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Betatraders’ website does not include ownership or executive information. On December 28th, 2022, Betatraders’ website domain (“betatraders.net”) was privately registered.
We look at 34 different data points when analyzing and rating online money-earning opportunities. Once the research on these data points is submitted, expert contributors reach out to the company’s customers and associates to get more insight into their operation. Finally, all the collected information is presented in the form of this expert review.
All the data is extracted from publicly available information and the sources are given in the transparency section at the bottom of every report.
These reports are made possible by the collective efforts of contributors like you. If you would like to become a contributor then contact us here.
We can observe from the source code of Betatraders’ website that it is copied from the domain “betatradersai.com.” This website domain is currently disabled, but it was operational as Betatraders’ original website domain a few weeks ago:
This suggests that Betatraders has ties to Africa, although it is not conclusive.
They have an official YouTube channel with one video that features a Fiverr actor:
Betatraders presents incorporation details for Beta Traders Limited in an attempt to appear legitimate.
This company Limited is ostensibly registered in the United Kingdom.
An MLM company based in or claiming to be based in the United Kingdom is a red flag.
In the United Kingdom, incorporation is dirt cheap and effectively unregulated. Furthermore, the FCA, the United Kingdom’s leading financial regulator, does not actively regulate MLM-related securities fraud.
As a result, the United Kingdom is a popular destination for scammers wishing to incorporate, operate, and market bogus businesses.
For MLM due diligence purposes, incorporation in the UK or registration with the FCA is meaningless.
As always, if an MLM company is not openly upfront about who is running or owns it, think long and hard about joining and/or handing over any money.
Betatraders- What they have to offer: Products
They have no retailable products or services. Affiliates are only able to market Betatraders affiliate membership itself.
Betatraders- Compensation Plan
Betatraders affiliates invest USD equivalents in cryptocurrency. This is done on the promise of advertised returns:
- invest $50 or more and receive 5% in 24 hours
- invest $1500 or more and receive 7% in 24 hours
- invest $3500 or more and receive 10% in 24 hours
The MLM side of Betatraders pays for the recruitment of affiliate investors.
Betatraders- Affiliate Ranks
There are four affiliate ranks within Betatrader’s compensation plan.
Along with their respective qualification criteria, they are as follows:
- Beginner – Sign up as a Betatraders affiliate
- Representative – generate $5000 in downline investment
- VIP Representative – generate $10,000 in downline investment
- Elite – generate $25,000 in downline investment
Betatraders- Commissions for Recommendation
Betatraders offers referral commissions on bitcoin investments at three levels of recruitment (unilevel):
- Beginners earn 3% on level 1 (personally recruited affiliates), 2% on level 2 and 1% on level 3
- Representatives earn 5% on level 1, 2% on level 2 and 1% on level 3
- VIP Representatives earn 7% on level 1, 3% on level 2 and 1% on level 3
- Elite Representatives earn 10% on level 1, 5% on level 2, and 2% on level 3
Betatraders- What it Takes to Join
Betatraders affiliate membership is completely free. A $50 commitment is required to fully participate in the attached income opportunity.
They seek investment in a variety of cryptocurrencies.
Betatraders- Summary
Betatraders claims that “artificial intelligence trading” provides external money.
Beta Traders Limited is an Artificial Intelligence Asset Management Company that trades in the Forex market using advanced AI software tools to produce money for our investors.
There is no proof that Betatraders used external revenue to settle affiliate withdrawals.
Furthermore, the business model of Betatraders fails the Ponzi logic test.
What do Betatraders need your money for if they have an AI trading bot capable of generating up to 10% per day on a constant basis?
As of yet, new investment is the sole provable source of money entering Betatraders.
Betatraders would be a Ponzi scheme if new investments were used to pay affiliate withdrawals.
As with other MLM Ponzi schemes, once affiliate recruiting is exhausted, new investments will dry up.
This will deprive Betatraders of ROI revenue, eventually leading to a crash.
Ponzi schemes’ math ensures that when they fail, the vast majority of participants lose money.
Reference- Betatraders Review: AI trading ruse Ponzi scheme (behindmlm.com)
Betatraders- What is a Ponzi Scheme? (Like the one Betatraders is)
A Ponzi scheme is a deceptive investment strategy that promises high rates of return with no risk to investors. A Ponzi scheme is a fraudulent investment scheme in which money is collected from later participants to produce profits for earlier investors. This is comparable to a pyramid scam in that both rely on new investors’ finances to pay off previous investors.
