It’s likely that you have come across FX Farms through an email list, on social media or got it recommended by a friend or family member.
Is FX Farms a scam? The reasons why you’re here is because you have want answers right so, that’s what I’m going to provide for you within this FX Farms review.
First and foremost I must commend you for actually doing a bit of extra research before committing to joining PRODUCT. For all you could have known, the product could be a major scam so the fact you’re here right now, researching whether or not that’s the case is a pretty smart move on your part.
To be fully transparent with you, I am personally not a member of FX Farms so I can assure you that I will not attempt to sell you it unless of course it’s worth investing in.
What I will aim to do is provide you with an unbiased 3rd party look at FX Farms that will hopefully help you to make the best decision you can in the end.
PRODUCT NAME: FX Farms
OWNER/S: undisclosed
TYPE OF PRODUCT: Forex Trading MLM
PRICE: minimum $25
SUMMARY: I believe that there is good chance that FX farms is a scam or pyramid scheme and in turn probably a Forex Trading company that’s best to be avoided.
The lack of any regulatory body like the SEC and FCA backing the company, the use of actors from fiverr to portray a positive image of the company, the lack of any tangible retailable products and of course the heavy push on recruitment for success are the main reasons why I would not suggest working wit FX farms as there’s a good chance at this current moment in time, that they’re more than likely committing securities fraud.
FINAL RATING: 1/5
RECOMMENDED: No
WHAT IS FX FARMS?
From it’s promotional videos and the official website, FX Farms does appear to be a Forex Trading MLM company however, besides the videos being used and their mission, vision and core values, there really isn’t very much else being said about FX Farms on the website.
They’re just not as transparent as you would like them to be. On their website you do receive some information about the company being located in UK with a couple other regions that they operate in such as Spain, Greece and of course USA. however, after doing a bit of research it appears as if the address mentioned within the website is Regus.
Regus is actually a name I’ve previously seen come up for another trading MLM, namely TechVision. That was a company I didn’t have a very good impression of at all so, Regus being associated with FX Farms doesn’t shine it in a very positive light.
In fact if you do a bit of digging in regards to the promotional video, certain individuals are actually fiverr actors paid to speak on behalf of FX Farms, just like TechVision and well… I don’t think you need me to tell you that the paid actor aspect of any business matter should be indicative of where a company stands and obviously is a pretty big red flag.
The company vision, mission and core values are quite generic too, which include ambitions of becoming the best Forex trading platform, providing the best service within the market and so on.
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FX FARMS PRODUCTS
According to the FTC an MLM by law is required to offer retail products to customers through which they would ideally generate the majority of their sales via retail cutomers and not just from affiliate members.
In this case FX farms do not offer anything retailable, the only product offered is the affiliate membership.
Of course FX farms do try to frame themselves as a legit alternative Forex Trading platform to join, which it possibly could have been provided it didn’t use the MLM business model however, it clearly does use it and in turn breaks the rules by only offering an affiliate membership.
HOW DO YOU MAKE MONEY WITH FX FARMS?
As is the case with pretty much all MLM businesses there are 2 ways to make money with them, FX Farms being no exception.
1. The first method is by directly selling the product to other individuals and in return make a commission for the sales
2. You make money through your recruits and downline, by getting residual income by following and meeting certain criteria as well as make money through bonuses and incentives due to meeting company set goals.
HOW TO GET STARTED
In order to become a FX farms affiliate, you’ll need to invest a minimum of $25. Of course the more you’re willing to invest, the more FX farms claims you’ll make but, I’d definitely be suspicious of such claims considering the few red flags I’ve already discussed above.
COMPENSATION STRUCTURE
There are quite a few elements to the compensation plan so I’ll be breaking them down here just to have a rough idea on how things would be paid out if you were to join.
The first way to make money is by investing funds, on which the returns they claim can be achieved are quite ridiculous :
- Base – invest $25 to $1500 and receive 1.5% a day for 140 days
- Trader – invest $1501 to $10,000 and receive 1.65% a day for 150 days
- Lead – invest $10,001 to $25,000 and receive 1.85% a day for 170 days
- Eagle – invest $25,100 to $55,000 and receive 2.1% a day for 185 days
- President – invest $55,500 or more and receive 2.45% a day for 205 days
Direct Referral Commissions
These are commissions an affiliate will earn from the funds invested by their personal recruits. The amount earned will also be determined by how much an affiliate has also invested and in turn the amounts paid out include the following :
- Base to Lead tier affiliates receive a 5% referral commission rate
- Eagle tier affiliates receive a 6% referral commission rate
- President tier affiliates receive a 7% referral commission rate
Residual Commissions
FX farms utilises a binary structure to determine how the residual commission are paid out. A binary structure simply means every affiliate will be able to recruit 2 individuals, one on the left and one on the right leg implying horizontally there will be a cap on how may recruits each level can have whilst vertically the earning potential is theoretically infinite.
