FX Farms Review: Actors + forex fraud
FX Farms provides no information on their website about who owns or runs the business.
An address in the UK is provided on FX Farms website. Further research reveals the address belongs to virtual office provider Regus.
Marketing videos on FX Farms’ website feature Fivver actors.
The above example is from Fx Farms’ official business presentation video.
I wasn’t able to lock down where FX Farms’ fake founder and CEO were hired from, but here’s their green screen scripted video for your viewing pleasure:
Update 17th December 2020 – FXFarms has deleted its YouTube channel and pulled its website offline. /end update
At the time of publication Alexa ranks the US as the top source of traffic to FX Farms’ website (60%).
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.
FX Farms’ Products
FX Farms has no retailable products or services, with affiliates only able to market FX Farms affiliate membership itself.
FX Farms’ Compensation Plan
FX Farms affiliates invest funds on the promise of advertised returns:
- Base – invest $25 to $1500 and receive 1.5% a day for 140 days
- Trader – invest $1501 to $10,000 and receive 1.65% a day for 150 days
- Lead – invest $10,001 to $25,000 and receive 1.85% a day for 170 days
- Eagle – invest $25,100 to $55,000 and receive 2.1% a day for 185 days
- President – invest $55,500 or more and receive 2.45% a day for 205 days
Direct Referral Commissions
FX Farms pays referral commissions on funds invested by personally recruited affiliates.
Referral commission rates are dictated by how much an FX Farms affiliate has themselves invested:
- Base to Lead tier affiliates receive a 5% referral commission rate
- Eagle tier affiliates receive a 6% referral commission rate
- President tier affiliates receive a 7% referral commission rate
FX Farms 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.
At the end of each day FX Farms tallies up new investment volume on both sides of the binary team.
Affiliates are paid 10% of funds matched on both sides, capped daily based on how much they’ve invested:
- Base and Trader tier affiliates are capped at $1000
- Lead tier affiliates are capped at $1500
- Eagle tier affiliates are capped at $3500
- President tier affiliates are capped at $5500
After funds have been paid out on they are flushed from both sides. Leftover funds on the stronger binary side carry over.
Rank Achievement Bonus
FX Farms rewards affiliates who qualify for any of their seven affiliate ranks:
- Leader (generate $35,000 in investment volume on both sides of the binary team) – “$300 vouchers”
- Achiever (generate $70,000 in investment volume on both sides of the binary team) – an Apple 11 Pro and “$600 vouchers”
- Professional (generate $111,000 in investment volume on both sides of the binary team) – an Apple MacBook and “$1000 vouchers”
- Diamond (generate $155,550 in investment volume on both sides of the binary team) – “$1500 vouchers”
- Legend (generate $222,200 in investment volume on both sides of the binary team) – a “watch” and $2000 vouchers”
- Elite (generate $444,000 in investment volume on both sides of the binary team) – a “sports bike” and “$3500 vouchers”
- VIP (generate $666,666 in investment volume on both sides of the binary team) – a “car”, an iPad and “$4500 vouchers”
Each rank also has an associated cash percentage. What this cash percentage pertains to however isn’t explained in FX Farms’ compensation documentation.
FX Farms’ compensation plan refers to a Royalty Bonus, however no specifics are provided.
- Lead tier affiliates qualify for a 0.5% Royalty Bonus
- Eagle tier affiliates qualify for a 0.75% Royalty Bonus
- President tier affiliates qualify for a 1% Royalty Bonus
My best guess is these are bonus pools set aside from company-wide investment volume.
Joining FX Farms
FX Farms affiliate membership is tied to a minimum $25 investment.
The more an affiliate invests the higher their income potential via FX Farms’ compensation plan.
FX Farms’ passive investment opportunity constitutes a security.
On their website FAQ, FX Farms states:
Is Fx Farms Legally Registered?
Yes we are globally certified In United States of America & United Kingdom and our growth is in many parts of world.
Securities in the US and UK are regulated by the SEC and FCA respectively.
FX Farms is not registered with either the SEC or FCA.
This means that the company operates illegally in both countries. The US is of primary significance, as it currently generates 60% of FX Farms’ website traffic.
The only reason a passive investment opportunity MLM wouldn’t register to operate legally is if they aren’t doing what they say they are.
In the case of FX Farms, the company represents it generates external revenue via forex trading.
We are offering an advanced and more profitable forex trading platform that ensures maximum customer satisfaction.
No evidence of forex trading revenue being used to actually pay affiliates provided.
Furthermore FX Farms’ business model fails the Ponzi logic test.
If the company’s anonymous owners were capable of legitimately generating a consistent 2.45% a day, why share that for as little as $25?
Through compounding at 2.45% a day, even a modest amount will turn into a fortune relatively quickly.
The only verifiable source of revenue entering FX Farms is new investment.
Using new investment to pay affiliates a 2.45% daily ROI makes FX Farms a Ponzi scheme.
As with all Ponzi schemes, once affiliate recruitment dries up so too will new investment.
This will starve FX Farms of ROI revenue, eventually prompting a collapse.
The math behind Ponzi schemes guarantees that when they collapse, the majority of participants lose money.
Update 8th November 2020 – FX Farms is likely on the verge of collapse. The company has recently put together FXFGold, a clone Ponzi scheme with new actors.
At the time of publication FXFGold is being hosted on a subdomain off FX Farm’s website. Investment details have not been made public.
Update 17th December 2020 – FX Farms’ collapse appears to be complete. The company has deleted their YouTube channel and pulled their website offline.