Elite Fin FX Review: Forex fraud targeting third world countries
Elite Fin FX (also goes by Elite Finance Forex), provides no information on its website about who owns or runs the business.
The company does provide a UK incorporation certificate, which corresponds with Elite Finance Forex Limited.
Elite Finance Forex Limited was incorporated in the UK on July 31st, 2018.
UK incorporation is dirt cheap and for the most part unregulated. It is a favored jurisdiction for scammers looking to incorporate dodgy companies.
Elite Fin FX’s website domain (“elitefinfx.com”) was privately registered on July 6th, 2018.
At the time of publication, Alexa cites Nigeria, Venezuela and India as top sources of traffic to Elite Fin FX’s website.
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.
Elite Fin FX Products
Elite Fin FX has no retailable products or services, with affiliates only able to market Elite Fin FX affiliate membership itself.
Elite Fin FX’s Compensation Plan
Elite Fin FX affiliates invest $10 or more on the promise of an advertised 15% monthly ROI.
Looking at our track record of last few years upto 15 % a month should be normal.
Referral commissions are paid on invested funds via a unilevel compensation structure.
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.
Elite Fin FX caps payable unilevel team levels at fifteen.
Referral commissions are paid out as a percentage of funds invested across these fifteen levels as follows:
- level 1 (personally recruited affiliates) – 8%
- level 2 – 2%
- level 3 – 1%
- levels 4 to 7 – 0.5%
- levels 8 to 15 – 0.25%
Joining Elite Fin FX
Elite Fin FX affiliate membership is free.
Free Elite Fin FX affiliates however can only withdraw referral commissions of $100 or more.
Full participation in Elite Fin FX’s income opportunity requires a minimum $10 investment.
Elite Fin FX claim to generate external revenue through forex trading.
Our traders have been generating consistent profits of upto [sic] 30% a month for our hedge funds which we manage and we expect to continue to do so here also and share 50% of the daily profits we make with the investors.
No hard evidence of external revenue of any kind being used to pay Elite Fin FX is provided.
Instead the company offers up a represented trading history, dating back to April 2016.
Remember, Elite Fin FX’s website domain was registered till July 2018.
The company didn’t launch until after that date (the first video on Elite Fin FX’s official YouTube channel was uploaded five months ago).
In any event, regardless of the source of Elite Fin FX’s purported trading history, it alone is not evidence of external revenue being used to pay affiliates.
Elite Fin FX’s business model also fails the Ponzi logic test.
As represented by the company, they’ve been generating on average a 30% monthly return for over two years.
If you actually had that sort of trading history, why would you be wasting your time conning gullible investors from third world countries out of their money?
Furthermore despite clearly offering a passive investment opportunity, Elite Fin FX provides no evidence it has registered its securities offering with financial regulators.
This means that irrespective of external revenue generation, the company is committing securities fraud.
As it stands the only verifiable source of revenue entering Elite Fin FX is new investment.
Using new investment to pay existing Elite Fin FX makes it a Ponzi scheme.
As with all MLM Ponzi schemes, once affiliate recruitment dries up so too will new investment.
This will starve Elite Fin FX of return revenue, eventually prompting a collapse.
The math behind Ponzi schemes guarantees that when they collapse, the majority of participants lose money.