Amid low interest rates and lacklustre performance from even the best bank accounts, more and more people are starting to look elsewhere for better returns on their savings. While there are a lot of opportunities to choose from, there are also plenty of unscrupulous people waiting to take advantage of all the people looking for a place to put their money. You should approach all apparent alternatives to traditional savings strategies with care, and be particularly wary if presented with an of the following:
Forex or FOReign EXchange involves trading your funds between different currencies to take advantage of fluctuations in exchange rates and ultimately increase their value. This can indeed be profitable, but it can lose you just as much money if you make the wrong decisions. Sometimes, the less-than-scrupulous parties taking advantage of first-time investors are not outright scamming them, but rather understating the hazards of a risky investment. For whatever reason, forex seems to be used in this way particularly often. Despite what the ads say, there is not really any such thing as “easy” forex. There are online plenty of online platforms that make the actual currency transfer easier, but these don’t make it any easier to succeed. If you are fully aware of the risks, believe you may be able to succeed, and want to try your hand at forex, there is nothing actually wrong with this type of investment. However, avoid any company that makes it sound like a get rich quick scheme.
Free Pension Reviews
It’s not just savings from the bank that may be targeted, but also savings for retirement. If you are ever offered a free pension review, avoid it. There is no such thing as a pension review that is free, but it is a popular ploy used by dishonest “experts” to gain access to your pension pot. Unlike the “easy,” “get rich quick” forex companies, these are normally outright scammers who will actively mislead you instead of just downplaying risks. Often, they claim to be associated with or approved by the Financial Conduct Authority (FCA) or to be acting on behalf of the government – claims which have no element of truth at all. Their aim is to persuade you to allow them access to your pension fund or to self-invest it in unregulated and highly risky assets in which they have a financial interest themselves. The result is that they profit while you risk losing all of your retirement savings.