE. In its words, "resident persons are not permitted to undertake forex transactions on unauthorised ETPs".
The apps people ask about
Each of these apps is named in the RBI Alert List, in order of the RBI entry number.
| App | RBI Alert List | Checked on |
|---|---|---|
| Named in the RBI Alert List 6 | ||
| Binomo | Named No. 4 | 15 Oct 2026 |
| ExpertOption | Named No. 7 | 15 Oct 2026 |
| IQ Option | Named No. 25 | 15 Oct 2026 |
| Olymp Trade | Named No. 28 | 15 Oct 2026 |
| Quotex | Named No. 35 | 15 Oct 2026 |
| Pocket Option | Named No. 37 | 15 Oct 2026 |
Source: RBI Alert List. We searched the list for each app's brand name.
To check an app that is not in this table, follow how to check an app yourself.
"Not on the list" does not mean allowed
The RBI FAQ says the Alert List is not exhaustive. An entity that is not on it should not be assumed to be authorised.
So if you search the list for an app and find nothing, you have learnt only that the RBI has not named it yet. The product still matters: a binary or fixed-time trade in foreign exchange is not on the permitted list, whichever app offers it.
Sending money abroad for margin
The RBI FAQ asks whether the Liberalised Remittance Scheme (LRS) can be used to send margin money abroad, and its answer is "No". An RBI press release says the same thing: sending margins to overseas exchanges or overseas counterparties is not permitted under the LRS.
If you have already deposited: where to complain
The RBI FAQ on forex names three places for complaints:
- the National Cyber Crime Reporting Portal, cybercrime.gov.in
- the Enforcement Directorate
- the police of your state or union territory
Keep your payment records.
If you want to practise instead
If what drew you in was the idea of learning to trade, you can practise without real money. Practise with a plan covers stock simulators and how to use one. What a demo account is explains what practice money can and cannot teach you, and why to check the app before you open a demo.
How we checked
On 20 October 2026 we read the RBI RTI disclosure log (financial markets) and the RBI FAQ on forex, both public pages, with no login. We searched the RBI Alert List for each app's name; the date on each row is when that entry was recorded, and we re-read the list on 20 October 2026 and found the entries unchanged. We did not call any app authorised. This page is not legal advice.
Questions
Is Binomo legal in India?
Binomo is named in the RBI Alert List of unauthorised forex trading platforms; the entry number and the date we checked are in the table above. The RBI also says that binary trading in foreign exchange is not permitted in India.
Which of IQ Option, Binomo and Olymp Trade are allowed?
All three are named in the RBI Alert List; see the table for each entry number. Binary or fixed-time options are not on the RBI's list of forex derivatives permitted for retail users.
Can I go to jail for binary trading?
We cannot predict what happens in any one case. What the RBI FAQ on forex says is that residents who deal in forex outside authorised persons or permitted purposes are "liable for penal action" under FEMA.
How can I trade binary options in India?
The RBI lists no permitted route for it: binary or fixed-time options are not among the forex derivatives permitted for retail users. What is permitted is listed in What the RBI does permit. If you want to practise trading without real money, see Practise with a plan.
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