Before You Pay for a Trading Course: What SEBI's Data Shows and 8 Checks That Protect Your Money

A two-day trading workshop for ₹60,000, a "mentorship" for ₹1 lakh, a Telegram tips group for ₹5,000 a month: these are common offers. Some teach genuine basics; others mainly sell the dream. Before deciding, look at what SEBI, the market regulator, found when it studied actual trading accounts.

What SEBI's studies show

Futures and options (F&O)

SEBI's studies of individual traders in equity derivatives found:

Other findings from the 2025-26 analysis:

• The average loss was about ₹1.17 lakh per trader.
• Options accounted for about 92% of individual losses, and about 97% of traders were mainly option buyers.
• Of traders who lost money for two years in a row and kept trading, about 90% lost again in the third year.
• Traders paid about ₹25,000 crore in transaction costs in a single year.
• Younger, lower-income traders with small portfolios traded more aggressively for their means, so losses hurt them more.

Intraday trading in shares

SEBI's study of the equity cash segment found that over 70% of individual intraday traders lost money in 2022-23. Among those making more than 500 trades a year, about 80% lost, and loss-makers traded more often than profit-makers. Traders under 30 made up 48% of intraday traders, and 76% of them lost money.

These are not opinions; they are SEBI's analysis of actual trading accounts. Any course that implies most of its students will earn steadily from trading is promising to beat these odds.

What costs do to a small account

Every trade carries brokerage, exchange charges, taxes and GST, whether you win or lose. Our illustration assumes about ₹60 per round-trip trade for a small options trade:

The chart above shows the same thing. On a ₹2 lakh account, five trades a day means you must earn about 37% a year just to cover costs. Add a ₹60,000 course fee and the first-year hurdle is over 65% before you make a rupee. This is why frequent traders lose more often.

What SEBI's rules say about "educators" and tips

• Advice needs registration. Anyone giving buy or sell recommendations or personalised advice for a fee must be registered with SEBI as a research analyst or investment adviser.
• Education is different. Under SEBI's January 2025 rules, people presenting themselves as educators may use only market data at least three months old. They cannot give advice, recommendations or claims of returns.
• Registered firms cannot partner with unregistered tip-givers. SEBI-registered entities may not associate with unregistered persons who give advice or claim returns.

So a "course" that gives live trade calls, shares today's stock picks, or shows off returns to attract students is outside what SEBI permits for unregistered educators.

Eight checks before you pay

• Registration: if they give any tips or calls, ask for their SEBI registration number and verify it on SEBI's website.
• Verified track record: ask for a broker-generated P&L for two to three years, not screenshots of winning trades.
• No guaranteed returns: any promise of fixed or "assured" monthly income from trading is a red flag.
• No live calls under the name of education: education uses old data; live calls require registration.
• Refund terms in writing: before paying, get the refund policy, duration and what is covered on paper or email.
• Never share access: do not give your trading account login, OTP or API keys to anyone, and avoid "algo" services promising sure profits.
• Pay traceably: pay the company's account with an invoice; avoid cash and personal accounts.
• Read independent reviews: search for complaints, not just testimonials on their own pages.

A cheaper way to learn

If you want to understand markets, you do not need to start with a large fee:

• Exchange investor education: NSE and BSE run free investor awareness material and programmes.
• Recognised certifications: NISM, set up by SEBI, offers certification courses and exams on securities markets and derivatives at modest fees.
• Paper trade first: practise on paper or with very small amounts for months before risking real money.
• For long-term wealth, a simple index fund SIP has a far better record for most people than active trading. Our SIP guide for beginners explains how to start.

If you have already been cheated

1. Stop paying more, even if they promise to "recover" your loss for a fee.
2. Keep evidence: payment receipts, chats, call recordings, website and group screenshots.
3. Report online fraud at cybercrime.gov.in or call 1930 quickly.
4. Complain on SEBI's SCORES portal if the person or firm is SEBI-registered, and file a police complaint for cheating.

Final word

Trading is legal, and some people do make money at it. But SEBI's own data shows that the large majority of individual traders lose, frequent traders lose most often, and costs alone can wipe out a small account. Treat any course that promises to change those odds with deep suspicion. Check registration, demand a verified record, keep your money and account access in your own hands, and for building long-term wealth, consider the slower route that has worked for far more people.

Being offered an "AI" or "fully automated" algo trading system? See our algo trading webinar checklist.

To work out the exact charges on your own options trades, use our options trading charges calculator.

This guide is general information, not investment advice. It does not refer to any particular trainer, course or company. Market rules and charges change; check SEBI's website and your broker's charges for current details.