EssenceFX Review: Shady “unit investment” trading scheme
EssenceFX provides no information on its website about who owns or runs the business.
In the footer section of its website, EssenceFX represents it is incorporated in Vanuatu.
Vanuatu has emerged as a scam friendly jurisdiction, particularly within the MLM finance niche.
Unless it is based out of Vanuatu, there is no legitimate reason for an MLM company to incorporate itself there.
As opposed to Vanuatu, it is far more likely that whoever is running the company is based out of Malaysia.
At the time of publication Alexa estimates that 98% of traffic to the EssenceFX website originates out of Malaysia.
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.
EssenceFX has no retailable products or services, with affiliates only able to market EssenceFX affiliate membership itself.
The EssenceFX Compensation Plan
EssenceFX affiliates deposit funds on the expectation of a passive return.
- Standard – invest $100 to $10,000
- Elite – invest $10,001 to $50,000
- Prime – invest $50,001 or more
Higher returns are implied on larger investment amounts.
EssenceFX investment is made in “lots”, of which no specific details are provided.
The MLM side of EssenceFX sees commissions paid on funds invested by recruited affiliates.
EssenceFX pays referral commissions 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.
EssenceFX caps payable unilevel team levels at eight.
Referral commission rates are determined by how much an EssenceFX affiliate has convinced others to invest.
There are two tiers of referral commissions in EssenceFX. Qualifications for each tier are as follows:
- Introducing Broker – recruit at least thirty affiliates who invest $100 or more each, generate at least $5000 in personally recruited affiliate investment volume and at least $15,000 in total unilevel team investment volume
- Master Partner – recruit at least one hundred affiliates who invest $100 or more each, have at least five Introducing Brokers in your unilevel team, maintain at least $1000 in downline monthly investment volume and $3 million in total unilevel team investment volume
Regular EssenceFX affiliates earn the following residual commission rates:
- $2 per lot investment by personally recruited affiliates
- $5 per lot investment by level 1 Introducing Brokers (personally recruited)
- 60 cents per lot investment by level 2 Introducing Brokers
- 30 cents per lot investment by level 3 Introducing Brokers
- 20 cents per lot investment by level 4 Introducing Brokers
- 10 cents per lot investment by level 5 to level 8 Introducing Brokers
For Introducing Brokers and Master Partners, the residual commission rate on level 1 Introducing Brokers is increased to $6.50.
Presumably there are other benefits to qualifying at Master Partner, however these are not disclosed in EssenceFX’s compensation plan.
EssenceFX affiliate membership is free.
Full participate in the attached income opportunity however requires a minimum $100 investment.
EssenceFX attempts to confuse visitors to its website with a barrage of financial trading information.
Beneath that is a simple fraudulent investment scheme with pyramid commissions.
EssenceFX represent external ROI revenue is generated through forex, commodities, precious metal and indicies trading.
No evidence of any of these trading activities is provided.
Furthermore EssenceFX is not licensed to provide financial services in Malaysia, meaning the company is operating illegally in its target investor market.
Pyramid scheme commissions are paid by way of EssenceFX having no retailable products or services. Although it should be noted this is secondary to financial fraud concerns.
And although they don’t seem to have any significant business outside of Malaysia, another red flag is found in EssenceFX’s website footer:
Please note: EssenceFX does not service US-based entities or residents of any kind.
None of the trading activities EssenceFX claims to engage in are illegal in the US. What is illegal is running Ponzi schemes.
Unfortunately the Bank of Malaysia does little more than add fraudulent schemes to a list. The fact of the matter is you’re far more likely to get away running a Ponzi scheme in Malaysia than in tighter regulated jurisdictions.
Obviously those running EssenceFX are aware of this, hence the “no US” and shell company incorporation in Vanuatu.
At the end of the day EssenceFX relies on a constant stream of new investment to stay afloat.
Once affiliate recruitment dies down so too will new investment, eventually prompting a collapse.
