You’ve probably heard the popular phrase, “the market will give you freedom.” This has stayed true for ages with lots of millionaires emerging from the market. However, while making people millionaires it has cost people quite a fortune.
The volatility of the market has made people lose lots of money because of the high risk of financial markets. Most brokers display the popular warning for their customers before registration, “Investing in financial markets is a risk, 90% of traders lose all their capital.” It is just like a warning given by tobacco companies to their customers.
With the exception of the losses made from the markets through poor trading choices, people also lose money through scams. Trading is lucrative whether it is Forex, cryptocurrencies, or stocks. It is also complex for most people and some average traders can’t wrap their hands around how to become successful at it. Big trading firms and hedge funds use special tools for optimized market analysis to make profitable trades which lures users to invest in their schemes.
Unfortunately, many scams have been borne out with Forex and crypto trading with millions lost. In Crypto alone, the Federal Trade Commission has revealed that over $80 million has been lost to crypto-related scams. These scams take the form of trading with deposits of users and offering them an insane interest rate which has been made to look cheap because of the volume of financial markets.
CashFX is a Forex trading platform that prides itself in creating a unique system making Forex trading easier and more profitable through automated trading and specialized tools. CashFX is managed by CFxG, a company made up of a team of experts in many areas especially financial market risk management and marketing. They’ve built a system that they believe is perfect for every trader especially beginners who can easily make profits on their deposits.
The platform has over 250,000 users and has complete over 40,000 successful payouts due to its perfect expert advisor algorithms and AI technology which has created the ideal platform. CFX offers bonuses on referrals and operates a fair MLM (Multi-level marketing) system with a specialized webTV designed to show real-time trading positions for effective monitoring.
Other tools include copy trading and an academy that teaches users about automated trading. CashFX has been largely successful due to the huge rewards it offers users up to 1% a day on investments on average.
Looking Through the Lens of a Scam
Although CashFX has put up a lucrative system that is so far beneficial to its over 250,000 users, looking deeper will reveal that there is more than what is been advertised.
Like most Ponzi schemes and other scams, CashFX policies and marketing strategies have some similarities. An investment scheme is a Ponzi or pyramid scheme if money flows in from investors without actual investments to back payouts. What happens is the typical “robbing Peter to pay Paul.”
This system is sustainable only if more deposits are flowing in to match the payouts. Spencer Cornelia, a popular YouTuber known for exposing fake gurus and generally shady operations, made a video revealing why it is a potential scam and advises users to leave before the inevitable happens.
CashFX: A Breakdown
In his video, CashFX gives users 1% daily which has made people happy without seeing that it is a Ponzi scheme. 1% daily will amount to 5% a week (Monday to Friday) meaning that users go home with about 20% monthly. Facts gathered revealed that at a time, CashFX offered users up to 15% a month.
The promoters of this scheme lure users to put their money in the scheme rather than a bank because of the little incentives banks offers. Investing is far better than putting your money in the bank but when it comes to a Ponzi scheme, it is a big NO because you’ll lose all your deposits.
Excluding the ridiculous high profits that come with the scheme, an incident recently occurred where a user pointed out that CashFX hasn’t paid in over a month. This got the community furiously criticizing the platform. CashFX hit back with threats to suspend the user’s account over comments instead of settling the issue diplomatically.
As if threatening to ban users for demanding their money and blaming Bitcoin instability, CashFX claims to have created the perfect trading algorithm to make trades more profitable meanwhile their master trader was a taxi driver for many years before the launch of CFX.
A closer look at CFX shows that fewer people are joining the platform with multiple people missing payouts. This points to the fact that as a Ponzi scheme, its days are numbered. Furthermore, though CFX claims that it is regulated by the Financial Conduct Authority of London (FAC), the Financial Sector Conduct Authority of South Africa, etc.
The FAC doesn’t exist and the rest have denied giving any form of license to the company. Regulators in Britain and other countries like New Zealand, South Africa, Canada, Ireland, etc.