Check out the full list of illegal Forex trading apps and websites published by the RBI

Check out the full list of illegal forex trading apps and websites published by the RBI

A list of companies using illegal computerized trading platforms to trade currencies was released this week by the Reserve Bank of India (RBI). RBI has discovered that several rogue platforms lure users with exorbitant profits. According to RBI, users of these blocked services could potentially face legal action. The official commercial sponsor of the Delhi Capitals franchise in the Indian Premier League (IPL), OctaFX, is one of many illicit apps in the market.

Here is a comprehensive list of unlicensed FX trading websites and apps:

• FxNice

• FXMC

• Hot Fores

• Markets ibell

• IC Markets

• FOREX

• GI markets

• IQ Option

• NTS Forex Trading

• OctaFX

• Olympus Trade

• TD Ameritrade

• TP Global FX

• TradeSight FX

• Urban Forex

• xm

• XTB

• alpari

• AnyFX

• Ava Commerce

• Binomial

• and Toro

• Exness

• Expert formula

• FBS

• FinFxPro

• Forex.com

• Forex4money

• Foxorex

• FTMO

• FVP Trade

• FXPrimus

• FXStreet

• FXCM

The RBI further stated that it should not be assumed that a company that is not on this list has central bank clearance. According to RBI regulations, residents should only engage in foreign exchange transactions with authorized parties for uses approved by FEMA (Foreign Exchange Management Act, 1999).

The RBI said: “While permitted foreign exchange transactions can be done electronically, they should only be done on RBI approved ETPs or recognized exchanges i.e. National Stock Exchange of India Ltd., BSE Ltd. and Metropolitan Stock Exchange. of India Ltd. The RBI issued a warning against forex trading on unlicensed platforms in February this year due to an increase in the number of clients falling prey to these companies.

Companies may be subject to penalties under the Foreign Exchange Management Act (FEMA) if they engage in unauthorized transactions on electronic trading platforms (ETPs).

At the time, the regulator did not specifically name any of these groups, but following several requests for clarification on the legitimacy of these entities, RBI was forced to issue a warning list. Organizations on the warning list are neither permitted to engage in foreign exchange business under the Foreign Exchange Management Act of 1999 (FEMA) nor to operate electronic trading platforms for such business.

On Wednesday, the Reserve Bank of India (RBI) released a list of companies that used illegal e-commerce platforms to conduct foreign exchange transactions. OctaFX sponsors the Delhi Capitals of the Indian Premier League (IPL).

What is forex trading?

Trading one currency against another is a component of forex trading, a kind of investing.

The main objective of forex trading is to accurately predict whether the value of one currency will rise or fall relative to the other.

Therefore, a trader may buy a currency today and sell it again for a profit tomorrow, believing that its value would rise. Going long is the expression for that.

Or, if they think the value of a currency will fall, they can choose to sell it and then buy it back at a lower price. Going short is the phrase for that.

The value of any currency is subject to regular fluctuations and is influenced by a variety of variables, including:

• Interest rate

• Inflation

• Supply and demand

• Political events

• Natural disasters

Each currency in forex trading has a unique code that makes it easy to recognize.

What advantages and disadvantages does Forex trading offer?

Before you start forex trading, there are a few pros and cons to consider.

Benefits of forex trading

• A large global market exists for forex trading, which means there are many options for trading.

• High liquidity: Since there is a high demand for currencies and many transactions take place every day, it is easier to buy or sell them quickly.

• Low cost: Leverage can be used to increase the potential of your investment while you don’t need a large sum of money to start trading Forex.

• Trading Hours: Unlike other markets, which have fewer trading hours during the week, forex trading is open daily from Sunday to Friday.

Disadvantages of forex trading

• High Volatility: Currency exchange rates are always erratic and unpredictable.

• The risk associated with using leverage when trading large amounts of currency can increase your likelihood of losing money if the value of a particular currency declines.

• Exchange rate risk: If the exchange rate changes, it may impact your earnings when converted back to the currency in which you received them.

• Selling Restrictions: Some countries have restrictions on the total amount of silver that can be exchanged at a certain rate at different times.

Organizations on the warning list are neither licensed to engage in foreign exchange business under the Foreign Exchange Management Act of 1999 (FEMA) nor to operate computerized trading systems for such businesses.

“The RBI asserts that residents may only engage in foreign exchange transactions with authorized parties and for authorized purposes, in accordance with FEMA. Although permitted foreign exchange transactions can be conducted electronically, they should only be conducted on ETPs that the RBI has approved for such purpose or are traded on reputable exchanges, such as the National Stock Exchange of India Ltd., BSE Ltd., and Metropolitan Stock Exchange of India Ltd., he added, “resident individuals engaged in foreign exchange trading for reasons other than those permitted by FEMA or in ETPs not permitted by RBI s ‘will be subject to legal action under FEMA’.

RBI noted that these platforms were providing a derivative product called contracts for differences (CFDs) throughout the lockdown period, according to a Feb. 4 Mint article. A CFD is a financial derivatives trading agreement in which price differences between opening and closing trades are paid in cash.

In addition, the RBI has issued a warning against misleading marketing by unlicensed ETPs (Electronic Trading Platforms) which provide forex trading services to Indian citizens through social media platforms, search engines, over-the-top platforms and game apps. Some of these platforms further claim that they are regulated by foreign regulators and winners of prestigious international accolades.

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