Online trading can be defined as trading that is done online with the help of internet or through electronic media. The electronic media includes modern technologies, wireless and touch-tone telephones. Online trading is of great help to the . The buying and selling of bonds, , funds and other financial commodities can be done online in this type of trading. Generally the investors access the site of a brokerage firm to get information that has been provided on the net. The customers need to create an account and sign into it to keep a track of the activities and to give orders.

Online trading has just as many risks as conventional trading procedures of securities. When it comes to trading online there are many things to consider before investing into any market. The expenses involved with trading are all encompassing. Most expenses with trading involve charges, risks, and objectives that come with any exchange traded funds that may not bode well with many investors. The risks to online trading with exchange traded funds are decomposable investment schemes, derivatives, leverages, reverse exchange trade funds, and shortened sales. Any of these risks during a transaction on securities and mutual assets can create a potential loss during a volatile market that can be far reaching for any .

Leverage while trading is an important aspect when using good judgement during the trading process. Leverage should be used wisely when spread betting on a margin that can be wiped out if the investors share falls below a certain amount. Leveraging a 1,000 pound margin on a 10 point 1 ratio can help an investor to gain a tantamount of up to 10,000 shares, but if the shares fall lower than ten percent the investors margin can be completely wiped out.

These type of risky maneuvers may be too much for many traders who do not have the correct amount of leverage to get themselves out of trouble. The safest way to open a trade through spread betting is through liquid stocks that can be closed in record time before the traders margin is affected.

When it comes to online trading short and long are in the same category. A short sell means that the investor believes that a certain price is on a downward spiral that is about to crash.

Available hedging techniques: A Put is one way that is explored during a down trend, as well as the short sell of a share. The only advantage to this is if the trader actually owned the declining share because they could just retain it or sell. A Put is a safe guard for a trader to keep from experiencing excessive amounts of losses during the decline of a share. The is a contractual agreement between the buyer and seller of an option. The buyer can sell the share back within a certain time in order to cut their losses.

Chairman Arthur Levitt today issued the following statement to investors: The Internet and other new technologies are in many ways transforming how our capital markets operate. There are clear benefits to these changes including lower costs and faster access to the market for investors. I believe that investors need to remember the investment basics, and not allow the ease and speed with which they can trade to lull them either into a false sense of or encourage them to trade too quickly or too often. Over the last two years, particularly in recent months, the SEC has been hearing concerns about , on-line (Internet) investing. In fact, the number of complaints concerning on-line investing has increased 330 percent in the last year. Some of the issues raised specifically relate to on-line trading, others are generic to all investing. The majority of them can be addressed through better education and investors ensuring that they have done their homework. While the manner in which orders are executed may be changing, the time-honored principles of evaluating a stock have not. An investor's consideration of the fundamentals of a company-net earnings, P/E ratios, the products or services offered by the company-should never lose their underlying importance. Investing in the -however you do it and however easy it may be-will always entail risk. I would be very concerned if investors allow the ease with which they can make trades to shortcut or bypass the three golden rules for all investors: (1) Know what you are buying; (2) Know the ground rules under which you buy and sell a stock or ; and (3) Know the level of risk you are undertaking. On-line investors should remember that it is just as easy, if not more, to lose through the click of a button as it is to make it. In recent months, we have begun to identify a number of issues every on-line investor should be aware of. First, investors must understand the issues and limitations of on-line investing. You may occasionally experience delays on these new systems. Demand has grown so quickly that many firms are racing to keep pace with it. In the meantime, you may have trouble getting on-line or receiving timely confirmations of trade executions. You should not always expect "instantaneous" execution and reporting. There can and will be delays in electronic systems. You should investigate and understand options and alternatives to executing and confirming your orders if you encounter on-line problems. Second, investors may sometimes be surprised at how quickly stock prices actually move. For example, many technology stocks have recently had dramatic and rapid price movements. When many investors attempt to purchase (or sell) the same stock at the same time, the price can move very quickly. Just because you see a price on your computer screen doesn't mean that you will always be able to get that price in a rapidly changing market. You should take precautions to ensure that you do not end up paying much more for a stock than you intended or can afford. One way to do this is to use limit orders rather than market orders when submitting a trade in a "hot" stock. The result for investors that do not limit their risk can be quite surprising. Say an investor wanted to buy a stock in an IPO that was trading earlier at $9.00 and failed to specify the maximum they were willing to pay using a limit order. That investor could end up paying whatever price the stock has moved to at the time his order reaches the market -- $60, $90 or even more. If, on the other hand, the investor submitted a limit order to buy the stock at $11.00 or less, the order would only be executed if the market price had not moved past that level. Investors should understand the risk associated with trading in a rapidly moving market and make sure that they take all possible actions to control their risk. Third, I am concerned that investors buying securities on margin may not fully understand the risks involved. In volatile markets, investors who have put up an initial margin payment for a stock may find themselves being required to provide additional (maintenance margin) if the price of the stock subsequently falls. If the funds are not paid in a timely manner, the brokerage firm has the right to sell the securities and charge any loss to the investor. When you buy stock on margin, you are borrowing money. And as the stock price changes, you may be required to increase the cash investment. Simply put, you should make sure that you do not over-extend. Fourth, while new technology available to retail investors may resemble that of professional traders, retail investors should exercise caution before imitating the style of trading and risks undertaken by market professionals. For most individuals, the stock market should be used for investment not trading. Strategies such as day trading can be highly risky, and retail investors engaging in such activities should do so with funds they can afford to lose. I am very concerned when I hear of stories of student money, second mortgages or funds being used to engage in this type of activity. Investment should be for the long-run, not for minutes or hours. Millions of new investors have taken advantage of the unprecedented access and individual control the Internet provides. But, new opportunities present all of us with new responsibilities, challenges and risks. Important Information about trading Foreign Exchange. Trading foreign exchange is not for everyone. Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts. Pros and Cons of Online Trading

