Rajandran R Founder of Marketcalls and Co-Founder Algomojo. Full-Time Derivative Trader. Expert in Designing Trading Systems (Amibroker, Ninjatrader, Metatrader, Python, Pinescript). Trading the markets since 2006. Mentoring Traders on Trading System Designing, Market Profile, Orderflow and Trade Automation.

Understanding Fake Financial Market Advisory Services in India

3 min read

In the internet era, it is indeed a tough job to find the right financial market advisory services in the country. The business of proffering advisory services is almost mushrooming everywhere. But if your actually looks closely to it, you will see that none of these businesses have the sound base, without even having a proper website. And the so called Tips Providers starter emerging into Social Media(Facebook, Twitter), Whatsapp, Free Blogger Blogs, Email and SMS based Tips, Tips on Yahoo Messenger.

 

So Who are these guys providing free/paid tips to the people?

– Probably the Sub-brokers/Authorized Person of Broker who want to attract people to grow his brokerage business. Mostly they open free blogger blogs and will be filled “Tips” sort of content and the main intention to provide Tips is to get new clients for his Brokerage Commissions.

– Financial College Graduates  those who considering themselves as Super Tips Providers and started educating ignorant people and some times the reversal happens. The ignorant people approach MBA/Financial Grads to get some tips as they know the market better than them-self.

– Those who lost the money in the market and now they want to survive (Mostly they would had lost all the money and in a big debt and have to survive at any cost)

– Newbie Traders who consider themselves as Market Predictors after their 4-5 success. That make them feels like a “Super Market Predictors”

Whom are their Targets?

Generally they are targeting the mass. However the people who are falling prey to such guys are mostly Beginners in Trading and Investment, looking for some sort of advices to understand the market and to make money or those who lost money and want to get back in a very short amount of time are urging themselves to look for a Tips Provider who can guide them in earning money and Recovering their losses.

How do they Advertise to the People?

Following are some of the sample taken from Social Media(Facebook Groups) where these day i feel lots of such fake advertising occurs

– INDIA BEST BUY SELL SOFTWARE FOR MCX,NIFTY,NSE, BSE,SHARE MARKET,CDS(currency) ACCURACY FOR 96% only profit no loss call for live demo

– YESTERDAY MCX PERFORMANCE ROCKEDDDD!!!!! GOLD,SILVER,NG,LEAD INTRADAY PROFIT RS.64000 IN 1 LOT VISIT OUR TRACKSHEET JOIN AND ENJOY BIG PROFIT

– WE GIVE SURESHOT CALLS (MONEY BACK GUARANTEE) IN STOCK FUTURE AND OPTIONS. THESE CALLS ARE 100 % GUARANTEED CALLS.

-You dont need any Trading Skills, Zero Education, Zero Knowledge and you have to use their methodologies/System and you can earn huge Money.

How we can identify them?

– Social Media Fake Profile ( Most Probably in the name of Girl identifying herself as Student or Financial Advisor)

– Keep on Providing Tips in the Social Media Group to Gain Attention

– Saying impossible stuff like 95% accuracy, Money Making Machine, Amazing Trading system that made him millionaire overnight.

-Showing Fake Contract notes and Fake Performance.

But the question remains the same, in spite of the absence of a rock solid foundation to these financial advisories, how they run so smooth and successfully. The first and foremost reason behind this is the absence of proper guidelines that regulates these bodies. However, there are some guidelines, which are not enough and sufficient to take care of the growing number of financial advisories. Most of them say, “The advisory is not responsible for any loss you incur. Invest at your own risk”. Now comes the question if these advisories are not responsible then why are they charging their clients.

Another reason for the growth of this kind of businesses is indeed the investment part. To start up with a financial advisory in India, an individual hardly needs any investment. It is a complete zero investment set up(free blogging websites and Advertising in Social Media by providing tips or Claiming Enormous profits their system or they had made). If anything one needs to invest to open up an advisory like this, it is just their time. On the other hand, this business allures for a good profit margin. The quality of services these companies would provide is inconsequential, as once they get paid for the services, the client is not going to get his money back, even if nothing turns up the right way.

Furthermore, the most crucial reason behind the growth of this unending financial advisory throughout the nation, is the ignorance of the investors. As these companies get investors, for the first time, they provide them with free services, which is indeed alluring and slowly they take them into the trap. Once they are in, the quality of the services degrades, which eventually ends up with a huge loss incurred by the investors.

The number of financial services agencies are increasing with each passing day and it is indeed difficult to find out the right one among them. Not every single advisory is fraudulent, there are genuine services providers as well.

It is important, before choosing any financial advisory on needs to find out few things about the advisory to be sure that you are investing in the right one.

The first thing that needs to make sure is that advisory is having an authentic website. Most of the deceptive advisories use free websites(free blogs) to catch clients. Once you verify the website, look out for the issues that probably your advisory is trying to hide from you. Also make sure that verify the advisory over public forum such as twitter or Facebook. Social media is becoming one of the most important weapons these days.

