DESPERATE HOUSEHOLDS

                As the prices of commodities and shares become directionless, only two things remain bullish and bearish – our cost of living and our income.  During such times, it is only common for members of most households to seek alternatives to make an additional source of income… But how many of us ask ourselves, “how safe are these alternatives?” Or better yet,” how legitimate are they? “

                Let’s face it! Greed seems to drive the human race these days. We are not easily satisfied and often times acquire or consume more than what we require. And the icing on the cake always is when we find an easy way to acquire the item of our desire. Easy ways are certainly aplenty. But not many check the legitimacy of the alternatives that we are willing to dabble in. And if we end up getting burnt, the last thing we would do is take responsibility for it. And some of us have become such excuseperts (excuse-experts) that not only do we find excuses for ourselves but also for those whom we prioritize in our lives.

                I have been approached by many for validation of certain MLM type of investments that have been mushrooming in the market. (Makes me feel almost like a private detective at times.) But in all fairness, the inquiry allows for the simultaneous quenching of thirst for knowledge by all parties involved. As such, one of the recent most inquiry has been on FX united. A company that allows for individuals to invest into foreign exchange. I was being approached to join this investment mechanism and many lucrative offers were made. For instance:

1)      Your capital would be guaranteed

2)      You would get a 30% deposit bonus on your deposits to trade with

3)      A monthly return of 12%-20% was guaranteed

And as usual, I requested some time to do my own due diligence which somehow was always followed with a string of statements which are aimed at invoking a guilty conscience within you. And of course, one of the biggest fire signs that something may be wrong is when they say, “…of course there are lots of negative things on the internet, don’t believe everything they say”. So you end up coming back more suspicious than you originally were.

For beginners, here is what you can do when it comes to finding out if the business operation is registered or not. Find the most recent updated list to know where these businesses stand. All you would need to do is go to :

Bank Negara Malaysia : http://www.bnm.gov.my/index.php?ch=en_financialconsumeralert&lang=en

OR

Securities commissions Malaysia: http://www.sc.com.my/list-of-unauthorised-websites-investment-products-companies-individuals/

The picture above shows the list from BNM (NO. 79 & 80), last updated on 27^th May 2016 that FX United Malaysia has been black listed. Sometimes there may be various reasons as to why they may be black listed. The reason for them being black listed is not merely their soliciting of funds from public for FOREX, which is prohibited in Malaysia, but also because there has been a serious lack of papers on their operations, lack of guarantees backing their guarantees and no workings submitted on actual commissions and fees structures. 

But the thing about an investigation is that it is always good to have various sources to validate your findings. So I decided to read blogs by members of the organization who were debunking the statements made by the skeptics. Then I ran across the website which had a document showing that they were registered in New Zealand . Below is what was showcased by members of FX united:

Which was true until I went onto the same website and entered the FSP number on the Companies Office registrar to check on the status of the company and it had just been deregistered. Observe below:

All these information are readily online. Of course there are some blogs which seem to be merely ranting about these investments instead of showing readers valid reasons to stay away from these sort of investments. 


Forex is one of the highest (if not the highest) risk involving investments. And as the rule of investment goes, the higher the risk the higher the loss or return. And with such volatility involved in these investments, it seems to be intriguing that one can boldly guarantee a 12-20% return per month.  One of the common rebuttal for such investments would be that “Nobody has lost money, so it’s not a scam” for which I only have one word – “YET”

You may choose to believe or not to believe what I have pointed out. But when the facts are staring at us so blatantly, living in denial may not be that wise.

By,

Ashveen Chakravarthy Sekaran

May 30^th, 2016

About the author:

Having completed his degree and majors in Actuarial Science, Statistics and Finance, Ashveen currently heads the investment wing of SYABS Sdn. Bhd. as the Chief Investment Officer. Being an independent economic analyst, Ashveen’s analysis, which are published on his blog : thewisse.blogspot.my, is often times shared by financial blogs and magazines from around the world. Often sought for his unbiased, practical and witty approach towards investments, Ashveen is often requested to give talks on the investment sector and investment opportunities that are available both in Malaysia and abroad. With his current portfolio topping RM 100 million in investments in and out of Malaysia, he is known to provide an easy approach and an understandable guide towards investments for personal and corporate investors. Having had his experience in the US, he is currently providing creative avenues for investors to maximize their returns in the local and global markets, without having to fork out unnecessary amounts in additional fees. Ashveen currently provides a wide range of investments to suit any risk appetite of any client.