There are various pros and cons of online trading that you should consider before trying it out. Advantages

Firstly it is much cheaper since there is no person involved in the middle and consequently no fee. The commissions that you pay to the intermediate brokerage house are low since they work on higher volumes. It is also much faster than going via the offline model which involves paperwork and a third person hence requires more time. But the most important thing is the convenience of online trading that makes it so much fun. You can work from your bed with a laptop – all you need is a reliable internet connection. This is also the reason why the number of people trading online has gone up in the recent past. It’s easy, it’s cheap and it requires very little by way of infrastructural investment.

Disadvantages

The cons of online trading are more risks than actual disadvantages. This is to say that online trading per se is not at fault, but the way we do it may be. The biggest con of online trading is the errors that people can end up making if they do not account for the time lag in price updating and actual transaction. For example, the price at which you decide to buy may not be the price that you finally end up buying at. One way to circumvent this is to give qualified instructions. You could ask to buy only if the price stays below $XYZ and give instructions to sell the moment the prices fall below a predetermined point.

The second kind of error is judgmental. Given the possibility of easy money, many novices have joined and if figures are anything to go by, 80% lose money on the market in the first month itself. So if you have just started trading, continue to do it online but with the support of a middleman. This way, you will have the best of both the worlds.

Despite the various pros and cons of online trading, it has completely changed the face of the securities market. People from all walks of life are now showing interest in investing in the market given the relative ease and small time commitment it requires. It is however recommended that you start with small amounts and scout around for a brokerage firm that suits your needs. Otherwise you could end up losing your hard earned savings to an online trading error.

There are a few kind of risks that are there when you trade online.

(1) The first kind of risk is from the hackers. The first thing the hacker needs to do is to steal your username and password. There are numerous ways in which they can do this. And new ways are being developed all the time. Once they have your username and password they can easily access your account and buy or sell whatever they want to. Exactly the way you do. So this hacker is most likely to sell all the shares that you have accumulated, and with the money he thus receives will but shares on micro-caps.

What are micro-caps? Also known as penny stocks these are thinly traded stocks. What the hackers do is by buying shares of that micro-cap with your money he drives up the price for the particular share. Once the price is quite high he sells his own holdings at a considerable profit. The money is then wired to an account in a different country or a series of straw men and dummy corporations are used to transfer it to their account.

(2)Also internet provides a great opportunity to manipulate stocks which are unheard of and have very light trading. Say a broker wants people to trade on a particular stock. For people to trade on a stock, they must know about it, and then they must be made to understand there will be a definite positive gain in trading on that stock. What the broker will do is start a thread on that stock. Most discussion forums and threads in them allow the same person to post innumerable messages under different aliases.

So the broker will create n number of aliases for himself and post messages about the particular stock. The text of the message would of course be favorable toward that stock now with so much discussion about a particular stock and most of it being positive, investors will get interested.

They have no way to find out that it is the same broker who has been posting all the messages under various aliases. Rising interest transforms to rise in activity on the trade of that stock. A stock is manipulated. A similar thing can be done by the PR executive of the company or a large shareholder of the stock. This is a definite abuse of the internet.

Whichever method may be used, there is a fear of suffering loss if investment of securities is done. Risks of online trading also include high internet traffic. Due to high net traffic or a troubled connection the investors can face serious problems. They may not be able to sign in their account and place their orders thus facing delay and losses in trading.

Investors who are involved in the buying or selling of funds, stocks and securities online should be aware of the advice and information that is given in bulletin boards or chat rooms. They may not be genuine. The investor should himself gather information from various sources before taking further steps and acting on it. The investors may also have a tendency to overtrade. This act which involves buying or selling of securities may cause a hindrance to the overall performance of the investment that has been done. Overtrading may also result in an increase in cost and can make the situation complex. Hence trading too often without keeping in mind the risk tolerance and without any goal of investment is one of the main risks of online trading.

