3 Tips to Avoiding Financial Scams

If you are an investor, there are going to be a fair amount of financial scams that find their way to you. In order to preserve your money, you need to avoid these scams at all costs. Here are a few tips on avoiding financial scams.

1. BrokerCheck

BrokerCheck is a tool that is offered by FINRA that allows you to check the background of your financial broker. In this way, you will be able to find out exactly what they have done the past and if there are any question marks that you should be aware of. This is a very valuable tool for you to use when trying to avoid scams.

2. Start Out Small

Whenever you are considering investing in an opportunity, you might want to start out by investing a minimal sum of money. Then, you can gauge the performance of the investment to determine if you want to put further resources in.

3. Avoid Solicitations

Typically whenever someone is coming to you asking if you want to invest in an opportunity, there is a chance that they are a scam artist. You can find a legitimate investment opportunity, but they will not beg you to invest with them.

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