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
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.
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
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.