Internet or online investing is quite different from other forms of trading strategy. The orders can be placed online in online trading rather than speaking on telephone with the trader. Though risks of online trading are more than in the case of other forms of trading, it is the most convenient way to trade.

When Amit Bhargava, a Delhi-based photographer, decided to place a day trading order on the shares of Neyveli [ Get Quote ] Lignite on Friday, 4 January, he says he had no idea that it would spiral into a heart- stopping thriller that would end with him losing Rs 1 lakh (Rs 100,000).

He bought various lots of the stock through the morning, and had set himself a stop loss of Rs 268.50. The ticker on his online portal, Reliance [ Get Quote ] Money, showed the price was Rs 272, he claims. Based on this, Bhargava bought even more shares.

By evening, close to end of trading, when he sought to sell his shares, he saw that the price had fallen sharply to Rs 262.90, and the portal, he says, was showing a wrong figure on the ticker. Bhargava sold what he could, and converted the rest to delivery.

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"I booked losses of Rs 1 lakh that day," he says. He spent an anxious weekend and alleges that when he tried to get a grip on how many shares he had on Monday, he found that every document sent by Reliance Money had a different figure--the number on the cash ledger balance did not match the number on the contract note and so on.

"If I had known that the prices were falling earlier, I would have sold a lot more than I did. Eventually, I had 21,200 shares of Neyveli Lignite," he said. Then started the litany of phone calls and emails to Reliance Money.

"At one point, the head of customer care told me not to worry, as I could write off my loss when the stock price of Neyveli Lignite rose," Bhargava says.

He has now written to Sebi (Securities and Exchange Board of India [ Images ]), demanding that Reliance Money make good his loss.

Sudip Bandyopadhyay, director and CEO, Reliance Money, says that it is not true that tickers on its portal are not updated.

He says, "Being a registered broker with BSE (Bombay Stock Exchange [ Images ]) and NSE (National Stock Exchange), Reliance Securities is directly connected to both and the price feeds are made available to us by the exchanges. However, clients across the country do face connectivity issues at times due to their poor Internet connection/bandwidth. This is particularly true for remote areas and clients connecting through BSNL and MTNL [ Get Quote ]." While Sebi and NSE, the exchange through which Bhargava's orders were executed, ponder over this case, the fact remains that online trading, while being an extremely convenient way of buying and selling shares, mutual funds and other products, is fraught with several risks.

With the recent slump in the stockmarket, brokers have started looking at aggressive strategies to increase the number of customers and to induce them to trade more. These sops range from 'zero account opening costs' to 'lowered brokerages'.

Do not go by broking costs alone while selecting your online broker. For one, the advertised brokerage will probably be applicable only to people executing a substantial number of transactions in a month.

Second, offering lower costs could also mean losses of large amounts in other ways as the broker may have cut corners while creating the trading infrastructure to keep costs down.

Raghavendra Desai works as a senior financial analyst in Bangalore. He has been a customer of HDFC [ Get Quote ] Securities for five years now.

"I have routinely faced problems with price fluctuations," he says. "The price at which shares are acquired should not fluctuate more than 5 per cent (from the time) when I put in a market buy order. But, often, I have noticed that the transaction is effected at prices that are even 8 per cent higher."

He also says that the portal often executes orders in small lots. "If I place an order for 300 shares, I sometimes get only 30. Then I am stuck holding these as orders less than Rs 1,000 are not executed. If you call the customer support centre, you will only hear the standard response of 'we are looking into this matter'," he says.

While choosing your broker, ask around for the one with the best customer support. Problems are inevitable and a responsive customer care makes all the difference. Also, shortlist two or three brokers before finalising your choice. This is especially crucial if you need to have your account opened in a hurry.

Divya Agarwal, who works for an e-learning firm in Delhi [ Images ], wanted to open a trading and demat account to apply for the Reliance Power IPO.

She, and her husband Rohit, an army officer, zeroed in on Reliance Money as a broker and called them with a request to open an account. On 15 December 2007, the company sent an executive, the forms were filled and the signatures placed.

Says Divya, "Then the guy vanished. The last date for the IPO was 18 January 2008, and even though we began the process of opening an account more than a month earlier, we had neither a username nor a password at the time of the IPO and could not participate in it."

The company, in fact, even sent her two different kits with different usernames, and then asked her to ignore one of them.

"After all this was over, they realised that the account was not linked to the demat account," she says.

"We had to go to their office and fill yet another form. They promised that everything would be done in three working days, but nothing happened. When we enquired again, they had lost a form and claimed that we had not filled it. Fortunately, my husband had the stamped counterfoil of the form and he had to go to their office and threaten that he would not leave until the issue was sorted out."

She feels that the site is rather confusing and says mutual fund NAVs are sometimes wrongly presented.

None of these are isolated events, nor are they specific to only a few brokers. Check out the interface of the portal, most online brokers will have screen shots of their portal on their websites.

