Cryptocurrency Scams in India

If you are indeed choosing an international Forex broker, take your time to research and choose regulated Forex brokers that have an excellent reputation.

India is also highly proactive in its anti-money laundering laws, and the Indian Government is very thorough in its policies that deter its citizens from investing in overseas brokers. 

Stay away from companies which lure you into trading in the interbank market at better prices.

Restrictions Imposed On Forex Trading For SEBI Regulated Brokers 

Common Scams to Avoid When Trading in Forex Markets Forex markets are among the most active trading markets in the world, with participants ranging from large banks, to multinational corporations, to governments, to speculators and even to a small fraction of individual professional traders.

The company offers opportunities that sound too good to be true: Stay away from forex trading opportunities that claim to make you rich overnight. Do not use your hard-earned savings or your retirement fund, or resort to mortgaging your house, to invest in these types of schemes. Chances are that you may never get your money back.

The company guarantees profits or claims unusually high performance: These claims of massive profits are false and are basically tactics to lure in your money. The company downplays the risks involved with currency trading, or tells you that a written risk disclosure statement is just a routine formality imposed by the government: Always be wary of statements claiming that a company will recover your loses or that your investment will remain safe.

Forex trading involves a high amount of risk, and you may end up losing all or part of your money in it. Do not put any money which otherwise you cannot afford to lose. Margins should never be used if the investor does not have the experience or time to closely scrutinize trades.

Margin trading can end up creating more debt than profit. The company operates on an interbank market: Stay away from companies which lure you into trading in the interbank market at better prices.

In the interbank market, mostly speculative and short-term currency transactions are negotiated in an unstable network of large companies and banks. The companies wants you to send or transferring cash to them via the the Internet, mail, or non-physical location: Steer away from sending your money online to companies providing online forex trading.

These phony companies are located overseas and are created with the sole aim to defraud investors. If the company does not have a physical office near you, be wary. Currency scams targeting members of ethnic minorities: However, with time, more individuals and smaller financial institutions started indulging in Forex transactions for global businesses and other investment opportunities, which allowed Forex trading to gain immense popularity in the country quickly.

A significant portion of the country has millions of expats that work in different countries across the globe, which has resulted in an influx of foreign currencies into India by way of foreign direct investments through its non-resident citizens. Therefore, Foreign exchange and Forex transactions play an integral part in the Indian economy. India is also highly proactive in its anti-money laundering laws, and the Indian Government is very thorough in its policies that deter its citizens from investing in overseas brokers.

While the SEBI and the authorities are tasked with the responsibility of preventing any citizen from trading with international Forex brokers, there are exceptions to the case that may prevent the authorities from doing their job. Most international Forex brokers in India operate through branch offices, Introducing Brokers, or through affiliates without actually being regulated by the SEBI or any other organization. These brokers offer their services illegally without any consent from the authorities, which prevent the Government from tracking their activities.

Therefore, Forex scams and other financial malpractices are highly rampant in the country, which has forced the Government to intervene and severely limit the freedom enjoyed by Forex brokers. As a Forex trader in India, you should always make sure to invest your money with Government approved SEBI Forex brokers, as it is imperative from a legal perspective to adhere to the policies and guidelines issued by the authorities.

Some SEBI regulated brokers may offer the convenience of investing in other countries, but a majority of Forex brokers in India only allow its traders to trade on INR related currency pairs.

If a broker promises to offer other currency pairs, check the legality of the broker and ensure that their services are in line with the regulatory guidelines imposed on them by the SEBI.

 

Top Brokers 

List of scandals in India. This article has multiple issues. Please help improve it or discuss these issues on the talk page. (Learn how and when to remove these template messages) This article has an unclear citation style. The references used may be made clearer with a Forex derivates scam.

Why is forex trading illegal in India? Update Cancel. Answer Wiki. 30 Answers. According to SEBI, Indian Forex traders are not supposed to indulge in any currency pairs that does not involve the INR as the base or quote currency. The Indian Rupee is the official currency and the legal tender of the country, and it is illegal for Indian. Staying Protected From Broker Scams. Forex brokers in India should be regulated by the SEBI and should be authorized by the relevant authorities to ensure that all companies follow the FEMA guidelines on Forex trading. 

More Info

Related Posts

Common Scams to Avoid When Trading in Forex Markets Forex markets are among the most active trading markets in the world, with participants ranging from large banks, to multinational corporations, to governments, to speculators and even to a small fraction of individual professional traders. Oct 14,  · The alleged over Rs 6,crore Bank of Baroda (BoB) forex scam is threatening to open a Pandora’s box in the banking sector. While BoB and HDFC Bank employees have already been arrested by the Central Bureau of Investigation (CBI) and the Enforcement Directorate (ED), investigations have found that more banks could be Author: Deeptiman Tiwary.

Four men from India have been arrested as part of a crackdown against foreign exchange fraud by Indian law enforcement officials. The men, who come from major areas like Gujarat and Bengaluru, stand accused of scamming investors out of more than INR 47,,, which is equivalent to over USD $67, or GBP £52, Cryptocurrency Scams in India The craze of investing in cryptocurrencies is wide spreading. More and more people are investing in cryptocurrencies but because of some common mistakes, they get scammed. In India earlier the fraud and scams Read more.

More Info
© lokersumbagut.ga 2018