Scammers are actively taking advantage of the growing interest of Russians to enter the stock market. Residents of the Russian Federation began to invest more: at the beginning of December there were almost 30 million private investors and about 51 million open accounts on the Moscow Stock Exchange. Dmitry Evteev, an expert at the Main Directorate of the Central Federal District of the Bank of Russia, told socialbites.ca about five “red flags” that you should pay attention to when choosing an investment company or investment instrument.
The first signal is a guarantee of excessive profits. Investment returns can be predicted based on past performance, but cannot be predicted accurately.
The lack of direct contacts for communication and information about the investment instrument are two more “red flags”. Conscious brokers and management companies always talk in detail about the instrument or strategy proposed to invest in. Attackers will use language like “popular cryptocurrencies” and “shares of well-known companies.”
Also, you should not trust brokers who aggressively promote their products on social networks and instant messengers or offer bonuses to attract new people.
Before entrusting money to a company, you should check it in the alert list as well as in the records of the Central Bank, read investor reviews and carefully study the documents before making a deal.
“Do not put all your eggs in one basket, spread investments across different assets; If the price of some falls, others will rise. Think over every investment decision, do not give in to greed and panic – this will save you from many mistakes and help you wisely use the opportunities offered by the stock market,” concluded Dmitry Evteev.
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