<#-- Rebranding: Header Logo--> <#-- Rebranding: Footer Logo-->

Is this a sound investment, or one that should be avoided?

A friend approached me with an investment opportunity and I would like to know if it sounds legitimate. It involves investing in a company that engages in proprietary trading of international currency, by being a lender to the company. The company guarantees 12 percent or 25 percent of the spread, whichever is greater. As a lender, you are given a 90-day perpetual note that automatically renews. If you choose, you can call in the note at any time, at which time it reverts to a 90-day note. At the end of 90 days you can get all of your money back. If you want to, you can take out any interest you've earned each month. You can view how much interest has been deposited into your account on a daily and monthly basis.You can also participate by rolling over existing IRA accounts to a self-directed IRA company. The trading company is regarded as an institutional account and is approved by the IRA company. If you choose, you can have the monthly interest you earn sent back to your account at the IRA company to make other investments. Does this sound like a legitimate investment opportunity?

Investing, IRAs, International / Global
Sort By:
Most Helpful
4 weeks ago

Look at it this way. To get a legit guaranteed rate of return, you are looking at 3% or so interest. So let's look at this from the investment company perspective. If they had such an investment vehicle, knowing that 3% is a competitive rate, why would they offer you 12%? They could offer 6% and have investors lined up outside their door, and add 6% to their profit margin. That's just good business. Plus if they could get a legit 12% they would probably limit investments to a minimum of a billion dollars or so, and still have investors lined up. 

Without going into detail, the whole premise of lending and currency trading makes no sense. Why would a trading company pay 12% interest plus a share of earnings for capital? And guarantee it? They don't need to. Money is available a lot cheaper to legit traders.

There must be some sort of offering or legal documentation. I would love to see it. Can you email or snail mail me a copy? I worked with our local prosecutor's office prosecuting a case very similar in description. If this is as bad as it sounds it should be referred to a prosecutor or state securities division.


203 W Franklin St.

Centerville Oh 45459

4 weeks ago
November 2018
November 2018
November 2018