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FSCA warns against CashFX

But are warnings against dubious investments effective?
The regulator has stopped short of saying that this might be a scam, but the warning signs are all there. Image: Kerem Uzel/Bloomberg

One cannot help but wonder if people will pay attention to the warning issued by the Financial Sector Conduct Authority (FSCA) against doing business with or investing money in Cash FX Group (CashFX).

The recent warning raises a few questions: Do promoters of and investors in such schemes even know about these warnings? If they do, do they care? Do they even think that CashFX might be a pyramid scheme?

The FSCA warning merely states that Cash FX is not licensed to give financial advice or render any intermediary services in terms of the Financial Advisory and Intermediary Services Act. The FSCA says the CashFX website “creates the impression that it provides a foreign exchange trading platform” and seems to trade on behalf of clients via “copy trading”.

“Additionally, it appears on social media that CashFX promised that clients will yield a financial return between 5 [and] 20% weekly. CashFX supposedly does presentations in South Africa to members of the public and offers different training packages,” reads the FSCA warning.

However, the FSCA stops short of saying that CashFX might be a scam.

Warning signs

The signs are all there. CashFX makes a lot of claims and promises, while the basic structure of the “investments” and large benefits of introducing other people to join are similar to those of a pyramid scheme.

For some reason, these scams regularly ask for some form of payment or membership fee of around 25%. They always offer different packages or investment levels (often referred to as a matrix).

In the case of CashFX, packages range from $300 to $100 000, of which 30% is paid towards CashFX and the balance is invested in a forex trading account.

The 30% – $90 of the smallest $300 plan – supposedly pays for training material.

A second characteristic of investment scams is the so-called forced matrix, which forces investors to buy more expensive plans after they have made some money.

CashFX requires investors to upgrade to a higher plan once they have earned a return of 100%.

Supporter shares his insights

If investors upgrade fast enough, they only pay the difference between what they earned and the price of the new plan, explains one of the promoters of the scheme in an article published in the Lenasia Rising Sun a few months ago.

“Our product is the Trading Academy Pack (TAP) which is where those interested in forex trading can learn through our group of trading experts from the very basics of trading to the advanced trading lessons,” says Bongani Fakude in the article.

“Our trade contract packs range from as little as $300 to $100 000. This ensures that the company caters for all. When you invest 30% of your money that you pay in goes towards the TAP and 70% is automatically placed on the Trading Pool. Invest $1000, $300 goes to TAP, but instead of going to the company half of that $300 goes to your sponsor as a fast start bonus.

“The other $150 goes towards the unilevel commissions. So, 30% is absorbed on the compensation plan. Should you wish to withdraw from the program the company can refund 70% less a penalty fee, but take note the 30% that has gone towards the compensation plan cannot be refunded as it was already paid out!” says Fakude.

It’s clear that it is highly profitable to recruit new members, with Fakude noting that recruiters can earn twice as much as investors.

The second warning sign is that CashFX promises unusual high and consistent returns of 5% per week.

Moneyweb got hold of Fakude, who says that he has been involved for the last 24 months, and sent screen shots of a couple of his payments as proof that CashFX is still going and paying out trading profits.

“This is not a scam. I trust this company hence I went all out and putting an ad on the paper, I have invited my family members and most of my close friends and colleagues at work,” he says.

“Very soon they will be having a ribbon cutting ceremony at their offices in Panama, they also ran a competition where members could win tickets to the ribbon cutting ceremony.

“That would be a big scam,” he adds, indicating that it must therefore be legitimate.

“Most companies in the same space as CashFX have collapsed with the volatility of Bitcoin, yet it’s still standing and bigger investments are being made for better upgrades. I see a well structured futuristic company,” says Fakude.

Social media

On the question of the FSCA warning, he says the broker that CashFX has partnered with is regulated all over the world with the best certificates in the world.

This is a claim that CashFX promoters often repeat.

“The CashFX company broker and main partner is regulated by the following institutions: Financial Conduct Authority (FAC) of London, in Dubai with the Financial Services Authority (DFSA), Financial Sector Conduct Authority of South Africa (FSCA) and the Financial Services Authority of Seychelles (FSA),” according to another promoter pushing CashFX on Youtube.

