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.
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
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
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.