I uploaded a video on YouTube (here) several months ago and analyzed the NovaTechFX website and the scheme they are promoting through their affiliates. Like in that video, I am not going to say that NovaTechFX is a Ponzi scheme here in this article. However, when I analyze their website and the red flags I see around them and their business, it always makes me come to this conclusion that NovaTechFX has to be a Ponzi scheme. I know this doesn’t make their members happy, especially those who are referring and recruiting like crazy. But, I don’t care about them. If you have invested with this company, at least you’d better take your principal out, as long as they are still processing withdrawals, because they can stop paying their members at any time.
I decided to write this article because many of the NovaTechFX affiliates ignore our website’s terms. They open accounts here and try to promote NovaTechFX on our website. One of them (this one) asked me whether they were allowed to promote other programs here or not, and I said NO. In spite of this, and instead of listening to me and leaving the site, he started contacting the members privately. But he got caught. This proves that the NovaTechFX affiliates also cross the boundaries and red lines, which means the company doesn’t care about the behavior of their affiliates and they have no supervision. And, this is another red flag that proves that this company wants to collect more money from everyone in the world, as much and fast as possible, probably because they do know that they are not going to last and they will have to shut down sooner than later, which is the most outstanding common feature of all Ponzi schemes.
And, it is sad to say that when we prevent and block the NovaTechFX affiliates on our website, they become our enemies 😀
It is any of their right to become our enemies when we kick them out of our website. I don’t care. But, it is also our right to protect our website and members against scams.
Is NovaTechFX.com a Ponzi Scheme?
Before I start writing this review, again I watched the video that I created four months ago (here) because I wanted to see what I had said in the video, and then check the NovaTechFX website again to see whether it has changed since that time or not. Sadly, there is not even a small change, but just their traffic that is still going higher and higher, because their affiliates are recruiting like crazy and many poor and naive people are still investing their money in NovaTechFX.
What I’d like to emphasize before I go head with writing this article is that, NovaTechFX affiliates and members always say that NovaTechFX has been paying their members for three years so far, and this means (1) they are legitimate, and (2) they are not a Ponzi scheme.
But, let me tell you that all Ponzi schemes pay their members regularly, on time and without any problems for a while which can be from one month to several years. They have to do this because they want to (1) make their affiliates recruit more members, and (2) make their members invest more and more money over time.
Ponzi schemes keep paying their members as long as (1) new members join and bring fresh money to the scheme; (2) their members add to their investments; and (3) they haven’t decided to vanish with their members’ funds yet and still want to stay and keep working. However, all Ponzi schemes will stop paying and processing the withdrawals when (1) the number of the new members goes down, and so the amount of the fresh money the new members bring decreases; (2) a higher than usual number of members start withdrawing their capitals to get out; or when (3) they think that have collected enough money and it is the time to disappear with their members’ funds.
Any of these situations can happen at any time, from the first month to several years after they start. And, NovaTechFX is not an exception.
Therefore, if it is three years that NovaTechFX is paying you and other members, it doesn’t mean that it is not a Ponzi scheme. Keep in mind that Bernie Madoff, who ran the largest Ponzi scheme in history, worth about $64.8 billion, was paying his investors from 1960 until his arrest on December 11, 2008. Of course NovaTechFX and other Ponzi schemes will never last that long and Bernie Madoff was an exception.
What Have I Outlined in That Video?
1. As a domain name, NovaTechFX.com has been registered in June 2019, which means they are so new. 3-4 years of performance means nothing, while they are overseas and not regulated as a brokerage and investment firm in any of the highly regulated jurisdictions like the USA or Canada.
2. Their website still gives no detail about their investment or PAMM program. They have never mentioned on their website how much profit/interest you will receive if you sign up as a customer of their Fully-Automated PAMM Trading Account, which is indeed their investment program that is paying their investors 2-3% per week. Nowhere on their website have they mentioned anything about this 2-3% weekly profit they are paying if you sign up as a PAMM customer and fund your account. Only in their Zoom private meetings that you have to be invited to through their affiliates, you can learn about the profit you will receive.
