Is Trade Money A New Ponzi or Double-Your-Money Scheme?

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One more Ponzi or money circulation scheme is promising huge returns on investment to gullible investors. This scheme operating under the name of Trade Money, has its office at Dadar in Mumbai. It claims to borrow money from the investors and use it for “trading in stocks in bulk” while offering the investors a return of 20% per month on their invested amount.

Trade Money claims to be a sub broker for various brokers like CM Goenka Securities, FTC, AARAHM, UPSTOCK. However, they have deliberately used similar sounding or look alike names of the large brokerages in order to mislead investors. This is a major red flag for potential investors.

Trade Money is said to be a company operated by Raj Kumar Singh. He claims to deal in stock market trading.

According to our sources, Trade Money has already lured several small investors to invest in his schemes by claiming to offer good returns on investing money with him.

There is also reference to referral marketing of this scheme like a Ponzi and multi-level marketing (MLM) scheme. In the application form for Trade Money scheme, details of the referrer who referred the investor to invest in this scheme are mentioned. This effectively means, someone who ‘invested’ in the scheme can earn referral commission by bringing in/ influencing other people to invest in Trade Money.

Trade Money’s double-your-money scheme is simple.

You invest Rs50,000 and for the next 10 months, they will pay you Rs10,000 very month or Rs1 lakh in total. It claims to give 20% return on investment per month. The return paid to investors is divided into two parts, one is profit return per month and second is the instalment from principal amount.

So, in this example, the investor would receive 10% or Rs5,000 as profit return per month and Rs5000 as 10% refund on his investment.

To provide an assurance, Trade Money also offers 10 post-dated cheques to investors.

This sounds too good to be true. Especially, when nobody in the financial market gives an annual return of 120% or 20% per month.

Trade Money says it has a website, trademoneys.com. This domain is registered by Brandup Consultancy Pvt Ltd from Maharashtra with GoDaddy. However, this domain name, trademoneys.com is currently up for sale by GoDaddy.

Under these circumstances, usage of trademoneys.com on its brochures and other communication appears suspicious and shady. Trade Money also uses a generic Gmail ID instead of its ‘own’ domain.

The company gives an appreciation certificate to the investor for “associating with the company as an investor over the company’s investment plan along with taking online/ offline training on investment awareness with the company”.  The website (which is not existent) and a generic Gmail email address are shared on the certificate.

The last page of the loan agreement between the investor and Trade Money is signed by Mr Singh who claims to be the proprietor of the company. Moneylife has reached out to them but they have not responded to us. As and when we receive a response from them, we will update this story.

Retail investors, who are scared of equity market volatility but are not satisfied with returns from bank fixed deposits, often fall prey to dubious schemes that promise them the moon. The greed to make ‘easy’ money is so intense it sometimes overpowers their common sense and financial wisdom. They get attracted to such flashy schemes, promising impossible returns and weird business models of little-known companies.

But stay far away from ‘Trade Money’ – like schemes which promise to give huge return on your investment.




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