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Investment Scams

How to recognize investment scams

Investment scams are the financial kind. Most people think that these are unfair and unjust things and should not happen in the first place, but they do happen. There are many legitimate investment opportunities.

The first thing you should know about investment scams is that they are very easy to detect. Most investment scams are disguised as legitimate opportunities to make money.

If you notice that someone seems to be trying to sell you a stock which never existed in the first place, that is an immediate red flag that it is an investment scam.

How to identify an investment scam

Investment scams that will steal your money are usually sold under false promises.

1. An investment scam usually starts with a low offer to start a purchase or trading.

Where you can find more information on investment scams

Learn more about online stock investing

Investing Tools

If you are planning to begin trading online, then you will need some tools to manage your money. After all, stock trading is not that simple and requires a lot of focus. And since you are new to the whole process, you don’t really have time to deal with this on your own. Trading software will ensure that you are given all the right tools to go about it efficiently. They will also help you learn as you go along so you don’t get tricked into selling stocks for a loss.

Additional information about online stock trading

These are just a few ways you can start investing in the stock market. Once you have the basics down, you can make an informed decision to invest in stocks.

How to avoid investment scams

Buying stock shares on the floor of the NYSE or other exchanges in the US or any other stock market should never be taken as an investment. When buying a share in an ordinary firm, the shares are insured. If the firm goes bankrupt, the investor will be paid back their money and their shares in full. However, stock in companies that are too risky or risky to invest in should not be bought at all. Such shares should never be listed on any major stock exchange. There is the chance that the shares are being sold at a bargain price to unsuspecting investors, but it is very risky to buy shares in a company that does not exist.

One should not invest in a deal that is too good to be true because it most certainly will be too good to be true.

Tips for avoiding investment scams

Choosing a registered agent who can help you

If you are an investor in an unregistered market such as the stock market, you need to select a representative who is a registered agent. These registrars are required to have a special license which can be obtained by getting an approval from the Financial Industry Regulatory Authority. The registration process will usually involve paying a registration fee. If you have any doubts, you can contact your local regulator to confirm whether or not an unregistered market has a registered agent.

Joining the appropriate self-regulatory organization

Self-regulatory organizations are organizations whose primary mission is to protect the public and investors.


Don’t get too carried away and take advantage of what comes your way. But don’t let a little challenge get you down. Knowing how to manage your time, your commitments, and your resources are all good strategies for becoming a more successful investor.