Global Trading Club Review: 175 to 400 day Ponzi ROIs & recruitment
There is no information on the Global Trading Club website indicating who owns or runs the business.
The Global Trading Club website domain (“gtcexchange.com”) was registered on the 4th of August 2016, however the domain registration is set to private.
Despite the company website domain only being registered a few months ago, Global Trading Club claim to have ‘over 7 years in trading experience and several years to formulate the concept‘.
At the time of publication Alexa estimate that 62% of all traffic to the Global Trading Club website originates out of Japan.
This suggests that whoever is running Global Trading Club is also likely based out of Japan too.
South America (specifically Colombia) is another possibility, as most of the Global Trading Club marketing is currently in Spanish.
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.
The Global Trading Club Product Line
Global Trading Club has no retailable products or services, with affiliates only able to market Global Trading Club affiliate membership itself.
The Global Trading Club Compensation Plan
The Global Trading Club compensation plan sees affiliates invest between $250 and $7000 on the promise of a daily ROI.
Global Trading Club affiliates are also paid to recruit new affiliates.
ROI payments
Global Trading Club affiliate memberships each pay a daily ROI for a set number of days.
How much of a ROI is paid out and for how long is determined by how much a Global Trading Club affiliate invests.
- Entrepreneur ($250) – $1 to $3 daily ROI for 175 days
- Presidential ($1000) – $5 to $10 daily ROI for 350 days
- VIP ($7000) – $35 to $70 daily ROI for 400 days
Recruitment Commissions
Global Trading Club affiliates are paid a commission for each new affiliate they recruit.
How much of a recruitment commission is paid out is determined by how much a newly recruited affiliate invests:
- Entrepreneur – $50 commission
- Presidential – $200 commission
- VIP – $1400 commission
Residual Commissions (binary)
A binary compensation structure places a Global Trading Club affiliate at the top of a binary team, split into two sides (left and right):
The first level of the binary team has two positions. The second level of the binary team is generated by splitting these initial two positions into another two positions each (4 positions).
Subsequent levels of the binary team are generated in the same manner, 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.
Each Global Trading Club affiliate package has a specific amount of points attached to it:
- Entrepreneur – 200 points
- Presidential – 1000 points
- VIP – 7000 points
At the end of each day Global Trading Club tally up new investment points on both sides of an affiliate’s binary team.
Affiliates are then paid 10% of the point balance generated by their weaker binary team.
- Entrepreneur affiliates can earn a maximum of $500 a day and
- Presidential and VIP affiliates can earn a maximum of $10,000 a day
Residual Commissions (unilevel)
A unilevel compensation structure places a Global Trading Club affiliate at the top a unilevel team.
Every personally recruited affiliate is placed directly under the affiliate on 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.
Global Trading Club cap payable unilevel levels at eighteen, with affiliates paid $10 per affiliate recruited into their unilevel team.
Note that Presidential and VIP affiliates qualify for unilevel commissions.
Joining Global Trading Club
Global Trading Club affiliate membership is available at the following price-points:
- Entrepreneur – $250
- Presidential – $1000
- VIP – $7000
Conclusion
The only verifiable source of revenue entering Global Trading Club is affiliate investment. The use of new investment to pay existing investors a daily ROI makes Global Trading Club a Ponzi scheme.
On the raw math side of the business Global Trading Club pay affiliates a ROI of between
- Entrepreneur affiliates invest $250 and either lose $75 or receive a ROI of up to $525 after 175 days
- Presidential affiliates invest $1000 and receive a $1750 to $3500 ROI after 350 days
- VIP affiliates invest $7000 and receive a $14,000 to $28,000 ROI after 400 days
The rest of the Global Trading Club compensation plan incentivizes affiliate recruitment, without which Global Trading Club will collapse.
Global Trading Club will likely be paid monopoly money in their backoffice, with heavy encouragement to reinvest ROI funds.
This won’t prolong a collapse but rather Global Trading Club affiliate’s awareness of one.
This gives the anonymous admin(s) running the scheme plenty of time to quietly withdraw invested funds and do a runner.
Global Trading Club affiliates meanwhile won’t realize the money is gone until withdrawal requests are not responded to and/or denied.
By that stage it is of course to late and the money is gone.
