The world of investing is so daunting for people that don’t have any experience. There’s always a fear that you will lose all of your money, which stops people from ever trying in the first place.
But if you do decide that you want to get into the investing game, there are a few things you can do to reduce the risk. First up, make sure that you do your research so you know what you’re doing. Second, work with an investment company that can make investments on your behalf. When you have an expert handling your money for you, you’re far more likely to make a profit.
However, just because somebody sets up a company and starts giving investment advice, that doesn’t mean they’ll make you a millionaire. So, you still need to do your research. Here’s how to work out whether an investment company is reliable or not.
Make Sure They’re Certified
Firstly, you need to make sure that they have the right certifications, so they can legally operate as an investment broker. They need to be authorized by the FCA (financial conduct authority) if they are offering financial services. You should also check the qualifications of the people that will be handling your money. If they don’t have any formal qualifications, do you really want to trust them with your money?
Check Out The Owner
Finding out more about the owner of the investment firm is a good way to gauge whether it is reliable or not. You can check out the Wikipedia page of most successful owners of investment firms, like Adam Blumenthal, for example. If they have a lot of experience and they manage money for a lot of people, that’s a great sign. But if they don’t have much experience at all, they might not have a clue what they’re doing.
Look Out For Signs Of Investment Scams
There are a lot of opportunists out there hoping to take advantage of people that are new to the world of investing. When you are trying to find an investment company to handle your money, you should always watch out for the common signs of scams.
As a general rule, if it sounds too good to be true, it probably is. If somebody guarantees you that they’ll double your money in a year or they start throwing specific figures at you, don’t trust them. You can never predict exactly how investments will behave and although predictions can be made, there are no guarantees. You should also be wary of anybody that tells you they have great investment opportunities that everybody is getting in on, without really telling you about why the investment is so great. They just keep focusing on the fact that everybody else is benefitting to make you feel as though you are missing out on something. Finally, don’t deal with anybody that puts time pressure on an investment opportunity and tells you that you have to put your money in right away.
As long as you do your research first, it’s safe to hand your money over to an investment company, so make sure you don’t skip any of these steps.