In focus: FX Investment Group (FXIG)

by Tony Clifton

It is rather hard to write about such a contradictory program like FXIG. If you take a look on the discussions about FXIG in the forums you will see mostly emotions and so little real information. In this article i will do my best to be objective and sticks to the facts in order to analyze this program and the perspectives for it's future.

Short Introduction
FXIG uses e-gold, the minimum direct investment is $5,000, the profit payment is monthly and the ROI used to be close to 20% per month but went down last 2-3 months. If you are a member in FeederFund you can invest with minimum of just $50.

The facts
FXIG is approved by FeederFund - a very respected private poolm for investing managed by a guy known as Matthew Chalder.
The program appeared online the last Spring, to be more exact - May 2005. So far FXIG is paying without a problem.
FXIG usually does not allow pooling funds, FeederFund is an exception of the rule. There is no explanation why.

The Flags
The program used to work with a Spanish bank to accept and send bank wires. Recently they moved to offshore bank in Bermuda. Few weeks ago they dropped Bermuda Bank explaining they weren't willing to work with them because of the large amounts they transfer (no serious bank would refuse to work with large client for this reason - never).

They claim to exist for the last 3 years. Noone can really prove that - even Matthew Chalder.
If you are a member of FeederFund you can check FXIG's history and calculate the compounded ROI for their existence - 44 month with total compounded ROI of about 290,000%. Now you can ask in any forex forum if the experts think this is possible.

Their trading history was published daily and was not showing even one single day at loss or break even for the whole period.

There was a public notice from the financial institutions in Belize (where FXIG operates) that FXIG is not registered to perform financial services.

The questions
Their trader is 68 years old. Imagine how this man who is supposingly very rich stay all the day in front of his PC and trades for you. He is supposed to do it for pleaser. Do you think a normal 68 yearly man, rich enough to do whatever he likes, would prefer to stay and trade all the day instead of enjoying his life and taking care about his health?

They claimed that they were using a software system to automatically trade. Now there is a trader who wanted to take a rest in Fridays and thus now the ROI is lower. So where the system goes? Is it a lie and there is no system? Or the trader does no exists?
Ron says that they have been offered 8 figures for their system and they refused. Think yourself why would anyone refuse that.

Why noone has ever seen their trading proof? FeederFund usually checks everything before accepting a program and now they accepted FXIG without seing a trading proof. Why?

The conclusions
We have no enough facts to say if FXIG is a ponzi or not. If looks like a very complicated system - quite probably it could be a combination from a ponzi and real program. Or it could be funded from other ponzies to built truth. It could be absolutely real program as well, but there are very few indications for that.
The reason to publish this article is because i think FXIG is a dangerous program. Their trading history is a lie. The most recent changes - lowering the ROI, moving to only e-gold, changing to withdrawal rules do seem like cleaning tracks and ending stages of a ponzi. Of course i could be wrong, but you must think twice before joining FXIG. In case you are a member in FeederFund, better join thru the pool so you don't risk $5,000 (unless thats a dime for you).
If you are already a member of FXIG you maybe shouldn't worry too much - just make sure to withdraw your principal as soon as you can and then play with the profits. Maybe - just maybe - FXIG is real and noone will loose money.
Quite probably it will live some time yet so there is no rush. But new members - better stay away.

Published at Jan, 26 '06 , Read 3289 times.

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User comments:

ace at Jan, 26 '06 06:52
I just want to know. In ur opinion,if fxig fold, will there be any bad effect on feederfund. I still have some investment in feederfund and have plan to invest more in feederfund. Shall i stay away for a while?
Reply to this comment

clifton at Jan, 26 '06 07:21
I don't know really, ace. But i think there is no reason for panic. First FXIG is not going anywhere for now, second i think FF will survive when/if they run away. I still have funds in FF and sleep well (however i have taken my seed money out and playing profits only).
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greenman at Jan, 31 '06 06:41
FXIG made profits of 7.6% in December - maybe the yield is not as high as advertised, they were just being optimistic to get more investors in.
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trendcat at Jan, 31 '06 12:36
i have checked on fxig thoroughly and so far i have found nothing illegal or scam about them.
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discount at Feb, 03 '06 03:02
If you folks would read a little information, you will see that there yield a year ago in December wasnt that great either. Im not a big fan of FXIG, just stating facts.
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wellspring at Feb, 12 '06 01:54
As a Forex trader myself, december trading is a nightmare and most top traders take the last 2 weeks off. FXIG also did not trade and this is why they have lower yeilds this month. As to their yeilds, a top trader can easily gain 30 - 50 % per month or more. I made 70% trading my first month and I did not have the faintest idea what I was doing. So do I believe a software wizard can have consistent winning trades? Absolutly. With proper hedging and great software it is very possible to always win.
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DracoAurarius at Feb, 12 '06 05:52
last year's december is not a good month to do trading, to be exact, it's slow, and very volatile
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