Unfortunately, many different sites and companies are out there that are not legitimate.
Fly-by-night scam artists appear on the internet every day, take all they can get before someone
is on to them, and then run off with your hard-earned money. This is something to be wary of
and can be avoided through a little investigation as opposed to using blind faith.
There are some specific things you can do and some specific things you can look for to help
avoid common Internet trading and investing scams. These can range from doing some simple
research to in-depth investigations. For example:
- Is the company or organization registered? If you want to see it, check the SEC's EDGAR
database. (http://www.sec.gov/edgar/quickedgar.htm) - Find out if the firm or the individual who is selling the investment is legitimate. Do not be
afraid to ask questions and to look them up to see if they are telling you the truth. - Remember that high-yield investments typically come with high risk. If someone is
promising you a lot of profits with little risk and little work, you should be wary. - Avoid dealing with companies or individuals that refuse to give you information about
them or reuse to answer your questions. - Get all the facts about a company before you ever give them any money.
When you take your time, do some research first and follow the tips above, you can help reduce
your chances of falling victim to a scam. Never give up your personal information such as bank
account and other information to a company or broker that you don’t fully know or trust.
If you do feel that you are a victim to a scam or have discovered an agency that may be
illegitimate, you should report it right away to the proper authorities. When people report these
scenarios, it makes it easier to catch and stop scam artists.
Remember, choosing a broker is an important part of your online trading, but when you find a
good one that you can trust and enjoy working with, you will remain with them for a long
time. Take the time and effort to choose the right one for your needs and you won’t
regret it.
