BizzTrade Review: BizzTrek doubles down with forex fraud
BizzTrek launched earlier this year and is operated by co-founders Rehan Gohar, Rizwan Gohar (brothers) and Gurpreet Dhaliwal.
The company is based out of the UK and its business model combined pyramid recruitment with an irrelevant ecommerce platform.
Here’s how it went:
By late May BizzTrek was kaput. And that was that for a few months.
Now BizzTrek is back with a new name and business model; BizzTrade.
Read on for a full review of BizzTrade’s MLM opportunity.
BizzTrade has no retailable products or services, with affiliates only able to market BizzTrade affiliate membership itself.
BizzTrade affiliate membership provides access to “forex education”.
BizzTrade’s Compensation Plan
BizzTrade affiliates invest €50 to €10,000 EUR on the promise of advertised returns.
- Starter – invest €50 EUR and receive up to 0.4% a day
- Pro Starter – invest €100 EUR and receive up to 0.4% a day
- Business – invest €500 EUR and receive up to 0.6% a day
- Pro Business – invest €1000 EUR and receive up to 0.6% a day
- Trader – invest €5000 EUR and receive up to 0.8% a day
- Pro Trader – invest €10,000 EUR and receive up to 0.8% a day
Returns are paid up till 400%, after which reinvestment is required to continue to earn.
BizzTrade affiliates receive 10% of funds invested by personally recruited affiliates.
BizzTrade pays residual commissions via a binary compensation structure.
A binary compensation structure places an affiliate at the top of a binary team, split into two sides (left and right):
The first level of the binary team houses two positions. The second level of the binary team is generated by splitting these first two positions into another two positions each (4 positions).
Subsequent levels of the binary team are generated as required, with each new level housing twice as many positions as the previous level.
Positions in the binary team are filled via direct and indirect recruitment of affiliates. Note there is no limit to how deep a binary team can grow.
BizzTrade tallies up new investment volume on both sides of the binary team.
Affiliates are paid 8% to 10% of funds invested on their weaker binary team side.
- Starter and Pro Starter tier affiliates earn an 8% residual commission rate
- Business and Pro Business tier affiliates earn a 9% residual commission rate
- Trader and Pro Trader tier affiliates earn a 10% residual commission rate
Once funds are paid out on they are matched on the stronger binary team side and flushed.
Any leftover volume on the stronger binary team side is carried over.
Note that BizzTrade don’t specify whether residual commissions are paid daily or weekly.
BizzTrade pays a Matching Bonus on residual commissions earned by downline affiliates.
The Matching Bonus is paid out down two levels of recruitment as follows:
- 10% match on level 1 (personally recruited affiliates)
- 5% match on level 2
Note that only Trader and Pro Trader tier affiliates qualify for the Matching Bonus.
Rank Achievement Bonuses
BizzTrade rewards affiliates for generating investment volume with Rank Achievement Bonuses.
BizzTrade affiliate ranks are based on point acquisition.
For each €50 EUR in investment volume matched on both sides of the binary team, BizzTrade affiliates receive 1 point.
For the purpose of rank qualification, points appear to be accumulative.
- Regional Director – generate 900 points and receive an “luxury international holiday”
- Special Offer – generate 2000 points and receive a “Honda car or equivalent”
- Regional President – generate 9000 points and receive a “BMW car or equivalent”
- Executive President – generate 21,000 points and receive a “Porsche car or equivalent”
BizzTrade affiliate membership is €10 EUR plus a €50 to €10,000 EUR investment.
The more a BizzTrade affiliate invests the higher their income potential.
BizzTrade sees BizzTrek offer up a 400% ROI passive investment opportunity.
The company represents returns are generated via forex trading.
The above FCA registration number corresponds with Infinox Capital Limited. Which is great for them, but has nothing to do with BizzTrade’s passive investment opportunity.
With respect to MLM regulation, passive investment opportunities constitute securities offerings.
This requires any MLM company offering a passive investment opportunity to register with financial regulators.
Neither BizzTrek or BizzTrade are registered to offer securities in the UK or anywhere else in the world.
This means that irrespective of anything else, BizzTrade is operating illegally.
One important aspect of regulatory registration is the requirement that an MLM company provide evidence it is doing what it says it’s doing.
In this case; paying affiliate returns with actual trading revenue. Oh and some virtual shares nonsense offering:
The only reason an MLM company would forgo regulatory filings and instead opt to operate illegally, is if they aren’t doing what they represent they’re doing.
As it stands the only verifiable source of revenue entering BizzTrade is new investment.
The company already uses these funds to pay pyramid scheme commissions (BizzTrade has no retail component), so it’s not much of a stretch for returns to also be paid out of invested funds.
The recycling of newly invested funds to pay existing affiliates a 400% ROI would make BizzTrade a Ponzi scheme.
As with all MLM Ponzi schemes, once affiliate recruitment dies down so too will new investment.
This will starve BizzTrade of ROI revenue, eventually prompting a collapse.
The math behind Ponzi schemes guarantees that when they collapse, the majority of participants lose money.
If you want a real world evidence of recruitment-based losses, look no further than BizzTrek’s failed MLM opportunity.