Sucheta Dalal :Now MLM in forex trading
Sucheta Dalal

Click here for FREE MEMBERSHIP to Moneylife Foundation which entitles you to:
• Access to information on investment issues

• Invitations to attend free workshops on financial literacy
• Grievance redressal


You are here: Home » What's New » Now, MLM in forex trading
                       Previous           Next

Now, MLM in forex trading  

May 10, 2010

 The roots of Multi-Level Marketing (MLM) seem to be sinking in stronger. Maximus Trades Inc, a company formed by a few bankers and forex dealers in 1996, is operating a chain marketing model through trading in foreign exchange.

“We want your investment to continually grow, so that it can produce regular wealth and income for you and your family. We also have a desire to provide endless education on the value of forex trading and how that value can benefit you. This is a system unlike any other that you’ve seen before. Investors have the opportunity to direct their assets in an exciting Multi-Level Marketing plan that generates a steady flow of income through commissions and other sources,” states the company website.

The payments for trading are made through the company’s portal. Trading is supported by two Web-based platforms and a downloadable trading station.

“They claim to be operating from Bangkok because of high taxes in India. Some virtual transactions are done online. They also offer Rs1,500 per month on a deposit of Rs12,000. It is flourishing rapidly. Over the past 15 days, at least five marketing guys have approached me to join this scheme,” said a Moneylife reader who received such calls.

The company website claims to have offices in Athens, Barcelona, Bucharest, Istanbul, Shanghai and Tokyo.

Despite the fact that the US-based Federal Trade Commission (FTC) had already warned people against being part of such a pyramid scheme some years back, people are still lured into investing in such models without realising the ramifications.

MAXFOREX claims that it does not manage investment portfolios and is not engaged in foreign trading consulting.

It claims to have made asset allocation for 20 companies in the areas of real estate, Internet technology, insurance and retail.

Chain marketing schemes are illegal in countries like Albania, Australia, Brazil, Bulgaria, Canada, China, Colombia, Hungary, Iceland, Italy, Japan, Malaysia, The Netherlands, New Zealand, Norway, the Philippines, Taiwan, Thailand and UK.

Moneylife Digital Team

-- Sucheta Dalal