Why don’t they explain this clearly on their website??? It is because what they are doing is illegal and they know it, and this is another sign that NovaTechFX is a Ponzi scheme. They don’t want to make it accessible to the public on their website.
3. They have no clear office and headquarter addresses and phone numbers on their website. Their company is registered in Saint Vincent and the Grenadines island and has a P.O.Box address. Isn’t this funny?
4. They are also a trading broker and it seems offering trading accounts is one of the main things they do. They offer their MT5 or MetaTrader 5 platform. However, it is not explained on their website whether they are a market maker or an ECN/STP broker (learn more here and here).
There are so many other things that make you stay away from NovaTechFX. Yet, the only thing that makes people keep joining this shady company is the NovaTechFX affiliates and investors who keep saying that NovaTechFX has been paying their members for the past three years. Now, it is the time to ask and answer the question below clearly:
Is NovaTechFX a Ponzi Scheme Really?
I will give you a very clear and straightforward answer to this question here:
NovaTechFX says that they trade currencies and cryptos and pay 3-5% profit per week to their PAMM customers, from the profit they make through trading. I have heard that they have collected hundreds of millions of dollars from their customers so far. It makes sense because their website traffic has been going up like crazy during the past several months. As you know, you need a broker and trading platform to trade. In the case of NovaTechFX, they are the broker themselves which means they trade using their own trading platform. They have never said anywhere that they trade with their PAMM customers’ funds through a different broker(s), which means, if they really trade, they should trade through their own trading platform. Am I right?
Now the question is, as a broker, if they trade through their own brokerage system and trading platform, are they a market maker or an ECN/STP broker???
1. If they are a market maker broker, then it is ridiculous to trade with themselves and inside their own pocket and against themselves, to pay a 3-5% weekly profit to their PAMM customers, because as a market maker broker, any profit they pay to their PAMM customers is their own loss. It means, if they are a market maker broker, the 3-5% weekly profit they are paying to their PAMM customers, is their loss. And, a company does this, only when it is a 100% Ponzi scheme that takes fresh money from the new members to pay the profit of their other members. And it means, if they are a market maker broker, while they are paying 3-5% weekly profit to their PAMM customers, then they are not trading at all, because it doesn’t make sense that they trade against themselves. They are a Ponzi scheme that merely pays 3-5% weekly profit to their PAMM customers with the fresh money they receive from their new customers. That’s why they have an affiliate program, and their affiliates promote NovaTechFX, aggressively, uncontrolled and unsupervised.
2. If NovaTechFX says that it is not a Ponzi scheme and they really trade to make the profit they are paying to their PAMM customers, then they must prove that either they trade through an ECN/STP broker that is different from their own brokerage system, or if they trade through their own brokerage system, they must prove that they are not market maker, and they are a true ECN/STP that is connected to strong liquidity providers like Goldman Sachs, Bank of America, Bank of Japan, and so on. If NovaTechFX cannot prove this, then they are definitely a Ponzi scheme.
What Do I Think?
I think NovaTechFX is a Ponzi scheme because if they were a true ECN/STP broker, they would clearly and proudly say it on their website. But they haven’t done this, which means they are a market maker broker. And, if they traded with their PAMM customers’ funds through a different broker, they should have said it on their website too. But, they haven’t done this either. Therefore, they are a market maker broker that also offers a PAMM account management program that pays 3-5% profit per week to their customers, and so, whether they trade through their own brokerage system or not, they are a Ponzi scheme.
NovaTechFX affiliates always say that NovaTechFX trades, makes profit and pays 3-5% profit per week. This is what the company has told them. But, they know nothing more than this. If you ask them, how does NovaTechFX trade; do they trade through their own platform and brokerage system; are they market maker or ECN/STP; do they trade through a different broker; they have no answer.
Therefore, as long as they haven’t clarified the things I mentioned above, NovaTechFX has to be known as a Ponzi scheme, and you have to avoid them, although they are still paying their customers.
Above all, it seems there are too many fake and biased reviews on trustpilot which is the pioneer of publishing fake and misleading reviews, although reviews like this can also be found on trustpilot:
Is any question left? I don’t think so. NovaTechFX is a Ponzi scheme, unless they prove that they are not. Above, I explained how they can do it.
