Promising huge returns has always been the modus operandi of MLM companies. In recent years, the real estate and forex businesses have become hotbeds for fraudsters to lure gullible people. Instant Forex Biz is one such company

Ponzi or multi-level marketing (MLM) companies offering extraordinary income are increasingly found to be using real-estate businesses or forex trading money schemes for luring gullible people. Many such companies are rapidly mushrooming, claiming to provide easy and large amounts of money through forex trading, without even the basic knowledge of the business.

Take the case of Instant Forex Biz, which claims to provide a trading platform for every individual trader who wants to invest in the forex market. It says, "Instant Forex is all about exchange of currencies from one hand to another as well as investing money in foreign currencies at an ongoing price in the market. Just gain profit by selling at a higher price, the one you hold, just to buy another one at a lower price."

Its business plan guarantees unbelievable returns. For instance, on investing a minimum amount of 250 euro, for one month to 18 months, it promises 25% returns every month with a minimum interval of one month. Similarly, for investing the same amount for 6 months to 18 months, it guarantees 200% returns for every 6 months. On investing the same amount for a maximum of two years, it promises to fetch you 500% returns every year.

Experts from the market say that trading in the foreign exchange market is a complicated task and needs in-depth knowledge of the subject and, of course, adequate capital. The returns are guaranteed depending on the economic situation of various countries. Promising such huge returns is dubious and raises questions on the company's plan.

Like most MLM schemes, Instant Forex also claims to give direct referral and binary income. It promises 10% on every direct referral investment. The initial invested capital will be returned after 18 months. The binary income, on referring to invest on both the 'left' and 'right' side, is 10%. It goes to 15% as the amount increases in a multiple of 1,000 and 20% on a multiple of 2,000.  

Experts point out that the company's business model is similar to most MLM schemes which have always given investors a run for their money. In fact, consumer complaints forums on the Web are flooded with complaints against Instant Forex. Most of them complain that the company does not allow withdrawing money from Federal Secure and Western Union. One complaint on www.consumercomplaints.in reads (reproduced verbatim, not corrected for grammar), "I have Invested euro 250 in Instant Forex. Biz Co. on 7 February 2010. But I haven't receive my cash/earn money withdrawal. I'm waiting for cash withdrawal from 6 months…"

Recently, the Reserve Bank of India (RBI) 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 were fabricated entities, and people should not deposit money with such unincorporated bodies.

Moneylife has consistently reported on such MLM companies offering forex trading. (See: Forex Dhamaka, yet another MLM company that promises easy income through forex trading and MLM companies try forex deals, commodities training packages to lure new members).