It is imperative to verify the educational qualification of the analyst. If the analyst himself lack knowledge, how would they analysis the financial market.

There are many deceitful agencies that cheat the investors as they lack knowledge in the financial market analysis and come to them for help. A thorough research before relying on any investment advisory is required to stay away from loss.

So what are the otherways these fake advisories target people and how the ignorant people lost their money? Did you crossed anything such then post your experience here.

Rajandran R Founder of Marketcalls and Co-Founder Algomojo. Full-Time Derivative Trader. Expert in Designing Trading Systems (Amibroker, Ninjatrader, Metatrader, Python, Pinescript). Trading the markets since 2006. Mentoring Traders on Trading System Designing, Market Profile, Orderflow and Trade Automation.

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27 Replies to “Understanding Fake Financial Market Advisory Services in India”

  1. a very strong point which every new and overenthusiastic investor ought to be educated about .Yes its a bold fight for good cause. Stay away from Fraudsters in social media.

  2. i am doing online trading nse f and o segment.i saw OPTION TIPS.COM advisory company in the website .i discussed for option trading tips ,they are want RS 5000 for advisory tips , i gave for the trading tips for nse options.but they are given tips at 9.17am market open only two to five minute only.they are gave tips –nifty call or put option 20 points target and 20 points stoploss for one month all trading days. 90% hit stoploss in one month trading tips .then after stop his trading tips.

  3. dear friend your post is good and alarming..but than whose services should I look for fair and faithful tips or advice??

  4. Investor/traders must 1st learn its a business and not a lottery ticket which is where most traders themself fall in the pit. They want to hear and believe only when words like sure profits not loss, guaranteed gains, insider tips, operator calls, High success and then the capital they have is limited.

    Now 1st. When a 100 to 1000 Cr AUM Mutual FUND does not gives any guarantee of gains to expect any guarantee from any advisory is foolishness but trades will join only such people else they just pass.

    Secondly. They do not understand if someone is a operator or having FII sources he wont he on facebook giving it for free sewa or few bucks since operator will make money from the company owners whose shares they are offloading to the public by trapping them.

    Thirds: when u have not subscribed to anyone and u get sms of some sure circuit hitting stocks and some huge order flow coming and stock will zoom that is sure scam why will anyone give u such info for free Ignore that message.

    Fourth: Trading is a business it requires 1st capital, then time , then dedication & foremost discipline but people want everything over night that will not help hence they lose.

    Fifth: Give fair amount of time to the advisory or analyst before u discard them. Nothing worth will be free but in paid services also u can subscribe and watch the trades instead of trading for a month to see the actual results if even by paying 5000 or 10000 u can get assurance of the analysis and research and if are satisfied u continue ahead for 6 months to an year or higher else u just save a big capital of yours by testing the same in just a small amount.

    Sixth: Your broker or RM is not a trader he just making money from brokerage he charges u from the trading u do so if u working on the advice of such people u will loss money.If someone tell u to buy xyz shares or index the very first question ask them TUMNE KITNE LOT LEA ? if the analyst or advisor actually is not trading themselves or have high ratings of followers on public media where people have actually commented or appreciated the work avoid it.

    Seventh: Ask for education proof in the field of Technical Analysis (if any Technical Analysis certification or affiliation like MTA,ATMA,CFTe)

    Eight: Stop been greedy & learn been disciplined I personally have interacted over lakh traders & majority who fail are those traders who would wake up at 10 in morning or log in at 2 in noon and ask for sure tips 60% of trades send have not been traded or not watched due many reasons. 100% of every stoploss hit trade is been done and that also on big quantities and they do not have the patience to follow you or the trading systems and jump from one advisory to other or one trading system to another but not going to do the change which is required.

    1. I 100% agree with you.Most of the people treat share market as a place where they can double or triple their money overnight.But trading is a very serious venture and requires adequate time to understand the market,its technical and fundamental prospects.It is always better if one try to enhance knowledge himself rather blindly following others.

  5. Checklist for choosing a genuine tips provider.

    1. Their complete office address.
    2. Trial of a minimum of 3 to 10 days period.
    3. SEBI registration number and the registration validity period.
    4. Their bank account should be in the name of Web site but not on individual’s name.
    5. Ignore any past performance reports on the web site. They are not as per their calls and it is rigged performance.
    6. Ignore any other certifications posted on the web site for example : ISO 9001:2008 certified company. These certifications have nothing to do with trading arena.
    7. Make numerous calls to the phone number given on the site to check their alertness and responsibility towards the clients before making any payment.
    8. Ignore any tall claims made on the web site. For example : 100% accurate tips, Sure shot tips, Make 200 – 500% on your investment, Inside calls, etc. The list is endless with their attractive tag lines. (Remember that the most successful professional traders also go wrong in their trades half of the times).
    9. Genuine sites clearly talk about the capital requirement to trade their calls and the positions to be taken in each trade.
    10. Genuine sites donot employ their selling agents to call the clients now and then.

