How to spot online investment scams?

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Finding ways how to grow your hard-earned money can be challenging, especially since these types of “lessons” we don’t really learn in school. Financial blogs and articles would point to real estate, mutual funds, stocks, and other trading instruments as ways to achieve financial security. 

Each type of investment has its own advantages and disadvantages and it is crucial that you learn which one is best for you. Here at SmarTrade, we offer free financial education that is hinged on empowering our clients to manage their investments if they are into online trading. 

Online trading has been a buzzword, especially when the cryptocurrencies and bitcoins of the world became so popular. However, we have to warn you, that when dealing with these instruments, it is important to know that there are scams going around promising easy and guaranteed returns, especially to those who are just starting out.

In this blog post, we will share with you some pointers on how you can avoid these investment scams that are targeted at newbie investors.

The first red flag is when a company does not have any credentials to back its business up. Experienced traders deal with companies that have been operating for years and constantly monitor the company’s legitimacy. In the age of social media, it is easy to research about these companies and whether they have the whole infrastructure to handle your investments. Make sure that you avoid companies that have no digital footprint at all because chances are, they may be “fly by night” operators. 

Individuals and companies who offer guaranteed and “risk-free” returns on your investment are to watch out for. While the world of trading is lucrative, no expert trader should tell you that everything is guaranteed and “risk-free.” Trading, in whatever form, always carries risks and that is why we educate our clients about this through our free learning sessions on risk management.

Our SmarTrade financial coaches would always tell our clients that trading is not a get-rich-quick scheme. It takes careful study of the market, the instruments you want to trade, the global financial climate as a whole, and many others. It requires a balance of taking risks and knowing when to pull back and you need strategies on how you can move from being a novice trader to becoming a pro.  If you want to dig deeper into the world of online forex trading and how you can decide which online trading platforms are legitimate, join our free forex training and learning sessions and register through our website today.

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