What Is Control Traders? The 52-Week Ponzi Scheme Exposed!

Control Traders appears to be a MLM or multi-level marketing company that allows you to take part in their investment opportunity by signing up for their membership. 

The premise of their opportunity lies on you inviting other people into the program. 

As for the owners and founders of the company, we can’t seem to find any information about that. It’s like the company just came out from the primordial ooze of Ponzi schemes. 

But based on their domain’s WhoIs info, their domain name was registered in February 2020. This means this is a relatively new Ponzi scheme that may or may not have been shut down yet. 

Control Traders Product Line

There are no retail products or services offered by Control Traders. Rather, they’re offering membership into their compensation plan. 

The membership also provides you access to these digital marketing material that may help you sell Control Traders to others online. 

Does The Product Work?

All right, let’s go over the different things wrong with Control Traders and why we think it’s a Ponzi scheme. 

First, on the topic of their products and services. 

They have none to offer. Don’t be fooled by their digital marketing material that’s included in their membership. This is a form of pseudo-compliance to make them look like they have something to offer. 

This also helps them avoid the FTC and its counterparts around the world. 

Second, on their ability to generate income and ROI for the members. 

Their only confirmed source of income comes from new member investments. Normally, a trading company would do the trading and investing on behalf of their clients to generate ROI. A client can also do it themselves on the company’s platform. But any income generated by either will require a commission paid out to the company. This is how they generate income to help sustain the company. But with Control Traders, there’s no proof that there are other external sources of income.

Lastly, on their registrations.

Because they promise investment income, it would mean they need to be registered with the SEC or its counterparts to carry out these transactions. 

And we would like to point out that you would need to have specific registrations to carry out these investments. If you go through programs such as IQ Option and 24Option, you’ll see that they post their registration numbers and other details so people can verify them on their own via the SEC website. 

Unfortunately, Control Traders doesn’t appear to be registered with the SEC. This would constitute securities fraud on top of other illegal things they are doing.

There’s supposedly two ways to make money from. One from ROI’s or returns on investment, and recruitment. You get additional incentives and bonuses when you get new people into the program.

How To Get Started with Control Traders?

It’s free to join Control Traders, but you won’t be able to join their income opportunity. You’d need to invest a minimum of $300 to take part in their compensation plan. The maximum investment is $10,000.

Control Traders Compensation Plan

Control Traders members invest between $300 and $10,000 on the promise of advertised returns as follows:

1. Beginner – invest $300 and get $12 a week for 52 weeks ($624)

2. Entrepreneur – invest $500 and get $20 a week for 52 weeks ($1040)

3. Executive – invest $1500 and get $60 a week for 52 weeks ($3120)

4. Gold – invest $3000 and get $120 a week for 52 weeks ($6240)

5. Premium – invest $5000 and get $250 a week for 52 weeks ($13,000)

6. Challenger – invest $10,000 and get $500 a week for 52 weeks ($26,000)

These commissions are paid out when people recruit others who do the same. 

When you recruit new people into the program, your commission is based on a unilevel compensation structure. 

You’re placed at the top of the structure, and your direct recruits are placed on your first level. Their recruits are placed on your second level. Their recruits are placed on the third level, and so on. 

This goes on for five levels deep. The recruitment commissions for the different levels are as follows:

• level 1 (personally recruited members) – 20%

• level 2 – 5%

• level 3 – 3%

• level 4 – 2%

• level 5 – 1%

#1 Ponzi Scheme!

We’ve already mentioned this in the first section, but Control Traders is definitely a Ponzi scheme. They literally have nothing to offer other than to incentivize recruitment. 

If you look at the guidelines for Ponzi schemes, you’ll see that the major red flag is that recruitment is the main source of income. Or that recruitment is incentivized more than selling products. 

If you don’t believe us, check out what the FTC has to say about pyramid schemes and Ponzi schemes in general. 

#2 Unknown Owners!

Another red flag here is that we don’t know who the owners of Control Traders are. This basically means that they’re up to no good and don’t want to be legally liable for anything. 

#3 Member Withdrawals Are Restricted!

According to a reliable source, Control Traders have restricted member withdrawals by adding a KYC (Know Your Customer) policy. This means that before members can cash out, they would need to provide ID’s to prove who they are. These range from government ID’s to employment ID’s. 

This move basically means that they’re now about to make an exit from the scheme, so they’re going to cash in on the investments and not pay anyone at all. 

They’re going to rebrand in a few weeks and do the same thing all over again.

Control Traders is a Ponzi scheme. It’d be foolish to mention something positive about the program.

Control Traders is a Ponzi scheme, and it doesn’t matter that they’re providing access to digital marketing materials. That’s not even their main product offering. That’s a form of pseudo-compliance to make it look like they’re legit. 

The recruitment incentives are too obvious, so much so that it’s the only way the company is making money. 

There’s no proof that there’s any investing or trading done to generate ROI’s promised to their members. The money coming in to pay off older members come from the new member investments. 

Stay away from this program!

I'm not a fan of MLM, not because it's illegal or not profitable, but because of all the restrictions and the expensive costs involved.

Instead, Affiliate Marketing is my top recommended business model for anyone to make money online.

The reason is simple...

• You don't have to recruit anyone to make money
• You have the freedom to promote any products you want and not being restricted to only promote the products from one MLM company
• It's Free to get started

In fact, with affiliate marketing...