Both Ponzi and pyramid schemes inevitably fail when the influx of new investors stops and there isn’t enough money to go around. The plots begin to crumble at that time.
- By recruiting new investors who are promised a huge payoff with little to no risk, the Ponzi scheme produces returns for existing investors.
- The fraudulent investment strategy is based on using funds from new investors to pay off previous donors.
- Companies that run a Ponzi scheme concentrate their efforts on enticing new clients to make investments; otherwise, their system will become illiquid.
- The SEC has provided recommendations on what to look for in suspected Ponzi schemes, such as guaranteed returns or investment vehicles that are not registered with the SEC.
- Bernie Madoff perpetrated the greatest Ponzi scheme, duping thousands of investors out of billions of dollars.
Some of the red flags of the Ponzi Scheme like the one Betatraders
Regardless of the technology utilized, the majority of Ponzi schemes have similar characteristics. The Securities and Exchange Commission (SEC) has recognized the following characteristics to be on the lookout for:
- A promise of high rewards with no risk.
- A steady stream of returns regardless of market conditions
- Unregistered investments with the Securities and Exchange Commission (SEC)
- Clients are not permitted to access official papers for their investment strategies that are kept secret or described as too hard to comprehend.
- Clients who are having difficulty withdrawing their funds
Betatraders- What is the purpose behind the name?
Ponzi schemes are named after Charles Ponzi, a 1920s businessman who successfully persuaded tens of thousands of clients to invest their funds with him. The Ponzi scheme promised a specific amount of profit after a specific amount of time through the purchase and sale of discounted postal reply coupons. Instead, he was using new money invested to pay off old obligations.
Betatraders- What is the method to identify whether Betatraders was a Ponzi scheme or not?
The SEC has discovered a few characteristics that frequently indicate a fraudulent financial plan. It is critical to remember that almost all types of investment involve some level of risk, and many do not offer assured results. If an investment opportunity
- offers a certain return,
- guarantees that return by a specific period, and
- is not registered with the SEC, the SEC recommends investors proceed with care because these are indicators of fraud.
Betatraders- Wrap-Up- Some of the measures to avoid Ponzi schemes like Betatraders in the future
- Keep an open mind.
If someone tries to sell you an investment with big and/or immediate profits for little or no risk, it could be a scam. For example, before everything fell apart, Bernie Madoff promised investors a constant monthly return of 1-1.5%.
- Be Wary of Unsolicited Offers
Someone unexpectedly contacting you, say inviting you to an investment seminar, is generally a red indicator. Investment scams frequently target the elderly or those nearing or in retirement.
- Check out the Seller
Use the Financial Industry Regulatory Authority’s (FINRA) BrokerCheck to research a broker, financial adviser, brokerage company, or investment advisory firm.
- Check to see if the investment is registered.
According to the Securities and Exchange Commission (SEC), Ponzi schemes frequently include unregistered investments. Begin by questioning the individual providing the investment: If the investment isn’t registered, find out why (not all investments are required to be registered).
- Recognize That Investment
Never put money into an investment that you do not completely comprehend. There are numerous online tools, like this one, to assist you in learning how to invest and evaluate prospects for risk and potential gain. Don’t send a check or start an account with anyone who refuses to completely answer your questions or tries to discourage them by claiming the investment employs secret, proprietary, or too-complex-for-laypeople tactics.
- Report Wrongdoing
If you think an investment is a Ponzi scheme or any other type of scam, or you’ve been victimized, file a complaint with the Securities and Exchange Commission, FINRA, and your state securities regulator (here’s a North American Securities Administrators Association list). One sign that you’ve put your money into a Ponzi scheme is that you’re unable to obtain promised payments or cash out.
Get Your Money Back Suspicious
Bottom Line
Clients anticipate fiduciary obligation when they give money to their financial advisers or investment firms. Unfortunately, those monies can be mismanaged fraudulently through Ponzi schemes. Ponzi schemes aren’t actual investment plans because they use one investor’s money to repay another. They are deceptive investment schemes that have resulted in billions of dollars in losses.
