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Is Cash FX Group A Scam? The Red Flags You Have To Know About This Forex MLM!
Welcome to My Cash FX Group Review!
Today, talk about a Forex trading platform that is built on an MLM business model called Cash FX Group.
But before that, let’s briefly discuss how Forex Trading works. For those who don’t know, Forex, Foreign Exchange, or FX is trading currencies in the market where you'll earn money by buying or selling currencies at the right time.
Cash FX Group Review Summary
Name: Cash FX Group
Founders: Huascar Lopez And Edwin Abad
Product Type: Multi-Level Marketing
Price: $300 - $100,000 For The Investment
Quick Summary: Cash FX Group is another multi-level marketing (MLM) company in the Forex niche. Apparently, you can make money from weekly ROIs supposedly earned from Forex trades and also by recruiting people to also join the opportunity.
They also provide training on how to make money with Forex, especially to rookies. However, it comes with a couple of red flags, making it look more like a fraudulent scheme than a legit opportunity.
Overall Rating: 1/10
It’s a popular choice for making money online and for networking companies. In fact, we’ve reviewed similar platforms in the past, such as FBS, Auvoria, and more. If there’s one thing common about these programs, including Cash FX Group, it’s the promised guaranteed ROI.
The question is: how true is this? Will this Forex MLM stand by its claims or not? Is Cash FX Group legit or another Ponzi scheme in disguise? How much money can you make by joining this program?
Find out more in this unbiased Cash FX Group review.
What Is Cash FX Group About?
Cash FX Group or Cash Forex Group (CGF) presents a Forex trading platform with an MLM business model. It’s a Forex company that also provides training on how to make money with Forex for beginners and veterans.
As placed on their website, the CFX business model combines assisted trading systems with algorithms in the Forex Market, Network Marketing, and Interactive Educational Programs.
Based in Panama, CFG’s website domain was privately registered on March 4th, 2019.
Previously, some reviews would say that Cash FX Group’s founder was not disclosed but upon checking on their website right now, they are pretty transparent about this matter and named Huascar Lopez as the founder and CEO of Cash FX Group.
Edwin Abad, the Vice President of Trading Operations was also named as co-founder. Unfortunately, Huascar has no Forex trading history or other previous affiliations in other MLMs other than Cash FX Group.
CFG being an MLM in the Forex niche will enable you to make money through recruitment and trading, although you won’t do actual trading at all.
Apparently, you won't be seeing any charts, tools, or any Forex trading system in your account and all trades will be done by CFGs' hired brokers and their own AI trading bot Expert Advisors (EA).
CFG's Forex trading software together with their experienced Forex trading team will make you 200-400% ROI, or so they say.
Basically, since you’re not trading yourself, what you will only do is promote and share CFG with other people. In short, you recruit and if recruitment is the sole source of income, it becomes questionable in many ways and I’ll discuss more of this below. For now, let’s talk about their products.
Cash FX Group Product Line
Basically, CFG has no retailable products or services and what Cash FX Group’s affiliates market is the membership itself. Once signed up, they have to invest funds to participate in the MLM opportunity.
CFG affiliate investment provides access to Trade Academy education packages, their platform that teaches beginners how to invest.
Is Cash FX Group A Scam?
Well, we can’t totally prove that CFG is a scam it has too many red flags to ignore.
Since there are no retailable products, what you really promote in these kinds of schemes is the membership itself. People invest in their program so you can earn your investment back and according to the Federal Trade Commission (FTC), this is one characteristic of a pyramid scheme.
Pyramid schemes often promise investors a large amount of money in return or ROI in exchange of recruits. There are no tangible products or valuable services to offer and affiliates are paid directly for successfully inviting a person.
Not only is this a red flag, but it also suggests how unstable the business is. Since there are no other sources of income, you will not earn anymore if you won’t be able to recruit another person.
As for Cash FX Group, they claim that their AI and experts will do the trading for you but they are not able to provide valid proof that that would support their trading activities.
If these are not enough, here’s another: CFG is not registered properly to authorities. With no proper registration among regulatory bodies, it is indeed operating illegally!
Is Cash FX Group A Pyramid Scheme/Ponzi Scheme?
Apparently, it seems like CFG has the quality of being a Pyramid Scheme and a Ponzi Scheme.
Why like a Pyramid Scheme? Because as mentioned, there are no retail sales in CFG, and in these kinds of schemes, the compensation plan is geared more towards recruitment. Though there are claimed ROIs from investments, it is more likely that the pool of income is from recruitment.
Again, no evidence would back up their trading activities.
In addition, they are not registered properly to authorities so there’s a huge chance that they are committing security fraud!
Ponzi schemes can happen when a company is deceiving people about an investment opportunity and the source of their income, which is happening in CFG as they don’t provide proof.
