Having your own investment is truly a privilege. Not a lot of people can afford to have their own stocks, crypto, commodities, and other types of investments. So, if you have the means to invest in something right now, don’t hesitate to do it. For financial freedom in the future, you are encouraged to spend your money wisely on investments.
However, with all investments out there, how do you know if it’s the right investment for you? Or how do you know if it’s legit? Since a lot of people are still getting scammed while investing, here are some ways to identify a spot scam investment.
“Invest 1,000 pesos now and earn 150% in one week.” For those who are new to investing, don’t get fooled by company owners offering this kind of return. Obviously, this is some kind of a scam. Where will you get at least 50% of your capital without doing anything? Even businesses that have been operating for a long time don’t earn this kind of profit in one week. Too-good-to-be-true ROI is something that makes scam investments different from the real ones. Imagine the banks giving less than 1% interest for deposits. MP2 is currently at 6% dividends. If you are aware of such legit investments, you would know what promise is too good to be true.
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The heart of why I do these seminars is I want to build a generation of Filipinos with the right foundation in stock investing. I want to bring smart investing to every Filipino around the world! If you would like to know more about how you could time the market check out the training below.
Most investment companies in the country are known by the public and usually, they have been in the market for quite a while. This is why the reason why most investors don’t ask for legal documents from the investment company where they invest, because they know already that the company is legit from its established brand. So, how do you know if the company that is offering you investment has no legal documents? Simple, they will show you that they are registered to DTI and say that the SEC permit is ongoing. Most scam companies lure new investors with this type of tactic.
Agreements are made between investors and companies and are usually in writing. Scam companies don’t give contracts. They just promise that they will give your money back in 12 days. This is already a red flag. If companies don’t give contracts to back up the investments you made, then it’s possible that the company is just fooling you. If there’s no agreement, don’t ever agree to put your money in a company.
Another red flag that you should look into is the mode of transactions you do with the investment company. More often than not, transactions with scam companies are done online and via chat only. No emails, no personal meetings. If you try to ask for personal meetings, the owner would probably say lame excuses just so you can do the transactions online. The internet is home to many scams and fraud. You should protect your money at all costs and avoid scam companies.
eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs.
Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.