Many of them advertise themselves as game of skill , online betting platforms and not trading platforms somewhat similar to as Dream11 and all . Previously also i raised this issue related to this platforms specially there legality in this forum but didn’t get any concrete answer.
@nithin Who has to regulate these, either it is on SEBI as it always brag as savior of retail clients or on RBI as money is being moved out of India or on Finance ministry as these platforms are not paying any taxes etc ?
I think it is easiest for RBI to do this as it can easily block the flow of funds through the bank accounts.
Octa Fx , Expert options , and many more have been advertising heavenly in youtube platform , You watch any financial videos in youtube you will come across with ads from Octa Fx, Expert options and many more cfd platforms that you can make easy money trading with there platform, thats not all many youtubers are making videos based on there platforms that how you can use there app and earn money,
Famous cricketer’s are showing up with ads ,It will impact huge peoples many will believe that it is legal business and end up with signup’s
This need to be stop as explain by nithin !
It’s really heartbreaking to see how people fall prey to such get rich soon schemes. What is more heartbreaking that celebrities who have considerable reputation are doing advertisement for these platforms.
These apps offering binary options are very impartial. Traders cannot sell binary options to the platform or any other counterparty. Trader has to buy options and as we all know, option buying is most of the time equals to slow death by thousand cuts.
It comes under the preview of RBI, RBI must take strong actions against them.
Legal CFDs seems to behind the recent Bill Hwang’s blowup -
I don’t think trade is still out there. So maybe we have to wait to find exact reason , and even then not sure it will be precise.
Yes, not all details seem to be known. But an article hypothesizes that problems likely started when one of Archegos Capital’s positions announced a secondary offering around a week back -
@nithin If these type of platforms are moving funds out of India, what can be the possible routes/ways they are using to move their fund from India?
@nithin @Prayag if these platforms are illegal and everyone knows that they are illegal, why has RBI or SEBI not been able to ban these platforms till yet? Do you think maybe RBI is exploring the FX Spot market to be introduced into India, I came across a paper by RBI where they proposed a separate portal for retailers, although that was specifically for FX CLEARING, but do you think we might see the introduction of FX Spot as a trading avenue in India?
These platforms are typically incorporated outside India and hence outside the jurisdiction of SEBI and RBI. So the best regulators can do is to go after users from India.
FX Spot, I don’t think anything will happen on that. I don’t think India can afford to have the rupee converted into other currencies. Derivatives give the ability to hedge, so there is no real use case of FX spot for businesses as well, other than, of course, just speculating.
The recently circulated list includes FTMO. It is not a brokerage or an exchange. It is a prop trading firm. People don’t invest their money in it. Firm give their funds to people for trading. Before evaluation to get into the firm,they charge a small amount which they return after completing it. There is no way people going to lose money in that. Why is it included in that list?