Ask the broker to send a sales executive who will demonstrate how the system works. Some brokerages have an online screen, others have applications that you can download onto your computer.

The big risk in online trading is that of technology. If you want to quickly sell a share because the prices are going down and the site is 'temporarily unavailable' or hangs or refuses to let you log in or execute a transaction, which could be because of a variety of reasons, you will end up with unnecessary losses.

Ensure that the broker has a back-up option where you can call the customer support centre and execute the transaction over the telephone.

Always keep an eye on your demat account. Take screen shots or write down the details of your portfolio, especially on days that the stockmarket has seen volatile trade and at the end of the month.

Some brokers place your shares in the pool account and trade in them to cover their proprietary positions. Examine the contract note carefully. Never assume that their calculations of brokerages and are right, recheck them yourself. While executing buy and sell orders, open the NSE and BSE websites to cross-check the latest stock prices, don't go only by the ticker on your portal.

The agreement that you sign with the broker when you open the account is long and tedious. It is also heavily loaded in favour of the broker. Unfortunately, some of the terms and conditions are mandatory, so you can't escape agreeing to them if you want to enjoy the convenience of online trading.

Legal action can be taken under Section 79 of the IT Act in case of a dispute with a broker, but compensation for the loss of money or the mental stress undergone is unlikely. Online trading is not for the faint-hearted. Tread carefully.

Common online trading problems & their solutions

Delay between filling in application form and getting username and password: Approach two or three brokers after assessing their brokerage and checking references with users. Don't restrict yourself to one. Follow up constantly. Speak to regional sales/marketing manager, escalate to head office.

Ticker not updated: Open NSE and BSE websites (www.nseindia.com, www.bseindia.com) and verify prices before placing order.

Shares disappear from demat account: Write down the shares you own, save copies of contract notes and routinely check your demat account. If shares are missing, contact broker immediately. Always check demat account after a day of high volatility in the markets and at the end of every month.

Online MF redemption: If you buy MFs online, most of the time your only option would be to redeem it online also. See if there is a redemption link for the scheme you are buying. Discrepancies in things like tax and brokerage: Always verify your contract note. Individually calculate your service tax and brokerage. Do not assume the contract note is accurate.

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 Investment robbery in

Way2Wealth

I have been a customer of way2wealth investing in the market for the last couple of years. Over the period of time I have seen the company detouring being an investment consulting company to a third rate investment robbers. I had invested on the stock NTPC to the tune of 50,000 rupees. Due to the I have retained the stock or that was my belief till the time when I found out. The employee named Raju, relationship manager (Alwarpet branch, Chennai) had sold the stock without my concern at a very low price. In reality while all the time he has been lying to me that my stock was safe. The minute when I told him to sell the stock when the price was 188 rupees he pretended that he sold it and told me the amount will be credited within 3 to 4 days. But money never got credited, when I kept following him he said direct payment got disabled hence he has credited my account by cheque. The next day I found the amount credited was only Rs 16,500 instead of Rs 40000 ( for 188*205 shares). When I again contacted him and asked why it is 16,500 he told your stock has been sold for Rs 143 per share hence it is only 16,500. I again asked him how could it be possible as I told him to sell the stocks when the price was 188. He didn’t budge and continue saying the stock price was sold at 143 only. I checked the Market price history, the stock price was consistently above 150 for the last 3 months and no way it is possible to sell my stock at Rs 143 in recent time. Then I realise I have been cheated by this person (Raju). When I contacted the immediate manager he told me at least you got this amount back having invested in the stock market and he is not ready to take any action on him (Raju) which made me to realise everyone is in this scam. I was really annoyed that I have been cheated intentionally. When contacted way2Wealth complaint cell there has been no response at all. I think the complaint cell is nothing but a bogus. And I know this person (Raju) is still working in the same company and only god knows how many people he would have got cheated. It is a very bitter experience and I lost my investment, which I have been saving it for my needs. I strongly suggest for people who have invested through Way2Wealth to immediately withdraw the investments. For anyone please please please avoid any transaction with this company after all it is our hard earned money.  Dear Sir, I am Parvinder Kaur, as I have subscribed to option sure shot package of optiontips.in by paying Rs. 10,500/- to Mr. G. Kader Hussain to Account no. 109010@@@@@@@ vide Axis Bank Account no. 910@@@@@@@ through online fund transfer. As per their performance in daily sms to me they shown great profit. So I subscribed to their services of OPTION SURE SHOT PACKAGE on 10.4.2012 by paying Rs.10,500/- They provide me a tip to Call of JP ASSOCIATES strike price Rs. 85 @ 2.4 target of Rs. 6-10 but it did not achieve the target. On 11.4.2012 to their non subscriber client they mentioned that their client have made profit of Rs. 35000/- in OPTION SURE SHOT CALL of Century Text Put Buyed yesterday (10.4.2012) @9 Target Hit 16. They give assurance of making Rs. 4-5 lac in capital of Rs. 50,000/- . When I tried to call at mobile no. 09894421555 the person who give me assurance for sure shot profit not picked my phone. I tried from different numbers also. Please help me and many other innocent peoples also by taking serious steps against this fraud company and get my money back. Thanks  optiontips.in sends a lot of messages to people who are regular traders in stock markets. How they get the mobile numbers is not known. Me and my friends used to get messages everyday claiming to have made good profits. Then we checked their website for the details. Only details till previous month are given at any point of time. Then I called them on the mobile number 09894421555(provided on the website). When asked for more information about their services he repeated the same things that are given on the website. When asked for free trial he refused and said their company does not provide free trial. When informed him that I will be making payment on 21.06.2012 by cheque in HDFC Bank on his account No. 01231930003078 in the name of G Kadar Hussain, he said pay in cash. When I insisted that I will pay through cheque he said it was ok. I paid Rs.12000 on 22.06.2012 through cheque in HDFC Bank at Sangli Branch,Maharashtra on his account. I received a sms on 23.06.2012 from my bank (IDBI Bank) that the cheque got cleared. Then I called on the mobile to give confirmation of the payment. He said payment is not yet received on his account. We waited till 25.06.2012 Monday but again he kept on repeating that the payment is not received. Then on 26.06.2012 he said yes the payment is received on 22.06.2012 itself and he was checking from 23.06.2012 onwards so did not see the detailes. Then he said the service will start from tomorrow 27.06.2012. Then I received a call on 27.06.2012 BUY COALINDIA 340PE (JULY) AT 6.50 TGT 15/20 SL 2.5 When I called him about the call he said yes the service is started. But the rates recommended did not come. Then again when tryin to call he did not receive the call. He started disconnecting the call after 2-3 rings.Then we tried to call on the other number 09894359692 provided on the site. The other person who answered the phone said why I was bothering him for the payment. Then he asked me the details and said that the payment was received on 25.06.2012 and service started on 26.06.2012 and check if my number was in DND and disconnected the phone. Then I tried from my friend's mobile then he received the call and said the service will start tomorrow and again disconnected. From yesterday 28.06.2012 they are not receiving the calls from all the numbers that we have tried and they have received the calls from. Please guide me in this matter as how can these fraud people be stopped from fraud.

