Is Copy Trading Legal in India? 2025
Is Copy Trading Legal in India? 2025
Blog Article
Copy trading is becoming very popular among Indian traders to earn from the markets by following expert strategies. But a common and important question is:
Is Copy Trading Legal in India?
Let’s find out.
What is Copy Trading?
Copy trading is a method where one trader (usually a beginner or someone with limited time) automatically copies the trades of an experienced trader. The copied trades are executed in real-time in the follower’s account, so they can benefit from the expert’s skills and strategies.
Is Copy Trading Legal in India?
The short answer is: Yes, but with some conditions.
Copy trading is not illegal in India. But it has to be done in a way that follows SEBI (Securities and Exchange Board of India) rules and regulations.
Here’s what you should keep in mind:
What’s Allowed:
- Manual Copy Trading: Where users follow and place trades on their own after observing another trader’s performance.
- Signal-Based Services: Traders can subscribe to signals and decide whether or not to execute the trades themselves.
- Software-Based Platforms like Combiz Services Pvt Ltd that offer copy trading tools in a compliant manner.
What’s Not Allowed:
- Using someone else’s trading account or login credentials.
- Offering portfolio management or financial advisory without SEBI registration.
- Guaranteed returns or fixed profits (which are illegal under SEBI norms).
SEBI’s Stand on Copy Trading
SEBI has not issued specific rules for copy trading yet, but it regulates:
- Portfolio Management Services (PMS)
- Investment Advisors
- Broker-dealer activity
So, any automated copy trading service should not control the client’s account directly, and should ensure transparency and informed consent from the user.
How Platforms Like Combiz Services Pvt Ltd Help
Combiz Services Pvt Ltd provides secure, reliable copy trading software in India that connects master accounts with multiple follower accounts using broker APIs. It does not manage user funds but simply mirrors the trades, so users have full control.
Features:
- API-based trade copying (legal and secure
- Full control over follower accounts
- Real-time synchronization
- Works with popular Indian stock brokers like Zerodha, Angel One, Alice Blue
This model is compliant and risk-managed.---
Key Points to Check Before Copy Trading in India
- Use SEBI-registered brokers
- You should have control over your account
- Avoid platforms that promise fixed returns
- Look for software providers like Combiz Services Pvt Ltd
Conclusion
So, is copy trading legal in India? Yes, as long as it’s done as per rules and through a secure platform.
Always choose platforms that:
- Are transparent about risks
- Don’t manage funds on your behalf
- Work with regulated brokers
Copy trading is a powerful tool, but like any investment, be cautious and aware. Report this page