Trading apps are software applications provided by registered stockbrokers that allow you to trade across different financial segments. However, with the increasing prevalence of technology, scammers have found unique ways to deceive people using fake apps. This raises the concern of distinguishing between real and fake trading apps.
There are multiple ways to identify fake trading apps, also known as clone trading apps, but a lack of knowledge and awareness has led to an increase in trading scams in India.
Let’s break it down to make it easier to understand.
How many of you get enticed by seeing high profits posted by your favorite influencers on Instagram reels or YouTube videos? Many of you might have started following them only after seeing these impressive screenshots, right?
What if I tell you that almost all of those screenshots are either edited using tools or are taken from fake trading apps? Shocking, isn’t it?
But that’s the real story behind those green profits and impressive numbers you see on screens.
Here’s another example:
How many of you join live trading sessions on YouTube with the hope of making higher profits? Again, the number would be quite high. Most of these sessions use clone trading apps.
And let’s not forget Telegram groups. You might join these groups yourself, or scammers add you to lure you with daily PnL screenshots.
Many of you might relate to this.
Initially, scammers used fake trading apps to induce people to join their stock market courses, increase their followers, or sell trading & investment products & services.
Over time, scammers have started looting retail traders by sharing fake app links in their groups or on other social media platforms to deceive them.
These clone trading apps look like legitimate trading apps, with similar UIs, index details, charts, and Buy/Sell windows. However, the amounts displayed are just numbers.
These apps show high profits, enticing you to add more funds. Later, when you try to withdraw the amount, the scammer either demands a high commission or blocks you. By the time you realize it’s a scam, it’s often too late.
Recently, a woman from Mumbai, Snehlata (name changed), lost ₹9.5 lakh in a clone trading scam. She received the app link from a Telegram group where the admin shared stock tips. Using the strategy of displaying fake PnLs, he lured users in.
Hoping to make passive income, Snehlata got trapped. She added a significant amount to trade, and when she tried to withdraw it, the transaction failed.
After a few days, she couldn’t even find the app portal. The scammers had done their job well, and once again, people like Snehlata lost their hard-earned money.
As a beginner, it’s difficult to differentiate between a real and a fake trading app. However, there are a few things that can help you identify clone trading apps, such as:
- Scammers ask you to download the app using a specific link.
- You transfer funds to a scammer’s bank account instead of through the trading app.
- The value of stocks in fake apps is usually different from the real market value.
By staying alert and cautious when taking any services related to the stock market, you can protect yourself from scams. Always register or sign up for trading apps using the authentic websites of stockbrokers or by installing the app from the Play Store.
Additionally, remember that stock market investment and trading are subject to market risks, and there is no shortcut to making profits overnight. If someone promises high profits or unrealistic gains, that’s the biggest red flag and an alert signal for you to run away.
