If you’re an aspiring trader in India and you’ve ever Googled “best prop firms in India”, chances are, you got a list of firms… that aren’t even Indian.
Sure, you’ll see names like FTMO, FundedNext, and The 5ers — all global giants. But scroll deeper and you’ll realize something weird: almost none of these firms are actually based in India. Even those that look Indian, like Guardeer Funding, turn out to be registered offshore — in this case, Hong Kong.
Try to find one that proudly claims: “We’re an Indian-based prop firm.” Good luck. The information is vague, incomplete, or just… not there. It’s like even the Indian-owned firms don’t want to sound Indian.
And honestly? It makes sense.
In an industry where trust is currency, people assume that a firm based in Dubai, the UK, or the US is more “legit” — even if that’s just perception. It’s not unlike how, in the SEO world, ghostwriters from Asia or Africa often use Western-sounding names to get past bias. You know the type: John Miller from “Texas” who’s actually writing out of Jakarta or Nairobi.
And yeah — I know that sting personally. I’ve ghostwritten for clients who loved my work, but who didn’t want to credit an “Indonesian” writer. So I get why a prop firm might prefer to wear a Dubai mask than show their Delhi roots.
But this surface-level branding hides something deeper — a regulatory maze that makes it extremely hard to actually register and operate a funded prop firm in India. If you’re curious what it really takes to launch a prop firm without getting buried in red tape, check out how to start a prop firm cheap — even if you’re not in India. It breaks down the offshore strategy most founders use.
In this article, we’ll break down:
This isn’t your average Top 10 list — this is the real story behind why India, despite having one of the most active retail trader populations, has almost no prop firms calling it home.
Let’s unpack why.
Let’s clear this up first: Proprietary trading is legal in India. In fact, some of the sharpest and most advanced quant trading firms in the world — like Estee Advisors, Graviton, and Dolat Capital — are based in India. They operate fully within Indian law and are regulated by heavyweight institutions like SEBI (Securities and Exchange Board of India) and RBI (Reserve Bank of India), both strong authority signals in what I’d call Entity SEO terms.
But here’s the catch: most of these Indian prop firms don’t offer funded accounts to individual traders. They’re not running challenges or letting retail traders manage capital for a profit split. They hire internal traders, build elite teams, and trade with their own capital — behind closed doors.
So what’s the issue with the “public-facing” prop firm model we see globally — the FTMO-style, remote challenge-based funded accounts? That’s where we slide into legal grey zones.
India’s legal framework doesn’t directly regulate or prohibit prop firm challenges, but it doesn’t explicitly allow them either. That’s because this model — where a firm funds external traders after passing a test — doesn’t fit neatly into existing categories under Indian law.
Here’s what you’re dealing with:
This is why most legit-looking prop firms that target Indian traders — even Indian-run ones — don’t base their operations in India. The red tape is thick, and the model simply isn’t built for India’s current legal infrastructure.
In the next section, we’ll dive deeper into why these firms actively avoid registering in India, even when their entire team might be based in Delhi or Bangalore.
You’d think that with a growing trader base, a booming fintech scene, and platforms like Zerodha making waves, India would be the perfect place to start a prop firm, right?
Wrong.
Even if your entire team sits in Bangalore, odds are your firm is registered in Dubai, BVI, Seychelles, or Hong Kong. And it’s not because Indian entrepreneurs don’t want to support their homeland — it’s because the system makes it painfully difficult to operate a modern prop firm legally within India.
Let’s break this into two buckets: regulatory headaches and operational flexibility.
According to NSE’s trading rights framework, trades must be categorized as either:
This means if you’re running a prop firm and letting external traders participate, you’re technically entering CLI territory — which requires you to register as a broker or intermediary, maintain a trail of trades, and undergo strict compliance checks.
On top of that:
That’s not a scalable model for the kind of remote, global prop firm ecosystem we see with FTMO or FundedNext.
Now layer in SEBI’s securities laws and RBI’s control over cross-border forex transactions:
And even if you’re compliant, the process is slow, bureaucratic, and full of paper trails. It’s regulation-by-overwhelm. That’s why you don’t see agile startups launching Indian-registered funded firms — they’d die under the paperwork.
