Are you considering entering the trading world of Forex with FXTM (ForexTime)? It has positioned itself as a well-known broker, but is that true? Is FXTM safe?
Well, if you are serious about your investment, then before putting your hard-earned money in the forex trading platform, it is important to check the platform’s legitimacy and regulations in India.
FXTM Review
FXTM (ForexTime) is an online forex and CFD (Contract for Difference) brokerage regulated with a range of regulatory licenses from good-tier regulatory authorities like the FCA (UK), CySEC (Cyprus), and FSCA (South Africa).
It offers trading services to retail and institutional clients. It was founded in 2011 and provides a platform for trading various financial instruments, including:
- Forex: Currency pairs like EUR/USD, GBP/JPY, etc.
- Stocks: CFDs on stocks of major companies.
- Commodities: Gold, oil, and other commodities.
- Indices: Major global indices like the S&P 500, NASDAQ, etc.
- Cryptocurrencies: Trading options for digital assets like Bitcoin and Ethereum.
Seems to be safe and legit, right?
But as per Indian regulations, it is not regulated by SEBI or RBI.
Trading in the brokerage platform registered with offshore bodies increases risk and can lead to loss of capital.
Is FXTM Regulated in India?
As mentioned, FxTM has no RBI Regulation. The RBI, however, has been issuing an Alert List at regular intervals, which features, among others, brokers’ names (including major international ones) that are not authorized to trade in foreign exchange.
This raises an important question for Indian traders: is FXTM global legal in India? While it’s not authorized by the RBI to operate as a forex broker, traders often look at its internal safeguards to understand how secure the platform itself is.
Further, when it comes to regulations for a moment, here are the in-house safety features that FXTM offers to its users, and they are very good:
- Segregated Accounts: FXTM is separating your money from the company’s operating funds and hence keeps it in different accounts. This is a big safety net. If the company is in financial trouble, your money, as a result, would be safe.
- Negative Balance Protection (NBP): It is a very helpful device. It specifies the limit whereby you can never lose money other than the amount you have deposited. Your account balance will not enter the negative zone.
How to Report Forex Trading Complaints in India?
If you think that you have been treated unfairly or are facing a serious issue like FXTM withdrawal problem in India, here is the way to escalate it:
- File a Cyber Crime Complaint: Go to cybercrime.gov.in and file a detailed complaint under “Financial Fraud”. You’ll need all your evidence for this step.
- Report to RBI: Since forex trading in India is regulated by the RBI, you can file a complaint with them about the illegal forex trading platform. You can also use the RBI’s Sachet portal (sachet.rbi.org.in) to report the fraud.
- External Regulator Complaint: If the resolution from FXTM is not to your satisfaction, you can submit a complaint to the Financial Services Commission (FSC) directly. They are the regulatory body responsible for the entity you are trading with.
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Conclusion
Does FXTM provide safe trading conditions for Indian traders?
Yes, FXTM is a safe, globally regulated broker that offers good security features.
Trading Forex as an Indian resident, however, is not primarily at risk from the broker, but rather from the RBI and FEMA, which regulate the local industry.
