British Dabba Trading SCAM? for India?

mastermind007

Well-Known Member
#1
Recently I rcvd a marketing call from one firm that pitched itself for a one stop service that allowed customers to trade in all markets from one interface. (Indian, Forex, Commodities, Crypto, American, European etc....). Their marketing tag line was "Profits you keep, losses we bear" or something to that effect. Their homepage is
https://70trades.com

Almost entire conversation between me and the sales rep was partly in Hindi (Hinglish) and my mother tongue.

It sounded intriguing enough so I explored a bit more and here are my important observations

1) Service is provided through a web portal with emphasis on single click interactions and sales rep repeated "single click" concept too often as enticement phrase.

2) The Sales rep was unable to answer how they could trade in Indian markets and how would they handle the Indian govt trading taxation.

3) There is zero clarity on brokerage. Initially, the sales rep was completely dismissive about brokerage and kept saying "just deposit some funds from credit card or skrill and try out the site for few days". When I forced him to be clear in brokerage, he first said brokerage is zero. So I asked him to explain more and provide segment wise details and also about calculations of STT and other govt costs. His reply was that there are no such costs involved. Even after asking same question in 10 different ways, net result was that there was no clarity on trading related costs and absolutely no clue on how govt costs are to be handled. Only statement that I can find on website related to fees is one line that reads "Rollover Fee charged at 0.02% ..."

4) One another thing that I learnt from conversation is that the Company is based in UK and promoting itself in India. They've hired Indians in
their UK based call centres to call here. This was very alarming and my first flash thought was that "this is re-incarnation of East India Company"

5) Marketing Tag turns out to be a pure dud because it is valid only for the first 5 trades. Any losses that customer incurs in first five trades are
borne by the company but beyond that its customer's headache. Official term being used to classify first 5 trades as "5 protected positions"

6) After hanging up, I explored the website and came across "Inactive account clause" which is plain horrid... Just read it for yourself

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Unlike Indian brokers, who, following SEBI rule, return the unused capital into respetive bank acocunts, this company will swallow your capital.
Yet another Dalhousie thief....

7) He mentioned that their platofrms ensured "No risk of slippage." So I explored this aspect more and eventually he said that the company works on
"market making" model.

8) My conclusion is that, this company, sounds like a new age SCAM and more and more convinced that it is just as fraudulent as East India Company was.
In all probability, they will be merely doing dabba trading against their customers. No risk of slippage because no real trades are being placed in any stock exchange anywhere. Real time data feed is consumed from all exchanges and exact price at the time of trade entry/exit clicking is captured and profit loss computed therefrom.
If customer attempt to buy, company will become seller counter-party, if customer attempt to short, company will become buyer counter-party.

My objective for posting it here is to (a) warn traderji folks and (b) gather ideas on how to stop this company's from fooling other Indians even if they are not on traderji site.
 

siddhant4u

Well-Unknown Member
#2
It’s scam operating from some different country. It’s definitely not British else all currency would have been in GBP and not USD.

Furthermore the website popsup that its not allowed in UK (when connected via UK VPN).

Plus - from website :

This website is owned by Securcap Securities Limited, Suite C, Orion Mall, Palm Street, Victoria, Mahe, Seychelles, authorized by the Seychelles Financial Services Authority with License No. SD012. The group of companies includes Wanakena Ltd, registration number 379327, from 73 Arch. Makarios III Avenue, Office 301, 1070 Nicosia, Cyprus.
 

mastermind007

Well-Known Member
#5
There are apparently many indian call centers calling americans to steal money from them ( IRS scam/gift card scam etc). This could be just another version of this. And the idea of loss is ours profit is yours is laughable, obvious scam. No idea how to stop, if they are india based, perhaps police complaint ?
Yes, US market is innundated with scamsters and spammers for long time, even before internet become common. US folks get spammed and scammed in both electronic and on-ground in their physical mailboxes. On an average, you get 1 kg worth of Raddi in your mail boxes (everything: from local grocery superstores to fabulous vacation deals to car repairs).

When I first landed in USA in 90s, I got a postal letter from Readers Digest stating that I had won 20million US dollars and the key requirement to fulfill the claim was to fill in an attached form to sign up for yearly subscription of RD, stuff it in postage paid envelope and send it. Being naive, I filled in the form and proceeded to drop it in mail box. Before stepping out, I thought of talking to friend to share fabulous news and to get the form verified and as soon as he heard my pitch. he started laughing. He instructed me to reach his house where he had dozens of such letters to show me.

Totally lost respect for Reader's Digest magazine after that incident. Before I landed in USA, I used to borrow from library/friends and regularly read that magazine.
 

mastermind007

Well-Known Member
#6
It’s scam operating from some different country. It’s definitely not British else all currency would have been in GBP and not USD.

Furthermore the website popsup that its not allowed in UK (when connected via UK VPN).

Plus - from website :

This website is owned by Securcap Securities Limited, Suite C, Orion Mall, Palm Street, Victoria, Mahe, Seychelles, authorized by the Seychelles Financial Services Authority with License No. SD012. The group of companies includes Wanakena Ltd, registration number 379327, from 73 Arch. Makarios III Avenue, Office 301, 1070 Nicosia, Cyprus.
Very good find. Incoming phone number did have +44 number so maybe they were using some virtual phone numbers.
 

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