Investing term

What is Investment scam?

Any pitch or scheme designed to take your money without delivering real investment services.

An investment scam is any scheme designed to take your money under the guise of investing — fake brokers, Ponzi schemes, pump-and-dumps, romance-baited "opportunities." The common threads are promises of high returns with little or no risk, pressure to act fast, and obstacles to withdrawing your money. If it sounds too good to be true and rushes you, it's almost certainly a scam.

For example

A "guaranteed 2% a week" platform that's easy to deposit into but impossible to withdraw from is a textbook investment scam.

Investment scam is taught hands-on in Stage 9 — Fees, Scams & Protecting Your Money.

See the lesson →

Related terms

ChargebackA consumer protection on credit-card transactions that lets you reverse fraudulent charges.Fee dragThe cumulative effect of every fee you pay on the return you actually keep.FX markupThe gap between the true (mid-market) exchange rate and the rate your broker gives you.Inactivity feeA fee charged if you don't trade enough times per year.
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