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iForex.com Fraud or Genuine?

Yesterday I was going through some financial terms on an website called as Investopedia.com

While I was reading through and watching video regarding some of the financial terms, My eyes caught an advertisements regarding iForex. Which promises to teach how the foregin exchange market works. Having no experience or understanding of this market. I was curious to try it out.

The advertisements said ‘Click here to get your free training’ and all.

I did the necessary registrations giving away my email-id and contact information, while I was sitting on the desk at my workplace.

Today, I got a call from some so called ‘training manager’ under the name Rizwan, who was talking in a rather rudely way. He asked or rather demanded me to go online and open the account on their website. Now when I told him that I don’t want to and not interested anymore the guy starts threatening me by saying they will take legal actions against  me. He was forcing on this point that ‘you accepted the terms and conditions on iforex.com by which you will have to trade with us failing which I may face consequences’.

By then I became very furious and hung up. In no second my home number ranged again. when I picked up the call, same guy started talking to me in high tone demanding why I hung up on him!

According to him, the company iforex.com has my IP-address and can track me down and make me face legal actions.

Having been a little disturbed I checked regarding terms and conditions a little in detail, which I think does not forces anyone to trade like the guy was asking me to do

Link for the terms and conditions : http://www.iforex.in/legal/trading_agreement.pdf

also, I searched on google about it and came to know about many articles where people have accused iforex.com to be a fraud to just take money from your pocket.

have a look at one of such a BLOG.

The reason I have added this discussion was that I don’t know much about foreign exchange and this iforex thing nor do I know any person who can guide me. So I thought of asking help from the rodinhood coumminty.

I may be wrong with my thoughts or whatever I feel about iforex.com but that’s what I felt and want to get the answer to my question ‘is it necessary that a person when makes just an normal online account have to trade with them compulsoraily failing of which might make me face consequences?’

Need answers and some guide.

thanks.

***

First Published on: Nov 6, 2012

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13 Comments

  1. Isn’t FOREX trading illegal in India ?? I don’t think SEBI even allows for such a venture. If this is so, iForex themselves are operating illegally. 

  2. Forex Trading in definitely illegal in India as per RBI under FEMA .

  3. @PiyushRajeshGupta: well, If its illegal. then they are surely making fool of me and forcing me to pay them the minimum amount… hope that those legal action things he said is not true.

  4. Yes , as per my limited understanding of “Company act” of India they cant register there company in India for Forex trading as forex trading is not legal .

    Incase Iforex is not registered in India then I dont know whether there is a reason to worry or not .

    But as per my little know-how as you have accepted the terms and conditions which is a online aggrement you are liable by law PROVIDED iforex is legal, they might have not mentioned about actually doing forex but teaching it so that might be legal.

    I have not gone through the aggrement so cant comment , also the liabilities for online aggrements is altogether different and bit complex.

    My 2 cents , ignore and enjoy !! 

  5. @piyush: Lol, I just accepted the terms and conditions in the same manner in which I make my online account on any other website like fb or twitter. but after reading the agreement I don’t think that they can force me to simply trade with them.
    Anyways gotto be more careful next time.

  6. Dont venture in to forex trading, which is offered by these online players. If you are keen you can try out currency derivatives on NSE or MCX, which is provided by authorized brokers.
    Secondly forex is a specialized segment and requires a different trading strategies and mindset, and may not suit people who dont have the skill or interest for trading.
    If you are not keen on trading I’d suggest you to stick to investing in good stocks, gold, FDs, etc.

    I also read about forex being illegal and some websites/players providing trading which is not authorized by RBI. Please stay away from this to avoid legal hassles.

  7. @sridharV: thanks Mr.Sridhar. But, I think they can’t force anyone to trade with them just because one has done normal online registration.

  8. 1. The T&C does not make any mention of the customer requiring to mandatorily trade on an account opened.

    2. The company is registered in Virgin Islands, which means most likely its no more than a nameplate on a door.

    3. If the guy calls you back next, tell him you have given his number to the cops and they are tracing his call 🙂

  9. haha thanks sriram. but I didn’t got any call from last two days. so, it shows that this guys are definately frauds.

  10. Correction : Forex trading is legal in India . 

  11. Just thought I should put in a few words. I have been in forex for many years now having worked with brokerage firms in europe and also trading. I dont trade anymore but have more than enough knowledge of the industry.

    No one can force you to open an account and trade. This company is extorting and in fact you can make a complaint against the company for threatening calls.

    I am just frustrated when I see so many people who do not have a clue about Forex Markets entering without even basic knowledge of the forex markets.

    There are no short cuts, no easy ways to make money, no fabulous gains. More people have lost their shirts in the Markets because they thought it is so easy to make money.

    If you want to play the game, you need to know the game from the inside first.

    Sorry, this is nothing personal against you but just a caution to others who might be attempting to enter the Forex markets in the hopes of making good income.

  12. Gokarn,

    Can you kindly suggest us how to invest in forex individually and also the commission rate structure .

  13. Hello Piyush,

    I do not think that this board is suitable for this discussion, nor it is appropriate for me to advise on personal investment in Forex markets. The forex market does not have a central governing agency unfortunately and hence it has its share of unique problems.

    But broadly speaking :

    1. Don’t bet any money you cannot afford to lose. Dont ever bet the house. This might seem very obvious but its scary how many people still skip this step in the excitement of making money.

    2.Learn as much as possible about how the Forex Market works, join forums, talk to other traders, demo trade for atleast 6 months.

    3. If you have the discipline to trade 6 months without wavering and consistently making a profit, then its time to trade live.

    4. Learn what is leverage, eat breathe and sleep leverage, it will make or break you. If as a newbie you are using high leverage, it is a sure sign that you are on fast track to bankruptcy. Leverage is called  financial weapons of mass destruction for a reason.

    Like with most markets, automated trading programs are 99% hype and you will lose your money eventually. It is easy to get caught up in the dream of a bot doing all the trading for you and you just collecting money every month end, but its a dream.

    Trading is one of the most difficult and exhausting professions in the work as well as the most lucrative. Those who do it well are filthy rich and those who dont know what they are doing will eventually go broke.

    Sorry, can’t advise on commissions structures. Hope this helps.

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