A beginner trader not having idea of how to trade often get enticed with the plan or algo trading software that claims easy execution of trades and profit. No doubt, algo trading software are designed to make life of trader easier but it is important to find the reliable one.
The reliable one, how to find it?
Well! the reliable here means those algo trading software which are registered with exchange. This gives you an assurance that in case of any fraud or scam you can report case to exchange to claim your losses.
However, sometimes registered software companies scam traders and thus it becomes your primary duty to stay alert and choose service after complete validation and background verification.
Here, one of the victims Abhinav (name changed) shared his story of how he fall victim to one unregistered algo trading software and end up losing ₹1 lakh in a few days.
Abhinav: Hello ADB, I got scammed by one algo trading software company.
ADB: Sorry to hear that Abhinav, please share what actually happened.
Abhinav: Last week, I got a message from Magic Algo Software Company (name changed). They provide algorithmic software that claims to do automated trading.
ADB: Okay, how much did they ask you to pay?
Abhinav: They asked for ₹30,000/-
ADB: So you bought it.
Abhinav: Since I’m not an expert in trading, I decided to buy it. It connects with stockbroker APIs, and all the trades happen automatically.
ADB: What happened next?
Abhinav: They asked me to add ₹1,00,000 to execute trades. On the first day, I made a profit of around ₹3,000.
ADB: That sounds promising. What about the following days?
Abhinav: The very next day, I lost ₹7,000. Soon, my whole profit and capital were wiped out.
ADB: That’s awful. Did you check if they were registered?
Abhinav: I had no idea that algo software must be registered with the exchange. Later, I found out that Magic Algo Software is a non-certified and unregistered algo trading company.
ADB: That’s really unfortunate. Have you tried to recover your losses?
Abhinav: I called them multiple times but every time got no response and now they have blocked my number.
ADB: Abhinav, we can register a complaint to exchange & SEBI where you can atleast get your fees amount back. But there is no chance of getting your loss amount back.
Do you have proof of payments?
Abhinav: Yes, I have screenshots of Whatsapp chat and bank transaction proofs.
ADB: Great! that will help. Let’s proceed with filing of complaint.
Abhinav: Thank You!
