7 minute read
Is JustMarkets Safe to Use in India? Is it Legal?
from JustMarkets
by Exness_India
The short answer: Yes, JustMarkets can be used legally by traders in India because it is a globally licensed broker. However, it is not regulated by SEBI, India’s own financial authority. This means you can open an account, deposit, trade, and withdraw funds without breaking Indian laws, but you will not have the direct protections offered by Indian regulation. The difference between “legal” and “locally regulated” is critical to understand before you invest.
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Understanding the Legal Status in India
Forex and CFD trading in India has a unique legal framework. SEBI (Securities and Exchange Board of India) regulates the securities market and sets strict guidelines for forex trading. Indian residents are only officially permitted to trade specific currency pairs—those involving the Indian rupee paired with certain other currencies like USD, EUR, GBP, and JPY—through SEBI-registered brokers.
JustMarkets is not registered with SEBI. Instead, it operates under multiple international regulatory licenses. This is why Indian traders can legally access JustMarkets—it is not banned—but they are trading through an offshore entity, which places them outside SEBI’s jurisdiction. You are not committing an offense by using JustMarkets, but your account will not be under Indian regulatory protection.
The Global Regulation of JustMarkets
JustMarkets is a brand name operated by several companies licensed in different jurisdictions. Its most important license is from the Cyprus Securities and Exchange Commission (CySEC). CySEC is considered a Tier-1 regulator in the forex industry. It enforces strict capital requirements, segregation of client funds, and offers an investor compensation scheme of up to €20,000 per client in the event of broker insolvency.
In addition to CySEC, JustMarkets is licensed by:
· Financial Services Authority (FSA) of Seychelles – This is a lower-tier regulator that oversees offshore entities. While it imposes rules, the level of investor protection is not as strong as in the EU.
· Financial Sector Conduct Authority (FSCA) of South Africa – Considered a mid-tier regulator, the FSCA enforces some client protection standards and operational transparency.
· Financial Services Commission (FSC) of Mauritius – Similar to the Seychelles FSA, this is generally considered a lighter regulatory framework.
These licenses mean JustMarkets is not an unregulated or fly-by-night operation. It operates within legal frameworks in several countries. But for Indian users, the lack of a SEBI license means disputes and complaints must be addressed through international regulators, which can be a slower and more complex process.
How Safe Is JustMarkets for Indian Traders?
Safety in trading depends on several factors: the broker’s regulatory oversight, its operational practices, financial stability, and transparency.
Strengths of JustMarkets in terms of safety:
· CySEC regulation provides a strong foundation for operational standards.
· Segregation of funds means client deposits are kept separate from company operational funds.
· Negative balance protection ensures you cannot lose more money than you deposit.
· Use of secure technology with encryption to protect personal and financial data.
· Global presence with multiple regulated entities, which reduces the risk of sudden disappearance.
Points of caution:
· The lack of SEBI regulation removes Indian legal recourse if disputes arise.
· Tier-3 offshore licenses (Seychelles, Mauritius) offer weaker protection compared to Tier-1 bodies.
· Complaints through CySEC or FSCA are possible but can take months and involve cross-border legal complexities.
· Trading CFDs and non-permitted forex pairs in India falls into a legal grey zone.
For many Indian traders, the trade-off is between broader market access and reduced local protection. JustMarkets gives you a much wider range of instruments than SEBI-regulated brokers, but you take on the responsibility of managing risks without Indian oversight.
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What You Can Trade on JustMarkets from India
Indian law permits trading only in certain rupee-based currency pairs through domestic brokers. Offshore brokers like JustMarkets allow trading in a much wider set of instruments, including:
· Major, minor, and exotic forex pairs
· Commodities such as gold, silver, and oil
· Global stock indices
· Cryptocurrencies
· Share CFDs from international markets
These options are attractive for traders looking for diversification and higher potential returns. However, be aware that under Indian exchange control laws, trading certain instruments via offshore platforms could be viewed as a violation if it involves unauthorized currency derivatives. While enforcement in this area has been inconsistent, you should stay informed about RBI and SEBI updates.
User Experience and Trading Conditions
JustMarkets is known for its relatively low barriers to entry. In many account types, the minimum deposit starts at just $1, making it accessible to beginners. It supports popular platforms MetaTrader 4 and MetaTrader 5, both of which are highly regarded for their reliability and extensive tools.
Leverage is high compared to Indian brokers—sometimes up to 1:3000 depending on the instrument and account type. This can magnify profits but also significantly increases risk. Experienced traders may find these conditions favorable for certain strategies, while beginners should proceed with caution and use strict risk management.
Execution speed is generally solid, spreads are competitive, and there is a range of educational resources for newer traders. JustMarkets also runs promotions, bonuses, and cashback programs, though these may come with terms and conditions that impact withdrawals.
Risks Specific to Indian Traders
While JustMarkets is legal to use in India in the sense that there’s no outright ban, there are specific risks:
1. Regulatory mismatch – You are operating outside SEBI’s system, so Indian legal protections do not apply.
2. Instrument restrictions – Some instruments you can access through JustMarkets may not be officially permitted under Indian forex rules.
3. Tax complexity – Profits from offshore trading need to be declared under Indian tax laws. Failure to do so can lead to penalties.
4. Cross-border dispute resolution – If you have a complaint, you may have to engage with regulators in Cyprus, South Africa, or Seychelles, which is slower and more complicated.
These risks don’t mean you shouldn’t use JustMarkets, but you must enter with your eyes open and with an understanding of the legal and financial landscape.
Who Should Consider JustMarkets in India?
JustMarkets may be suitable for:
· Traders who want access to a broad range of global instruments beyond what SEBI-regulated brokers offer.
· Experienced forex and CFD traders who understand the risks of high leverage and offshore regulation.
· Investors willing to handle cross-border tax and compliance issues.
It may not be ideal for:
· Absolute beginners who may benefit more from the investor protections of SEBI-regulated brokers.
· Traders who only want to trade SEBI-approved instruments.
· Those uncomfortable with navigating offshore regulatory systems in the event of a dispute.
Final Verdict
JustMarkets is a legally accessible offshore broker for Indian traders with strong international regulation, especially from CySEC. It offers competitive trading conditions, a wide range of instruments, and robust security features. However, it is not regulated by SEBI, meaning there’s no local investor compensation scheme or dispute resolution body protecting your trades within India.
If you use JustMarkets from India:
· Keep your position sizes manageable.
· Trade within your risk tolerance.
· Stay informed about RBI and SEBI updates on forex and CFD trading.
· Maintain accurate tax records for any profits.
In summary, JustMarkets is safe in the sense that it is a well-regulated global broker, but not safe in the sense of being under Indian legal protection. Whether it’s right for you depends on your priorities: wider market access and potentially better conditions, or full compliance with Indian regulatory protection. Make your choice based on your trading goals, risk appetite, and comfort with offshore frameworks.
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