The company promises forex training, which it says will help earn easy income through forex trading. Some time back, the RBI had warned people not to invest in another similar company by the name of Forex Achievement
Forex trading is the latest area where scamsters are targeting gullible investors, again promising easy income. Forex Dhamaka is one such company providing forex training and as is the case with a typical multi-level marketing company, this company too promises referral and bonus income.
According to Forex Dhamaka, a person pays Rs6,999 to attend the training package.
Once he begins the training, he could recommend the programme to others, thus becoming a team member which entitles him to referral income.
Surprisingly, the company's website has no information about the details of such a course, the teaching method, and so on.
Market experts say that such companies providing forex training packages, with the promise of extraordinary income through forex trading, are mushrooming rapidly.
Recently, the Reserve Bank of India issued a clarification stating that there is no company by the name of M/s Forex Achievements registered under the Companies Act, 1956, and it cautioned the public that the company and its website was a fabricated entity, and people should not deposit money with such unincorporated bodies.
Forex Dhamaka says that if a team member introduces the training package to two people, and any one among them introduces one more member, then the original team member will get referral incentive, which is calculated on pair value (PV) on the basis of left and right side. 50PV is allotted for every referral and one PV equals to Rs10.
But there is a catch. To qualify for the first referral incentive a team member should have 150PV with a minimum 50PV of both sides of the tree. The sales cycle closes by the midnight of every Monday and 10,000 PV is the maximum payout every week for team members, which equals to 100 pairs.
Interestingly, it mentions that if required, trimming and stimulation would be applicable. Further, once a team member gets his first referral income, he will get 100PV for referrals on both sides. But every team member has to renew his ID every year to continue to receive such incentives.
Forex Dhamaka also promises spill bonus income and royalty bonus. Spill bonus income would be given after a team member refers two direct members on each side, and a third referral will be considered as spill. Then there is royalty income, which is given when a team member forms 256 members on both the sides. It is calculated on a monthly basis.
The company also promises performance bonus income up to 12 active levels. So, for level one, there is a performance bonus of 12%, which eventually comes down to 2% on level 12. It is interesting to note that there is a processing charge of 5% for referral, spill and royalty income and a 10% charge on bonus income.
A Moneylife reader said that she had been introduced to Forex Dhamaka by a friend, who asked her to invest a minimum of Rs12,000, which includes signal providing software and training. She was also told that such schemes are ideal for housewives, who by spending two hours, can earn Rs1,000 daily. The reader was told that she could trade only according to the signal to get the amount, and that Forex Dhamaka is tied up with Angel Broking, where she can open a demat account.
Interestingly, there is no information about any such tie up between Forex Dhamaka and Angel Broking on the MLM company's website. Even, Angel Broking, in an email reply had denied any association with Forex Dhamaka. It said, "Angel Broking, would like to officially deny any association with the mentioned entity (Forex Dhamaka)."
Experts point out that teaching forex trading requires dedicated time and expertise and such easy method instructions is suspicious. The company's business model is similar to most MLM schemes which have always given investors a run for their money.