Is Pocket Option Legal in India?

Last updated Mar 5, 2024
Nikolay Zavarov - Author
Nikolay Zavarov
Andrey Bondarenko - Editor
Andrey Bondarenko

Pocket Option, established in 2017, has rapidly emerged as a prominent online trading platform renowned for its binary trading options. It has attracted a vast user base globally, including many traders from India. The platform's appeal lies in its comprehensive range of trading instruments, user-friendly interface, and the potential for high returns, which have positioned it as a preferred choice among traders seeking diverse trading opportunities.

Despite its popularity, the legal status of Pocket Option in India remains a subject of debate and uncertainty. Indian regulations have not explicitly prohibited the use of international binary options platforms, yet the Reserve Bank of India has expressed concerns over the risks associated with such trading activities. This situation has led to a grey area regarding the legality of using platforms like Pocket Option for trading in India.

In this article, we aim to address and clarify the concerns surrounding the legality and regulatory status of Pocket Option in India, providing traders with the information they need to make informed decisions.

About Pocket Option Broker

Логотип Pocket Option
RegisterTrading binary options carries high risks. You may lose all invested funds
Profitabilityup to 92%
Minimum Deposit$5
Countries of registration:
Trading Assets
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MetaTrader 4
MetaTrader 5
Логотип Perfect Money
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Логотип Payeer
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Логотип PayRedeem
Логотип Neteller
Логотип Binance Pay
Логотип Swift
Логотип SEPA
Логотип Visa
Логотип Mastercard
Логотип Maestro
Логотип Мир
compare Pocket Option options types

Pocket Option is a binary options broker known for its comprehensive range of services and trading options. It caters to a broad audience by offering a variety of accounts and services, ensuring that traders can find a setup that matches their experience and financial goals. The broker stands out for its diverse asset classes available for trading, including stocks, currencies, and cryptocurrencies, and supports this with robust online trading platforms like MT4 and MT5. Additionally, Pocket Option is committed to trader education and provides a wealth of analytical materials and resources.

Advantages of Pocket Option

  1. Variety of Accounts and Services. Allows traders to select the most appropriate account type for their needs.

  2. Wide Selection of Deposit and Withdrawal Methods. Offers multiple funding and withdrawal options, enhancing convenience.

  3. Diverse Asset Classes for Trading. Traders can access various trading assets.

  4. Trading Platforms. Multiple user-friendly trading platforms are available, including MT4 and MT5.

  5. Analytics and Education. High-quality analytical and educational materials are available to traders.

Disadvantages of Pocket Option

  1. Weak Regulation. The regulatory framework is not as robust as possible, presenting potential risks.

  2. High Spreads for CFD Trading. This can impact the profitability of trades.

  3. Protracted Withdrawal Time. Withdrawals can take up to 14 days, which may be inconvenient.

  4. Average Range of CFDs. The selection of CFDs is somewhat limited compared to other brokers.

  5. Lack of iOS and Desktop Applications. This restricts trading flexibility across different devices.

Is Pocket Option Regulated in India?

Pocket Option, regulated by the Mwali International Services Authority (MISA) with license number T2023322, operates legally in India, albeit without direct regulation by the Securities and Exchange Board of India (SEBI). While trading Forex and Binary options face restrictions under Indian law, specifically the Foreign Exchange and Management Act (FEMA), Pocket Option remains accessible to traders in India.

Can Indians Use Pocket Option for Binary Options Trading?

Indians can trade on Pocket Option, thanks to its online presence and regulation under the Mwali International Services Authority (MISA) via Infinite Trade LLC. However, it's important to note that while India does not explicitly ban the use of international binary options trading platforms, such trading operates in a regulatory grey area. The Securities and Exchange Board of India (SEBI) does not regulate these offshore platforms, which means traders in India might not have local legal protections or recourse in disputes. Binary options and CFD trading fall under the scrutiny of the Foreign Exchange Management Act (FEMA), guiding how Indian residents can participate in foreign exchange markets. Therefore, while traders from India can technically use Pocket Option, they should be aware of the potential legal and financial risks involved in trading with an offshore broker not regulated by Indian authorities. Proceeding cautiously and being fully aware of the regulatory environment is advisable for traders from India considering Pocket Option.

The legality of binary options trading in India is enveloped in regulatory ambiguity. Per the most recent guidelines, trading binary options is incompatible with Indian regulatory frameworks. The activity falls into a complex legal territory since India's primary financial regulators, the Securities and Exchange Board of India (SEBI) and the Reserve Bank of India (RBI), have not explicitly authorised trading binary options.

This stance is primarily motivated by the high-risk nature of binary options and the prevalence of fraudulent schemes associated with them globally. The Indian regulatory bodies aim to safeguard Indian investors from the potential financial jeopardy and scams often accompanying trading binary options.

Notwithstanding the domestic prohibition, traders in India might encounter opportunities to engage in binary trading through platforms operated by offshore brokers. Such undertakings, however, place traders in a precarious position due to the absence of regulatory oversight from Indian authorities. This means that in disputes, fraud, or financial losses, Indian traders' options for legal recourse may be severely limited or non-existent.

Residents of India must comprehend these legal constraints and the risks of navigating trading via unregulated entities. The Indian government and financial regulatory institutions persistently discourage participation in binary options trading and urge individuals to exercise utmost caution with investments, especially in platforms lacking apparent regulatory compliance.

How Can Indians Safely Trade Binary Options?

