Look at these returns. Ance Finance.com 6% hourly for 21 hours, 135% after one day, 75% daily for 2 days, 175% after 2 days.

ChokoMoney 135% after 7 days, $3,000 maximum deposit. Wow!

These high yield investment programs (HYIPs) are promising more than what you could make on a lucky day gambling in Vegas. This Vegas Guide and Gaming Tips website suggests you can get about:

  • 1.4% playing craps (drops to about .7% with odds bets)
  • 1.5% playing blackjack
  • 5.3% playing Roulette.

Some of those percentages are similar to the daily returns that some of the HYIP schemes promise. Do you think you could beat the house in Vegas every day? No? Do you believe the HYIPs can beat the house every day? Neither do I. The HYIPs promise unbelievable returns that are, in my opinion, complete fiction. (HYIPs are according to Wikipedia, a “type of Ponzi scheme.)

What’s the difference between gambling in Vegas and investing in a HYIP scheme? In Vegas, you know the odds are stacked against you, but at least you have the chance of winning and having some fun in Vegas. With a Ponzi scheme, you stand to lose everything when the scheme collapses. And that is not fun.

Suggested Reading

BC Securities Commission launches province-wide TV campaign

Some tips on increasing your investing literacy

Is there such a thing as a good HYIP?

More Resources

BC Securities Enforcement Roundup – November 2013

In November 2013, the BC Securities Commission issued two notices of hearing. The Commission also updated its investor communication pages and issued an Investor Alert on Mission Mining Company. The Investment Industry Regulatory Organization of Canada (IIROC) released two accepted settlements in November 2013 relating to BC resident firms. The Mutual Fund Dealers Association (MFDA) […]

Protecting Canadian Investors

  The recent collapse of MF Global once more reminded us that we have in place an important safety net for investors whose brokerage firm faces bankruptcy. MF Global, as US based securities firm, collapsed on October 31, 2011 after making disastrous bets on European debt. Its Canadian subsidiary filed for bankruptcy four days later. […]