Quotex, a binary trading platform, is under a lot of questions these days. One of the most pertinent question is dear friends – is Quotex legal in India? The asking is whether it is safe for someone to trade using this platform? Seems a valid question.
Just to set up a context, there have been 35 different binary trading platforms that were banned by RBI (Reserve Bank of India) as per the media reports on 24th Novemeber, 2023. One of those 75 binary trading platforms that were banned was, yes you guessed it right, Quotex!
Is Quotex Real or Fake?
So, lets ask this question, again.
When you search on Google “Is Quotex Legal in India”. You will find ample of articles across LinkedIn, blogs, Quora, Medium that have users shouting – No, No – there is nothing wrong with this platform. All is good.
Quotex does not come under SEBI because, as per the Quotex team, since it is based out of Sychelles and not in India – that is why it cannot be regulated by SEBI.
But that’s not really a point, is it?
They could simply open an Indian office and work under the regulator.
However, they won’t do that. For if they do so, they would need to take care of all the compliances under SEBI guidelines. All complaints that they recieve, which are pretty high in number by the way, would need to be resovled in a stipulated period of time.
That would be challenging for a brand who is giving away 80% of its revenue in sharing with its affiliate partners in India, at least.
But why do we have such a negative stance against Quotex?
The thing is – Quotex has been BANNED by RBI (Reserve Bank of India) and that in itself is a huge reason for not using this platform for any form of trading or investing.
Can We Trade in Quotex in India?
Well, the simple answer to that is – if you really don’t care about your hard-earned capital and are okay if there is no one to help you when you are stuck with a vague platform such as Quotex, then the answer is yes.
Why do we say so?
For the simple reason that if you are stuck with your capital in this account then you will not be able to file a complaint at SEBI or RBI against it.
These institutions will simply respond to you saying that the corresponding platform has been banned by the banking regulator sometime back and it is not legal to trade using Quotex.
There are FEMA regulations (Foreign Exchange Management Act), 1999 that do not allow to trade in foreign exchanges through electronic trading.
Thus, next time you see an ad or a fake-finfluencer promoting Quotex directly or over Telegram, remember – they are going to make 80% in brokerage sharing and upto 7% of the overall turnover you create through your trades.
Yes, that is what they will recieve if you trade on Quotex using their referral link.
Hopefully, this piece was an eye opener for you to understand the legalities and regulations around such a platform.