Genius Funds: Forex beware
I have received more surprising responses to my series on Genius Funds. You will recall that we issued a temporary order against this Cyprus-based company citing its breach of various securities laws. Since then New Brunswick and Manitoba have both warned investors not to do business with this Cyprus-based investment fund.
One comment, in particular, interested me: “… managed forex account opportunities if you know where to look that offer 25-40% returns.” This was in response to me saying “in my view, whopping returns of 1.9% daily and up to nine percent weekly are impossible to achieve.”
So let’s talk about FOREX, which stands for foreign exchange, for a minute. The forex market is about changing currency for another by simultaneously buying one and selling another. Profit and losses are dependent on the fluctuations in the exchange rate between two currencies.
Before you invest in the FOREX market be aware that:
- The forex market is complex and volatile – it takes expert knowledge to track and understand the many variables that affect currency exchange rates. Without this knowledge, you are likely to lose your money.
- There are forex scams – the promise of high returns with low risk in the FOREX market is a red flag that the opportunity may be a scan.
- Trading on borrowed money can increase your losses – the more money you borrow to invest in the FOREX market, the higher the risk of losing it.
It does not take a genius to question such high returns – returns that are higher than any bank or financial institution can offer. It just takes common sense.
With the temporary order, Genius Funds cannot engage in any investor activities in the province of BC. Nor can it trade in securities. Tell your friends. Do not do business with Genius Funds. Check out our program Protect Your Money it will help you do your homework.
To read previous posts on this and other topics, click on Let’s talk about investing.