Those who are new to Binary Option will have questions in their mind “Is Binary Option Legal?” so finally I decided to make an article on it after doing many types of research on the internet. So Let’s check out whether “Binary Option Is Legal Or Not?”
Is Binary Options Legal In India?
I have searched on Quora and Youtube about this issue and also asked this issue with IQ Option team and here is all that I find out from them.
1) Talk with IQ Option Team and Olymp Trade Team:
When I talked with IQ Option about this issue that why banks card is not working on your website and is it legal to trade on IQ Option they replied me this you can see below conversion about this in the image.
According to them, Binary Options is not prohibited by Indian standards but forex trading is prohibited which is the standard form of trading. In standard form of trading suppose we take the example of Facebook we have to buy a certain amount of stock lot of 1,000, 10,000 at a particular price and if the price increase then that much amount will be considered as profit.
To explain it more clearly suppose you have to buy 1,000 shares of Facebook at a price of $100 its price got increase to $101 so you get $1 for each 1,000 share buy so total profit will be of $1,000. But in Binary Options it is not like conventional trading we guess price f stock will go up and if it is correct then you get 90% profit instantly in just 1 minute.
So as of now it is completely legal in India as per IQ Option and if it is illegal then IQ Opinion will not work in India like in USA Binary Option is completely illegal so if you will open IQ Option from the USA then they will not allow you to register. You can try using VPN try to open IQ Option using VPN setting server location as the USA and open IQ Option it will not allow you to register.
2) From Economic Times Article.
This is one the most trusted website of India and gives all information about Indian Economy and according to it’s one of the articles they have written that RBI has allowed more three currency to trade in India it is EUR-USD(euro-dollar), GBP-USD(pound-dollar) and USD-JPY (dollar-yen). You can read complete article from here “Economic Times”
So as per RBI also we can trade on this EUR-USD(euro-dollar), GBP-USD(pound-dollar) and USD-JPY (dollar-yen) currency. So as per RBI also it is legal to trade in this currency.
What to mention while paying TAX to Government?
This is very frequently asked by my team members what do you tell that how this money you have earned the answer is very simple that I have earned it from trading so do fear that you will be sent to Jail for doing trading as now they are allowing you to trade in selected currency.
How much Tax do you pay for your earnings?
It is our standard TAX that we pay if your income is below 3 Lakh then you do not have to pay tax but if your earnings is more than 3 and below 5 lakh you have to pay 5% TAX, If your earnings is between 5 lakh to 10 Lakh then you have to 20% TAX, If your earnings is more than 10 Lakh then you have to pay 30% TAX to government.
As per current rules and regulations, Binary Option is totally legal in India and you can trade in Binary Options and we recommend you to trade in IQ Option as it is currently the best Binary Options broker in the market you can read the complete article from below link. If you have still any doubts then you can comment below and I will try to solve your doubts as fast as possible. Here is some helpful link for you to start your Binary Options Trading Journey.