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Nifty Trading Tips Scamster Industry – Flourishing by Fleecing the Naiive

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The Nifty Trading Tip Industry is filled with innumerable websites,scamsters who are trying to make a quick buck of gullible retail investors.Almost all Indian websites are filled with text and print display ads in which websites offer you hundreds of percent returns on your money by providing you daily tips on the Nifty.You are bombarded with ads and even the Google home page contains ads by these scamsters.Note earning ANY MONEY through day trading is a tough task let alone 100% or more.The fraudsters provide you tips not based on any commissions but using a monthly rental.Note these websites have no business model except scamming for they have no costs except for marketing and spending.If they manage to snare even a single subscriber its a pure Rs 3000 profit .

The number of websites have proliferated in recent days with fancy names and having nifty in their domain names .These websites have “diversified” into trading of commodities and stocks and even offer a “platinum” plans which will fleece you even more.The number of these websites makes me estimate that there are large number of people who get ensnared by these websites.Unlike the US,India does not have strict regulations of who can provide investment advisory services leading to a flourishing of fraudulent investment websites.A number of top websites like Google,TimesofIndia etc. have ads from these websites through Google Adsense which gives them a bit of respectability since most Internet users are not savvy enough about the Internet.The only way to reduce these scamsters is either by SEBI cracking down on them or Google shutting them down.Note RBI has already made individual trading of forex a no go area as a number of forex trading portals were giving misleading ads of about earning money through forex trading (another impossible claim).

Indian Retail Investors cannot trade in Forex Markets as RBI clamps down on fleecing by Forex Companies

The Reserve Bank of India has clarified that Indian individuals cannot trade in the forex markets under FEMA rules.Note a number of Indian brokers and forex companies were advertising heavily promising big returns to retail investors.Note forex markets are extremely tough to trade even for professional traders for institutions.For retail investors they are a sure shot way to lose money in large amounts.Note forex markets offer much higher leverage than normal Futures Equity markets.Being an effectively zero sum game and requiring high amounts of knowledge ,forex markets are just too sophisticated for retail investors in my view.But they are quite lucrative for forex trading portals and companies whose main target semgent are retail investors.

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Abhishek Shah

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