7 minute read
Does Quotex is Legal in India? Review Broker
from QUOTEX
Short answer: No, Quotex is not legal in India for offering binary options trading, which is considered a form of gambling under Indian law.
If you're wondering whether you can safely use the Quotex trading platform in India, this article will give you a direct, up-to-date answer without the fluff. We'll break down the legal status of Quotex in India, how Indian regulators view binary options, and what it means for traders who still want to trade online. By the end of this article, you'll know exactly where you stand legally and what risks you take by using Quotex in India.
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What Is Quotex?
Quotex is a digital trading platform launched in 2020 that allows users to speculate on the price movement of various assets, including currencies (Forex), stocks, and cryptocurrencies, through a system called binary options.
Binary options are a type of financial instrument where you bet on whether the price of an asset will go up or down over a fixed time. If you’re right, you earn a fixed return (usually 70%–90%). If you’re wrong, you lose your stake.
Unlike traditional stock trading, binary options are not about buying and owning an asset. You're simply making a time-based prediction.
Why Quotex Is Not Legal in India
To understand why Quotex is not legal in India, we need to look at both Indian financial regulations and the status of binary options trading in the country.
1. Binary Options Are Banned by SEBI
The Securities and Exchange Board of India (SEBI), which regulates the securities and financial markets in India, has explicitly banned binary options and similar high-risk trading schemes. According to SEBI:
· Binary options are not recognized as a legitimate financial instrument in India.
· Platforms offering binary options are often classified under gambling or betting, both of which are illegal under Indian law in most states.
· SEBI has blacklisted and issued public warnings against several binary trading platforms.
Since Quotex's core offering is binary options, it falls directly into the prohibited category.
2. Quotex Is Not Registered With SEBI
For any financial platform to operate legally in India, it must be registered with SEBI or another recognized authority like the RBI (for Forex). Quotex is not registered or licensed by SEBI.
It operates under the offshore company Awesomo Ltd, which is registered in Saint Vincent and the Grenadines—a jurisdiction often used by high-risk brokers and platforms that lack regulatory oversight.
This makes it an unregulated broker from an Indian legal perspective.
3. Foreign Exchange Laws Also Apply
Quotex deals with foreign exchange trading, which is tightly regulated in India. According to the Foreign Exchange Management Act (FEMA):
· Indian residents are only allowed to trade Forex through platforms approved by RBI and SEBI.
· Trading Forex through unregulated foreign brokers like Quotex is a violation of FEMA, and legal action can be taken against individuals doing so.
In short, using Quotex for trading Forex or binary options is not only unauthorized—it is illegal under Indian law.
Is It Safe to Use Quotex in India Anyway?
Many users still access Quotex from India using VPNs or international payment systems like crypto wallets. But this comes with serious risks:
1. No Legal Protection
If you lose money due to fraud, platform failure, or hacking, you have no legal recourse in India. You can’t sue the company or report them to SEBI or RBI because they don’t recognize it as a legitimate entity.
2. Bank and Tax Consequences
Your bank or income tax department could flag international payments to and from trading accounts. FEMA violations can lead to penalties, account suspension, or even legal prosecution.
3. High Risk of Scams
Unregulated brokers can manipulate prices, delay withdrawals, or shut down suddenly. Many traders report not being able to withdraw their profits from Quotex and similar platforms.
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What About Crypto Deposits on Quotex?
Quotex allows Indian users to deposit via cryptocurrencies like Bitcoin or Tether (USDT), which bypasses traditional banking channels. However:
· This method is not legal either, since it still involves trading binary options through an unregulated platform.
· The Indian government has made it mandatory to disclose crypto transactions for tax purposes. Not declaring them can lead to tax raids, fines, or penalties.
· Crypto transactions may make it harder for the authorities to trace, but that doesn’t make them legal.
What Does the Indian Government Say?
Here’s a quick summary of official stances:
· SEBI: Binary options = banned. No Indian broker can legally offer them.
· RBI: Forex trading is legal only through authorized dealers.
· Income Tax Department: Any income from illegal sources is still taxable, and undeclared income can lead to action.
· Cyber Law: Using unauthorized platforms or foreign exchanges can breach Indian IT laws if used for financial fraud or money laundering.
None of these agencies have approved Quotex. On the contrary, they treat such platforms as part of a grey or illegal market.
Can You Be Penalized for Using Quotex in India?
Yes. Here’s how.
1. Violation of FEMA
Under FEMA, unauthorized Forex trading can lead to penalties of up to ₹10 lakh or more, depending on the size and frequency of transactions.
2. Income Tax Violations
If you make profits on Quotex and don’t declare them, you can face scrutiny, tax reassessment, and penalties up to 200% of the tax owed.
3. Bank Account Freeze
In some cases, banks have frozen accounts that were found transferring money to/from illegal trading apps.
What Are the Alternatives for Legal Online Trading in India?
If you’re interested in legal and regulated online trading platforms in India, here are a few options:
· Zerodha – India’s largest stockbroker, fully SEBI-registered.
· Upstox – Offers stock, options, and mutual fund investments.
· Groww – Beginner-friendly platform for stocks and mutual funds.
· Angel One – Offers equity and derivatives trading.
These platforms do not offer binary options, but they allow regulated derivatives trading like options and futures, which can also be highly profitable.
If you're looking for legal ways to trade Forex, you can do it through platforms like:
· ICICI Direct
· HDFC Securities
· Kotak Securities
These are approved for currency trading on Indian exchanges (like NSE, BSE), but only in currency pairs involving INR.
Final Verdict: Quotex Is Not Legal in India
If you're asking “Is Quotex legal in India?”, the answer is simple: No, it's not.
Here’s a final checklist to make it absolutely clear:
· ❌ Binary options are banned in India.
· ❌ Quotex is not regulated by SEBI or RBI.
· ❌ Using Quotex may violate FEMA and tax laws.
· ❌ No legal recourse if you get scammed.
· ❌ Crypto deposits don’t make it legal—they make it harder to trace, not safer.
Even though many influencers and YouTubers promote Quotex, remember: their goal is often to earn affiliate commissions. Legally, you're putting yourself at serious financial and legal risk by using the platform.
Conclusion
Quotex is not a legal platform for Indian users. It operates outside the Indian regulatory framework and deals with financial instruments that are banned in the country. While it may seem appealing due to its simplicity and fast payouts, the legal, financial, and security risks far outweigh the benefits.
If you're serious about trading or investing, your best move is to go with regulated, Indian-approved platforms where your funds are secure and your profits are legal.
Stay informed. Stay legal. Trade smart.
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