12/17/2012 01:39 AM ET
News from: Advanced Global Trading AGT
Advanced Global Trading's Guide to Avoiding Carbon Credit Scams
Advanced Global Trading's (AGT) guide to the important questions to ask an investment consultant that sells Carbon Credits.
Advanced Global Trading (AGT) has developed a guide which includes important questions to ask an investment consultant that sells Carbon Credits.
Get the inside track from Advanced Gobal Trading's experienced consultants and achieve peace of mind by avoiding fraudulent or inadequate advice from rogue brokers or scam artists.
1. Can I view my Carbon Credits on a trading platform? Is your trading platform SSL encrypted?
It is of paramount importance that you are able to hold, view, buy and transfer your credits in a secure way, just as you would be able to view your money in an online current bank account. The trading platform is bespoke for AGT customers and allows you to:
1. View current pricing
2. View open positions/ purchase history
3. Open buy orders/ request to purchase more units
4. Instruct sell orders
5. Manage/ update account information
6. Transfer units to AGT for onward sale
7. View latest AGT market news
8. SSL encryption
2. Which documentation should I receive as proof of the purchase of Carbon Credits?
At AGT we issue a Trade Notification and a Deed of Trust as well as your own personal logins to the bespoke trading platform.
3. From whom does AGT buy Carbon Credits from and are they reputable credits?
AGT Advanced Global Trading works directly with verified carbon projects and registries (VCS). VCS and the Gold Standard are carbon credits that come from the highest quality projects. You can visit both of these websites to confirm the validity of specific credits and trace their serial numbers back to actual projects.
4. Where will my credits be held?
There are currently three global VCS registries where Carbon Credits are stored. Any legitimate company would mention one of the following: Markit in the UK or NYSE Blue/ APX in New York. For instance, The Gold Standard uses the APX registry.
5. Is the investment company's compliance checked by the registry?
AGT has been compliance checked by the registries, including extensive due diligence on the processes and procedures we have been instrumental in creating, in order to establish industry best practices and a self-regulatory framework. This best practice framework is currently awaiting approval as the main industry standard.
6. How long would it take to liquidate my position?
Subject to trading volumes, at AGT we generally sell your position within 2-3 working days and send the proceeds back to your account as soon as we have received funds from the buyer.
7. Can you guarantee I can sell my position?
Yes you can at AGT; we buy and sell credits for corporations and individuals so the chances are that when you want to liquidate your position your credits will be sold directly to a corporation looking to retire those credits to offset their carbon emissions. At AGT, our core business is the buying and selling of Carbon Credits so, unlike other brokers, we have constant trading volumes on our platform.
8. Is there an exit strategy?
First and foremost find out how straightforward it would be to access your money when you need it. Any investment is only as good as its exit strategy.
9. Are the credits traceable on the VCS database?
VCS credits all come with serial numbers so, not only can you determine the quality of your credits, you can see which project your investment is funding.
10. Do you have multiple offices?
In this instance, bigger is most definitely better! The more locations the brokerage has worldwide, the better for you as an investor, because they will have offices and clients across different time zones to trade and buy your credits once you choose to exit your investment, as well as accessible face-to-face time.
11. Can I see your offices and have a face-to-face meeting?
Location is everything - how prestigious is their business address? Never do business with someone over the phone. Always check out their offices, location and the outfit's professionalism.
12. Do they have a client liaison team dedicated to customer services?
You never know when you may need to speak to someone in an emergency. Ensure any company you deal with has a commitment to excellent customer service and check out customer testimonials.
13. What is the account opening process?
You should be provided with clear documentation detailing how you would go about opening a trade account. At AGT you must complete an application form and provide no less than two forms of ID. We then set up an account at the registry on your behalf in your name and assign you an account number.
The trade price is locked down before payment is made. We then email you the Contract Note which confirms the quantity and price of Carbon Credits purchased. Once payment is made we send you through confirmation by way of a Trade Notification form. You will then receive platform access login details to review your account status at your leisure.
14. As a client of the company what added value will I receive?
Your account will be overseen by the AGT client liaison team. Every week we will send you carbon market news and will allocate you a personal broker who will keep you updated as often as you request. You will receive AGT Arena the online magazine and we can send you important announcements via push notification through the platform. We also invite clients to corporate days at major sporting events.
15. Can I trade through my iPhone app?
At AGT we have built a bespoke iPhone app to enable our clients with iPhones to access their accounts on the go - the android app will be ready shortly too!
16. Is there any Value Added Tax on Carbon Credits?
There is no VAT on Carbon Credits. Even if you buy them as an expat and then move back to your home country there is still no VAT, as they are exempt.
17. Is there a professional website and enough company information?
You can learn a lot from a website - especially what isn't on it; check out the number of facebook likes and the amount of content. Have they dedicated part of the site to video tutorials? Is there a bio page explaining about the employees? It takes time and effort to build up a content-rich educational site.
For more information please contact:
Franklin Connellan Head of Investments and Corporate Advisor
Advanced Global Trading
Mahmood Yaqub Digital Marketing Manager
Advanced Global Trading