BlackBull, Admiral Market, Easy Markets, Enclave FX, Finowiz Fintech, FX SmartBull, Fx Tray Market, Forex4you, Growing Capital Services, HF Markets, HYCM Capital Markets, JGCFX, PU Prime, Real Gold Capital, TNFX, Ya Markets, Gate Trade, Just Markets, and GoDo FX are among the 19 new entities that were added to the Reserve Bank of India’s alert list of unauthorised forex trading platforms last week.
When the Central Bank amended its list of prohibited forex websites and apps in February 2023, the RBI responded similarly by removing 34 forex trading platforms from the list. 48 names were added to the amended list; these included AvaTrade, Pepperstone, FP Markets, Pocket Option, and Quotex, all of which seemed to be unapproved.
The forex trading community in India was caught off guard by the February 2023 RBI alert list update, which revealed 48 unapproved trading sites.
What alert list does the RBI have?
As of right now, the alert list contains 75 unauthorised forex trading platforms, all of which contain entities that are prohibited from operating electronic trading platforms (ETPs) for forex transactions under the Reserve Bank’s 2018 Electronic Trading Platforms Directions and from providing forex services under the Foreign Exchange Management Act (FEMA) 1999. The identities of websites, platforms, and organisations that support unauthorised ETPs or entities—including those that do so through marketing for unauthorised entities—are also included in the RBI list.
Why is an alert list published by the RBI?
In order to prevent the spread of illegal information through platforms, websites, and other entities—including advertisements for ETPs that pretend to provide FX services to Indian investors and traders—the Reserve Bank of India (RBI) publishes the Alerts List. This alert list is kept up to date by the RBI so that the public is aware of unapproved platforms for trading foreign exchange and can avoid using them for forex transactions.
What dangers come with using an unlicensed forex trading platform?
Using an unapproved forex trading platform to transact foreign exchange could have legal repercussions. In addition, there have been several foreign currency scams in the last few months, where scammers lured the public in with the promise of huge returns on investment only to leave them with huge losses.
Customers have received many warnings from the regulator, cautioning them against sending or depositing funds for foreign exchange transactions on unapproved platforms or engaging in foreign exchange operations on unapproved electronic trading platforms. Investors can make successful, legal forex trading with peace of mind by looking through the list of the top forex brokers in India.
How can one stay away from using an unapproved forex trading platform to trade?
Investors can stay up to current on illegal forex trading platforms by subscribing to the RBI’s alert list, which is updated regularly on the official website of the central bank. The regulator also forbids the general public from depositing or remitting money, as well as from taking part in illicit foreign exchange activities. Notably, forex trading is heavily regulated in India even though it is not prohibited. In order to avoid breaking any laws, players must transact through approved, regulated, and legal forex platforms.
