Cash FX Group Review: 200% to 400% ROI trading bot securities fraud
Cash FX Group provides no information on their website about who owns or runs the business.
Cash FX Group’s website domain (“cashfxgroup.com”) was privately registered on March 4th, 2019.
Update 13th October 2019 – CashFX affiliates are citing Huascar Lopez as founder and CEO of the company.
As best I can make out, Lopez appears to be from the Dominican Republic.
The only MLM company I was able to peg Lopez too was My Fun Life circa 2013-2014. /end update
As always, if an MLM company is not openly upfront about who is running or owns it, think long and hard about joining and/or handing over any money.
Cash FX Group’s Products
Cash FX Group has no retailable products or services, with affiliates only able to market Cash FX Group affiliate membership itself.
Once signed up, Cash FX Group affiliates invest funds to participate in the attached MLM opportunity.
Cash FX Group affiliate investment provides access to “Trade Academy education packages”.
Cash FX Group’s Compensation Plan
Cash FX Group affiliates invest funds on the promise of a 200% or 400% ROI, capped at 15% a week.
- 300 package – $300 investment
- 500 package – $500 investment
- 1K package – $1000 investment
- 2K package – $2000 investment
- 5K package – $500 investment
- 10K package – $10,000 investment
- 20K package – $20,000 investment
- 30K package – $30,000 investment
- 50K package – $50,000 investment
- 100K package – $100,000 investment
As I understand it the 200% return cap applies to passive returns.
The 400% return cap applies to the MLM side of the business.
Cash FX Group investment packages expire when either 200% in passive returns or 400% in MLM related commissions are earned.
Once either 200% or 400% in returns have been generated, investment in a new package is required in order to continue earning.
Cash FX Group charges a 20% withdrawal fee.
The company uses 50% of this fee to fund residual matrix commissions (see below).
Cash FX Group Affiliate Ranks
There are seven affiliate ranks within Cash FX Group’s compensation plan.
Along with their respective qualification criteria, they are as follows:
- affiliate – sign up and invest in a Cash FX Group package
- Executive – maintain a 1K (500 PV) or higher investment package, recruit and maintain three active investors and generate 7000 GV
- Manager – maintain a 1K (500 PV) or higher investment package, recruit and maintain two Executive or higher ranked affiliates and generate 25,000 GV
- Director – maintain a 1K (500 PV) or higher investment package, recruit and maintain two Manager or higher ranked affiliates and generate 100,000 GV
- President Club – maintain a 1K (500 PV) or higher investment package, recruit and maintain three Director or higher ranked affiliates and generate 500,000 GV
- Ambassador – maintain a 1K (500 PV) or higher investment package, recruit and maintain three President Club or higher ranked affiliates and generate 2,000,000 GV
- Global Ambassador – maintain a 1K (500 PV) or higher investment package, recruit and maintain two Ambassador or higher ranked affiliates and generate 5,000,000 GV
PV stands for “Personal Volume” and is sales volume attached to Cash FX Group package investment.
- 300 package = 150 PV
- 500 package = 250 PV
- 1K package = 500 PV
- 2K package = 1000 PV
- 5K package = 2500 PV
- 10K package = 5000 PV
- 20K package = 10,000 PV
- 30K package = 15,000 PV
- 50K package = 25,000 PV
- 100K package = 50,000 PV
GV stands for “Group Volume” and is PV generated by an affiliate’s own investment and that of their entire downline.
Although not clarified in Cash FX Group’s compensation plan, I believe required GV is accumulated.
Cash FX Group pays a 50% commission on funds invested by personally recruited affiliates.
This 50% is calculated based on PV generated via Academy Pack investment.
E.g. recruiting a 500 package affiliate generates 250 PV, which pays out a $125 recruitment commission.
Residual Commissions (unilevel)
A unilevel compensation structure places an affiliate at the top of a unilevel team, with every personally recruited affiliate placed directly under them (level 1):
If any level 1 affiliates recruit new affiliates, they are placed on level 2 of the original affiliate’s unilevel team.
If any level 2 affiliates recruit new affiliates, they are placed on level 3 and so on and so forth down a theoretical infinite number of levels.
Residual unilevel commissions rae paid as a percentage of funds invested across the unilevel team.
Cash FX Group caps payable unilevel team levels based on rank:
- regular affiliates earn 10% on levels 1 to 4
- Executive ranked affiliates earn 10% on level 1 to 4 and 20% on levels 5 and 6
- Manager ranked affiliates earn 10% on levels 1 to 4, 20% on level 5 and 6 and 5% on levels 7 and 8
- Director ranked affiliates earn 10% on levels 1 to 4, 20% on levels 5 and 6, 5% on levels 7 and 8 and 5% on level 9
- President Club ranked affiliates earn 10% on levels 1 to 4, 20% on levels 5 and 6, 5% on levels 7 and 8, 5% on levels 9 and 10 and 1% from level 11 onward
- Ambassador ranked affiliates earn 10% on levels 1 to 4, 20% on levels 5 and 6, 5% on levels 7 and 8, 5% on levels 9 and 10 and 1.5% from level 11 onward
- Global Ambassador ranked affiliates earn 10% on levels 1 to 4, 20% on levels 5 and 6, 5% on levels 7 and 8, 5% on level 9 and 1% on level 10
Ambassador ranked affiliates earn 10% on levels 1 to 4, 20% on levels 5 and 6, 5% on levels 7 and 8, 5% on levels 9 and 10 and 2% from level 11 onward
Residual Commissions (3×10 matrix)
A 3×10 matrix places a Cash FX Group affiliate at the top of a matrix, with three positions directly under them:
These three positions form the first level of the matrix.
