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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  • Returns can be withdrawn every month and initial investment - after 3 months period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.

  • Monthly returns of 1 to 6% and 40% annual growth seems more like a Ponzi scheme than a forex trading scheme, – Dilip Sarwate Feb 20 at 3:58
  • @Dilip Sarwate I guess there is no reliable way to verify that? – Vlad K Feb 20 at 9:20

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