Nobody can tell if the warnings from the FSCA have the same reach.

Read: When high returns raise suspicions

A problem with scams is that promoters are doing such a good job of selling them on social media platforms that they become so recognisable they start to look like mainstream investments.

Do people realise the difference between a video clip promoting CashFX and those from traditional and registered investment managers who publish their presentations on Youtube?

Easy money

While CashFX and its promoters proclaim that selling training modules is a main part of their business, common sense disagrees. Most investors want easy money and would not even look at the training material for more than five minutes.

The CashFX website says that trade on global foreign exchange markets exceeds $5 trillion a day, and it attracts millions of people with a shared dream of financial freedom. CashFX says investors can earn passive income by joining the programme to copy the trades executed by its experienced experts.

The advantage of copy trading, it says, is that “the individual account holder is not required to do any trading activity” themselves.

“One may participate in copy trading with absolutely no trading experience,” according to CashFX.

The too-good-to-be-true performance is apparently based on “expert advisor algorithms, artificial intelligence technology and professional forex trading teams working together”.

CashFX has either written the world’s winning algorithm (unlikely) or it is a pyramid scheme that will fail when it runs out of new recruits, which might take years given that CashFX is apparently targeting almost every country on earth.

While the FSCA cautions that the public should always check that an entity or individual is registered with the FSCA to provide financial advisory and intermediary services, it is difficult to stop the marketing of dubious schemes by foreign companies to SA citizens.

CashFX is registered in Panama and the local promoters are enlisting new members.

It might carry on for a long time – the world population is approaching 7.9 billion and new suckers are born every second.

Please consider contributing as little as R20 in appreciation of our quality independent financial journalism.

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COMMENTS   11

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Our Pastor mentioned this on Sunday so I suppose it must be okay.

I warned Pastor Charles that was on Steve Harvey show Family Feud that Cash fx is not making profits. Reason is because I joined Cashfx to check if their copy trading and forex trading charts are showing are legit or not and NO they are not making profits. The trades are running at a more losses than wins.
Check out the trades “Cashfx” people, it’s right in front of u. Don’t be pulled in by greed for the 5% returns and doing your background checks…

Get out now before u loose all ure money and your friends and family that u introduced…

SCAM!!

Why do you want to pay big bucks for “training material” when its not needed? Its copy trading??

Copy trading is very easily accessed through a platform like Meta Trader 5. You can pick who you want to copy check out their performance history you pay the owner a bit (small money) and of you go. Its automatic and very cheep. The catch is there is no trader with that trading history to copy.

Pyramid scam. But let those who want to participate go for it!! Hahahaaa.

Another day..another scam..coming a bit of a yawn now!

If the lotto is a tax on people who can’t do maths, then a Ponzi scheme is a way to rob people who ignore reality. The lifespan of a Ponzi scheme is inversely proportional to the promised yield. Bernie Madoff promised a yield of 5% per year and he lasted for 30 years. Mirror Trading International offered 10% per month and they lasted a year or two. The higher the yield, the quicker they run out of other people’s money.

This is basically what happened to the USA in 1971 and forced them to abandon the gold standard and adopt a fiat currency.

I think this is more of a general negative review that normally done to network marketing companies with little information. It is not fair and objective, I have been with CFX now for 1.5 yrs , it has done wonders for many people , every company does marketing, there is a legit forex education product

I have absolutely no sympathy for those who invest in such scams. It isn’t even as if these scams are coming up with new innovative ways to scam people, they use the same old tricks over and over again and people continue to fall for them over and over again.

Never forget the people investing in these scams step over and around the legitimate funds to stick there money into these traps… Zero sympathy.

Never forget recommending a fund to someone – then hearing later thru the pipeline they didn’t pursue… ” cause the fund agent that pitched up to meet and chat with them was driving a secondhand car that was 20 years old”….. I was with that fund for over 4 years…… And gave me an average roi of 16 %.

Imagine if Warren buffet was sent to meet up…… Most of these people getting fleeced are just like the people fleecing them. Shallow and pretentious are very good words to describe them. Zero sympathy.