Update 15th September 2020 – The CFTC has unmasked Global Trading Club’s admins as Mayco Alexis Maldonado Garcia, Cesar Castaneda, Rodrigo Jose Castro Molina and Joel Castaneda Garcia.
The regulator sued the scammers for fraud in September 2020.
Update 2nd August 2021 – Three of the four Global Trading Club defendants have settled with the CFTC.
The settlements were filed as consent orders and accepted by the court on July 27th.
This came via email today:
I read what you’re saying but you offer no proof. Where is the “hard evidence” in what you say???
(Ozedit: Offtopic derail attempts removed)
This review is based on Global Trading Club’s compensation plan, ie. their business model.
It’s a roadmap that lays out Ponzi fraud. What other proof do you need?
I’ve been able to withdraw my money.
I’ve been able to withdraw money as well… Have you invested in GTC? How would you know? If you’re not in it, you won’t know. I withdraw money every day I get my daily dividends.
All Ponzi schemes pay out as long as new victim recruitment keeps up.
When recruitment dies so does ROI funds. You don’t need to be in a Ponzi scheme to understand how they work.
Err, that’s how ponzi fraud works.
How long do you think it would last if you sent them money and they didn’t return anything ????
Would you recruit new members if that happened ???
How long do you think it would take before people realized they weren’t receiving anything for their money and started warning others ???
Geez, if you’re going to play ponzi games, at least be smart about it.
I’ve heard if one jumps off a tall building without a means to stop acceleration, one would die? Is that true? If you say yes, how do you know?
Just google Rodrigo Castro TELEXFREE (co-founder) He still in trouble because $2.1 million he stole from people when working in TELEXFREE.
p.d google telexfree scam too.
GTC is a big scam, we have invested money 7 months ago and we have not been able to get a dime because the company has not set the payout system. (Ozedit: spam removed)
Please do not get involve in that scam, you will regret.
Please do not waste your money!
I have a lot of accounts with GTC and I have a lot of friends that have a lot of accounts with GTC. I even know the people writing the “postive reviews” on this page.
Honestly, they should be ashamed of themselves because they know that GTC is not what they claim to be!
They will take your money without question. But then they make it very hard to make a withdraw. Their system is always being “updated” or “serviced” and even when everything says it’s working correctly the payout can take weeks to post to your account and sometimes it will get rejected after waiting for weeks.
They promise all the issues will be fixed on a certain date and then that date gets moved further and further out!
As of right now their payout page is not even accessible!
Most people get their “payouts” when a new “investor” is coming in. They will take the cash payment and transfer same amount in their backoffice to open the new members account. I was told I had to join with cash by Frank and Chris!
I have personally seen people handing them envelopes with thousands of dollars to open accounts. So when I needed to cash out they told me to find someone that wants to join and I can trade my GTC money for their cash. I seen people try to sell their accounts to Frank, Chris, Rodrigo, etc for pennies on the dollar and were told no!
If they were an honest company they would not take in any new “investors” until all the problems are fixed.
But as long as people are willing to give them money, they are willing to take it.
BIG SCAM.. It is important, people fall easy, because you recommend your friends.
I look at the presentation of GTC made in Santiago de Chile. I wish people were well informed, before relying blindly.
In Chile the main promoters are Denis Donoso and Cesar Aguirre.
Gabriela and johnathen are frauds. I had to take illegal actions just to get my money back.
do not invest in fake people money hungry they will be arrested one day for taking pls money.
another onecoin scam and don’t forget mike mike Cesar and Rodrigo buying lambos and houses with our cash low lives Mexicans.
Believe me it’s a scam. Their website has been down since 3rd week in June. Later reported site down for repairs then it will be up no later than July 8, 2017.
As of now July 10th the site does not exist. Code 404. SCAM!!!!
Do you konw Fenix coin?
In Korea, they said “We will return your online cash to Fenixcoin”. But, Korea victims do not think ‘this is scam’.
Korea GTC CEO said, “why is this a fraud? there are no victims”.
Ponzi math is the same in Korea as it is anywhere else in the world.
You can’t pay out more than is invested, meaning your victims will always lose out.
Just because the Global Trading Club victims might not be audible doesn’t mean they don’t exist.
These do not pay by October 2017, does anyone have any news?
All the crown ambassadors and principal advisers disappeared. No good news..
That’s how a Ponzi scheme works.
You invest your money and the “crown ambassadors” and “principal advisers” steal it. Sorry for your loss.