SolutionsProp firmsLearnPricingSign in
Menu
Start free

10 checks before you follow a trading tip

Before acting on any trading tip, check who sent it and whether they hold a licence on the regulator's own register, ask for proof you can verify (a full trade history, not screenshots), and check the stock itself. Any one of these is an immediate stop: a guaranteed return, an unlicensed sender asking for money, or payment to a personal account or crypto wallet.

Checked 3 November 2026 · sources below

Download the 10 checks (PDF, 1 page) → Free, no sign-up.

Step by step

  1. Who sent it?. Write down the full name, firm and phone number. An unknown sender or a brand-new account is a warning.
  2. Is there a licence?. Look it up yourself on the regulator's register: SEBI in India, ASIC in Australia, the FCA in the UK, the SEC or FINRA BrokerCheck in the US. Type the address yourself; do not use a link they send.
  3. Do the details match the register?. Search by name or licence number. A match means the same name, number and contact details. Clone firms copy a real firm's name and number but give their own phone and email.
  4. Is the return guaranteed?. Licensed advisers are not allowed to promise returns. 'Sure shot', 'risk-free' or 'double in a month' is a stop sign on its own.
  5. Is there proof you can check?. Screenshots of profits are easy to fake. Ask for a full trade list with dates and losses.
  6. Are you being rushed?. 'Only today', 'last 3 seats' or a countdown is there to stop you checking.
  7. Where does the money go?. A personal bank account, crypto wallet or gift card is a stop sign. In India, SEBI-registered firms collect money through UPI IDs ending in @valid, which you can confirm with SEBI Check.
  8. Were you moved to a private group?. Moving from a public post to WhatsApp or Telegram is a common first step in group scams.
  9. Can you withdraw?. A 'fee' or 'tax' to release your profit is a classic sign of a fake platform.
  10. Does the stock itself check out?. Look up the company on the exchange website: recent filings, price and trading volume. A tiny company whose price and volume jump suddenly while tips spread is the pattern of a pump and dump, where the promoters sell to the people they tipped.

Red flags that mean stop at once

  • A promised or guaranteed return.
  • Paid advice from someone not on the register.
  • Payment to a personal account, a non-@valid UPI ID in India, a crypto wallet or a gift card.
  • A request for your OTP, password or remote access to your phone or computer.

For the other checks, two or more 'no' answers is a strong reason to walk away.

Words you will see

  • Clone firm - a scammer pretending to be a real licensed firm.
  • Pump and dump - promoters push up a thinly traded stock with tips, then sell.
  • Deepfake - an AI-made video or voice copying a real person.

Check a message for free

Not sure about a message? Tip Check compares it with red flags that regulators publish and points you to the right register for the sender. Treat its result as a list of things to verify yourself, never as a verdict.

Questions

Is every paid tip group a scam?
No, but in India only SEBI-registered research analysts and investment advisers may give paid stock advice. Check the registration first.
What if I already paid?
Stop paying, keep all messages and receipts, contact your bank at once, and report it: cybercrime.gov.in or 1930 in India, Scamwatch and ReportCyber in Australia, Action Fraud in the UK, the FBI's IC3 in the US.
Are tips from famous people safer?
No. Deepfake videos of well-known investors and celebrities are used in investment scams; regulators in India and Australia have warned about them.

Sources

Open Tip Check (free)

Free and private: paste the tip, read the red flags, then check the sender yourself.

Open Tip Check (free)