While talking to a businessman I have no close connections with I discovered that he is invested in a private South African / Mauritian Forex Trading Fund. I currently live in Mauritius so am able to talk in person with an owner. There is not much public information available as fund is a closed one and is "invitation based". According to the owner and 5y report he has provided:
- Minimum investment is 10k USD
- Returns can be withdrawn every month and initial investment - after 3 months period
- The company has being on the market for 10 years
- According to the report, monthly returns range from 1% to 6% averaging at around 40% annual growth.
- They provide an access to the dashboard with realtime overview of trades.
If there is no such thing as "trust" in this sort of things, how can I minimise a risk of fraud/pyramid, etc? Are there any official (authorities level) documents/registrations/financial reports that these companies should be able to provide apart from self written documents? Should there be a public agreement that can be provided to local law enforcement in case of a fraud? May be what questions should I be asking myself and the company to get closer to the clear picture.
Apart from the risk of scam I realise that currency trading is a hight risk business, and I'm not going to invest amounts of money that I'm not ready to lose.
Thanks in advance for any useful advices.