In the internet era, it is indeed a tough job to find the right financial market advisory services in the country. The business of proffering advisory services is almost mushrooming everywhere. But if your actually looks closely to it, you will see that none of these businesses have the sound base, without even having a proper website. And the so called Tips Providers starter emerging into Social Media(Facebook, Twitter), Whatsapp, Free Blogger Blogs, Email and SMS based Tips, Tips on Yahoo Messenger.
So Who are these guys providing free/paid tips to the people?
– Probably the Sub-brokers/Authorized Person of Broker who want to attract people to grow his brokerage business. Mostly they open free blogger blogs and will be filled “Tips” sort of content and the main intention to provide Tips is to get new clients for his Brokerage Commissions.
– Financial College Graduates those who considering themselves as Super Tips Providers and started educating ignorant people and some times the reversal happens. The ignorant people approach MBA/Financial Grads to get some tips as they know the market better than them-self.
– Those who lost the money in the market and now they want to survive (Mostly they would had lost all the money and in a big debt and have to survive at any cost)
– Newbie Traders who consider themselves as Market Predictors after their 4-5 success. That make them feels like a “Super Market Predictors”
Whom are their Targets?
Generally they are targeting the mass. However the people who are falling prey to such guys are mostly Beginners in Trading and Investment, looking for some sort of advices to understand the market and to make money or those who lost money and want to get back in a very short amount of time are urging themselves to look for a Tips Provider who can guide them in earning money and Recovering their losses.
How do they Advertise to the People?
Following are some of the sample taken from Social Media(Facebook Groups) where these day i feel lots of such fake advertising occurs
– INDIA BEST BUY SELL SOFTWARE FOR MCX,NIFTY,NSE, BSE,SHARE MARKET,CDS(currency) ACCURACY FOR 96% only profit no loss call for live demo
– YESTERDAY MCX PERFORMANCE ROCKEDDDD!!!!! GOLD,SILVER,NG,LEAD INTRADAY PROFIT RS.64000 IN 1 LOT VISIT OUR TRACKSHEET JOIN AND ENJOY BIG PROFIT
– WE GIVE SURESHOT CALLS (MONEY BACK GUARANTEE) IN STOCK FUTURE AND OPTIONS. THESE CALLS ARE 100 % GUARANTEED CALLS.
-You dont need any Trading Skills, Zero Education, Zero Knowledge and you have to use their methodologies/System and you can earn huge Money.
How we can identify them?
– Social Media Fake Profile ( Most Probably in the name of Girl identifying herself as Student or Financial Advisor)
– Keep on Providing Tips in the Social Media Group to Gain Attention
– Saying impossible stuff like 95% accuracy, Money Making Machine, Amazing Trading system that made him millionaire overnight.
-Showing Fake Contract notes and Fake Performance.
But the question remains the same, in spite of the absence of a rock solid foundation to these financial advisories, how they run so smooth and successfully. The first and foremost reason behind this is the absence of proper guidelines that regulates these bodies. However, there are some guidelines, which are not enough and sufficient to take care of the growing number of financial advisories. Most of them say, “The advisory is not responsible for any loss you incur. Invest at your own risk”. Now comes the question if these advisories are not responsible then why are they charging their clients.
Another reason for the growth of this kind of businesses is indeed the investment part. To start up with a financial advisory in India, an individual hardly needs any investment. It is a complete zero investment set up(free blogging websites and Advertising in Social Media by providing tips or Claiming Enormous profits their system or they had made). If anything one needs to invest to open up an advisory like this, it is just their time. On the other hand, this business allures for a good profit margin. The quality of services these companies would provide is inconsequential, as once they get paid for the services, the client is not going to get his money back, even if nothing turns up the right way.
Furthermore, the most crucial reason behind the growth of this unending financial advisory throughout the nation, is the ignorance of the investors. As these companies get investors, for the first time, they provide them with free services, which is indeed alluring and slowly they take them into the trap. Once they are in, the quality of the services degrades, which eventually ends up with a huge loss incurred by the investors.
The number of financial services agencies are increasing with each passing day and it is indeed difficult to find out the right one among them. Not every single advisory is fraudulent, there are genuine services providers as well.
It is important, before choosing any financial advisory on needs to find out few things about the advisory to be sure that you are investing in the right one.
The first thing that needs to make sure is that advisory is having an authentic website. Most of the deceptive advisories use free websites(free blogs) to catch clients. Once you verify the website, look out for the issues that probably your advisory is trying to hide from you. Also make sure that verify the advisory over public forum such as twitter or Facebook. Social media is becoming one of the most important weapons these days.
It is imperative to verify the educational qualification of the analyst. If the analyst himself lack knowledge, how would they analysis the financial market.
There are many deceitful agencies that cheat the investors as they lack knowledge in the financial market analysis and come to them for help. A thorough research before relying on any investment advisory is required to stay away from loss.
So what are the otherways these fake advisories target people and how the ignorant people lost their money? Did you crossed anything such then post your experience here.