Negative interest rates are affecting savings accounts, prompting investors to re-evaluate their strategies and consider high-risk investment opportunities such as venture capital, emerging foreign markets, binary options, and cryptocurrencies. While having cash in the bank still provides security, it may not be the best long-term investment policy.
Investors must decide between risky investments with high returns or safe options with lower rewards, or a mixture of both. However, high-risk investments come with the potential for significant losses, and caution is necessary. Learn more about your options and how to stay safe in the world of financial investment.
What Are Your Options?For High-Risk Investment
Before you make any decisions on your investment strategy, you should be aware of all the options. That may sound like an obvious thing to say, but many people are unaware of all the different types of financial products available. As an example, a corporate client who leaves money in a savings account for reasons of liquidity may actually find that government bonds deliver higher yields with the same levels of access.
The other important factor at play here is that financial markets never stay still. Granted, the old investment staples of stocks and bonds continue to be popular, but new markets and opportunities are springing up all the time. A few short years ago, very few people invested in cryptocurrencies, but now they’re the latest thing.
So look at all the options: from traditional staples like forex, stocks, bonds, mutual funds and index funds, to more exciting options like venture cap, emerging markets, binary options and cryptocurrencies. It all depends on what sort of investor you are: someone who likes the thrill of a high-risk investment, or someone who prefers a safer, more conservative approach.
Regardless of which type of investor you are, there’s one piece of advice that holds true across the board: only ever invest your money with a registered company. An unregulated broker might promise you the moon and stars, but the world is full of people who have lost all their money after investing with a fraudulent company. You have been warned!
The Benefits Of Consulting With A Professional For High-Risk Investment
The benefits of choosing a registered financial professional far outweigh the risks of working with an unregulated broker. First, you can be sure that you’re working with an experienced, qualified expert: you can avail of their specialist knowledge for advice on your portfolio, taxation and investment options. Next, you have the security and peace of mind that come from working with a company that conforms to industry regulations. And finally, if anything does go wrong, you at least have some form of a comeback with the regulator.
Everywhere you look, there are hard-luck stories of people who lost everything by working with unregulated brokers and traders. Don’t fall for the hype, and don’t be taken in by the promise of unreal returns: stay safe by choosing a registered professional!
Risk And Return: Your Choice
For investors who like to stay safe and play the long-term game, the solutions are clear: savings accounts, government bonds, securities and the like are lower yield, but they offer high security. If you’re prepared to take a risk with your money, however, you could win big. The riskiest investments might see you lose everything… but equally, they could end up making you very rich indeed!
Here are the pros and cons of some of the more exciting forms of investment, with a high-level assessment of the risks and potential returns involved:
Venture Capital
Pros: Chance to be in at the beginning, enjoyable to see your investment grow
Cons: Longer-term investment, most start-ups fail
Risk: Medium
Potential Returns: Medium to High
Emerging Foreign Markets
Pros: First-mover advantage, huge opportunities
Cons: Exchange rate fluctuations, political instability
Risk: Medium
Potential Returns: Medium to High
Binary Options Trading
Pros: Quick and easy trading, not dependent on what’s happening in the markets
Cons: Rigged options, prevalence of scammers
Risk: High
Potential Returns: High
Cryptocurrency Trading
Pros: Growing market, quick liquidity
Cons: Volatility, prevalence of scammers
Risk: High
Potential Returns: High
What To Do If You’ve Been Scammed
High-risk trading attracts both investors hoping to make a fortune and scammers looking to prey on those who may not understand the market. If you think you’ve been scammed, contact your broker or national financial regulator for recompense.
However, if you’ve been working with an unregulated company or a broker overseas, you may have no means of redress. If you’ve been scammed in cryptocurrency or binary options trading, a dedicated funds recovery expert like Reclaim Expert may be able to help.
Their legal and financial professionals have the expertise to recover your money where other approaches have failed. Don’t hesitate to speak with them if you’ve been scammed in any financial trading.