Is Binomo Legal in India? (2025)

Binomo is a popular trading platform in India for binary options trading, where you predict short-term price movements of assets. However, as an Indian trader, you probably ask: is trading on Binomo legal in India? The short answer is:

Binomo is considered illegal in India because it is not registered with the Securities and Exchange Board of India (SEBI) and only offers high-risk, speculative trading methods. Binomo’s main trading product is binary options, which is classified as unauthorized forex trading by the Reserve Bank of India (RBI).

If you are an Indian trader looking for a legally compliant and regulated platform, we suggest you check out Exness instead. Exness provides a similarly simple trading platform to Binomo, but it is regulated by top international regulators like the FCA (UK) and CySec (Cyprus), provides one of the lowest trading fees in the industry, offers social trading, and is not considered illegal in India.

In this article, we will provide an overview of the legal status of online trading in India, explain why trading on Binomo is considered illegal, and recommend alternative brokers that are safer and more compliant. 

Online Trading Laws in India

Before we explain why we consider Binomo illegal in India, you should know the important online trading laws according to the Foreign Exchange Management Act, 1999 (FEMA) and Prevention of Money Laundering Act (PMLA). Also, the main regulatory bodies that enforce these laws are the Reserve Bank of India (RBI) and Securities and Exchange Board of India (SEBI). 

Here are relevant online trading laws in India that you should know about:

• According to FEMA, only SEBI-registered brokers can legally offer online trading services in India. Although you can still access most offshore brokers without a VPN, trading on unregistered brokers comes with high risk because you’re not protected by SEBI or RBI in case you encounter financial disputes with your broker.
• Forex futures and options (F&O) are legal in India, but only on specific currency pairs and authorized exchanges. Currency pairs must involve the Indian Rupee (e.g., USD/INR, EUR/INR, GBP/INR) and authorized exchanges, such as National Stock Exchange of India (NSE), Bombay Stock Exchange (BSE), and Calcutta Stock Exchange (CSE).
  
• Since binary options trading is labeled unauthorized forex in India, it’s considered illegal even if it’s not explicitly mentioned under FEMA.
• Stock and commodity trading is legal in India on authorized assets and exchanges that heavily comply with FEMA laws. Other trading types, like algorithmic, copy, intraday, social, contract for differences (CFD), high-frequency trading (HFT), and multi-timeframe expert advisor (MTFA EA), are also legal in India. However, the conditions are strict, especially on high-risk trading types like CFD (e.g., SEBI-registered brokers rarely offer CFD trading).
  

Why is Binomo Considered Illegal in India?

Binomo is considered illegal in India because it is not registered with SEBI and it doesn’t have regulatory compliance under the Foreign Exchange Management Act (FEMA), 1999. Additionally, it primarily offers binary options trading, a trading type the Reserve Bank of India (RBI) classified as unauthorized forex trading, making it technically illegal even if it’s not explicitly mentioned in FEMA. While the broker also offers Contracts for Differences (CFD) trading as a safer alternative, it only has 4 assets available. 

Let’s evaluate each factor in detail to better understand why Binomo is considered illegal in India.

1. Not SEBI-registered

Binomo is an unregulated offshore broker and is not SEBI-registered in India, meaning it does not have permission to promote or offer services in the country. It also has no international regulator, so Binomo can change its features and terms of service (ToS) anytime without notifying you.

Binomo is also illegal because does not provide the necessary investor protections required in India, like client fund segregation, risk management features and financial transparency.

If you use Binomo, Indian regulatory authorities like SEBI or the RBI cannot protect you from unfair practices such as account bans, rejected withdrawals, price manipulation and other risks.

2. Included in the RBI Alert List

According to the latest RBI Alert List, Binomo is one of 88 entities unauthorized to operate in India for violating the Foreign Exchange Management Act, 1999 (FEMA) and the Electronic Trading Platforms (Reserve Bank) Directions, 2018. While platforms on this list are not explicitly declared illegal, they cannot legally operate or actively promote their services in India.

3. Mainly Offers Binary Options Trading

Binomo primarily offers binary options trading, which is unregulated and considered unauthorized forex trading by RBI, making it technically illegal in India. While the platform also provides CFD trading for four assets —which is legal in India under specific SEBI regulations—Binomo itself is not SEBI-registered and therefore cannot legally offer trading services in the country. 

Top Regulated Alternative Brokers to Binomo for Indian Traders

For safer and more legal alternatives to Binomo, Indian traders can choose brokers regulated by either SEBI or by strong international regulatory bodies (e.g., CySEC, FCA). Both options have pros and cons, depending on your trading needs.

1. SEBI-registered Brokers

SEBI-registered brokers are 100% legal in India, they comply with online trading regulatory requirements and are part of the Indian Investor Protection Fund (IPF). 

However, SEBI-registered brokers come with significant restrictions, including:

• Limited assets: Only Indian, authorized exchange assets (e.g., NSE or BSE) and very few international assets are available.
• No spot forex trading.
• Limited currency pairs: Must include INR (e.g., USD/INR or EUR/INR).
• Low leverage (usually up to 1:20) and strict margin requirements.
• Fewer advanced features, such as trading signals or automated tools.

If you are interested in Binomo because of its simple, intuitive trading platform and the potential for high profitability in a short time, SEBI-registered brokers won't meet your expectations. They focus on long-term, lower-risk investments like equities and INR-based forex with low leverage, instead of short-term speculative trading.

Internationally-Regulated Brokers

International brokers, like Exness, do not have a SEBI registration, but they are often regulated by reputable financial authorities like the FCA in the UK or CySEC in Cyprus. While the legal status of these brokers in India is not 100% clear, they are generally not considered illegal. From a trading features perspective, they are much better Binomo alternatives because they don’t have to necessarily follow strict SEBI rules, but can maintain a strong regulatory framework and offer more trading flexibility like: 

• High leverage, can be over 1:500 for certain assets
• More trading types, hundreds of international assets and currency pairs
• International brokers like Exness are heavily regulated by top-tier financial authorities and offer a trading environment that is just as safe as SEBI-registered brokers—while providing significantly better trading opportunities.
  
• More advanced trading features that you can take advantage of (e.g., advanced trading signals, additional trading tools, and ready-to-use trading strategies).

Exness is a particularly good alternative to Binomo because it offers a similarly simple and user-friendly trading experience. Exness is heavily regulated by globally recognized authorities such as CySEC and FCA.

Note, that internationally regulated brokers are not protected by Indian regulatory authorities in case you encounter any type of dispute with your broker.

Conclusion

Binomo is illegal in India because it is not SEBI-registered, violates the FEMA act and offers almost exclusively binary options trading, which is classified as unauthorized forex by the RBI.

Although you can still access Binomo in India without any challenges, we don’t recommend it because it’s an unsafe broker. Instead, we recommend you stick to SEBI-regulated brokers (if you are a conservative trader and less risk-tolerant) or use internationally regulated brokers (if you’re looking for better opportunities, higher profitability, and less restrictive than Indian brokers).

Despite not being SEBI-regulated, international brokers like Exness offer strong investor protection, client fund segregation and are part of different compensation funds.

Compared to Binomo, Exness is a far more secure and reliable choice and it’s not considered illegal in India. Read our full Exness review or visit the official Exness website to learn more about the broker.