Saturday 31 October 2015

Stock Tips Free Trial Scam Exposed

With time, Despite DND being in force almost every stock market trader/investor is receiving phone calls and sms particularly from Indore or Madhya Pradesh, Gujarat and Rajasthan among other places to register for free trial in their stock market advisory.

Forget being registered with SEBI these guys don't even have a website or a company name.

 This is a huge scam that is going on and today we are going to expose their modus operandi.

First of all, The scamsters purchase a "DATABASE" of demat and trading account holders, Let us say they purchased a huge database of account holders and out of that 25 thousand are active traders.

They will now contact the traders, Say out of 25 thousand 50% of them are not interested but the remaining 50% are interested in the trial since it is free.

As a result of it they will be getting a Hot Tip on some stock that is going to report its results on the day as decided by the Tip Provider and it will be a proper call with SL and Target.

Now they will either be holding a Reseller Account or a normal account in Bulk Sms Provider services and they are ready to send the trial... For example yesterday Larsen & Toubro came out with numbers and it has a habit of reacting 3-5% on the results day.

What these scamsters will do now is very interesting, They will make a 50:50 list out of the 12500 people who registered for the trial.

The first 6250 people will receive a Buy Call in L&T Futures or even cash with a stop-loss and target and the next 6250 people will receive a Sell Call with stop-loss and target.

Before giving the call, They will compel you to trade on it so that you can join the service, and they will claim to have inside info about the results.

The results of Larsen & Toubro will be declared and the stock will react either way, Like it fell yesterday they will start calling up people who got the sell call and ask them to join their paid services since they gave the Super Hit Trial. The charges will range from anything like 25 thousand per month to per year depending on the greed of the scamsters.

They will now keep repeating the phone calls and win your trust that they are the best in class and they will give the bestest of calls which will make you filthy rich.

Sadly, almost 50% will fall for it but lets assume only 30% people or 1875 people to be precise fall for the scam, A total of 1875*25000 = 4,68,75,000.00 almost 5 Crores will be netted by these scamsters.

Their investment was of only about 40,000 (20,000 for database, 10,000 for sms service, 10,000 for call center type hired staff)

They will simply switch off the phone from which they talked with the people who got the Buy Call.

People who paid Rs 25,000 will also not get any call from their side and the phone number will be switched off.

The traders who bought L&T cannot take any action because they didn't pay them a penny and got a free tip.

The people who paid 25,000 for paid services will not take any action because they would have got a SMS from the same number which had the terms of Profit Sharing out of the call and some might even have traded and earned will think let it be.

They will re-use the database with other names and locations and repeat the same modus operandi and this time might again earn 5 crores with the same database.

It is not wrong to take the trial for Free as long as you just track the movement of the calls but it is very dumb to take a Free Trial and decide to join the Paid Services of an advisory who is not registered with SEBI and is also not having a website for that matter.

Jaago Grahak Jaago, Do not fall prey to such Scamsters and avoid trusting their words.

Note: I am not defaming all advisories and analysts out there, There are some very genuine people and it is easy to make out who is genuine and who is fraud.


  1. I received many such calls , all say free trial , its good you exposed this huge scam going on and saved many inocent investors

  2. Dear The Ace Investor, wonderful information on how free trial stock tips. It's a really eye opener. Keep it up your good work Sir. Thanks a lot for this useful information.

  3. awsome and simple explanations u need publish this on social media for benefit of investors

  4. Thank u Ace for exposing the modus operandi of these third rate mid night oprators and alerting retailers. Many thanks for your invaluable service to the investing community.

  5. I have also received calls from Indore. Sebi should take hard actions against these callers

  6. How can we register a case against them and to get our hard earned money back from these cheaters

  7. Till Traders / Investors who want Free Tips / Calls this kind of events will bound to happen , Need for spreading Awareness among Traders & Investors
    Well done Ace , Gr8 Job , Now at least many such Traders & Investors will b saved

  8. Right step of exposing the fraud. I also get the calls like these but didn't trade. Also feeling the same game plan going on.

  9. Thanks for this post ....sir please your view upon Tinplate Ltd. Tera software and kopran thanks sir.....

    1. Not tracking any of them.. replied about Kopran on Camphor post.

  10. Can we exoect any appreciation in ICICI BANK and AXIS BANK?and if yes, then how much percent?

  11. Thanks sir... Am holding Pantaloon fashion sir how was result today and is it good to hold or swap to other.. If so please recommend a valuable pick of midcape

  12. dear ace sir
    it is really wonder ful service providing to small investors. As you explained about page industries, we would like to know from you about the business prospectus growth potential and skm stock future from you sir?
    SKM is reacting immediately after quarter results, just recently it touched high at 225 and aftre qtr results it is falling fastly.
    please guide us and it is one of your best suggestion stock,
    looking forward
    Tirupati Rao

  13. after result what is your view upon SUBEX LTD. Thanks

  14. Sir Ji how was SUBEX result what is your view on this... Please your view upon shiping corporation of India thanks

  15. This comment has been removed by a blog administrator.

  16. Sir, plz share your views on Pincon Spirits....can it be another GM Breweries in making ?

    1. Stock posted on blog at 115 before bonus, now 100+ after bonus, enjoy :)

  17. Hi
    What is ypur view on Keerthi Industry??

  18. Great article ! Being a solo retired. I just do regret you didn't publish it 20 years ago, maybe it would have helped me to retire in better conditions than I did. Thanks anyway, for others...

  19. great info share by you........