When prop trading goes wrong, most people don’t know where to begin.
Traders often realise something is off only after withdrawals are delayed, rules suddenly change, or communication stops altogether. By then, panic sets in, and wrong steps can make recovery harder.
This guide explains, in simple terms, how to file a complaint against a prop trading firm in India, what evidence you need, and which authorities actually help.
When Should You File a Complaint Against Prop Trading?
When it comes to your hard-earned capital, silence is a scammer’s best friend.
You should not wait for things to get worse; make sure to report suspicious activity the moment you spot the first red flag.
This is especially critical in the current market, where the rise of prop trading frauds has seen many aspiring investors lose significant sums to “firms” that promise massive funded accounts but never actually pay out.
If you face these issues:
- Delayed withdrawals without explanation
- Account blocked after profits
- New fees are demanded to “unlock” payouts
- Agents stop responding
- The platform disappears or shuts down
- The firm is unregistered or operating through informal agents
Waiting too long reduces the chances of recovery. Early reporting matters.
How to Report Trading Frauds?
To file your complaint against Prop Trading, you can follow these simple steps:
First Things First: Secure Your Evidence
Before approaching anyone, collect proof. This is the most important step.
- Save payment receipts from UPI, bank transfers, wallets, or cards. Keep transaction IDs and bank statements.
- Take screenshots of your trading dashboard, balances, and withdrawal requests.
- Preserve chat records from WhatsApp, Telegram, email, or SMS.
- Save any written promises, agreements, or terms.
- If you paid through an agent, keep their details.
Store copies in more than one place. Do not rely only on chat apps.
Step 1: Raise a Formal Complaint With the Prop Trading Firm
Start by creating a written record.
Email the firm’s official support address. If the platform has a grievance system, raise a ticket.
Ask for a written explanation and a timeline for resolution. Keep reference numbers and auto-replies.
Even if you expect no response, this step proves you attempted a resolution.
Step 2: Inform Your Bank or Payment Provider
If you transferred money, contact your bank or payment app immediately.
Report the transaction as suspected fraud or dispute. Ask about chargeback or reversal options.
Share screenshots and transaction details.
In some cases, early reporting allows banks to flag or freeze recipient accounts.
Step 3: File a Complaint on the Cyber Crime Portal
The National Cyber Crime Reporting Portal handles online financial fraud and routes complaints to state cybercrime units.
- Visit the portal and select the financial fraud category.
- Upload all evidence clearly.
- Mention agent details and bank accounts used.
- Save your complaint reference number.
This complaint can be forwarded for investigation.
Step 4: File an FIR at the Local Police or Cyber Cell
If the amount involved is significant or the firm has vanished, visit your nearest police station or cybercrime cell.
Carry a printed complaint and all documents.
Request registration of an FIR under the cheating or fraud provisions.
Note down the FIR number and officer details. Police complaints help trace bank accounts and agents involved.
Step 5: Approach Consumer Forums for Service Deficiency
If the firm misrepresented services or failed to deliver what was promised, file a complaint with the National Consumer Helpline.
Use their mediation process first. If unresolved, approach the appropriate Consumer Commission.
Consumer forums focus on refunds and compensation for unfair practices.
Step 6: Check If SEBI or Exchanges Are Involved
If the prop trading setup claims to be linked to a broker, uses exchange terminals, or mentions SEBI registration, verify that claim.
You can file a complaint through SEBI’s SCORES system or notify the relevant exchange.
SEBI will act only if a regulated intermediary is involved, but this check is important.
What Not to Do During This Process
Even if you have registered a formal complaint, scammers may still try to persuade you further. But falling for their words again and again will only make the case worse and recovery impossible.
While your complaint is still in process, you can take these steps to protect yourself further:
- Do not pay additional “release” or “tax” fees
- Do not rely on verbal assurances
- Do not share OTPs, passwords, or full identity numbers
- Do not delay thinking the issue will resolve on its own
Most prop trading frauds escalate because victims hesitate too long.
How Long Does the Process Usually Take?
When you’ve been targeted by a financial scam, the most pressing question is usually: “How long until I get my money back?”
Unfortunately, there is no fixed timeline for recovery because these systems weren’t designed for speed; they were designed for verification.
Quick action helps or increases the chance of recovering losses. Further, the duration of your recovery journey depends entirely on which legal or financial avenue you pursue:
- Bank disputes may take days to weeks
- Cybercrime investigations can take longer
- Consumer forum cases may run for months
Persistence and documentation improve outcomes more than speed alone.
Need Help?
If you are stuck, confused, or overwhelmed, structured guidance can help.
You can register with us, and we can help you in the following ways:
- Organising evidence properly
- Guiding which authority to approach first
- Helping draft clear, factual complaints
- Supporting escalation when responses stall
Taking the right steps early often prevents further losses.
Conclusion
Filing a complaint against a prop trading firm in India is not about one single authority it is about following the right order.
Prop trading frauds thrive on confusion and delay.
Clear action, documented proof, and timely escalation are your strongest tools.
If something feels wrong, trust that instinct and act.
