Investment fraud is happening all over the world. In particular, investment fraud has become a serious problem, as it is now commonplace for people to invest without showing their faces and then escape. Among the investments, stocks and Forex can get big returns if you can win. However, these investments called trades are not guaranteed principal. It is a possible investment that the entire amount disappears. Therefore, it is 100% fraud that claims a principal guarantee.
What is a principal guarantee? After investing, make sure that you do not fall below the original funds. Financial products that are touted as a principal guarantee type include deposits and savings at banks and government bonds for individuals. Only officially licensed financial institutions (banks, post offices, credit unions, credit unions) can guarantee principal and collect money. However, there is no guarantee of principal for stocks, FX, virtual currencies, etc. It may increase or decrease depending on the price movement of the currency during trading.
Principal guarantee is fraudulent in stocks and FX
There is no principal guarantee for stocks or FX. The prices of stocks and currencies that you bought basically fluctuate during trading. In other words, the value may go up or down. Therefore, it is possible that the entire amount will be lost or that the principal will be doubled. There can be no principal guarantee in such a fluctuating market. Services and information products that claim principal guarantee in such trades are 100% fraudulent.
Scammer solicitation complaints
Fraudsters who provide information products such as stocks and FX and trading services are cultivating new users with solicitation phrases such as “absolutely profitable” and “guaranteed principal flowers”. There is absolutely no such thing in the world of trading. In particular, it can be a big loss and a big profit. Even big investors can earn at most 20-30% annual interest. Sometimes you can make a lot of money, and sometimes you can lose a lot. If you see a suspicious solicitation, never touch it.
For stocks and Forex, returns and risks always occur with the same probability. This is an absolute law and cannot be changed. In other words, it can’t work like a scammer’s solicitation. Experienced traders can make a profit, but beginners can’t suddenly get big results. It is a tough world where it takes several years for even big investors to make stable profits.