The second level of the matrix is generated by splitting these first three positions into another three positions each (9 positions).
Levels three to ten of the matrix are generated in the same manner, with each new level housing three times as many positions as the previous level.
Positions in the matrix are filled via direct and indirect recruitment of Cash FX Group investors.
Residual matrix commissions are funded by 50% of withdrawal fees collected from affiliates placed in the matrix.
How many matrix levels a Cash FX Group affiliate earns on is determined by how much they’ve invested:
- invest at the 300 or 500 package tiers and earn 3% on levels 1 to 3
- invest at the 1K package tier and earn 3% on levels 1 to 3 and 5% on level 4
- invest at the 2K package tier and earn 3% on levels 1 to 3, 5% on level 4 and 6% on level 5
- invest at the 5K package tier and earn 3% on levels 1 to 3, 5% on level 4, 6% on level 5 and 10% on level 6
- invest at the 10K package tier and earn 3% on levels 1 to 3, 5% on level 4, 6% on level 5, 10% on level 6 and 30% on level 7
- invest at the 20K package tier and earn 3% on levels 1 to 3, 5% on level 4, 6% on level 5, 10% on level 6, 30% on level 7 and 20% on level 8
- invest at the 30K or higher tiers and earn 3% on levels 1 to 3, 5% on level 4, 6% on level 5, 10% on level 6, 30% on level 7, 20% on level 8 and 10% on levels 9 and 10
A 10% matching bonus is also paid out on residual matrix commissions earned by personally recruited affiliates.
Executive and higher Cash FX Group affiliate ranks purportedly correspond with associated Leadership Bonuses.
At the time of publication these are not included in Cash FX Group’s compensation material.
What we do know is that when a personally recruited affiliate qualifies at the same rank, the recruiting affiliate receives 50% of their Leadership Bonus.
Joining Cash FX Group
Cash FX Group affiliate membership is tied to a $300 to $100,000 initial investment.
Once a 200% or 400% return has been generated, reinvestment is required in order to continue to participate in Cash FX Group’s income opportunity.
Cash FX Group claim to generate external ROI revenue through “assisted trading systems with algorithms”.
No evidence of any trading is provided, nor does Cash FX Group disclose any information about their purported trading activity on their website.
Furthermore, whilst clearly offering a passive investment opportunity, Cash FX Group provides no evidence of having registered itself with financial regulators.
Instead the company states it is
Regulated by the following institutions: FAC – Financial Conduct Authority of London, DFSA – Financial Services Authority in Dubai, FSCA – Financial Sector Conduct Authority of South Africa and FSA – the Financial Services Authority of Seychelles.
Dubai and Seychelles are scam-friendly jurisdictions with little to no regulation, so we can ignore them.
The Financial Conduct Authority, incorrectly cited as the “FAC”, regulate securities in the UK.
At the time of publication Cash FX Group is not registered with the FCA.
A search of authorized financial service providers registered with the FSCA also reveals Cash FX Group is not registered to offer securities in South Africa.
Beyond the usual meaningless shell incorporation, it’s probably a safe bet Cash FX Group and its operators aren’t registered to offer securities in Dubai or Seychelles either.
More importantly, I’ve personally witnessed a number of US-based promoters hosting Cash FX Group prelaunch opportunity calls.
Cash FX Group is not registered to offer securities in the US.
Unless Cash FX Group registered with financial regulators in each and every jurisdiction it solicits investment in, the company and its promoters are operating illegally across the world.
Without legally required financial regulatory registration, Cash FX Group investors have no way of verifying the company is using external revenue to pay returns.
At some point Cash FX Group will probably provide social media videos of purported traders and trading activity, but this is not a substitute for registering with regulators.
Nor is it actual evidence of external revenue being actually used to pay affiliates.
Outside of Cash FX Group’s passive investment opportunity, the company operates as a pyramid scheme.
There are no retail customers in Cash FX Group (retail customers paying 30% withdrawal fees?), meaning 100% of commissions are tied to recruitment.
Furthermore it is in the MLM side of the business that one can confirm Cash FX Group is operating as a Ponzi scheme.
If I sign up as a Cash FX Group investor with the aim of generating a 400% return, I do so by recruiting new investors and them doing the same.
My 400% return is thus literally paid out of subsequent investment.
If recycling invested funds is happening on the MLM side of the business, rest assured it’s happening on the trading side of the business too.
Secondary to investment and pyramid fraud is “pay to play”.
Cash FX Group’s compensation plan demonstrates pay to play by restricting matrix levels based on how much an affiliate invests.
In MLM commission qualification should always be tied to sales volume, not how much an affiliate themselves spends or invests.
As with all MLM Ponzi schemes, once affiliate recruitment inevitably dies down so too will new investment.
This will starve Cash FX Group of ROI revenue, eventually prompting a collapse.
The math behind Ponzi schemes guarantees that when they collapse, the majority of participants lose money.