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

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

A list of businesses using illegal computerized trading platforms to trade currencies was published this week by the Reserve Bank of India (RBI). RBI discovered that several unauthorized platforms entice users with exorbitant profits. According to RBI, users of these blocked services may potentially face legal action. The official trading sponsor of the Delhi Capitals franchise in the Indian Premier League (IPL), OctaFX, is one of the many illicit applications on the market.

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

• FxNice

• FXTM

• HotFores

• ibell Markets

• IC Markets

• iFOREX

• IG Markets

• IQ Option

• NTS Forex Trading

• Octa FX

• Olymp Trade

• TD Ameritrade

• TP Global FX

• Trade Sight FX

• Urban Forex

• Xm

• XTB

• Alpari

• AnyFX

• Ava Trade

• Binomo

• e Toro

• Exness

• Expert Option

• FBS

• FinFxPro

• Forex.com

• Forex4money

• Foxorex

• FTMO

• FVP Trade

• FXPrimus

• FXStreet

• FXCm

The RBI further stated that it should not be presumed that any firm that does not appear on this list has authorization from the central bank. According to RBI regulations, residents should only conduct foreign exchange transactions with authorized parties for FEMA-approved uses (Foreign Exchange Management Act, 1999).

The RBI said, “While allowed FX transactions may be carried out electronically, they must be done so only on ETPs approved by the RBI or on recognized stock exchanges, namely National Stock Exchange of India Ltd., BSE Ltd., and Metropolitan Stock Exchange of India Ltd. The RBI issued a warning against trading forex on unlicensed platforms in February of this year as a result of an increase in the number of customers falling prey to such businesses.

It is possible for companies to face 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 expressly name any of these groups, but following several demands for clarification about the legitimacy of these entities, RBI was obligated to issue a warning list. The organizations on the warning list are neither authorized to conduct foreign exchange business following the Foreign Exchange Management Act of 1999 (FEMA) nor to run electronic trading platforms for such business.

On Wednesday, the Reserve Bank of India (RBI) published a list of companies that were using illegal electronic trading platforms to conduct foreign currency operations. OctaFX provides sponsorship for the Delhi Capitals of the Indian Premier League (IPL).

What is forex trading?

Trading one currency for another is a component of forex trading, a kind of investment.

The primary goal of forex trading is to accurately forecast whether the value of one currency will rise or fall concerning the other.

Therefore, a trader may purchase a currency today to sell it for a profit tomorrow, believing that its value would increase. Going long is the phrase for this.

Or, if they believe a currency’s value will decline, they can opt to sell it and then purchase it back at a lower price. Going short is the phrase for this.

Any currency’s value is subject to regular fluctuations and is influenced by a variety of variables, including:

• Interest rates

• Inflation

• Supply and demand

• Political events

• Natural disasters

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

What benefits and drawbacks does Forex trading offer?

Before beginning forex trading, there are a few advantages and disadvantages to taking into account.

Advantages of forex trading

• A sizable worldwide market exists for forex trading, which implies there are numerous trading options.

• High liquidity: Because there is a lot of demand for currency and there are a lot of deals taking place every day, it is simpler to purchase or sell it rapidly.

• Low cost: Leverage may be used to increase the potential for your investment while you don’t require a large sum of money to begin trading foreign exchange.

• Trading hours: Unlike other markets, which have fewer trading hours during the week, forex trading is open every day from Sunday through Friday.

Drawbacks of forex trading

• High volatility: The exchange rate of currencies is always erratic and unpredictable.

• The risk associated with employing leverage when trading big quantities of currency might raise your likelihood of losing money if the value of a particular currency declines.

• Exchange rate risk: if the exchange rate changes, it may have an impact on your earnings when it is translated back into the currency you received them in.

• Selling restrictions: Some nations have restrictions on the total amount of money that may be traded at a certain rate at various periods.

The organizations on the warning list are neither authorized to conduct foreign exchange business following the Foreign Exchange Management Act of 1999 (FEMA) nor to manage computerized trading systems for such businesses.

“The RBI affirms that resident people may only conduct foreign exchange transactions with authorized parties and for authorized purposes, following the FEMA. While authorized foreign exchange transactions may be carried out electronically, they must only be made on ETPs that the RBI has approved for this purpose or are traded on reputable stock exchanges, such as the National Stock Exchange of India Ltd., BSE Ltd., and Metropolitan Stock Exchange of India Ltd., it added, “Resident individuals engaging in foreign exchange transactions for reasons other than those authorized by the FEMA or on ETPs not authorized by the RBI shall render themselves subject for legal action under the FEMA.”

RBI has noted that these platforms provided a derivative product called contracts for differences (CFD) throughout the lockout period, according to a 4 February Mint article. A CFD is a financial derivatives trading arrangement in which the price disparities between the open and closing trades are paid in cash.

Additionally, the RBI has issued a warning against deceptive marketing by unlicensed ETPs (electronic trading platforms) that provide forex trading services to Indian citizens via social media platforms, search engines, over-the-top platforms, and gaming applications. Some of these platforms further assert that they are governed by foreign regulators and winners of prestigious international honours.