For centuries, investors have known of the benefits presented by joining investment clubs. With the advent of today’s current technology, online investment clubs are now gaining in numbers by the thousands. Unfortunately, this poses an increased risk of falling prey to unscrupulous people just waiting to pounce on unsuspecting inexperienced investors to take their hard earned money.
There are several ways one can find a legitimate online club and be assured they are investing their cash with a group that will produce profits.
Search online for existing investment clubs that are seeking new members. A club that has been around a while is more likely to be legitimate. Be sure to check their background by contacting the NAIC (National Association of Investors Corporation), using a search engine to search their name and the word “scam.”
Ask any club of interest to see the club’s “agreement” or by-laws. Reputable clubs will have a document which defines mutual goals of the club, outlining responsibilities, meeting agendas, etc. This will help in understanding if the club’s goals are in alignment with personal goals as well as providing proof that the club means business. A well organized club runs smoothly, with little or no disputing among members.
Interview other club members to make sure the overall atmosphere is healthy and everyone gets along. Warning signs would be if there is one or two members that are complained about by other members or if no one responds to inquiries.
Ask about their accounting practices. Legitimate clubs will have accounting software in place that provides accurate reporting, valuation, tracking of investments, pay-outs to members, etc.
Learn how the club conducts meetings: Are they online in a chat room? Are meetings conducted via telephone? Are they using an online club forum?
Online investment clubs are a great solution for those investors who do not have the time to meet face-to-face with other members, but still want to expand their own knowledge of the investing market through working with others. Do your homework, research, ask questions, and decide if online clubs are right for you.
To learn more about investment clubs, please be sure to visit http://www.investmentclubhelp.com