Fraud!! Fraud!! Fraud!! Dear sir, myself shyam chander from chandigarh. I gave my 25 lac rs portfolio to niftylivecharts.com by feb 12 with 1.25 lacs rs charges. They promised me minimum 5%-205 returns per month but bastard mera ku 19.4 lacs ki loss karvadiya. My whole capital washed out now not picking my phone will looking to complaint police. Pls dont pay to this fraud bastard. He is a sub broker of sharekhan,... He will suck your blood..

CalloptionputOption.com, These ( Content Removed by admin) duped my hard earned money in Jan-2010..They sent sms to buy Nifty 5300 call of Jan @ 94 and asked me to use 50% of my capital. I purchased it for around One lakh rupees and regularly they sent sms to hold the call as market was going down. I called them daily to ask about this means whether to sell it or not but they replied me regularly that hold it. Now today the cost of that unit is 50 paisa. I lost my capital...Even all the other calls they sent me throughout the month was fake and i lost huge amount in other tips also....So atlast I can understand that these guys are tied up with the companies that they give us tips for,and they earn money by duping us and giving profits to that companies by giving fake calls to us. I met the Commissioner of Police today to file an FIR on them and I will pull them to Court for Sure. IRFAN SHEIK, HYDERABAD-9346753697

My self Deepak Doke holding Trading a/c (Mrs.Anita D Doke-My Spouse name)with ADITYA BIRLA MONEY since last 1 yr. Recently understood that their some some trading which is done without my knowledge causing me loss. I have been following up and complantining about this to Aditya Birla MOney since last month but there is no satisfactory answer/clarification from their side.Even they are not confirming the transations details which are done by them without my knowledge. They are providing same response again and again that they have sent DOCUMENTS to my email id POST TRADE.However i whatever documents they have provided are of no use as trading they have done was without my confirmation.

Hence i have asked for recovery of my loss which was caused due to ADITYA BIRLA MONEY TEAMS fault. I hope i get some response and recovery of my loss.

Hi friends plz do not join calloptionputoption this is a fraud company and you wil loose your hardly earned capital. I had joined their optionservice but i suffered huge loss around 89000 in 12days. Most of their calls hits stop loss. They are very rude, just call them and you will come to know about their rudeness. I searched for real and reliable tips providers and i joined many but everywhere same thing and all are same. I have paid too much for their subscription charges but could never get a reliable tips provider.pls do not subscribe to him.