By incorporating in Dubai, Hong Kong, or Seychelles, prop firms get:
It’s like running your firm in god mode — at least operationally.
Local Indian regulation also makes it tough to use:
So even if you wanted to keep your operations in India, you’d be sacrificing everything from speed to scale to customer experience, especially in a country where remote work culture is still evolving — and most teams aren’t trained for it yet. Here’s why that matters.
It’s not about “hiding” from regulation. It’s about avoiding unnecessary friction so you can operate globally, grow fast, and adapt to modern trading infrastructure. For most founders — even Indian ones — that means offshore or bust.
Yep — India has some serious brainpower in the proprietary trading space. If you thought prop trading was a foreign-dominated game, think again. There are Indian firms that crush it in global markets using high-frequency trading, quant strategies, and algorithmic models.
But here’s the twist: most of them don’t offer funded accounts to retail traders. They’re not handing out challenges, offering 90% profit splits, or marketing themselves on Instagram.
Instead, they run tight internal teams, often recruiting from IITs and elite engineering backgrounds — and trade with their own capital, behind the scenes.
Let’s look at some key players:
Estee is one of India’s most respected prop firms. They build fully automated strategies, run backtests at scale, and manage massive volumes — but they’re not in the business of funding retail traders. Their model is corporate, institutional, and laser-focused.
Graviton is built for speed. They’re like India’s version of Jump Trading or Citadel — obsessed with latency, infrastructure, and algo edges. But again: no public trader onboarding. No challenges, no dashboards, no payouts.
They have a solid presence and even run training programs — but they’re not your classic challenge-based prop firm. Instead, they recruit like an investment bank and build a long-term internal bench.
Now this is interesting. Guardeer is the closest thing to an Indian-funded prop firm — not because it’s registered in India, but because its entire presence screams “Indian startup.”
Their Instagram, support team, and community are all desi-coded — and they even accept local payment methods. But legally, they operate like an offshore firm. That allows them to bypass RBI restrictions, offer remote-funded accounts, and avoid domestic licensing hurdles.
💡 It’s a smart hybrid model: “Appear local, register global.”
Simple: regulatory complexity, operational risk, and compliance headaches.
Firms like Estee and Graviton play the long game, staying fully SEBI-compliant and avoiding consumer-facing legal traps. That makes them profitable, but also invisible to retail traders looking for funded account opportunities.
On the flip side, firms like Guardeer take the offshore shortcut — and while it’s not illegal, it’s definitely skating the regulatory edge.
So yes, India does have top-tier prop firms — they’re just not the kind that show up in your “Top 10 Funded Accounts for Indian Traders” listicles.
This is one of the most misunderstood questions in India’s growing retail trading scene. On the surface, it seems simple: you find a prop firm online, pass their challenge, and trade with their capital — no client funds involved, right?
But when you zoom in on the legal landscape in India, things get messy — fast.
Let’s unpack it.
If you’re working for a SEBI-registered prop firm in India — trading the firm’s capital internally — you’re good. It’s fully legal.
But that’s not what most people are asking.
They’re asking: Can I, as an Indian trader, join a foreign prop firm like FTMO, FundedNext, or Guardeer, and trade remotely from home?
And for that, the answer is: Yes… but it comes with risk.
On October 22, 2024, the Reserve Bank of India (RBI) officially updated its “Alert List” — and it’s a serious wake-up call.
Among the newly blacklisted names:
🔗 Read the full RBI Alert List and news coverage here:
RBI Updates List of Unauthorized Forex Trading Platforms – ET Wealth
The RBI isn’t banning trading challenges. What it’s doing is flagging platforms that allow forex transactions without being authorized under the Foreign Exchange Management Act (FEMA), 1999 and the Electronic Trading Platforms (Reserve Bank) Directions, 2018.
