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This type of trading is a type of financial instrument that enables investors to speculate on the price movement of different assets like stocks, commodities, cryptocurrencies, and forex pairs. Unlike traditional financial markets, binary options trading requires predicting whether the price of an asset will rise or fall within a certain period. If the trader's prediction is accurate, they will earn a fixed return on their investment, frequently up to 90%. Nevertheless, if the trader's prediction is incorrect, they will lose the total of their initial investment. This method of trading is recognized for its simplicity and chance of big returns, but it also carries significant risks.

Choosing the right binary options trading broker in India requires careful consideration and research. Here are a few steps and factors to consider:
1. Legalities: The first and foremost thing to consider is the legality of binary options trading in India. Even though it's not illegal to trade binary options in India, it's not regulated by any financial authority either. So, it's vital to verify that the broker you choose complies with all legal requirements and regulations.
2. Reputation: Look into the broker’s reputation. You can do this by reading reviews from other traders, checking online forums, and looking at ratings on relevant websites. The reputation of a broker can give you an insight into their reliability and trustworthiness.
3. Security: It's crucial to choose a broker that provides high-level security. You should look at the encryption methods they use, whether they follow regulatory standards for data protection, and if they have any history of security breaches.
4. Trading Platform: The trading platform provided by the broker should be easy to use and easy to understand, particularly if you're a beginner. It should also have all the necessary tools and features for technical analysis, strategy building, etc.
5. Customer Support: Ensure the broker has reliable customer support that can be contacted easily through multiple channels like email, live chat, and phone. They should be able to provide prompt and helpful responses to your queries.
6. Payment Methods: Check out the deposit and withdrawal methods offered by the broker. They should provide popular and widely accepted methods like credit/debit cards, bank transfers, and e-wallets. Also, check if they charge any fees for deposits or withdrawals.
7. Demo Account: A demo account lets you to practice trading without risking real money. It's a great way for beginners to learn about binary options trading and for experienced traders to test new strategies.
8. Payouts and Returns: Compare the potential payouts and returns offered by different brokers. Binary Options vs Digital Options The higher the payout percentage, the more money you can make on successful trades.
9. Asset Variety: Examine the variety of assets offered by the broker. The more assets they offer, the more trading opportunities you have.
10. Educational Resources: The broker should provide educational resources like webinars, e-books, Fixed Time trading articles, tutorial videos, etc., to help you enhance your trading skills and knowledge.
Remember, choosing the right binary options broker can significantly impact your trading experience and success. So, take your time to research and select the best one.

The status of binary options trading in India is rather unclear. While there are no clear-cut laws that ban this form of trading, the Reserve Bank of India (RBI) has not legalized it either. The Securities and Exchange Board of India (SEBI), the body that oversees the securities market in India, hasn't licensed any binary options brokers. Therefore, while there's no outright ban, engaging in binary options trading comes with significant risks due to the lack of regulation. It's vital for individuals to research thoroughly and talk to a legal expert before participating in binary options trading in India.

In conclusion, binary options trading in India is a controversial and risky investment practice. While it has the potential for high returns, it simultaneously carries a significant risk of loss. It is presently in a legal grey area in India - not explicitly prohibited but also not officially allowed. Nevertheless, it's essential for those interested in binary options trading to fully understand the market and its risks before getting involved. It is also advisable to engage with licensed brokers to ensure their investments are safe. Ahead, clear regulations from bodies such as SEBI could offer a safer and more structured environment for traders.