They may have these trading bots and teams or softwares but with no registration, they don't have proof to validate that they have a system that can do this.
Cash FX Group Compensation Plan
According to them, in CFG’s opportunity, you can make money in two ways:
- Through Forex trading
- Through recruitment
CFG affiliates invest funds on the promise of a 200% or 400% ROI, capped at 15% a week. CFG membership is tied to a $300 to $100,000 initial investment.
The 200% return cap applies to passive returns while the 400% return cap applies to the MLM side.
Withdrawal Fees - CFG charges a 20% withdrawal fee as the company uses 50% of this fee to fund residual matrix commissions.
Recruitment Commissions - CFG pays a 50% commission on funds invested by personally recruited affiliates. This 50% is calculated based on PV(Personal Volume) generated via Academy Pack investment.
CFG has also Affiliate Ranks
- President Club
- Global Ambassador
Each rank qualifies a specific PV (Personal Volume). It is the sales volume attached to CFG’s package investment.
- 300 package = 150 PV
- 500 package = 250 PV
- 1K package = 500 PV
- 2K package = 1000 PV
- 5K package = 2500 PV
- 10K package = 5000 PV
- 20K package = 10,000 PV
- 30K package = 15,000 PV
- 50K package = 25,000 PV
- 100K package = 50,000 PV
Residual Unilevel Commissions - These are paid as a percentage of funds invested across the unilevel team. CFG caps payable unilevel team levels based on rank.
Residual Commissions (3×10 matrix) - A 3×10 matrix places a CFG affiliate at the top of a matrix, with 3 positions directly under them.
Residual matrix commissions are funded by 50% of withdrawal fees collected from affiliates placed in the matrix.
Leadership Bonuses - Executive and higher affiliate ranks purportedly correspond with associated Leadership Bonuses. When a personally recruited affiliate qualifies at the same rank, the recruiting affiliate receives 50% of their Leadership Bonus.
How Much To Join Cash FX Group?
To join as a CFG affiliate, one’s membership is tied to a $300 to $100,000 initial investment.
- 300 package – $300 investment
- 500 package – $500 investment
- 1K package – $1000 investment
- 2K package – $2000 investment
- 5K package – $500 investment
- 10K package – $10,000 investment
- 20K package – $20,000 investment
- 30K package – $30,000 investment
- 50K package – $50,000 investment
- 100K package – $100,000 investment
CFG investment packages expire when either 200% in passive returns or 400% in MLM related commissions are earned. Once either 200% or 400% in returns has been generated, investment in a new package is required to continue earning.
Honestly, there’s nothing really to like about CFG and what it offers. A promised ROI is always gonna be captivating but don’t forget to investigate every bit of detail.
Not Registered Properly
CFG comes with promised returns from investments, which are even automated and done by their team of experts. Since it’s still “investing”, they should be registered but as discussed, they are not regulated.
This alone is a major red flag as they are obviously operating illegally.
Investment in CFG starts from $300 and would even go up to $100,000, which is a heap of money. When returns have been generated, investment in a new package is required to continue earning and that’s gonna be another expense!
Similarities From Previous Forex Scams
CFG's EA software is similar to another sketchy Forex MLM company called Lifestyler Club (aka AI Global Forex) that uses a trading bot called AI Expert Advisor although you won’t find any connection between Cash FX Group and Lifestyler Club.
But then, considering their similarities, it’s not worth your time and money.
Probably A Ponzi And Pyramid Scheme
Though they may claim there is Forex trading going on, there is still no proof to validate this and since there are no retail products, recruitment is still the name of the game and probably the sole source of income.
They may assure you with automated returns but probably it’s just a deceptive claim. Don’t be deceived! It’s almost like a Ponzi and Pyramid Scheme. It’s just a matter of time before it’ll probably shut down by the FTC.
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Apparently, joining as an affiliate, you will be given a CFG account. You’ll also be provided with Trade Academy education packages that will help you learn more about Forex. However, you won't be able to see any charts, tools, or any Forex related stuff in your account as you won’t do the trading yourself.
Well, it is possible to make money with Cash FX Group’s opportunity but you won’t know if it's coming from recruitment or from Forex trading as I’ve said, there is no proof.
With all the red flags pointed out, we can conclude that it is somewhat of a pyramid scheme that you should ignore. It is most probably committing securities fraud, which is illegal because again, it’s not regulated.
This can get in trouble when you join and promote the company and I don’t think we want that to happen. On top of this, it’s expensive!
Not worth your time and money.
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I hope this has helped you learn more about Cash FX Group and the best make money program online. If you have questions or comments, please feel free to drop it below.
Thank you for reading my Cash Fx Group Review!