In the name of stock broker there are individuls and companies who misguide beginner traders and charge heavy fees and brokerage. Even registered brokers are found to be the part of such scams sometimes.
It is therefore important for you to stay alert and ask for every document to validate their registrations and also ask questions for every service they provide.
Further, if you are not a trader yourself then focus on learning stock market rather than blindly following tips & recommendations provided by registered & unregistered entities.
Here is a case of Vikas (name changed) who got scammed by one such demat account company who charged him the brokerage of ₹21,000 for placing one trade.
Vikas: Hello ADB team I wanted to report a case where broker looted me by charging hefty brokerage charges.
ADB: Hello Vikas. We are here to help you. Please tell me your concern!
Vikas: One day I received a call where the person offered a great deal on opening a demat account with them. Along with this he said that they provide exclusive tips for trading.
I got influenced and asked them the process.
ADB: Okay, so you opened a demat account with them?
Vikas: Yes, they told me a simple process and opened my demat account. Later they asked me to deposit ₹30,000 to start trading.
ADB: Strange, generally broker does not charge any fees. What was this fees for?
Vikas: They said that this fees is to start trading.
ADB: What happened next?
Vikas: The Next Day, I received another Call from an Unknown Number and he asked me that do I know about Scalping?
I said NO, I am not familiar with that. Then he said that he was calling from a demat company and need my ID and Password to trade.
ADB: Did you share your login credentials.
Vikas: No, I was not comfortable in sharing my credentials. He tried to convince me but I disagreed. Later he provided me levels to trade. I followed his advice but lost ₹720. The loss was not big but they charged me a brokerage of ₹21,000/-.
ADB: That sounds serious. Did you record any of the calls or save any of the messages?
Vikas: No, I didn’t. By the time I realized what was happening, it was too late.
ADB: Don’t worry. We’ll look into this matter for you. Please provide us with all the details, including the numbers that called you.
Vikas: Thank you so much. I’ll send all the information right away.
ADB: We’ll do our best to resolve this issue and since it is related to stock broker, we can file a complaint in NSE.
Vikas: I appreciate your help. Thank you.
ADB: You’re welcome. Stay safe, and don’t hesitate to reach out if you need further assistance.
