Legal information notice: this article provides general information and isn't a substitute for advice from a qualified lawyer.
An ad promises daily forex profits, a “mentor” teaches you signals, and a foreign-looking platform shows your deposit growing. In India, forex trading is not a free-for-all: residents can trade currencies only in specific, regulated ways. Many “forex platforms” advertised online are not authorised at all — which means you may face both a fraud risk and a legal one.
Under the Foreign Exchange Management Act, 1999 (FEMA), the RBI has been clear that only authorised persons may deal in forex and only authorised platforms may offer forex trading to residents. In practice, residents can trade currency derivatives through SEBI-registered brokers on recognised Indian exchanges such as NSE, BSE and MSE — mainly rupee pairs, along with a few permitted cross-currency pairs. The RBI has also stated that money under the Liberalised Remittance Scheme cannot be sent abroad for forex trading margins. Trading on offshore platforms not authorised in India can attract action under FEMA.
The RBI publishes an Alert List of entities that are neither authorised to deal in forex nor to operate an electronic trading platform for forex in India. It also names entities that appear to promote those platforms, including through ads or by claiming to provide training or advisory services. The list is updated from time to time — an update on 19 November 2025 took it to 95 entities — and the RBI has said it is not exhaustive: an entity’s absence from the list does not mean it is authorised.
Fees or “margin add-ons” to unlock withdrawals are a standard scam tactic.
See whether the entity appears on the RBI’s Alert List and remember that absence from the list does not prove it is legal. If it is not a SEBI-registered broker using a recognised Indian exchange, treat it as unauthorised.
Give your bank every transfer detail and ask it to block further debits and flag the receiving accounts. If you paid through crypto, note wallet addresses and hashes.
Use cybercrime.gov.in or 1930 with evidence of the platform, chats and payments.
Because trading on unauthorised platforms can itself raise FEMA questions, a lawyer can advise how to report the fraud while protecting your position.
Be cautious about any “forex recovery” service that contacts you after a loss and asks for an upfront fee. Recovery scams frequently target people who have already been cheated.
| Authorised | Scam |
|---|---|
| SEBI-registered broker, trading on NSE, BSE or MSE | Offshore or link-only platform not tied to an Indian exchange |
| Payments go to the broker through verified banking channels | Deposits in crypto, or to personal accounts |
| No guaranteed profit | Guaranteed daily or monthly gains |
| Not on RBI's Alert List; details verifiable | Named on the Alert List, or impossible to verify |
No. Reporting to your bank and on the cyber crime portal is free.
You can file the complaint yourself, but legal advice is sensible here because dealing with an unauthorised forex platform can raise FEMA issues as well as fraud issues.
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Residents may trade currency derivatives through SEBI-registered brokers on recognised Indian exchanges. Trading on unauthorised platforms can attract action under FEMA.
It is a list of entities the RBI says are not authorised to deal in forex or to operate forex trading platforms in India, including some that promote them. It is not exhaustive.
The RBI has stated that remittances under the Liberalised Remittance Scheme cannot be made for forex trading margins.
It is difficult. Report to your bank and 1930 quickly, but recovery from offshore operators is not guaranteed.
It can raise FEMA issues. Seek legal advice on how to report the fraud while protecting your position.
Guaranteed-profit signals and courses that promote unauthorised platforms are risky, and the RBI’s Alert List also names entities that promote such platforms.
This article is for general information only and does not constitute legal or financial advice. Forex rules are set by the RBI and SEBI and can change — check current directions.
