With the changing global economic situation and increasing demand for different foreign currencies, the forex trading sector in India is growing productive. While this booming sector is a reality, scammers and unscrupulous traders are finding this sector their perfect plot to exploit people. Many have fallen prey to such unethical practices. Such incidents led to the enthusiastic persuasion in forex trading among many. People often show skepticism when it comes to forex trading in India. However, if there is no involvement of the Indian currency, forex trading is there treated as an illegal persuasion. If you choose to do it through the right trading platform then forex trading would definitely become an indulging forum for you.
What is Forex trading in India?
The percentage of unscrupulous entities involved in forex trading in India has reportedly increased as more than 40% of the customers of forex trading fall prey to the scams. However, the most unfortunate part is that if one is not aware of the ongoing situations in the foreign currency exchange market, then the chances of losing money are terribly high.
As per the current studies and reports, 70 to 80% of forex traders have lost money and finally ended up quitting the platform. The unauthorized traders are increasing in number because of their extensive digital and offline marketing. People having less information and awareness about currency exchange trading are their target. Especially those who are sending money for the first time or changing currencies for the first time become their “easy to catch” victims.
How to enjoy safe forex trading?
The trickiest part of pursuing forex trading is choosing a safe platform. To choose the best forex trading platform in India, you need to keep in mind the following –
- The company you are choosing should be authorized by the Reserve Bank of India (RBI) or any other bank that possesses authorization power from the RBI.
- Check the conversion rate offered by the forex platform and then compare the rates with the other forex trading company’s.
- Check what is the ongoing situation of the global foreign exchange market and of the currency’s country. Economic and political situations are crucial factors while choosing any foreign currency. You need to know whether buying or selling that particular currency would prove profitable to you or not.
- It is important to check the experience and success rate of the platform you are choosing. Companies like RRSB Forex who are a century old and have a strong success rate are only reliable.
What types of Forex scams exist in the Indian market of forex trading?
Frankly, there are many. Fake forex companies/brokers, multi-level marketing scams, signal sellers, and robot trading systems – these are some of the terms, which one trader should be aware of.
- Robot trading systems – This system promises you to win the game as the trading platform is conducted by a robot or computer-run program that sells or buys currencies according to the updated parameters. The alluring part is the trader is assured of the fact that he/she would not have to do anything because the computer system or the robot will do everything on behalf of the trader. Most of these systems are scams because they are not all authorized and tested by the RBI or any other authorized national banks. It is best not to rely on these systems because no computer system can predict what is going to happen in the foreign currency conversion market. It is a known fact that the currency exchange market is extremely volatile and the conversion rates are subjected to change within seconds. Thus, stay aware.
- Multi-level marketing scams or MLM – These are forex trading platforms, which offer services like providing updates, educational materials as well as trading signals. The users have to pay a certain amount on a monthly basis to get those updates. Later the customers are provided with incentives as and when they bring new customers. These platforms focus more than earning money by inviting more customers and not on the trading platforms. One should not invest in these sorts of forums and rely on over-the-counter platforms only.
- Unscrupulous brokers – When it comes to falling prey to forex scams, almost half of the victims have persuaded trading through unscrupulous brokers. These brokers are not authorized by any banks or financial institutions. They offer a stupendous commission rate to allure the customers. It is best to check their websites and see whether any governing body is there to authorize their service or not.
- The signal sellers – These sellers provide information on when to exchange the currencies as well as which currency to select. They charge an amount for providing this information and updates. In reality, most of them fail to provide any relevant information and some of them even do not care to provide any information at all. As a result, the customers lose their money as well as hope to invest in the real currency exchange market. Most of these sellers say that their predictions and information can even outperform the actual market, which is nothing but a complete lie.
What should be kept in mind while doing forex trading?
No matter whether you have enough funds or going through an economic crisis, it is important for every trader to take things slow. If you are expecting that you would get rich in a short period through trading, then you are wrong. The key is patience and the ability to exist in the market. Keeping it slow yet steady can give the taste of sheer success. If you are experiencing loss, then you should wait and take one tiny step at a time. Do not go overboard and end up losing everything.
What is one of the trusted trading platforms in India currently?
RRSB Forex is the winner since they are serving in this industry for more than a decade. They are an RBI authorized company, which offers a daily updated currency rate chart and easy conversion facilities. For successful forex trading in India, RRSB Forex is a trustworthy name. Their online portal offers varied other services at the most affordable prices too.
However, no matter which company you are choosing make sure to check authenticity and registration.