Complaint against SMC Global Securities, South City branch,Kolkata - Unauthorised trading from my account - demand for compensation

Complaint against SMC Global Securities,South City branch,Kolkata - Unauthorised trading from my account - demand for compensation for mental harrassment and non-fullfillment of promises

This is to inform you that I have opened an account with SMC Global Securities Ltd (Prince anwar shah road branch Kolakta-700068) last month (November 2009) The account details are UCC Code: NMV0062 (trading id)

I have given Rs 5500 as account opening check. The contact person was Satish Kumar Dubey (Emp id 2907 of SMC Global Securties ltd, Kolkata). He has authorized Mr Amit Chatterjee to doing trading on behalf of Mr. Satish Kumar Dubey. I have given 100% authority to Mr. Pritam Kumar Kundu (my husband) to trade in my account.

Till Dec 08,2009 Trading was done with confirmation. Suddenly from 9 dec 2009 SMC stared Unauthorized trading on Nifty Options & they took 1000 Quantity of Texmaco shares without my confirmation. I came to know when trading confirmation call was done. I talked to Amit chatterjee on this regard and he replied that he will compensate any losses if anything happens. I asked him not to trade from tomorrow onwards and if the losses are there already please reimburse it to me. He said i took certain positions which i will square off and make you profit. Since they took a huge position on my account they continued trading every day after dec 09. I aked to stop and let me know the ac position . They continued to tell me that it is fine and i will make profits. Suddenly after Dec23 mr Amit chatterjee was absconded and was not reachable. When i asked about my ledger position SMC told that there are Losses and they cannot reach amit chatterjee who is done the trading. Mr Satish Kumar dubey was well known about this incident. They sold Texmaco 900 quantities in betweeen to clear the huge poition. Then Suddenly Mr Satish Kumar Dubey introduced me To arindam das and tell me that he will look into the matter. Mr AMit chatterjee was absconded from then and was not reachable. SMC asked me to lodge a formal written comlain against him. I went to Zonal head for taking neccessary action.But they did nothing. After few days Mr satish Kumar Dubey was also absconded. So I lost around 50 thhousand of ruppes. When i asked SMC to given back me the money they told that they have no evidence against Amit chatterjee. They told me that they will take legal action against both of them. But nothing has happened.

After this incident i wrote a mail to SMC to not do any trading without my email confirmation. But in 30th march 2010, SMC global securities again done unauthorized trading on my account. This time they have acknoledged it as unautjhorized trading and wrote me a mail to compensate the amount (around 10000 thousand rs)within 15 april 2010.But after my constant follow up i did not recive the money till date. Mr arindam das now is absconed from the SMC Global, south city branch and the manager Subrata tarfadar is now saying that it was arindam das who promised u to gibve back money. Since he is absconded we will take legal action against him. I am in a deep mental stress because of all this incidents.So my charges gainst global securities are:

1. Doing Unauthorized trading ( Nifty Options trading after December 08 2009 till december 23) on my account (NMV0062) (without informaing me about the Quantity and Ledger balance)

2. Doing Unauthorized trading on Delivery based trading on Texmaco Ltd (1000 Quantity) Shares on my account (NMV0062)(without informaing me anything)

3. When I asked for repayment of the Loss smc denied

4. Doing unauthorized trading on march 30 2010, on nifty options again. Acknoledged as unauthorized trading and promised me to compensate the amount within 15 april 2010. But they did not do that.

Thus, i demand the following:

1. I should be compensated the amount around 60000 rs totally by SMC global securties

2. I demand complensation for mental harrassment for the behaviour of SMC Global employees .

I expect an immediate and positive action from your side in order to protect the consumer's interest.

Regards Paramita Kundu SMC A/c No: NMV0062 My contact No: 9088340367

Address of SMC Office:

SMC Global securities, South City branch, Kolkata Date: 30-11-2010 From: Brian Nathaniel Soans, Mangalore

To: ConsumerCourt.in INDIA

Ref: Internal Trading Fraudulant Practises By India Infoline - India

I opened a trading account with Mr K Vishnuvardhan, Territory Manager and agent of India Infoline Ltd., Mangalore branch on 23-12-06 . My application form included my address, e- mail ID, mobile number, bank account number, nominee information, etc. Much later I discovered that he manipulated the application form, which by definition is an “electronic document” as it is used to enter information into company computers. He created another e- mail ID in my name without my authorization. By doing so (i) he blocked communication from the head office to me, (ii) he cheated and defrauded me of Rs 4,76,000, and created a wrongful debit of Rs 4,05,600 as on 10.10.07. Mr K. Vishnuvardhan operated my account from 23-12-06 without my consent. I never received the confidential password and TPin, which he changed without my authorization. b) Breach of trust between a Broker and a Client... under IPC c) Insider trading..buying own company shares with client money without authorization... under SEBI regulations d) Violation of SEBI and Stock Exchange Norms... under SEBI regulations. Transaction details and contract notes were not given as is routine, but were given on demand on 24.09.07 and October 9 and 10, 07. e) Unauthorized changes to electronic documents knowing that it is likely to cause wrongful loss to me ....under Section 66 of ITA 2000 (three specific incidents indicating section 66 offences: changes made in the application form -- an "Electronic Document" by definition, variance between the HO and branch records, indicated by differences in the statements, and transactions outside stock market hours which prima-facie indicates a deliberate addition)

As a consequence of offence committed under Section 66, which occurred in a corporate network, the CEO /Directors and other senior officers of India Infoline Ltd., as well as India Infoline Ltd., as a company are liable under sections 85 and 43 of ITA 2000.

