SEBI allows you to trade across different segments that include equity, commodity & currency. All the trades in these segments are done on the registered stock broking platform. So, in case of any fraud or scam, one can reach out to the exchange or SEBI portal.
Here currency trading is also known by the name Forex trading and this is where the whole confusion begins and scammers get the chance to loot people.
How?
Let’s understand this in detail.
Under SEBI, the currency trading could be done in USD, EURO, Japanese Yen and British Pound. All the trades done in this are highly regulated both by SEBI & RBI.
Now, there are other trading platforms that allow you to trade in other currencies as well which may or may not be regulated by foreign exchange. So, in case of any fraud, you cannot file a complaint to regulatory bodies in India and might lose your hard-earned money.
Here is a case where a person named Rameshwar (name changed) lost more than ₹4 lakh in forex trading.
So, how did it all start?
Rameshwar got a call from a person who convinced him to trade in forex using his trading platform. Rameshwar thought it to be a currency trading regulated by SEBI, downloaded the app using a link.
He then added a fund of around ₹4 lakh. He also earned profit for a few days by using tips. But then he found some activities in the app, like open positions on its own. Initially, he didn’t pay attention.
And one day he found that all his capital blew off.
He tried contacting the concerned person but didn’t get any satisfactory response.
Rameshwar is not alone, almost every day, thousands of people get scammed in forex trading. Some get reported and some just try to forget and move on.
Now, what’s the solution?
As mentioned, you cannot report such cases to SEBI or RBI as these forex trading platforms are regulated by foreign exchange. In order to recover your losses, then the only way is to file a complaint to Cyber Crime.
Conclusion
So for the question: Is Forex trading real or fake, there is no straightforward answer.
Doing proper research and trading using a regulated and registered trading platform make it legal and safe for trading. However, unauthorized trading by downloading apps or unregistered platforms makes it risky.
