Pharaoh
Brigadier General
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Hello Pharaoh,
My name is Dennis Kulagin and I am head of marketing department at MFX Group. I am gladly here to address your questions.
I'm glad someone noticed and replied.
The Investment Program MFX Capital is structured as a corporate loan to our clients. MFX already had the profit-based return program – however now due to our 8-year experience (which included both good and bad times on the global financial markets) we have established a structure, where we do not need to offer return from our profit, but fixed the percentage.
Is this a monthly payment? If not, 5% compounded monthly equals more than 60%
Because MFX is a global company operating in over 120 countries. EVERY invested amount – even $100– is divided proportionally between the activities of 120 countries. This gives us excellent risk management, which is not dependent on the micro economic factors.
This doesn't really explain anything. Having a diversified and well run business doesn't ensure the ability to guarantee 5% each and every month.
The difficulties with explaining the 60% return fall off with people, who have at least some experience with Forex market – as they know, what amount the brokerage companies charge for the transaction.
However, MFX has even more – because of its unique partnership program opportunities. We encourage every person to bring in his friend, or any other trader with us, and receive lots of benefits – including commission from spread of up to 80%. Along with our coverage of developing markets, this and other tips bring us high returns for every client involved. So everyone is happy.
Even if you gave the best forex trader in the world a zero-spread, zero-commission account, a claim of being able to do 5% indefinitely would set off all the Ponzi alarms.
We do reinvest our own capital – but you know, that global markets have no limit. That’s why we gave opportunity to our existing and potential clients to involve in Investment Program MFX Capital and gain stable return.
Global markets may have no limit. Profit for a single month may have no limit. The most basic laws of economics are that risk and reward are strongly correlated.
We are passing the audit at the moment, and it takes time due to the large business operations we have in many countries. Of course, all the data cannot and will not be published because it shows the structure and business operations which are the matter of confidentiality.
I would hope that any audit could at least publicly certify that the claimed profits are both feasible and real. Otherwise, there's nothing to separate these claims from those of a typical Ponzi scheme.
This program was created by Igor Volkov, the president of MFX and Margo Zhiznevskaya, member of Georgia International Chamber of Commerce ICC GEORGIA - International Chamber of Commerce – the well-known investment manager with brilliant reputation in the current sphere, working with investors around the world. This is not THE BUSINESS that generated such profit – but HOW THE BUSINESS IS DONE. Our key is the following: we diversify risks, we do not trade with money, and we are expanding the innovational business bringing large return, gaining opportunities. Behind every successful business bringing large amount of money is the idea – not a capital, invested in real estate bringing 10% annual return due to price raise. We are doing business – not buying or selling. And yes, we are confident in what we are doing – and no one can prove us wrong – so we are offering 60% annual return to investors, hoping that the next year we can offer more, without any looking back on those who give out 10 or 20% annual.
It doesn't matter how well-known the creator is (Bernie Madoff comes to mind) or what the business model is. What you are offering is a pooled investment with a guarantee that is getting into HYIP territory. Extrarodinary claims require extraordinary evidence.
Because first – we do not need to shout out loud. We work with investors on B2B basis, receive large amounts, and give out profits. You also cannot see a single report of the investor who is unhappy with our work, and believe me – you never will.
And second – we do not publicize ourselves – our company speaks of us clearly.
The funny thing about Charles Ponzi was that his initial arbitrage scheme was profitable. What lead to the problems was too many investors. Bernie Madoff kept his clients happy for a long time. Without some public info from verified audits, happy clients can't tell a good investment from a Ponzi that hasn't crashed yet. You should read the arguments I had with happy clients of several Ponzi schemes here at the FPA.
That’s all right. Sometimes people are skeptic due to the events on financial markets, and companies opening and closing every day.
But we do not have to be responsible for others. We speak for our work, and our company only – and MFX has never been guilty for doing monkey business for its entire 8-year history.
I'm glad you understand, but I'm still awaiting some real evidence. Madoff didn't start bad. Ponzi himself didn't start bad. Both promised good returns and went bad when they couldn't sustain them.
By the end of your post, I am happy to hear that. This is a very professional approach, and that is why I gladly reply. Please ask any additional questions you might have, to clarify the issue.
I'm looking forward to whatever details you can publicly share about how these returns are made, along with whatever part of the audit can be made public.