Therefore I pray for recovery of capital of Rs.4,76,000and debits accrued to my account on account of unauthorized trade, opportunity loss from 23.12.06 till settlement of claim, and Rs 36,000 for service charges, legal expenses, and compensation for mental agony.

Need for Action: The FIR was lodged in time by direction through Jmfc Court In Mangalore at Kadri Police station, Mangalore. As the police in Mangalore at the time told me that they didnot have the equipment to investigate the crime they were not in a position to proceed and suggested to approach the cyber crimes,Bangalore. The case was also informed to NSE and SEBI. In response the NSE ,Chennai had given me a date for arbiotration. When I had approached the NSE at chennai on the day of arbitration at 11am as I was told to be at their office, Mr.Vishnuvardhan equipped by the lawyer given to defend him by INDIAINFOLINE gave a big packet to the official there at NSE . Instead of going through the documents I had given to me by IndiaInfoline at Mangalore the official at NSE after recieving a packet from Vishnuvardhan and IndiaInfoline just dismissed the case as he was reluctant to even go through the arbitration. SEBI on the other hand had recieved our complaint and given a referance number and contact details at Mumbai. When I had called SEBI along with referance number there was no proper response.This is like the SEBI passing their responsibility by not heading to a genuine complaint .Such inactiveness,incopetent behaviour of SEBI has shocked me. The corruption in NSE Chennai has made me loose faith in the system. It is questionable that if institutions which are responsible to regulate and see to the interests of Investors in India show their face the other way round when approached with a genuine complaint for justice against trading crimes committed as this violating rules and norms of SEBI and NSE what is the plight of an IndianInvestor? Is corruption above justice? Unless prominent media channels in India makes such cases sensational MANY SUCH FRAUDALNT CASES go unreported. I have approached the consumercourt in India here under consumer court .in as I have seen effective action taken against such frauds at concumer court .in and Iam ready to provide the 400 page document given to me by IndiaInfoline to me and all documents pertaining to this case. The 270 page document presented to me through NSE at the day of arbitration which was never conducted was totally differant to what IndiaInfoline ,Mangalore had given me.This itself shows the fraudulant practise.

Prayer: An immediate action against IndiaInfoline and its staffs and Mr.Vishnuvardhan who have been hand in gloves in such crimes commiteed against an lay indian investor will be highly appreciated. Also incompetence of SEBI and NSE should be brought to books as this is sign of incompetence of govt.Institutions like SEBI and NSE to protect interests of an Investors Greviance.

Regards, Brian Nathaniel Soans

i took trial from this company. trial i was not so sutisfied but ok trial was ok after the traial is over i joined this company. call do not match with trial calls. in trial 5 calls given 3 profit ,1 entry price exit ,1 complete 30 point stoploss hit. after joining i got surprised , almost all calls hit stoploss. this stupid some time say do not attempt this call which call given 1 hour back , trade is in deep loss and loss getting deeper then this culprit says we did not attempted , sala trade in loss to did not attempted? all almost all calls going into loss. these guys very very rude on phone calls. i am calling every day and they are not picking my phone. they slanged at me. i do not think i am alone cheated by this company. friend please read this before joining this company. the most vital part i am telling i am sure this guy buy trial calls from some other company becoz trial call and subscribe call performance never matched. do not join this DREAMGAINS cheater. 9442545589

Dear Sir,

I hold Demat Account with Kotak Securities (IN300214). I have bought through the demat account Escorts shares 2000 shares @102.725 on 29th Sept. 2009 and sold next day under bnst scheme @ 111/- and I have the contract notes sent to me.

But instead of treating it under bnst they have waited and send and debit note with 150% and went for auction and debited me again for 2000 shares @ 111/- on 6th Oct. 2009. This is completely firstly they have not treated and taken from my demat account despite having 4000 shares and secondly they have auctioned at a price which the script have never went.

Please help on this.