  6. Hi,
    I am a small investor having capital of 1 lakh rupees . 2 months ago i was in search of financial advisory company one day a guy calling me on Pace Research india from Indore, M.P. for intraday call tips i registered for free trial . free is supperb they provide me 3 intraday option calls & the calls made high profit then i desided to go with then i subscibed quterly option tips service then i pay online payment on their side. They provide me good calls but unfotunetly when i am starting actual trading the calls made loss then i stopped their sevice before 2-3 days i also took a free trial from capital life research they provided me 3 intraday option calls & all 3 calls achieved their targets i subscribed for HNI servies with monthly charges of 120000/- i paid 20000/- on their bank by cash but on 12/06/2015 they give 3 future but 2 calls made a huge loss in my account. i want know is those copanies are real or fake.

    1. First of all you are not trading you are gambling and secondly the service you hired are not traders who trade there money on tips they give they are just fooling people who are foolishly looking for sure tips jackpots guarantee profit they make money from selling tips only. ..
      I can help thou…

      1. plz tell me what can i do in this time can i trade or not.i was holding 2 positions in future with investment of 82000/-. any experienced financial advisor can help me which you know

  7. In a nutshell, can you suggest a bunch of genuine stock advisors who have genuine website, genuine bank address and genuine etc?

  8. All these companies are 1000% fake. You all are insane. Are they running NGO (Non-profit Government Organisation) ? They are giving you formulae of becoming cororepati (billionaire) for just 7000/- Rs. Are you guys NUT ? Please don’t loose your hard earned money in this. If they are so sure of these calls then they themselves make billions in one single day.

    Predictions can be made but that is a very hard work. And who ever is doning that hard work, they are NOT at all going to share this with anyone :).

  9. Please find good website which look professional, with this company only work on free trial and leave it.Free trail alwasy work.Do not pay anything to these advisory company but there free trail works good.

  10. Nice article. It should prove to be an eye opener for someone seeking only tips to earn from the market. I am going to link this article in my blog,

  11. Hello guys am going to join “The equicom investment advisors pvt Ltd.”, indore base company..
    anybody have any previous experience with this company

    1. I also enrolled myself as their client

      For 1month (Rs10000).Soon after their msg service starts, a guy named Aditya Sharma continually making pressure on me to join their 50,000pack. Scheme otherwise my normal service shall b stopped at the same time he insisting me to trade only on his phone call because those are sure shot call.The ultimate result is, I m suffering huge loss even after paying them total Rs60000.think twice…

      1. Dear,

        I think same guy Aditya daily talk to me for 1 hour for convince me for joining his service.

        He also give his current client number for take an opinion for his service.
        I talked to these clients and they are giving good advise to join them,as they are from different state, one of them is from my state.

        So I am in confusion to read your comment.

        Amit modi

  12. Hi,

    Nice informative article, but i do not totally agree with the author. Yes, people use attractive advt. to market their services – irrespective whether they provide genuine services/tips or not. Trading in F&O is all about timing – one needs to enter & exit positions at the right time. Just because the provider has a website or a office address does not guarantee that provider is genuine and good. There are people who provide very good trading tips without having a website or a registered company. This is just my experience after subscribing to many F&O tips providers over the last 5-6 years.

    Good Luck !

    Regards,
    Trilok

  13. Trading is a business which requires complete dedication,commitment ,time and most important is your patience. Trading knowledge comes from your self learning and experience and not from others’ advices.Please keep yours away from the trap of Tips providers.Had they been so knowledgeable they would have become crorepati by themselves.Why they are luring us to have their services.

  14. Please keep yours away from the trap of Tips providers.Had they been so knowledgeable they would have become crorepati by themselves.Why they are luring us to have their services.

  15. Most calls from Mumbai:

    I fall pray for one such company name “Traderspoint” they charged me Rs. 113000.

    For bulk investment, they charged that amount.

    Later they gave me the bill as advisory service.

    And they gave Intraday advice and created a loss of 80000. Only in 3 sessions.

    Total loss is 200000.

    Later, I realized that they are not even registered under SEBI.

    Can I take any action against them?

  16. On alluring by the Executive of One SEBI Registered Investment advisor company I paid ₹10000+ ₹25000 advice of OPTION project for a period of 6.months(November 18 to April 19) with total charges of ₹95000.. Besides the company charged ₹ 20000 for changing my name Ito my son’s name. During this period the selling executive showed extraordinary loyalty and dedication and pressed to make the payment urgently so he could start y business and make huge money forme. I am a75+ years retired person. and couldn’t disbelieve him. The amounts were transferred to owners bank account in Dehradun.After receiving the amounts the service and sales executives did not take interested.. What should I do now. Is there any helpline?

  17. Star world research ,indore based company given illegal plans and collected money .After loss they put pressure and changed plan .Lot of complaints are pending against star world research in SEBI.manish kumar Gour is proprietor of this company..The organization misrepresent plans through their executive.The contact numbers are changed frequently.Also the executive uses fraud names while dealing. Almost 20 people’s are in contact having the same issue against star world research.sebi no is INA00005499.address is airen house,vijay nagar indore.

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