Algo trading software that are designed to make a High-Frequency trades with the help of inbuild strategies and setups. But these algo trading software must be certified in exchange.
Along with this, Algo Trading firm needs to follow SEBI guidelines & regulations. In case it doesn’t then the client has a right to report this case to market participants to get recovery of fees and the loss amount.
However, most of the people avoid doing complaints due to lack of complete knowledge. But one of the client Basant, fought for his right and get refund of the fees amount he paid to algo trading firm.
Now how these algo trading companies scam you, let’s learn it from the incident of Basant.
It was June 19, 2024, Basant received a message on WhatsApp around algo trading software. However, it was not the first time he received such message, but this time he clicked to check details.
Soon he received a call from same number where the person on the other side told him about his algo trading software where he gave him an assurance of return of ₹8000 per day on the investment of ₹1 lakh.
To convince him he further added that his amount will grew by 150% in just one month by using their algo trading strategies. In the beginning he told Basant about ₹11,000 plan. Basant then told him about his financial need he offered me premium plan of ₹61,000.
But Basant disconnected the call. After a few days he again received a call from the same Algo trading company. This time the person on the other side offered the same premium plan for ₹41,000.
Eventually, Basant bought it. However, due to some reasons he faced issue in linking his broker’s account with the API. When he discussed this with the firm, they asked him to share his wife’s account details.
It got linked with the API and then Basant added ₹1 lakh to began his algo trading journey. But the journey didn’t go the way it was promised. Algo trading firm was using the trading account and in just 6 days, Basant lost ₹30,000.
Not only this, the loss grew more when orders executed by Basant got locked. Intially, he didn’t understand and later found that the algo trading firm is misusing his account. as all the orders that Basant executed got locked which added to his loss amount. Eventually, he lost ₹1,40,000 in this scam.
To get a recovery of his lost amount, he reached out to our team. Our team checked the detail of the company and found it certified with exchange.
This gave Basant a positive hope of getting a refund.
Our team first reached out to the firm and send a mail. However, on not getting a satisfactory response finally the complaint was lodged in SCORES portal.
Soon after registering a complaint the firm came up with a settlement value and had paid ₹21,000 till date.
There is still a hope of recovery of the loss amount and that can be done by keeping patience and staying active for follow-ups.
Now in this case how Basant could have protected himself from this Scam?
- Firstly, by understanding their pressure tactics.
- Secondly, by not falling greedy to earn quick gains.
- Thirdly, by not sharing the account details with the firm, even if it was registered.
Now, using a registered and certified platform services is a good option and are meant for traders like Basant only, but getting trapped in the schemes like guaranteed return and following them blindly is the mistake that most people do.
And even the certified entities reap benefit of this for their own interest. However, a little awareness and a quick action can help you too in getting back your lost amount.
