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9 Tips to avoid scams

To best protect yourself from scams in the trading world, here are some measures to take:

1 – Lack of information is the investor’s first risk Before trusting any broker, trading platform or automated system, do thorough research. Check their online reputation, read our reviews and those of other users. Don't forget to research information about the company or individual behind the service offered.

2 – Check approvals and regulations Make sure the broker or trading platform is regulated by a recognized financial authority. Regulators provide some protection to investors by ensuring compliance with standards and investigating questionable practices.

💡 Take the reflex to consult the AMF website to check these approvals.

3 – Caution when faced with promises of high returns Be wary of promises of quick and unrealistic returns . Financial markets involve risks, and no so-called “risk-free” investment can guarantee consistent and high gains.

To give you an idea of ​​the aberration that unrealistic returns can represent , here is an example:

A trainer promises you to earn 10% per month This means that an investment of €10,000 over 10 years would earn you… €927,000,000 Yes, almost a billion euros! However, this example allows me to remind you of the power of compound interest. You can use this compound interest calculator to assess the credibility of what you are promised.

4 – Focus on training and education Learn the basics of trading and investing. A solid understanding of financial markets and investment strategies can help you spot potential scams.

🚨 But be careful! Fake training is common and sometimes sold at high prices to appear more “credible”. You can already start with our free 7-day training to get the basics .

5 – Ask for references If you are considering hiring a portfolio manager or investment advisor, ask for references and inquire about their experience and qualifications.

🧐 And above all, cross-reference information because it is very easy to create fake profiles on social networks.

6 – Be particularly wary of unsolicited calls and emails Be cautious of any unsolicited calls or emails urging you to invest money. Scammers often use these methods to target potential investors.

Likewise, a common technique is to pose as an online bank or a well-known neobank (such as Revolut ) in order to offer you particularly attractive investments.

But it is generally enough to go to the website of the bank in question (or our reviews ) to verify that these investments simply do not exist.

7 – Use secure platforms If you trade online, be sure to use secure platforms with adequate encryption to protect your personal and financial information, such as double authentication. This will also make it easier for you to recover your account in the event of a hack.

➡️ We have checked the security of each platform in our comparison of the best brokers & stock brokers .

8 – Consult an independent financial advisor Before making any significant investment decision, consult an independent financial advisor . He will be able to provide you with personalized advice based on your objectives and help you avoid potential pitfalls.

9 – Listen to your instinct If something seems too good to be true, or simply raises doubts, don't rush headlong into it.

Take the time to think and find out more before sending any euro or your banking information.