Is Quotex Legal in India? (2025)
Quotex is a popular binary options trading platform, where traders predict whether the price of an asset will go up or down within a short time frame. However, as an Indian trader, you probably ask: is trading on Quotex legal in India? The short answer is:
Quotex is considered illegal in India because it is not registered with the Securities and Exchange Board of India (SEBI) and only offers binary options trading, 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. Exness provides a similarly simple trading platform to Quotex, 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.
Exness offers a similarly simple trading platform to Quotex, but it has a strong international regulation and it is not illegal in India. Read our full Exness review.
In this article, we will provide an overview of the legal status of online trading in India, explain why trading on Quotex is considered illegal, and recommend alternative brokers that are safer and more compliant.
Online Trading Law in India
Before we explain why we consider Quotex illegal in India, it’s important to know the relevant 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 since you’re not protected by the regulatory authorities if 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 include 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 (as a result, SEBI-registered brokers rarely offer CFD trading).
Why is Quotex Considered Illegal in India?
Quotex is considered illegal in India because it is not registered with SEBI and fails to meet regulatory compliance under the Foreign Exchange Management Act (FEMA), 1999. Additionally, it is flagged on the RBI Alert List and exclusively offers binary options trading, which the RBI classifies as unauthorized forex trading.
Let’s evaluate each factor in detail.
1. Not SEBI-registered
Quotex is an unregulated offshore broker and is not SEBI-registered in Indiameaning it does not have permission to promote or offer services in the country.
Quotex can change its features and terms of service at any time without notification and can violate online trading regulations and forex trading laws in India without consequences.
The broker is also illegal because it fails to provide the necessary investor protections required by Indian laws, such as client fund segregation, risk management features, and transparency.
If you use Quotex, Indian regulatory authorities like SEBI or the RBI cannot protect you from unfair practices such as account bans, rejected withdrawals, and other risks.
2. Included in the RBI Alert List
According to the updated RBI Alert List, quotex.com is among the 88 entities unauthorized to operate in India as it violates the Foreign Exchange Management Act, 1999 (FEMA) or Electronic Trading Platforms (Reserve Bank) Directions, 2018. Trading platforms on this list are not explicitly illegal, but these brokers are not authorized to operate or promote themselves in India because they violate the Foreign Exchange Management Act, 1999 (FEMA) or the Electronic Trading Platforms (Reserve Bank) Directions, 2018.
3. Only Offers Binary Options Trading
Quotex only offers binary options trading, which is not regulated in India under Foreign Exchange Management Act (FEMA), 1999. While FEMA doesn’t explicitly label binary options trading as illegal, the Reserve Bank of India (RBI) classifies it as an unauthorized forex, making it technically illegal. That’s because this trading derivative is highly risky and not safe from scams or frauds. So it fails to comply with FEMA’s requirements for a legal trading activity in India.
Top Regulated Broker Alternatives to Quotex for Indian Traders
Indian traders looking for a safe and legal alternative to Quotex have to choose brokers regulated by either SEBI or any strong international regulatory bodies (e.g., CySEC, FCA). Both options have their advantages and limitations, which depend on your trading needs.
1. SEBI-registered Brokers
SEBI-registered brokers, such as Zerodha or Groww, are considered 100% legal in India, as they fully comply with India’s regulatory requirements for online trading platforms and are part of the Indian Investor Protection Fund (IPF).
However, SEBI-registered brokers come with significant restrictions, including:
- Limited assets: Only authorized exchange assets (e.g., NSE or BSE) and very few international assets are available.
- No spot forex trading.
- Limited currency pairs: Only INR-based pairs like 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 Quotex because of its simple, intuitive trading platform and the potential for high profitability in a short time, SEBI-registered brokers won't meet your expectiations. 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 Quotex alternatives because they don’t have to follow the overly restrictive rules of SEBI and they offer a lot more flexibility like:
- High leverage, often over 1:500 for certain assets.
- More trading types, many international assets and currency pairs.
- Despite not being SEBI-regulated, they offer strong investor protection, client fund segregation and are part of different compensation funds.
- 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 Quotex because it offers a similarly simple and user-friendly trading experience and high profitability. Exness is heavily regulated by globally recognized authorities such as CySEC and FCA, which provides traders with a high level of security, including client fund segregation, compensation funds, and robust risk management tools.
Note that internationally-regulated brokers are not protected by Indian regulatory authorities in case you encounter any type of dispute with your broker.
Conclusion
Quotex is illegal in India because it lacks SEBI registration, violates FEMA regulations, and offers only binary options, a trading type classified as unauthorized forex by the RBI.
Trading with Quotex comes with high risk, so we don’t recommend it. Instead we recommend you to either stick to SEBI-regulated brokers (if you are a conservative trader and less risk-tolerant) or choose internationally regulated brokers that offer more opportunities, higher profitability and are less restrictive.
International brokers also follow strict financial regulatory rules on risk management, investor protection, compensation funds, and client fund segregation. A good example for such international brokers are Exness which offers a safer, heavily regulated alternative to Quotex. Read our full Exness review or visit the official Exness website to learn more about the broker.