At the end of each day FX farms tallies up the new investment volume on both sides of the binary team and distributes 10% of funds matched on both sides, which in this case is capped based on how much an affiliate has invested :
- Base and Trader tier affiliates are capped at $1000
- Lead tier affiliates are capped at $1500
- Eagle tier affiliates are capped at $3500
- President tier affiliates are capped at $5500
Rank Achievement Bonus
Whenever an affiliate is able to achieve a specific rank within the company, they will be eligible for the following bonuses :
- Leader (generate $35,000 in investment volume on both sides of the binary team) – “$300 vouchers”
- Achiever (generate $70,000 in investment volume on both sides of the binary team) – an Apple 11 Pro and “$600 vouchers”
- Professional (generate $111,000 in investment volume on both sides of the binary team) – an Apple MacBook and “$1000 vouchers”
- Diamond (generate $155,550 in investment volume on both sides of the binary team) – “$1500 vouchers”
- Legend (generate $222,200 in investment volume on both sides of the binary team) – a “watch” and $2000 vouchers”
- Elite (generate $444,000 in investment volume on both sides of the binary team) – a “sports bike” and “$3500 vouchers”
- VIP (generate $666,666 in investment volume on both sides of the binary team) – a “car”, an iPad and “$4500 vouchers”
Royalty Bonus
There isn’t much information about the royalty bonus but from what I could find, FX farms does appear to pay out using a percentage value which likely is paid out off of the company wide bonus pool for the higher ranking members :
- Lead tier affiliates qualify for a 0.5% Royalty Bonus
- Eagle tier affiliates qualify for a 0.75% Royalty Bonus
- President tier affiliates qualify for a 1% Royalty Bonus
THE NOT SO GOOD THINGS
They Are NOT Regulated In Either The UK Or USA
Within the FAQ section FX Farms claims that they are globally registered, whether it be the UK, USA or other parts of the world which in turn would imply that the SEC and FCA know about FX Farms trading business however, if you do a small background check you’d realise that they clearly are not.
To be fair, the moment I saw the poor use of grammar attempting to explain where they were regulated, considering FX Farms is trying to be the best Forex Trading service on the planet, it did kind off detract from the professional view that it probably was going for.
The lack of any documents proving FX farms is regulated is a very worrying matter and does in turn imply the company is committing securities fraud.
Recruitment Is Clearly Essential For Success
Of course as a Forex Trading company the main way you should make money is via the trading aspect of things but, from what I could find, besides the membership level there really is nothing going over how to effectively conduct Forex Trading.
This in turn means FX farms more than likely wants you to recruit others and make money from them as opposed to making money in a more legit manner.
As I mentioned above, only selling affiliate memberships and nothing else is a major red flag that implies to a certain level that a company may be a pyramid scheme and from what I can see, this is clearly prevalent with how FX Farms MLM business model works.
Actors Are Used To Portray The Company
FX farms also very clearly seem to use actors to try and make the company come across as legitimate.
This is undoubtedly a red flag as it pretty much shows a lack of trustworthiness on their part and insinuates that the real masterminded behind the company (probably a guy named Regus) is trying to con you.
THE GOOD THINGS
Besides the layout and design of FX Farms website, there really is nothing else positive to discuss when talking about FX farms, at least as far as I can tell.
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IS FX FARMS A PYRAMID SCHEME/SCAM?
I believe that there is good chance that FX farms is a scam or pyramid scheme and in turn probably a Forex Trading company that’s best to be avoided.
The lack of any regulatory body like the SEC and FCA backing the company, the use of actors from fiverr to portray a positive image of the company, the lack of any tangible retailable products and of course the heavy push on recruitment for success are the main reasons why I would not suggest working wit FX farms as there’s a good chance at this current moment in time, that they’re more than likely committing securities fraud.
MY PERSONAL RECOMMENDATION
I personally will always recommend against using a MLM business model to make money, not because you can’t make money through it (you totally can) but, the system has always seemed shady to myself and is kinda synonymous with the likes of a pyramid scheme or scams (MOBE and Digital altitude).
Instead I prefer working with something created through ones own means and is ultimately dependent on yourself and your work ethic alone.
This method I’m talking about is affiliate marketing.
The reasons as to why I recommend it over MLM based structures are because
– there is no need to recruit constantly
– it is a legitimate method that has been working consistently and continues to grow as more businesses want individuals to promote products
– and because it is free to start up, no unnecessarily large start up funds needed.
The service I recommend is Wealthy Affiliate. It’s free to sign up to and will get you set up and ready to start your affiliate marketing journey within minutes, as it did for me when I begun my journey.
If you have any questions that you would like to ask me regarding FX Farms, feel free to do so in the comments section below and I will get back to you as soon as I can. If you have your own thoughts about FX Farms and would like to talk about it, again feel free to do so in the comments below!
Thanks
Amhil