The math behind Ponzi schemes guarantees that when they collapse, the majority of investors lose money.
what you are posting is complete bullcrap,no trading records?,dude its a forex broker, they dont trade for you, they are a broker just like ICMarket and FBS.
and its by no means you should say investment, its deposit, either you trade yourself (which in malaysia is illegal) or use the eMaM system (electronic multi-account management) which is practically copytrade.
in malaysia its illegal to selftrade or open a broker in malaysia, so copytrade is the only option.
im pretty sure you didnt do any research to malaysian laws, for it to be legal malaysian govt says 1:trade must be overseas, they have many traders, which one trades from China named ZhangFe, check his myfxbook
2:brokers must be overseas,not in malaysia, the reason traffic is in malaysia is because the company (Essence Capital Market) is the sole marketing company which is in malaysia.
the owner is Joe K Mukhriz(Facebook) who generates RM1.4mil/month from his forex trades, ECM is considering changing brokers, and Essencefx will still be used for its service, we dont advertise for EssenceFX,
we are just using their brokerage service for the copytrade, ZhangFe(China) is a trader which joe successfully persuaded to trade for us Malaysians, and the total number of accounts following him is 1.3k+ and growing.
just like tifia’s and FBS copytrade,Zulutrade and all that,its just a brokerage service, as for commission its based on lots and profit sharing just the same with FBS commissions.
dont call it mlm since everyone wants money and theats where commissions come.
i depositteded 1000$ and used zhang to follow,consistent 10% avg for 4 years,withdrawal usually takes under 24 hours even tho it says 5-7days,thanks for reading, just wanting to clear any misunderstanding.
also heres the profit sharing, say im just an IB, I registered someone under my link, he deposited 1000$(RM 4700) and I get RM 200,RM4500(1000$) is deposited into his trading account for him to trade (which is illegal since you dont pay taxes with forex) or use the copytrade services, heres where ZhangFe comes in.
he traded so great for 4 years with consistent avg 10%/mth,say that follower copytraded him, zhang trades for 1 month and gets 10%.
said follower have 1100$,100 is transferred to main account,in which split 30:70,ex:100$ 70:30,70$ goes to said followers main acc which he can withdraw,20$ goes to the fund manager (ZhangFe) and 10$ goes to the IB which he registered under(me).
must know since im an IB I dont get any cents when some1 registers under said person who registers under him, so its not MLM, my mom who registers under my friend makes RM21k, my friend makes just RM7k (his own peoples not my mom) since he gets reduced cents from my mom:EX:my friend->my mom->peeps who registers under her(fren->0.50$/lot->mom 7$/lot).
You dump money in EssenceFX. They claim to generate returns.
In order to operate legally EssenceFX needs to
1. register its passive investment opportunity with the Bank of Malaysia; and
2. provide investors with full disclosure, including audited accounting proving trading revenue is used to pay investors and specific details of their traders, including history.
EssenceFX is not registered with the BOM, nor do they satisfy securities disclosures.
Whatever you want to call it, you give EssenceFX control of your fund investment and they generate a passive return. That’s a security.
And? “Having traders” is not a substitute for financial regulatory registration and securities disclosures.
Except that EssenceFX is an MLM company, meaning it has to abide by regulations. No idea what any of these other companies are you mentioned and don’t really care.
If they’re not MLM companies, they’re irrelevant.
Cool. But that has fuck all to do with EssenceFX. You cannot assert who owns what or who their supposed traders are without filed audited disclosures.
You have nothing to back up any of your assertions, hence why it’s called securities fraud. Best of luck with the scamming.
Or not. You’d do well to take a look at how Mia491 turned out. Same “but muh fxbook traders!” bullshit. Same old story, scammers pulled dodgy trades and did a runner with everyone’s money.
Feel free to provide regulatory filings from EssenceFX confirming mystery man Zhang from China is their trader. Along with his trading experience and an audited trading history. Otherwise you’re full of shit.
Feel free to provide audited proof of trading results dating back four years. Otherwise you’re full of shit.
MLM comp plan = MLM company. Claiming otherwise makes you full of shit.
I can go all day son. EssenceFX is one wave in a sea of Malaysian MLM forex fraud. Your particular scam is no different to the rest.
Sorry to say, ZhangFe is not their (EssenceFX) traders, its a person from China that Joe K Mukhriz (ECM) (Malaysian) persuaded to trade for retails.
Just so you know EssenceFX doesnt generate passive income, you put money in and you dont trade, it stays like that, only if you copy the trades of Zhang do you get the profits monthly on a Profit Sharing of 70:30.
that 30 is what we pay for the profit generated from Zhangs copytrade, you dont invest 1000$ and essencefx gives you money. you either selftrade (which is illegal in malaysia) or copytrade.
The EssenceFX comp plan I reviewed allowed affiliates to invest up to $50,000.