From the RBI’s statement:
“Resident persons undertaking forex transactions with unauthorised persons… shall render themselves liable for penal action under the Act.“
In short:
Most Indian traders aren’t getting fined or raided for joining FTMO. But the risk isn’t imaginary either:
✅ Use the RBI’s Authorized Dealer List:
https://rbi.org.in/scripts/category.aspx
✅ For full-fledged money changers:
https://rbi.org.in/Scripts/FFMCList.aspx
If the prop firm or payment processor you’re using isn’t listed, you’re in grey (or red) territory.
| ❓ Question | ✅ Answer |
| Can I legally join a prop firm from India? | Yes, if they’re not blacklisted and you’re not violating FEMA |
| Can I get in trouble for joining FTMO or FundedNext? | Yes — they’re named on RBI’s Alert List |
| Are all prop firms illegal in India? | No, internal prop trading is legal — but retail-funded models operate in a grey zone |
| What should I do if I’ve joined one? | Declare your income, use safe payment methods, and stay informed about updates |
This isn’t fear-mongering — it’s just facts. The RBI and SEBI have started taking unregistered forex activity seriously, and if you’re operating blindly, you’re the one holding the risk.
So you’re an Indian trader, ready to take that prop firm challenge, but the big question hits:
“How the hell do I pay for this without getting blocked, flagged, or fined?”
Good news — many Indian traders are successfully joining prop firms and getting funded. The key lies in understanding which payment channels are safe, which ones are risky, and how to stay on the right side of compliance while still being practical.
Let’s break it down 👇
Here are the top ways Indian traders are paying for prop firm challenges right now:
| Method | Used For | Risk Level | Notes |
| Credit/Debit Cards | Most offshore firms | 🟡 Medium | Works 80% of the time. Some cards block international FX |
| UPI | Guardeer, India-friendly firms | 🟢 Low | Fast and seamless. Only works if the firm uses an Indian payment processor |
| NEFT / IMPS / RTGS | Domestic transfers | 🔴 High | Only usable if the prop firm has an Indian-registered bank account (rare) |
| PayU / Razorpay / Instamojo | Local payment gateways | 🟢 Low | Used by India-aware prop firms. Accept UPI + local cards |
| Wise / PayPal / Payoneer | International payouts | 🟡 Medium | Best for receiving profits, but may require verification |
| Crypto | Offshore firms | 🔴 Very High | Risky under RBI’s crypto stance. Not recommended unless you know what you’re doing |
Some prop firms — especially those targeting Indian traders — have found clever workarounds:
Other firms like FundedNext and The 5ers may accept cards and PayPal, but don’t always support UPI — which can result in conversion fees or failed transactions.
Firms using Razorpay or Instamojo allow:
If you see these gateways at checkout, you’re probably dealing with a firm that understands the Indian market.
Just because you can pay, doesn’t mean you should do it blindly. Keep these compliance rules in mind:
If you’re unsure, email the prop firm support and ask:
“Do you have a UPI/Indian payment gateway for Indian clients?”
Legit firms won’t ghost you — and this one question can help avoid blocked payments or conversion fees.
| ✅ Do | ❌ Don’t |
| Use UPI or Razorpay when available | Send NEFT/RTGS to foreign banks |
| Declare foreign income on your ITR | Ignore LRS or FEMA rules |
| Ask firms about payment gateway options | Use crypto unless you’re advanced |
| Track all transactions for tax | Assume “everyone’s doing it” means it’s safe |
If you’ve ever searched “best prop firms in India” on Google, you’ve probably landed on a bunch of listicles shouting out names like:
…and maybe a few more. But here’s the catch:
None of them are Indian. Not a single one.
The phrase “in India” is being used to match what people are typing into Google — not to describe where the firm is based.
It’s a classic SEO/marketing trick:
“We want to rank for ‘prop firms in India’ — so let’s just write an article and insert India into the H1, H2, and sprinkle it across the copy.”
But when you read the actual content, there’s zero mention of Indian regulations, Indian payment gateways, or Indian legal standing. Just a repackaged list of global prop firms that accept Indian traders.
Technically, they’re not lying — these firms do allow Indian traders. But they’re absolutely not Indian-registered companies, and that’s a huge distinction for traders who are concerned about legality, transparency, and accountability.
To be fair — it’s not just lazy content marketing (okay, sometimes it is).
The truth is, there aren’t many Indian-based prop firms offering public access to funded accounts. Firms like Estee Advisors and Graviton are busy building internal quant teams and don’t have time to run Telegram groups or Discord challenge updates.
And firms like Guardeer Funding, while clearly Indian by culture and community, are still legally based in Hong Kong or elsewhere — for reasons we’ve already covered.
That leaves the stage wide open for international firms with global affiliate programs and aggressive SEO playbooks to dominate search results.