For Indians intrigued by the prospect of trading binary options, it's essential to approach this market with caution and awareness, especially given the regulatory grey areas in India. Here are steps Indian traders can take to engage in trading as safely as possible:

  1. Understand Local Regulations. Familiarize yourself with the legal landscape in India regarding binary options. The Securities and Exchange Board of India (SEBI) does not regulate binary trading, making it a non-sanctioned activity.

  2. Select Regulated International Brokers. Opt for brokers that are regulated by credible authorities in their countries. Look for the UK's Financial Conduct Authority (FCA) or the Cyprus Securities and Exchange Commission (CySEC) oversight. However, these do not offer the same protections as Indian regulatory bodies.

  3. Research Broker Reputation. Investigate the reputation of any broker you consider. Online reviews, trader forums, and regulatory body alerts can provide insights into a broker's reliability and ethics.

  4. Acknowledge the Risks. Trading binary options is inherently risky and speculative. Only invest what you can afford to lose and be aware of the risk of fraud in unregulated markets.

  5. Utilize Demo Accounts. Reputable brokers often offer demo accounts. Use these to familiarize yourself with the trading platform and to practice strategies without financial risk.

  6. Seek Legal Guidance. Given the complex legal status of binary options in India, consulting with a legal expert who understands the nuances of Indian financial law could be beneficial.

  7. Exercise Caution with Offshore Brokers. While offshore brokers might be accessible, they come with increased risk. Such platforms may lack the security and transparency offered by locally regulated entities.

  8. Educate Yourself. Use educational resources to understand binary options, market analysis, and effective trading strategies.

  9. Start trading with Small Investments. Begin trading with small amounts to limit potential losses as you learn the ropes.

  10. Stay Updated on Regulations. Keep abreast of any changes in Indian regulations regarding binary options trading and international regulatory developments that might affect Indian traders.

By adhering to these guidelines, traders can navigate the complexities of online trading in India with a greater degree of safety. However, it's crucial to remember the high-risk nature of this investment and the potential for loss, especially when dealing with platforms outside the purview of Indian regulatory protections.


Can You Make Money on Pocket Option?

Yes, making money on Pocket Option through binary trading is possible. However, success depends on your trading strategy, financial market knowledge, and risk management. It's important to remember that all trading involves risk, and there's a potential for loss.

How to Open a Trading Account on Pocket Option?

To open a trading account on Pocket Option, visit the Pocket Option website, click the "Sign Up" button, and fill in the required information. You may need to verify your account through email or mobile number verification.

What is the Minimum Deposit for Pocket Option?

The minimum deposit for Pocket Option is just $5. This low entry threshold makes it accessible for traders of all capital levels, from beginners to experienced traders looking to test new strategies with minimal financial risk.

How to Deposit Money to Pocket Option?

To deposit money to Pocket Option, log into your account, navigate to the "Finance" section, select "Deposit," choose your preferred payment method, and follow the instructions to complete the transaction.

How to Use Pocket Option?

Using Pocket Option involves registering for an account, making a deposit, selecting the asset you wish to trade, choosing your investment amount, predicting the direction of the asset price, and placing your trade.

How to Withdraw Money from Pocket Option?

To withdraw money from Pocket Option, go to your account's "Finance" section, click "Withdrawal," select your preferred withdrawal method, enter the amount, and submit your request.

What Are Binary Options?

Binary options are trading instruments that allow you to speculate on the price movement of various assets, such as currencies, stocks, and commodities, with a fixed return and time frame.

Is Pocket Option a Scam or Legit?

Pocket Option is operated by Infinite Trade LLC, registered in Costa Rica, and regulated by the Mwali International Services Authority (MISA). While the regulatory jurisdictions of Costa Rica and Mwali may not be as widely recognized for financial regulation, Pocket Option's operation under these authorities provides a level of regulatory oversight. Traders should conduct their research to assess the platform's reliability.

Why is a Demo Account Important with Pocket Option?

A demo account is essential with Pocket Option because it allows traders to practice and develop their trading strategies without risking real money. It's a valuable tool for beginners to gain experience and for experienced traders to test new strategies.

Can You Use MT4/MT5 with Pocket Option?

Yes, Pocket Option offers web versions of MetaTrader 4 and 5, providing a range of functionalities suitable for traders of all levels. The platform's proprietary interface and the technical analysis tools available on MT4 and MT5 cater to various trading needs.


In conclusion, the legal status of Pocket Option in India is nuanced due to the country's regulatory environment concerning binary options and forex trading. While Pocket Option is regulated by the Mwali International Services Authority (MISA) under its parent company, Infinite Trade LLC, this international regulation does not equate to authorization or endorsement by Indian regulatory bodies such as the Securities and Exchange Board of India (SEBI) or the Reserve Bank of India (RBI). Indian traders can access and utilize Pocket Option and other offshore trading platforms; however, they engage with these platforms at their discretion, without the safeguarding oversight of Indian financial regulators. Indian traders must be fully aware of the regulatory framework and the inherent risks involved in trading with platforms that are not regulated within India. The legal landscape in India regarding binary options and forex trading is subject to interpretation and change. As such, traders must remain vigilant, stay updated on any regulatory shifts, and consult with financial and legal advisors.

Nikolay Zavarov - AuthorNikolay ZavarovAuthor

Nikolay is an experienced specialist in financial markets and co-founder of IamForexTrader. He has been successfully trading Forex since 2014 and has been actively involved in the cryptocurrency market since 2017.

He develops investment strategies adaptable to any level of experience and has been actively investing in stocks, bonds and ETFs since 2018.