What you do in your own account doesn’t negate the offered passive investment scheme.
(Ozedit: offtopic derails removed)
EssenceFX have a total Deposit of 26Million USD,wanna know the Withdrawal? 35.1 Million USD,what kind of shit you sayin about a broker that gets profit out of spread and withdrawal rate
im a trader myself (400% in a week), pretty sure you’re just a bum thats insecure about their hard earned money, I withdrawed money and it usually took within 24 hours.
Oh wait you can’t, because there’s no audited accounting or regulatory filings.
BehindMLM have a total deposit of nine million bananas. Wanna know the withdrawal? Infinity bananas. Lulz.
No you’re not. Anyone trading remotely near a consistent 400% weekly return (lulz) wouldn’t be wasting their time with Ponzi schemes like EssenceFx.
(Ozedit: please provide regulatory proof (audited accounting) that EssenceFX generates affiliate returns via trading)
Until you can provide regulatory proof that EssenceFX uses trading revenue to pay affiliates, I’ll be marking anything about random traders as spam.
Ponzi Schemes? dude I trade myself, (Ozedit: what you do or don’t do has nothing to do with EssenceFX. Offtopic derails removed.)
So that’s a no on the requested proof then?
Thank you for confirming EssenceFX is a Ponzi scheme. You have a nice day now.
Affiliate charts, videos of this and that etc. etc. are social media proof.
Social media proof is meaningless from both a legal and regulatory perspective (the exception being collection of evidence).
Don’t bother posting random BS about random traders who may or may not have anything to do with Essence FX. Ditto videos on “how to deposit, withdraw etc. etc.”.
None of this is a substitute for regulatory filings and audited accounting reports.
Go Register Its Free, then pick menu, go to copytrade page select eMaM, relogin with same acc and select Zhang.
hope it helps, you requested how affiliate get money, I typed all that and you deleted it, seems you hate truth
Aiman: Here’s how you invest in a scam.
Look I take it English isn’t your first language. The issue isn’t how to invest in EssenceFX.
The opportunity is as real as presented on EssenceFX’s website. The issue is whether they’re doing what they say they are (using external revenue to pay affiliates).
There’s no legitimate reason for an MLM company to not operate legally… unless it’s not doing what it represents it is.
You asked how affiliates earn money (Ozedit: No I didn’t. Derail removed.)
This is total bullshit. Same scheme with Fxunited 2016.
And Aiman pala banar is promoting this anywhere. FB especially.
Last when Fxunited collapse. Few MIB and IB get the Heat from the authority as the real owner will never be found.
400% per week is total bullshit hahaha.
Considering after those record you still lingering around those petty affliate.
Dude Grow up!
go get a life bro..every broker provide affliate and also copytrade… so you want to say every broker that provide affliate and cooytrade is a MLM company and scam?
i self trade (Ozedit: cool, offtopic derails removed)
“Copytrade” is not an excuse to commit investment fraud. Nor is it exempt from securities regulation in Malaysia.
No. This review clearly stated EssenceFX is a shady investment trading scheme for the reasons provided.
Anything you read into the review beyond that is your problem.
As for your personal trading and all the other offtopic ranting that has nothing to do with EssenceFX, do it somewhere else. Don’t care. Have a nice day.
Funny, this guy did not know what is Forex Broker and Forex Trading, and marked EssenceFx as MLM company.
While it may be true that it lacks regulation and jurisdiction to trade especially when it is illegal to do so in Malaysia.
It’s funny how he acted smart and refused to not find out what is the difference between the two.
MLM comp plan = MLM company. There’s nothing funny about it.
Bro, how to give full disclosure when Forex is not legally recognize in Malaysia?
You know what is MLM company and Forex trading? know what is a broker for CFD, Currencies, and spot metals?
I guess you dont, and if you dont please shut up. I bet this is going to be censored again soon!
Securities are regulated in Malaysia. Doesn’t matter what the investment vehicle is.
How about you go and educate yourself on securities law before running around like a donkey telling others to shut up?
Hahahha, dude, do you know why almost 90% Forex Broker (Ozedit: Forex investment opportunities are not exempt from securities laws in any country. Derails removed.)
Feel free to provide documentation from a securities regulator (Bank of Malaysia or otherwise), exempting passive forex investment opportunities from regulation.
Failing which continued uneducated derail attempts will be marked as spam.
