Investors want to make money. High-risk investments offer the potential for fast returns. Low-risk investments offer slow returns over time that are safer for a well-rounded portfolio. When you choose high-risk trading systems, you’ll need to dodge scams along the way.
If you want to avoid being another statistic in the online world of scams, you need to play it safe. How?
IMAGE: PEXELS
1. Research A System Before Opening Up Your Bank Account
If you don’t want to become part of a scam, the first and best thing you can do is research. A lot of people fell for binary option scams, and there were two main reasons for this:
- Lack of research
- Potential for fast money
If you want to safeguard your money, learn the basics of investing first. There are a lot of great resources at your disposal, such as:
Your goal is to learn about any investment vehicle that you might want to invest in. If you want to become a forex trader, learn the basics before diving into the process. The same goes for CFDs, stocks, bonds, indexes and even REITs.
2. Check for Trial Periods And Utilize Them
Trial periods or free accounts are a great option for most investors. When you have the opportunity to use a trial or free account, give it a thorough test drive before plunking any serious amount of money into your account.
I recommend:
- Reading the terms of service
- Reading the terms and conditions
You need to be sure that you’ll be able to get money out of your account. A lot of the scams in recent years make the investment look real. You’ll make trades, see the balance in your account rise, and then when you go to request your money, you’re left stranded.
If your money is stuck in an account, it’s worthless.
I recommend trying to withdraw some of your money from your account.
When you can withdraw money, that is a good sign that the trading system is legitimate. Just always look for complaints first to avoid losing any of your potential winnings.
3. Investigate Any Company That States They’re Registered By The SEC
The United States Security and Exchange Commission (SEC) passed laws in 1934 under the Securities Exchange Act that requires certain public investments and trades to be registered with the government first.
And this has led to a lot of scammers choosing to state that they’re registered with the SEC.
There are a lot of other regulators across the world that have their agency’s names used illegally to give their platforms a sense of legitimacy.
The good news is that all of these agencies have ways to verify registry. Contact the respective agency or visit their website to see if a company or investment is truly registered.
If you do become involved in a trading scam, you’ll want to take action immediately. It may be impossible to get your money back, but you can file a complaint with the FTC if you’re in the US, or with your respective trade commission.
For more business-related stories and information from us here at Bit Rebels, click here.
3 Simple Ways To Avoid Investment Trading Scams
COMMENTS