CashFX has been in existence since 2019. I joined them in 2020 and its almost a year that I’ve been earning weekly from them, and never has there been once a missed payment.
It is a legitimate company with a proper vision for the near future. The most lovely thing about it is that they are transparent about business operations, market, and trading. And if you’re part of them you’ll know that owners and directors are visible to every member on a weekly and monthly basis with updated information.

A BRUTAL SCAM

What Cash FX Group is about?

The Cash Forex Group is run by a company named CFxG which allegedly was founded by a team of experts in all sorts of areas, mainly education in the financial trading field and network marketing.

These experts and their automated trading system will supposedly help you to make lots of money. In trading only you can allegedly make 15% weekly on your investments. Then there are referral programs and multi-level structures that can boost your income even more. Is that true?

CASH FOREX GROUP SACM

Let’s start this Cash Forex Group review by stating the obvious, this scheme is a total scam, you just have to look at the numbers.

When they promise you 15%+ weekly, it means 60%+ monthly, which is totally ridiculous in the real world. It means more than 28100% per year (compounded monthly), so you would need only $3,559 dollars to become a millionaire within year. And this is plain impossible.

No legitimate business can make you a steady 15% weekly, no financial markets are that predictable and that easy to trade. It might seem simple to you, but it really is this straightforward, a program promising 15% weekly must be a scam, there is no other way, the Cash FX Group is a scam.
But there is more to go through in this review.

NOT REGULATED

The Cash Forex Group claims to have partners that are regulated by the following institutions:
FAC – Financial Conduct Authority of London,
DFSA – Financial Services Authority in Dubai,
FSCA – Financial Sector Conduct Authority of South Africa and
FSA – the Financial Services Authority of Seychelles.

The FAC does not even exist, while the others (DFSA, FSCA and FSA) have not issued any license whatsoever to Cash Forex Group. And it is CashFX Group that needs to be regulated because it is offering investment services (as confirmed by the FCA, see below).

The reality is that it has no license whatsoever, so it cannot offer investment services legally in most countries.

This is also why they want you to deposit cryptocurrencies, they want to stay as anonymous as possible, so that they can run away with your money

REGULATORY WARNINGS

Not long after we published our analysis, the Financial Conduct Authority (financial regulator in Great Britain) came up with its own warning.
The regulator said that CashFX is providing investment services without the necessary authorization and advised the public to stay away from it. This is a very serious argument.

Later Cash Forex Group made it also to the blacklists of regulators in Canada, Norway, Panama, New Zealand, Philippines, South Africa, Ireland and the Bahamas, the BCSC, FCAA, MSC, Finanstilsynet, SCB, AMF, FMA, SEC, FSCA, CBI and SMV issued warnings against this program.

Notice that even the regulator in Panama, where CashFX Group claims to be based, published a warning against the company!

It would be very unwise to deposit money with an unregulated and basically anonymous entity, because it would not be protected in any way. No matter where the money ends up, this program is promising you impossible returns on investments, which in itself confirms that something is wrong.

HOW IT WORKS

Let’s finish this Cash Forex Group review by explaining the basic principle of this investment program. It is a Ponzi scheme that does no real economic activity. It just collects money from people and might pay out some profits, but the latest clients’ deposits will be used for that.

This will have an inevitable outcome, the system will sooner or later crumble. It is just a matter of time when there will be not enough deposits to cover withdrawals and the inevitable end will follow.

Cash FX Group review conclusion

The Cash Forex Group is a brutal scam that is going to collapse. It is not regulated, stay away from it!
If you want to trade financial markets, start on a free demo account with a regulated broker.
You have to practice and gain an understanding of the risks of trading with real money before you can actually invest real money.

COPIED FROM https://tbbob.com/scams/brutal-scam-cash-forex-group-review

Been warning people against Cashfx for months.

Had my accounts terminated for asking too many questions and for speaking out.

My website has all the dirt on them as well as my videos exposing this ponzi scheme.

Check here: https://cashfx.lol.

Available for interviews and to answer any questions as I have more info on this scam.

End of comments.

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