Forex Trading Fraud: Why Investors Should Be Careful Of These Currency Trading Platforms

On 24th November 2023, The Reserve Bank Of India (RBI) cautioned the general public regarding the unauthorised foreign exchange trading firms by updating 19 more names on the 'Alert List'. The names mentioned in the list totalling about 75, are neither legally allowed to facilitate trade in foreign exchange, nor authorised to operate electronic trading platforms (ETP) on their website under the Forex Exchange Management Act, 1999 (FEMA).

The apex bank notified that the list is not exhaustive and the names appearing in the list must not be adopted by investors to trade in foreign exchange, however, the names not appearing on the list also should not be assumed to have RBI authorisation either. An individual must confirm the list of all authorised persons and authorised ETPs, available on the official website of RBI before they invest or trade in forex. As per the norms of FEMA, the RBI urges investors to only perform their currency trading activities through these authorised ETPs or the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE).

To check the unauthorised list of entities, one can visit the official website of RBI, under the Press release section, search for 'unauthorised forex trading platforms' recently updated on November 24th. A new tab opens with the page mentioning the 'Alert List' online as on the top left side of the list, a PDF symbol would help individuals to download the list in the same format. Similarly, to check the authorised brokers list, the official RBI website has the 'Financial Markets' Section, under which the 'Financial Markets Watch' sub-section must be selected. Once this page opens, under the market information table, 'List of authorised ETPs' is available. A new tab opens with the list of authorised forex entities, and also a PDF version of the list to download.

As per RBI's alert, traders must not deposit or remit any funds into the accounts maintained by firms or websites not mentioned in the authorised list of entities. Those who are willing to enter into forex trades through unauthorised broking websites would be liable for legal actions from the central bank as stated in the FEMA.

Apart from updating the unauthorised list of entities and platforms for foreign exchange trades, the RBI also amerced a total of Rs. 10.34 crores on Bank of Baroda for Rs. 4.34 crores, Rs. 5 crore on Citibank and Indian Overseas Bank with Rs. 1 crore for violations of norms. Certain co-operative banks like Sri Mahila Seva Sahakari Bank, The Khambhat Nagarik Sahakari Bank, Sarvodaya Nagarik Sahakari Bank, Porbandar Vibhagiya Nagarik Sahkari Bank and Vejalpur Nagarik Sahakari Bank from Prime Minister Modi's home state, Gujarat are also imposed by monetary penalties by the central bank.

Below is the list of all 75 trading platforms banned by the RBI for performing any foreign exchange transaction on behalf of investors:

Sr. No	Name	Website
1	Alpari	https://alpari.com
2	Anyfx	https://anyfx.in
3	Ava Trade	https://www.avatrade.com
4	Binomo	https://binomoidr.com/in
5	eToro	https://www.etoro.com
6	Exness	https://www.exness.com
7	Expert Option	https://expertoption.com
8	FBS	https://fbs.com
9	FinFxPro	https://finfxpro.com
10	Forex.com	https://www.forex.com
11	Forex4money	https://www.forex4money.com
12	Foxorex	https://foxorex.com
13	FTMO	https://ftmo.com/en
14	FVP Trade	https://fvpt-uk.com
15	FXPrimus	https://fxprimus.com
16	FX Street	https://www.fxstreet.com
17	FXCM	https://www.fxcm.com
18	FxNice	https://fx-nice.net
19	FXTM	https://www.forextime.com
20	HotForex	https://www.hotforex.com
21	ibell Markets	https://ibellmarkets.com
22	IC Markets	https://www.icmarkets.com
23	iFOREX	https://www.iforex.in
24	IG Markets	https://www.ig.com
25	IQ Option	https://iq-option.com
26	NTS Forex Trading	https://ntstradingrobot.com
27	OctaFX	https://octaindia.net
		https://hi.octafx.com
		https://www.octafx.com
28	Olymp Trade	https://olymptrade.com
29	TD Ameritrade	https://www.tdameritrade.com
30	TP Global FX	https://www.tpglobalfx.com
31	Trade Sight FX	https://tradesightfx.co.in
32	Urban Forex	https://www.urbanforex.com
33	XM	https://www.xm.com
34	XTB	https://www.xtb.com
35	Quotex	https://quotex.com
36	FX Western	https://www.fxwestern.com
37	Pocket Option	https://pocketoption.com
38	Tickmill	https://www.tickmill.com
39	Cabana Capitals	https://www.cabanacapitals.com
40	Vantage Markets	https://www.vantagemarkets.com
41	VT Markets	https://www.vtmarkets.com
42	Iron Fx	https://www.ironfx.com
43	Infinox	https://www.infinox.com
44	BD Swiss	https://global.bdswiss.com
45	FP Markets	https://www.fpmarkets.com
46	MetaTrader 4	https://www.metatrader4.com
47	MetaTrader 5	https://www.metatrader5.com
48	Pepperstone	https://pepperstone.com
49	QFX Markets	https://qfxmarkets.com/
50	2WinTrade	https://www.2wintrade.com/
51	Guru Trade7 Limited	https://www.gurutrade7.com/
52	Bric Trade	https://www.brictrade.com/
53	Rubik Trade	https://www.rubiktrade.com/
54	Dream Trade	Mobile Application
55	Mini Trade	Mobile Application
56	Trust Trade	Mobile Application
57	Admiral Market	https://admiralmarkets.com
58	BlackBull	https://blackbull.com
59	Easy Markets	https://www.easymarkets.com
60	Enclave FX	https://enclavefx.com
61	Finowiz Fintech Limited	https://finowiz.com
62	FX SmartBull	https://www.fxsmartbull.com
63	Fx Tray Market	https://www.fxtray.com
64	Forex4you	https://www.forex4you.com
65	GoDo FX	https://www.godofx.com
66	Growing Capital Services Ltd.	https://www.growingcapital.uk
67	HF Markets	https://www.hfm.com
68	HYCM Capital Markets	https://hycm.com
69	JGCFX	https://jgcfx.com
70	Just Markets	https://justmarkets.com
71	PU Prime	https://in.puprime.com
72	Real Gold Capital Ltd.	https://www.realgoldcapitals.com
73	TNFX	https://tnfx.co
74	Ya Markets	https://www.yamarkets.com
75	Gate Trade	Mobile Application