When you think about joining a stock advisory service, it may feel like stepping into a whole new world of potential: the chance to make informed investment decisions with guided expertise.
And with the increasing interest in stock market investments, these services have become more popular than ever.
But not all of them are built the same.
From individuals looking to diversify their portfolio to those who are new to stock trading, advisory services offer to pave the road to financial success.
However, my own experience, coupled with industry knowledge, underscores the importance of due diligence. It’s essential to peel back the layers of marketing and assess the true value offered because there are many scams and low-quality newsletters out there.
A good advisory service can indeed be a powerful ally in achieving your financial goals, but a bad one can end up losing you a lot of money.
So, before you commit to any service, understanding what to watch out for is vital. This can mean the difference between building a solid investment portfolio and falling prey to empty promises.
On this page, I’ll share six critical things you need to know before joining a stock advisory service. These insights draw from industry best practices and aim to shield you from the pitfalls that too often trip up eager investors.
So with that said, let’s get right into it!
(1) Companies That Use Stock Teasers
The first red flag to watch out for is companies that use flashy, often over-promising, stock teaser presentations to sell their newsletter service.
These presentations can be compelling, with their slick production values and a narrative that makes the prospect of investing sound like a surefire win.
However, these presentations often present a skewed picture, highlighting potential gains while glossing over the risks. They often make assertive claims about ‘the next big thing’ in the stock market without offering substantial evidence to back up those claims.
It’s crucial to recognize that while these teasers can be enticing, they are not guarantees of success, and they’re often associated with low-quality newsletters that don’t deliver.
(2) Companies That Make Get Rich Quick Claims
When I research a stock advisory service, one of my main red flags is the presence of get-rich-quick claims, which are almost always too good to be true.
Any experienced investor will tell you that investing is not a sprint; it’s a marathon.
Get-rich-quick claims prey on our desire for quick wins, but the stock market is unpredictable and requires a long-term perspective, which is why it’s a huge red flag when a company assures you of rapid wealth accumulation through the stock market.
Such bold claims can often indicate a lack or disregard for in-depth market analysis and a tendency to prioritize sensationalism over sound advice.
Bluntly put: legitimate advisors understand the complexities of the market. They prepare you for both gains and losses, set realistic expectations based on market conditions, and value educational growth over instant success. This is how real wealth is built.
A good newsletter will focus on teaching you the tools of the trade, helping you understand market trends, and fostering a mindset that aligns with calculated risk-taking and sustained growth. In stark contrast to this, a company pushing the fantasy of instant riches might leave you with less than you started.
(3) Companies With a Poor Track Record
The newsletter space is FULL of stock-picking “gurus” who make false claims about how successful their recommendations have been.
Basically, they ‘cherry-pick’ the best recommendations they’ve made while making no mention of the many losing picks.
It’s only after you join the service and carefully dig through the newsletter archives (which almost no one does) that you discover the truth…
The truth that, factoring in the winning and losing recommendations, the vast majority of newsletter services out there either lose money or (at best) underperform the market.
That’s why it’s critical to only join newsletters that transparently publish their entire track record since inception. Because if they don’t do that, they’re probably hiding something.
At the end of the day, no service can guarantee you’ll make money with it because no one can predict the future. However, legitimate companies will ALWAYS be upfront about their track record, and if they’ve done well over time, there’s a good chance you will benefit from it.
(4) Companies With Hidden Upsells
It’s not unusual for businesses to offer premium services at an added cost, but it’s a big red flag when companies aren’t upfront about how much their services cost.
Unfortunately, what often happens in the newsletter industry is companies will sell a low-priced newsletter for $49 (or thereabouts) upfront, and then bombard you with high-priced hidden upsells to the tune of $1,000s (or even $10,000s) after you join.
I’ve also seen quite a few services charge a small amount for the first year, then automatically renew the service at a much higher price, which is only disclosed in the fine print where no one looks.
These practices are highly unethical and are often the sign of a scam.
In contrast, legitimate services show you exactly how much the service costs before you buy and don’t try to pitch you on a bunch of high-priced upsells immediately after you join. They provide real value and sell their services in an ethical, transparent manner.
(5) Companies With Shady Refund Policies
Refund policies are an important factor when choosing a stock advisory service.
A trustworthy company will have a clear, upfront policy about refunds, ensuring that you understand what conditions must be met to qualify for your money back. This transparency is key, as it demonstrates the company’s confidence in its service.
Conversely, a shady refund policy is a major red flag.
Watch out for vague terms, restrictive conditions, or any indication that getting your money back will be a challenge. For example, a service might offer a refund ‘no questions asked’, but then bury stipulations in the fine print that could prevent you from actually receiving a refund.
Before you subscribe, take the time to read the refund policy thoroughly. Don’t hesitate to reach out to customer support to clarify any points you don’t understand.
Your right to a refund is particularly important if the subscription fee is significant, and it can often be a litmus test for the overall integrity of the advisory service.
(6) Companies With Low TrustPilot Ratings
A stock advisory service can seem credible, but it’s wise to seek a second opinion. And that’s where TrustPilot, a reputable review rating site, comes into play.
TrustPilot can give you a window into customer experiences and service reliability, so it’s always worth checking before joining a newsletter.
When browsing TrustPilot, pay attention to the star rating and number of reviews because the higher the star rating and number of reviews, the better the service is likely to be.
It’s also worth reading the reviews carefully to make sure they sound real and to get a well-rounded set of opinions about the company.
Remember that a single review is just one person’s experience, but looking for patterns in feedback can give you a better understanding of what to expect.
Bottom Line
I’ve researched and reviewed 100s of stock advisory services over the years, and I have found that these are the most common red flags to watch out for. Knowing these can help you avoid being scammed and find legitimate newsletters that provide real value.
And after years of joining bunk newsletters, I finally found one that DOES fit this description.
As in, a newsletter that:
- Doesn’t do annoying mass-marketing
- Doesn’t make get-rich-quick claims
- Has a proven, verifiable track record
- Is completely transparent about its pricing
- Has a good refund policy
- Has a 4.9 out of 5-star TrustPilot rating
For these reasons (and more), it’s become my all-time favorite newsletter,
And it’s the ONLY service I wholeheartedly recommend.
