The journey of a Forex trader, especially one that has little to no proper mentorship can be catastrophic. The vast majority of people who take up Forex trading, simply want to make money from home, but without mentorship that remains a dream, and they continue to search until they find some online investment that claims to provide high returns from Forex trading. What the unsuspecting investor doesn’t know yet is that this is essentially a Forex Pyramid scheme!
Charles Ponzi
Forex pyramid schemes are illegitimate online investment schemes designed to steal money from unsuspecting investor. A quick google search would lead to many websites popping up and some advertisements. These have led many people to ask if Forex Trading is a Scam.
Forex Pyramid Schemes claim to use Forex as their primary investment vehicle, but in reality, they are basically Ponzi schemes. What a Ponzi scheme does is to take the investments from the first set of people, then advertise aggressively to find a second group of people to invest with them. The money from the second group of investors goes to pay the first group of investors.
By doing this, the first group of investors become excited and even share records of their profits with their family and friends and on social media. This brings in a third wave of investors, to pay the earlier set of investors.
To motivate you to refer your friends, these Forex Pyramid Schemes are known to implement aggressive referral programs. With some offering as much as 10% of the capital invested by your downlines.
The cycle keeps repeating itself until it gets to the point where the number of people coming in with investments is fewer than the number of people whose investments are due.
At this point, the scammer shuts down the website, becomes unresponsive to emails, and disappears into thin air. One might ask, why someone would operate such a scheme if they would end up running? Well, the truth is that, with each wave of investors, the scammer keeps a chunk of the investors’ funds to pay himself. They frankly do not care about the end results as the entire goal is to steal from you.
Desperate individuals who engage in different forms of Forex Pyramid Schemes leave behind a trail of hurt and disappointments.
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History of Ponzi Schemes
The Ponzi scheme’s name comes from one of the most famous swindlers in history: Charles Ponzi. He was the first person to pull off this type of fraud, but that doesn’t mean he was the most successful. Ponzi made $20 million from his scam, whereas the following Ponzi scheme con artists made a lot more:
- Greater Ministries International ; Managed to defraud 18,000 people of about half a billion dollars in 1997.
- Moneytron ; Over 860 million dollars
- MMM ; MMM was said to have caused over $10 billion dollars of losses for its 10 million members.
As you may have noticed, Forex Pyramid Schemes are not new to the planet, Ponzi scheme’s have existed for more than a century, and notable people, royals etc. Have all fallen to these schemes. Today though, Online Ponzi schemes are more prevalent, with new websites coming up almost every single day.
Pyramid Schemes pry on your greed, and use social proofs of payments to entice you to join. Beware of the harm ahead.
Current Forex Pyramid Schemes
At the time of writing, these are the few pyramid scheme’s running that you should be weary of.
- onerexint.com
- nastla.com
- www.btcmillionaire.io
- myhourlyforex.com
- myhourlyforex.com
- britishfxfunds.com
- visionbit.biz
- myhourlyforex.com
How to Avoid Forex Pyramid Schemes
What do all these pyramid schemes have in common?
- They offer Higher Rate, Extremely High Rate
- They all pretend to be a legit UK-registered company with some pdf’s to show and a link to the company house
- They show you proof of payment to entice you.
If someone is making 100% profits etc in a week, why would they need your money? The truth is that the only person they are making money from is you and not the Forex or bitcoin market as they would have you believe, and even if they are making this amount of money, why do you think they have any interest at all giving you that much interest on your money?
Think about it carefully, if something is too good to be true, it usually isn’t true. To grow your wealth, you need small consistent returns, nothing astronomical, and you can do that yourself by trading Forex profitably with the right mentorship. These people are not going to make you money, in fact, they are operating the Forex Pyramid Scheme to steal money from you, do not give them your hard-earned money, no matter how tempting it might be.
They all claim to be UK-registered companies. While that might be true for experienced Ponzi scheme operatives, some newbies just edit PDFs to prove their UK registration. Regardless, investment is a regulated activity. Being a registered company alone is not enough, to qualify to offer any investment services, you need to be regulated by the Financial Conduct Authority in the UK. These online Forex Pyramid Schemes are in no way registered or regulated by the FCA, which makes their conduct fraudulent.
Forex trading gets a lot of bad names because of the activities of these Ponzi scheme operators, causing people to lose hundreds if not thousands of dollars. If you want to make money online, it is better to learn how to trade Forex, other than investing in an unregulated, and fraudulent Forex Pyramid Scheme’s no matter how good they might look, or how appetizing their interest rates might look to you.
How to Invest Online Safely
Online investments just like physical investments come with the risk of capital losses. There is no investment in life that has zero risks. However, eliminating the Forex Pyramid Scheme from your online investment journey tips the scale in your favor.
These risks exist almost everywhere, although rare, banks do collapse (Government secures your deposits), Countries get into wars (which could render your government security useless), and companies run bankrupt, essentially rendering your investments mute.
With all that said, the scale is tips in your favor if you diversify your investments, and to invest only with legitimate online investment platforms. Where possible, learn to trade forex for yourself and become a master of your own destiny.
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