Skip to main content
No. of Recommendations: 1
Has anyone heard of a system by which you invest some minimum amount of money($2500) to some investors who in turn take your money and buy and sell options without you having any say in the security that's chosen. They use some system from and

A friend approached me with such a system and he has claimed to already have made a $10 return in one month and is investing more with margin.

It smells like Ponzi for two reasons:
1. Before you can trade you need to enlist at least one other person.
2. Outrageous claims of 8-12% consistent returns are made a month.

I know the general rule is higher return = higher risk and the "having to enlist one other trader" is very suspicious. I spell Ponzi, but am looking to see if anyone has heard of such a scheme?

Print the post  


What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.