The problem is that EssenceFX is not joint with Securities, but the fund managers massively trades in only Currencies (which in the book of BOM, its illegal if you trade yourself in Malaysia).
Theres no securities in the menu of MT4 only CFD and Currencies, heres my account video of trading history, which only have currencies as main, also Profit Sharing where affiliates get their money,
If you dont know what an MT4 is you dont deserve to belittle forex
Any MLM company offering a passive return is a securities offering. Doesn’t matter how they claim to generate the return.
Securities in Malaysia are very much regulated by the Bank of Malaysia.
If you don’t know what securities are, you shouldn’t be running around the internet making a jackass of yourself.
Haha after a while i have concluded.
This Emam copytrade is a scam. Essencefx is shady.
And their legendary master Zhang is Probably a woman(PRC) WITH Husband of Malaysian origin.
This all start after the collapse of IGOFX. Go check. It happen in 2017. They use the same modus operation like last time.
Total loss was estimated at 4.4 Billion USD.
THEIR MASTER TRADER LAST TIME go with THE NAME VLADISLAV77. The record still there at Myfxbook. See how the similiarity is dumbstruck.
After the ponzi collapse it is believe that this couple Run off to Malaysia.
My guess is after they came here,they start collabrating with local scammer to pull another ponzi.
Very soon it will happen again.
Remember u hear it first from here heh.
Can read about the Igofx collapse from this site as well. Go read. And u will connect the Dot
1st april 2020.
This Emam scam is Done for. The fake trade decide to pull the plug.
And lost 70% of the capital in a single trade.
Bwaahahaha serve you right for the idiot. Who went through shit to Defend this shitt
Where’s that aiman donkey get jealous? Come here and fight more you imbecile!
Hi, of the things you say,have you seen the closed trades? i did, and it wasn’t of a single trade, and Zhang hedged quickly to stop the losses.
GBPUSD@1.16 Sell 1 hour 100pip floating,5 hour 270Pip floating Counter trade GBPUSD@1.18 Sell, went down to -20Pip Floating safe since my charts also show confirmed sell, market being a bithc it went up 500 pip in 1 day where Zhang insta-hedge buy to stop losses, (no lot upsize just buy double lot to hedge the 2 sell orders) (what scammer tries to stop losses at 73% floating,they would just 10x lots like goldtinkle, also the LP ticket was valid)after that zhang tried to recover using gold also putting TP).
now that he messed up big time we asked him to stop for now, now we are recovering 30%/mth highrisk,up to anyone to follow.
WD still going strong,just slow since Money Changer is closed,i got my money just fine no WD stuck.
So learn something first before talking shit (Ozedit: non-English spam removed)
Does it matter what “Zhang” did or didn’t do? You have no evidence what happens on random trading accounts ties into what EssenceFX affiliates are paid.
Haahhh stupid milosakai is so dumb.
Now everybody is looking for the owner of essencefx.
And essence try to pull last trick to cover up everything.
As latest circular they want to pull out from asian Market. Kah kah kah.
Listen u bloody stupid sakai. Check the webtraffic for essencefx. They dont have any other market other than Malaysia.
So where they want to go?
What a bloody idiot want to defend it.
This sounds similar to Mia491.
Shows data saying how they get the tiny bit of ‘gold’ scrappers investment. But a friend told me the apps we logged in etc , so called live acc, mt4trader?
Can be easily manipulated. They can just input the figures, whatever they want.
Can the person that bought this ‘investment’ go n check against the real data n see any loopholes?
I tried to call their oz numbers before I put some money in but no one answered. Email is not replied too. The system is just so weird. But my friend was in n said ok so I tried too…
Anyway they will have some big promo , even have gatherings (but now not possible due to covid) , investment will get bonus points, this n that but only can get back after a year.
When I tried to withdraw profits, I’m confused to see money seem to be from diff bank acc. Shouldn’t it be a fixed co acc? We paid admin fees for conversion n how come not co bank acc?
So back then ppl said Mia Is scam, I’m not v sure too so I didn’t ask my friend to buy. Waiting to see if it’s gd for me… then 1/2 way they just collapsed on one fIne day n still came up with lots of drama script here n there. I think no one make police report.
The msia guy that used to share mia491 is back with new screenshot showing his investment n returns.
I believe these ppl know it’s a musical chair game n they recruit ppl, earn their commissions n show others how they r getting money n urge them to ask friends n relatives to join too.