Last month, I had the opportunity to chat with Michelle on MoneyFM about the importance of reading and understanding the fine print of investment product-related promotions. This is particularly important for first-time investors who may make a significant investment decision entirely influenced by the promotion and not by their risk profile, goals and preferences. Check out the podcast here https://omny.fm/shows/moneyfm-midday-show/money-and-me-cashback-big-discount-free-platform-f

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Investment promotions are tempting, especially if you're new to investing or looking to try out a new platform. These attractive offers seem like a once-in-a lifetime opportunity, where missing out even one of them, may result in you losing out on ways to generate easy wealth. But, however tempting it is, it's important to remember that these promotions are designed to meet their goals and you have to ensure that they serve your interest as well. Sometimes they are purely a discount to attract new customers. But sometimes they can be bundled together with other products or come with certain conditions that you have to be comfortable with. 

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So if you’ve come across an investment promotion, then the first step is to conduct a thorough evaluation of the offer in hand. When evaluating, one of the most important things to consider is what happens after the promotion period ends. For example, if you're offered commission-free trading for a limited time, make sure you understand what fees you'll be charged once the promotion ends. This will help you avoid any surprises and make sure you're not paying higher fees after the promotion ends.

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In addition to understanding fees, it's also important to calculate the true value of cashback offers. Cashback offers can be a great way to earn some extra money, but make sure you're not paying more in fees than you're earning in cashback. Convert the cashback offer to a percentage or actual dollar values and calculate how much you're really paying in fees to get a better sense of whether the offer is worth it.

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It's also important to understand break clauses and penalties if you're considering, as an example, a fixed deposit promotion. These promotions can offer higher interest rates, but you need to make sure you understand the penalties for withdrawing your money early. Make sure you're comfortable with the penalties or the lock-in period, before signing up for a fixed deposit promotion.

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Finally, don't be afraid to ask questions and read the fine print. Make sure you understand the terms and conditions before signing up for any investment promotion. If anything is unclear, don't hesitate to ask for clarification. Being informed is the best way to ensure that you're getting the best deal possible.

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In summary, investment promotions can be a great way to earn some extra money (or save some costs) while investing, but it's important to understand the terms and conditions before signing up. Make sure you understand what happens after the promotion period ends, the charges outside of commission, and the true value of cashback offers. Additionally, make sure you understand break clauses and penalties, and don't be afraid to ask questions if anything is unclear. With these tips in mind, you can make informed decisions and ensure that you're getting the best deal possible. 

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