Regards

Mrs. H H Suvarna Nirmal Bang representative Anup Tiwari approached me to open a DMAT account and he told me that he will give me a good brokrage plan. I will have to give a cheque of Rs 10000. These 10,000 would be blocked for a year's time and at the end of year I will get [10,000 - brokrage for the trading I made during that year] that means if my brokage for my transactions for the year is 2000 then I will get 8000 back. Before encahing the cheque I also received a call from their call centre and the lady on phone confirmed that my understading of the plan is correct. Due to their pathetic service and non-responsive staff I couldn't perform any transactions through Nirmal Bang trading account. They didnt even bother to give me the demo of their site. After 7-8 months I asked them to close my account and refund the amount but to my surpirse they told me that it was a non-refundable amount. I won't get this amount back even if I close the account. I raised a complaint on SEBI site about this, I received set of documents I signed while opening this account from SEBI and I was so amazed to see that in one of the document it was written that the it is a advance brokrage plan and I will not get that 10,000 as a refund. This document was completly new to me, when I checked the sign, I saw that it was a FRAUD SIGNATURE made by Nirmal Bang representative. So, not only their representative made the fraud signature, but also their call centre representative confirmed me the wrong plan. I am ready to do anything to get my money back. If I will be quiet, then I am sure that Nirmal Bang will not correct this flaw in their system. One more thing, I wrote many emails to Nirmal Bang about this but didn't receive any responses. After complaining to SEBI, I got a call from Nirmal Bang and the lady promised me to investigate the matter, but didn't receive any response after that.

Regards Gajanan Kotgire [email protected] I Mahendra Singh Gaur have an account in Reliance Money having Client id : MAGA0005 and Reliance Executives have done trading in my account without my consent and without asking my account token number on 24th & 26th August 2011. When i enquired, their support team told me, they have done trading in my account without my permission because of some technical issues and on insisting about clarification they started giving me vague excuses on phone and still they have not given clarification via Email with regard to my mail to them on 29th Aug 2011.

I Ajit kumar sahu client code is A000066122, has trasffered Rs. 50000.(fifty thousand only),to buy some share on 04/02/2011.

Through hdfc bank, but when I started continuously enquiring about my accont . the Dealer and RM mapped to me at burdwan branch without any information . and continuously ignored me & did not provide any statements. One such occasion I went to reliance securities office Durgapur branch for enquiring my account status, and I found that my account balance is 33.75. which is shoking to me.I would like to reqest you to look into the matter and do some needful step.

I strongly feel that company like RELIANCE will not entertain trading without customer /clint permission, but people like Biltu gupta (relationship Manager) and dealer like Bikash chandra sarkar (dealer) is making company brand name wrost.

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The Pros and Cons of Online Stock Trading

By Jessica Drew

There are several pros and cons to online stock trading, but most online traders find that the pros outweigh the cons. The key to succeeding in online stock trading is being well informed and knowing how to mitigate your risks. Here are the pros and cons of online trading:

Pros and Cons of Online Trading: The Pros

No Brokers Needed

Years ago, before the digital era, if you wanted to trade on the stock market, you had to hire a personal broker. A broker is someone who is licensed and trained to bid in the stock market on your behalf and explain to you the pros and cons of buying a particular stock, mutual fund or bond. Brokers are professionals who substantially mitigate your risk with investing. However, brokers also create a barrier to entry to the stock market, whereas pretty much anyone can trade online right away. The web service you use to do your online trading serves as a broker to all who use it.

Low Fees

As you can imagine, personal brokers charge high fees. Brokers’ fees vary greatly depending on their level of expertise and years of experience. However, brokers provide a personalized, client-based service similar to the way many lawyers operate, so fees will be substantial. The better your personal broker is, the more you’ll pay. Of the pros and cons, low fees are a huge pro for online investors. Web-based trading platforms charge a mere fraction of what personal brokers charge their clients and online trading can lead to higher returns.

Information and Tools

Most web-based trading platforms give you access to sophisticated, informative tools for trading. With these tools and a lot of self-education, you can make wise investments.

24/7 Trading The stock market is ever changing, and with online trading, you can place your bids anytime, anywhere. There is usually some lag time when using a personal broker.

No Financial Minimums

Personal brokers usually prefer to work with clients who have several thousands of dollars to invest. For those of us who do not have that kind of cash lying around, online trading is great. You can start buying penny stocks with less than $100.

Pros and Cons of Online Trading: The Cons

Risk

Of the pros and cons to online trading, there are several minor cons that harsh critics of online trading cite, but the main substantial con that you really need to be aware of is the risk that online trading entails. Online trading has largely torn down the barriers to entry for bidding in the stock market. This is both a good and bad thing. Those with no investment experience can get into serious trouble if they leap before they look. The stock market is inherently volatile, and you really need to know what you’re doing to avoid losing money on your investments.

Many online traders have taken free classes, read countless books at the library and dedicated hours and hours of their time to learning how to use online trading tools. Some of these people have become highly successful traders and have been able to quit their day jobs in a matter of months. Conversely, many online traders jump in head first, are not web savvy and don’t know how to use trading tools. Some of these investors have subsequently lost thousands of dollars in a matter of days. If you’re a new investor, spend a lot of time educating yourself to mitigate your risk.

Of the pros and cons of online trading, you can see that the pros can greatly outweigh the cons as long as you know what you’re doing and make smart decisions that mitigate your risk.

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