Let me be real with you:
I’m also trying to rank for keywords like “best prop firm in India”, “Indian prop firm”, and all the other India-related terms.
So yes, this article is part of that SEO game.
But here’s the difference:
If I rank? Awesome. Fingers crossed 🤞
If not? At least you got a real article that tells the truth.
That’s a win either way.
If you want to verify a prop firm’s real location, here’s a quick checklist:
| ✅ Step | What to Look For |
| Check the footer of their website | Look for company name + legal jurisdiction |
| Look them up on Trustpilot or WHOIS | Often reveals business address or domain country |
| Ask support directly | “Where is your company registered?” |
| Check payment instructions | If it’s asking for crypto or offshore bank wires, assume it’s not Indian |
| Search in the RBI Alert List | Check here |
If a firm hides their registration info, that’s a 🚩
It’s not wrong to trade with an international prop firm — many Indian traders do it and succeed. But it’s important to know the difference between “trading with a firm that accepts Indians” vs. “trading with an Indian-regulated firm.”
One offers convenience.
The other offers legal backing.
If you’re going in, just know what you’re signing up for.
After all the grey zones, warnings, and RBI red flags, you might be thinking:
“Damn, does India even have a future for prop firms?”
But here’s the thing — yes, it absolutely does.
India has the talent, the tech, and the trader demand.
What it doesn’t have yet is the regulatory support for remote, funded trading models.
Let’s break it down.
It’s not impossible.
India’s fintech ecosystem has made massive leaps in the past decade:
So what’s missing?
A clear regulatory category for prop firms that:
If SEBI or RBI creates a “Remote Trading License” category or amends FEMA clauses to reflect digital-first firms, that could unlock a whole new startup wave — with Indian prop firms operating legally, transparently, and globally competitive.
If India updates its playbook, there’s a massive blue ocean opportunity:
Imagine an Indian prop firm:
If you’re a founder or operator thinking, “Hey, maybe I could start a prop firm,” here’s some advice:
The laws will eventually evolve.
The question is — who’s going to be ready when the doors open?
If you’re an operator, start planning.
If you’re a trader, stay sharp, stay compliant.
And if you’re reading this article?
Congrats — you’re ahead of 99% of the market already.
Let’s zoom out.
Yes — prop trading is legal in India, but the funded account model that’s become popular worldwide exists in a regulatory grey zone here.
Yes — Indian traders can still participate in offshore prop firm challenges, but they must understand the risks, follow RBI/SEBI guidelines, and be smart with payments and taxation.
And yes — there are Indian-owned prop firms, but almost none of them publicly offer funded accounts. Instead, they run internal operations, staying within the bounds of Indian law.
🎯 Pipeline Strategy for Prop Firms – How the best prop firms recruit, test, and monetize
Yes, there are Indian-owned prop firms like Estee Advisors, Graviton, and Futures First, but they typically focus on internal proprietary trading and do not offer public-funded accounts or challenge-based models.
Proprietary trading is legal in India and regulated by SEBI and RBI. However, foreign-funded trading challenges are in a legal grey zone, especially if the platform is not authorized under FEMA or SEBI guidelines.
While you can technically start a prop firm in India, it requires full compliance with SEBI and RBI regulations, including registration with recognized exchanges and tight internal trading protocols. However, if you’re planning to run a funded account model with trader challenges, it’s often faster and more scalable to register offshore (e.g. in Dubai, BVI, or Hong Kong) — just like most successful firms do.
Check out this full guide on How to Start a Prop Firm Cheap to learn how to do it the right way — legally, lean, and built to scale.
And if you’re thinking long-term, consider automating parts of your operation with AI — both for trading and content. This is what DeepSeek is betting on.
If you’d like to start a prop firm without the hassle, have YourPropFirm do all the work. And there is no revenue share, so 100% of profit is yours.
As of October 2024, RBI’s Alert List includes FTMO, FundedNext, Smart Prop Trader, and others. These platforms are not authorized to deal in foreign exchange under Indian law.
🔗 Full list here
There is no “best” Indian-registered prop firm offering public-funded accounts. Most popular prop firms that serve Indian traders — like FTMO or Guardeer Funding — are internationally registered and operate remotely.
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