Forex Paradise Review – 8 Reasons Why It is a Ponzi Scam
I came across an interesting company that claims to invest money on your behalf in forex trading and eventually pay you extremely high returns at the end of a fixed period. The name of the company is Forex Paradise Ltd. It describes itself as an international company providing investment services worldwide.
Forex Paradise accepts bitcoin and USD deposits and invests the money in forex trading and other forms of investments.
To invest in Forex Paradise you must go to their website, create an account, select an investment plan, and then transfer funds to your Forex Paradise account.
Forex Paradise has 2 investment programs called Superior 1777 and Classic 430 plans, respectively.
The Superior 1777 plan offers a guaranteed return of between 728% and 1777% over a period of 12 months. The rate of return depends on the amount initially invested, the higher the amount of money invested, the higher the rate of return. With this plan, you cannot withdraw your funds until the maturity date is reached.
On one hand, the Classic 430 plan offers a guaranteed return of between 188% and 430% over a period of 6 months. With this plan, the returns are not as high, but you can withdraw your profits daily.
What make Forex Paradise unique and attractive to many investors is that they guarantee that no investors will lose their money as the deposits are 100% insured against any losses.
When I first came across Forex Paradise, I saw it as another HYIP scheme. However, what surprised me about this investment program is that it has been running for more than 2 years, yet I could not find negative reviews about it.
Moreover, all the HYIP monitors showed that Forex Paradise had been paying it’s investors for the past 2 years without any complaints from investors. Even trusted forex and scam review sites such as binaryoptionswatchdog and onlinescamguard could not find anything suspicious about Forex Paradise business; they ended up endorsing it.
In spite of overwhelming support and positive reviews about Forex Paradise, I still had doubts about the legitimacy of their business as I was seeing a few red flags. When I searched the first few pages in Google, I found a lot positive reviews about Forex Paradise, but as I delved deeper into pages 8 and 9 of Google search I found 2 negative reviews.
The reviews confirmed my suspicion all along that Forex Paradise is actually a Ponzi scheme. I have listed 8 reasons (red flags) that prove Forex Paradise is a Ponzi Scheme. In other words, Forex Paradise does not invest funds, instead, it uses funds from new investors to pay earlier investors.
1. Forex Paradise investment is too good to be true
The investment returns are too good to be true. The Superior 1777 plan promises a maximum return of 1777% per annum, while the Classic 430 plan promises a return of 430% in just 6 months. Trading is an extremely high risk and high return investment. However, no legitimate investment company can promise or guarantee such high returns. The only organisations I know that can provide these type of high returns are pyramid and Ponzi schemes. Therefore, there is only one thing to conclude from this red flag, that is Forex Paradise is a Ponzi scheme.
2. There Is No Risk of Losing Your Money from Forex Paradise
Another red flag that made me doubt the authenticity of this Hong Kong Investment Company is their assurance to investors that there is no risk of losing money as the investors' deposits are insured.
They claim that the investment is risk free because it is insured against any potential losses. They claim that 7% of all deposits are transferred to three foreign banks, and then to three corporate insurance agencies, two of which are based in China and the UK.
The problem is that forex trading is an extremely high risk investment such that no sane insurance company would be willing to insure against individuals forex trading funds. Moreover, the names of the banks and insurance agencies in which the insurance fund is transferred are not named.
Lastly, documentary evidence to prove that the investment deposits are insured is not supplied. In light of the lack of evidence for insurance, I have concluded that Forex Paradise is misleading investors about having insurance for deposited funds.
3. Forex Paradise Provides No Proof of Trading or Investing
Forex Paradise Ltd claims to work in forex trading, PAMM investments, investment trusts and asset management amongst others. However, their trading and investment operations are kept in secret as no one knows exactly where these funds are invested, or which currencies are traded.
No proof of forex trading such as screenshots have been shown to investors. We don’t even know how much of the investors funds are allocated to each trading account or investment portfolio. This is odd considering that the company has been around for more than 2 years. The absence of trading or investment information support the notion that Forex Paradise is a Ponzi Scheme.
4. Owner 'Stefani Hendriks' hiding His Real Identity
The owner of Forex Paradise is hiding his real identity. The picture of Stefani Hendriks that appears on Forex Paradise website as the owner is actually taken from another professional dressing article. So the owner, Stefani Hendricks, grabbed a picture of a professional model from a June 2012 article entitled "10 Tips on How to Dress Like a Man" and used it as his own personal picture. I even doubt if Stefani Hendriks is his real name as he does not have a LinkedIn profile that we can use to conduct a thorough background check on him.
So why would anyone hide their true identity if they are running a genuine investment company? The answer is obvious, he is operating an illegal Ponzi Scheme disguised as a forex trading and investment company.
5. Fake Forex Paradise Testimonials
Fake testimonial videos have been discovered on the Forex Paradise website. Paul Hardingharm, an internet marketer, exposes some of the fake testimonials in his Youtube Review of Forex Paradise.
For example, the testimonial below is fake, it was bought from a Fiverr actor at a cost of $5. Fiverr, for those who don't know anything about Fiverr, is a global online market place for offering tasks and services to the internet marketing industry. You can view the testimonial services offered by 'Samuel' in his Fiverr Gig, then view him in action in his Forex Paradise Testimonial below.
Paul Hardingham puts it nicely, if you cannot trust reviews from the website testimonials, can you trust anything else from the website? Well I would not trust a single thing Forex Paradise says about their business.
7. The Company has virtual offices
Paul Hardingham also discovered that the company uses virtual offices. In other words, their office is located in an office park (offices for hire) and no one is manning the office. Paul sais he tried calling the office several times but his calls were not answered. In other words, Forex Paradise can disappear at any time without worrying about their offices as they don’t belong to them, they’re just rented out.
8. Introduction of Special Bonuses and More Favourable Plan
This is not really a red flag, it is more of a tell-tale sign of an HYIP program that is about to fold. A very common trick used by HYIP programmes to get a little extra cash from investors before shutting down is as follows: They introduce a more favourable plan in the form of either shorter investment duration, a much higher return percentage, or both. Introduction of special bonuses is another trick used by well-established HYIP programs to lure more investors, or more money from existing investors before shutting down and disappearing.
Forex Paradise is a well known program advertised in HYPE monitors, and by even trusted websites, and it has been running for more than 2 years. Therefore, the introduction of a more favourable plan (Superior 777.77 limited) and a special bonus for limited number of investors is a sign of Forex Paradise trying to squeeze out extra funds from investors before the scheme comes to an abrupt end.
Final Word on Forex Paradise
I could have gone on highlighting more red flags, but I think the ones' I have listed above are the most important and enough to convince any rational thinking person that Forex Paradise is a Ponzi scheme, and not a genuine forex trading and investment company as the owner claims.
However, I know that many risk junkies put money into these fake businesses knowing very well that they are Ponzi schemes with the hope of scoring big before administrators disappear with the loot. This has obviously paid off big time for those who invested in Forex Paradise when the Ponzi scheme started operating more than 2 years ago. If you one of the risk takers think that Forex Paradise will be around long enough to allow you to recuperate your investment with profits, then go ahead and create a Forex Paradise account here.
Alternative to Forex Paradise
A good alternative to Forex Paradise is eToro Social Trading. You can use eToro for investing in forex trading by automatically copying top traders.
eToro has thousands of professional forex traders from which to select a trader to copy.
Read the eToro Social Trading review, which explains step by step how to go about selecting the best and the safest traders to profit from.
The beauty about eToro Social Trading is that you don’t need forex trading experience or knowledge to safely participate, provided you read and follow the guidelines for selecting and copying top eToro forex traders.