When investing in bonds, it is essential to know how to spot a scam. A high-yield trading program may look legitimate but is really a scam. Some of these schemes are backed by the Federal Reserve Board, World Bank, and the International Chamber of Commerce. Some of these programs are endorsed by the IMF. They are not endorsed by the U.S. government. You should also be wary of investments originating from a foreign country.
When dealing with an unauthorised firm, you’re not covered by the Financial Ombudsman Service or the Financial Services Compensation Scheme (FSCS). This means that even if you’re buying a bond, you’re not protected by FSCS. And you’re not covered by FSCS if you’re buying a mini-bond. In addition, bonds that are high-risk are not covered by the scheme.
Besides the lack of protection offered by the FSCS, you should be cautious when buying a bond from an unauthorised firm. This is because you’re not protected by it if you’re dealing with an unauthorised firm. Moreover, if you’re buying a bond from a reputable company, the FSCS will only cover your misconduct if you’ve used an unauthorized firm.