Caxton Bond = too risky?

NannaH

I have a currency card with Caxton and had an email about their new fixed rate bond , 2 years 5.1% ,  4 years 6.15% - so obviously I was poised to sign up!
On reading the details though,  the money isn’t covered by fsc protection and it states you could lose all your money.    I’m not going to bother now but I wonder what others think of it?  

ColdIron

Wholly unrealistic rates and unlikely to be a deposit account, more likely some form of 'at risk' investment

With no FSCS protection, totally unsuitable for anyone looking for a savings account

NannaH

That’s what I thought.

Malthusian

 I’m not going to bother now but I wonder what others think of it?  

My thought was that I had naively hoped that mini bond scams had died out, but apparently not.

This kind of ultra high risk investment is totally unsuitable for the vast majority of people and should not be spruiked to ordinary customers just because they used a currency exchange service.

They've been at this for over a decade - note the misleading comparison with FSCS-protected savings rates:

The model provides investors with a rate of return that beats the high street banks.
Rupert Lee-Browne, founder and CEO, Caxton FX, said: “Retail bonds generally offer better returns on a lower minimum investment than traditional corporate bonds, and far exceed the returns available from bank deposits. This creates a welcome opportunity for investors to get a better return than would otherwise be available on their savings.

masonic

"better returns" when you don't lose everything you invest.

harz99

I got that too, and the only dealings i've had with them has been a currency card with an incentive - too risky for me.

wmb194

It's a small and, per it's February 2022 annual report on Companies House, loss making company. I wouldn't touch it with a barge pole.

https://find-and-update.company-information.service.gov.uk/company/04610337/filing-history