I am going to create a series of articles time permitting to explain how trading can be injurious to health!
Article 1:
To begin with let me jump the gun and go to CFD trading by Indian Retail Investor. In India CMC Markets an UK based company permits CFD trading via its Indian associate Reliance Money. Trading with them for 2 years taught me a few lessons, the most important being you are ripped off brokerage by two folks for just the service of one!
Later I switched to GFT Forex another UK plc. While their spread on DJI which is my primary item of trade is fantastic, one should remember that they set up sufficient hurdles in your trading methods. First while you do not have a bank account associated with all these CFD trading accounts like we have in India with local brokers, very often the idea is to create a secondary account to act as a bank.
GFT makes transfer between primary and secondary account a very tedious process. So the only way to transfer money back is to reload your source. GFT encourages Indians to transfer money via Credit Card or Debit Card. While you might yet be within your RBI limit in recent times Citibank has banned GFT based on RBI guidelines. So transferring money to them via Credit card is not possible.
Citibank lists them as a Lottery/Gambling activity as per RBI guidelines. They stopped allowing transactions to GFT since June this year via credit card. While I shifted to transfer via ICICI debit card a curious problem has arisen in the recent past. A transfer back from GFT to ICICI bank is not getting through to my SB account that is linked to my Debit card. The reason that ICICI bank mentions is hazy. However the bank has resent the money back to GFT. This is where the problem begins. After 2 months of hazzling with GFT they are yet to return my funds nor are they willing to redeposit the same into my account.
Also ICICI bank will not encourage any further transfer back to your account from GFT whom they consider as Forex traders and do not allow inward remittance as be RBI guidelines. This has left me with about a 700USD stuck with GFT which I cannot bring in. Of this around 300USD has become a dispute item since GFT will blame ICICI bank. However while I have a got a letter from ICICI to prove the money has been duly returned to GFT they are yet continuing to hold the money without any assistance.
My simple comment. Dont go to GFT and create a trading account. One Sanjay Sharma with smooth talk you to open accounts. His boss Jonathan will promise the sky and the moon. However Jonathan being a typical Britisher will never honour any commitment. Sanjay is as good as a donkey. When escalations happened I ended up with a strange named Hafiz Kassim who claims to be in the US. (I dont know if he is in Pakistan or Afghanistan!). I also hit upon a Veena who is said to be a Kenyan refugee in UK. Overall the system stinks and is dangerous.
Especially when RBI seems to be havings its noose on GFT for whatever reasons. So make sure to avoid CFD operators. They are bucket shops and worse still even if you can beat them in trading, they will keep your money without a reason.
Also refer to various blogs that illustrate that GFT is a SCAM.
Article 1:
To begin with let me jump the gun and go to CFD trading by Indian Retail Investor. In India CMC Markets an UK based company permits CFD trading via its Indian associate Reliance Money. Trading with them for 2 years taught me a few lessons, the most important being you are ripped off brokerage by two folks for just the service of one!
Later I switched to GFT Forex another UK plc. While their spread on DJI which is my primary item of trade is fantastic, one should remember that they set up sufficient hurdles in your trading methods. First while you do not have a bank account associated with all these CFD trading accounts like we have in India with local brokers, very often the idea is to create a secondary account to act as a bank.
GFT makes transfer between primary and secondary account a very tedious process. So the only way to transfer money back is to reload your source. GFT encourages Indians to transfer money via Credit Card or Debit Card. While you might yet be within your RBI limit in recent times Citibank has banned GFT based on RBI guidelines. So transferring money to them via Credit card is not possible.
Citibank lists them as a Lottery/Gambling activity as per RBI guidelines. They stopped allowing transactions to GFT since June this year via credit card. While I shifted to transfer via ICICI debit card a curious problem has arisen in the recent past. A transfer back from GFT to ICICI bank is not getting through to my SB account that is linked to my Debit card. The reason that ICICI bank mentions is hazy. However the bank has resent the money back to GFT. This is where the problem begins. After 2 months of hazzling with GFT they are yet to return my funds nor are they willing to redeposit the same into my account.
Also ICICI bank will not encourage any further transfer back to your account from GFT whom they consider as Forex traders and do not allow inward remittance as be RBI guidelines. This has left me with about a 700USD stuck with GFT which I cannot bring in. Of this around 300USD has become a dispute item since GFT will blame ICICI bank. However while I have a got a letter from ICICI to prove the money has been duly returned to GFT they are yet continuing to hold the money without any assistance.
My simple comment. Dont go to GFT and create a trading account. One Sanjay Sharma with smooth talk you to open accounts. His boss Jonathan will promise the sky and the moon. However Jonathan being a typical Britisher will never honour any commitment. Sanjay is as good as a donkey. When escalations happened I ended up with a strange named Hafiz Kassim who claims to be in the US. (I dont know if he is in Pakistan or Afghanistan!). I also hit upon a Veena who is said to be a Kenyan refugee in UK. Overall the system stinks and is dangerous.
Especially when RBI seems to be havings its noose on GFT for whatever reasons. So make sure to avoid CFD operators. They are bucket shops and worse still even if you can beat them in trading, they will keep your money without a reason.
Also refer to various blogs that illustrate that GFT is a SCAM.
