Finding Legitimate High Yield Investing

Although high yield investing sounds like a lucrative way to trade, it involves greater risk. Due to the growing number of investment frauds associated with high yield investment programs (HYIP), many investors should shy away from these ventures.

There are ways to find a legitimate high yield investments and avoid being victimized by HIYP scams.

Avoid Too-Good-to-be-True Investment Return Promises

Be cautious of companies promising higher return rates than the normal. It is a scam when the return of investment (ROI) offered is so high that even you have a hard time believing it. When a scam artist offers a weekly return of 50% or more, that's a red flag. Also look out for an ROI history that is too consistently good.  If HYIP has always had exactly 20% yearly returns, it is also probably too good to be true.

Investigate the Company and its Investing Background

One major rule in high yield investing is to investigate the company's background, more so when it is unknown to you. Check if the prospective company, broker, or adviser, is registered with the Securities and Exchange Commission (SEC). If you find companies with suspicious addresses like a PO Box only, hold onto your money. Conduct more research until you will have full knowledge about the company you plan to invest in. To find companies registered with SEC, go to

Demand Transparency in Every Investing Transaction

Plunging into high yield investing demands transparency. You are putting your money at risk. See to it that the HIYP you are planning to put your money in establishes complete transparency in every transaction it makes. Ask for contact information like a phone number, physical address and email. Their willingness to give you the information you want is a good sign. However, you still need to verify the veracity of each contact detail they give you. Then, find reliable references, like the list of people investing in the company. Research them. This is one way to make sure you are not scammed.

Beware of Getting Over-Excited With High Yield Offers

Expecting a higher return with high yield investing is normal. However, scammers take advantage of this idea. They lure you with a promising profit that makes you want to start investing right away. If you are not excited enough, they set ultimatums. These fraud experts set their own appointed time and demand that you should throw your money on the table or else you will lose the opportunity. Investing involves waiting for the right time. Patience, not urgency, is key to successful investment.

Study the Proposed Investment

Know and learn the basics of high yield investing. People dealing fraud transactions are smooth talkers. They will tempt you with highly technical terms. If you don't have knowledge of what they are talking about, your ignorance will deliver you into their trap. Take time to study the investment offered. If you are confused and have concerns, don't hesitate to ask. Let everything get clarified. If you still have uncertainties after scrutinizing the proposal, trust your instincts. Don't invest.

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