Novatech FX Review – Pyramid Scheme or Legit Opportunity?

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Welcome to my Novatech FX review.

So you're looking for a new opportunity. A way to escape your daily grind and plan for a better future. I can relate. 

Online trading companies like Novatech FX have become popular platforms that promise the chance for freedom and independence. 

But is Novatech FX legit? 

Finding a lucrative investment opportunity is not easy. Finding one you can trust is even harder. My goal with this review is to cover everything you want to know about Novatech FX and possibly some things you don't want to know.

I'll explain who they are, what they do, how they work, and whether Novatech FX can help you achieve your financial goals. 

The topics I'm going to cover are:

  • What is Novatech FX?
  • Is Novatech FX a Scam?
  • Is Novatech Registered with The SEC or BBB?
  • Is Novatech FX a Pyramid or Ponzi Scheme?
  • How Does Novatech FX Work?
  • Novatech FX Cost
  • Novatech FX Compensation Plan
  • Novotech Reviews and Complaints
  • What I Like and Don't Like About Novatech FX
  • Where Do You Go From Here?

Please note, I am not an affiliate for Novatech FX. This review has been researched with information and/or testimonials that are available online in the public domain. Any recommendations and/or conclusions are strictly opinions and may not to apply to, or agree with, all persons or situations. See full disclaimer for more info

What is Novatech FX?

Novatech FX is a foreign currency exchange (Forex) and crypto trading platform emphasizing pooled investment funds. 

A subsidiary of NovaPay L.L.C., Novatech FX was founded in June 2019. Their mission is to empower individuals to achieve new financial heights and personal freedom by extending those same benefits to those around them. 

Novatech's Mission Statement
Source: Novatech FX

In other words, sharing the opportunity with others. 

This has led to a heightened level of controversy because Novatech claims they are not an MLM. or a pyramid scheme. Of course, they are entitled to make that claim. It's their company, after all. 

However, the controversy is that they offer a lucrative compensation plan for recruiting members, which pays several layers deep. That would suggest there's an MLM. component. But more on that in a moment… 

On paper, Novatech is located at: 

Suite 305, Griffith Corporate Center, P.O. Box 1510
Beachmont Kingstown, Saint George, VC0120

There's a discrepancy here, however. While Novatech claims to be located at this address, the Griffith Corporate Center owner says they do not rent office space to a company with this name. But more on that below as well…

Novatech is owned and operated by:

  • C.E.O., Cynthia Petion
  • C.O.O., Eddy Petion
  • C.T.O., Ricardo Roy 

Is Novatech FX a Scam?

I'm a skeptic when it comes to trading platforms like Novatech because so many have come and gone, leaving their investors broke. 

And I must admit, at first glance, Novatech did not look any different, and here's why…

I did a lot of digging and unless I'm missing something (please share in the comments below if I am), when you invest with Novatech, testimonials and trust seem to be your only protections.  

They don't appear to be accredited in any country.  

In addition to that, there are many red flags which I'll go over below. 

Having said that, I'll also say something very important. At this time, there is no “hard” evidence to suggest Novatech FX is a scam or about to rip you off. 

Many people are currently investing with this company and appear to be getting paid weekly. So objectively speaking, Novatech seems to be living up to its promise. 

I will repeat this several times throughout this review, not in defense of Novatech FX, but as a statement of current fact. 

Many reviews accuse them of being a scam. While the conditions exist and may even be favorable to support those accusations… the only evidence at this time is circumstantial. 

But I'm not going to sugar coat it. There are things about Novatech FX you can't ignore.

For the record, after my initial skepticism (which I have for all companies like this), I thought for a moment that Novatech could be legitimate.

However, my opinion changed after hours of research and “running the numbers”. My personal belief is that Novatech is a scam, but that's NOT an accusation. It's just what I think and this review will explain why.

There are a lot of good people involved with Novatech who have a different point of view and to give them the benefit of the doubt… maybe they are right.

I'm only sharing my point of view, based on the facts as I've researched and understand them, and to be fair, I'll say this. Any speculation is just that…

… speculation. 

Based on the information below, one could infer that something shady is going on, and I think there is. But that's just me. There is currently no “hard” evidence to prove that as fact.

Unfortunately, investment schemes often go unnoticed until it's too late.

The only “hard” evidence comes after the crime has been committed and the fraudsters have stolen the investor's money.  

At this moment, members will claim this is impossible because Novatech gives you 100% access to your capital. That's a fair statement. 

But is it accurate?

If you have been withdrawing your profits on a regular basis with no problems and no limits, then my opinion and/or the information provided below may be secondary. It should not invalidate your experience. 

But it should also be noted that if you've been watching the news recently, that's the same promise made to investors by FTX Trading and FTX US, which recently collapsed, taking at least one billion in investor assets with it.

For now, I'll go over a multitude of red flags and why I suspect NovatechFX of being a scam.

Red Flags

The following red flags are not indictments, but they are worth reviewing when doing your research.

Also an important disclaimer, the information below is not investment advice. I'll share my perspective, but the information itself, available online in the public domain, does not represent a recommendation one way or the other. Any conclusions are strictly my opinion.

Red Flag #1 – Unrealistic Investment Projections

Novatech's investment opportunity is presented with unrealistic claims. 

That doesn't mean they are false, but it's important to understand what those claims mean and put them in perspective. 

These claims are the critical component of their compensation plan, which is quite lucrative. But it only works if the numbers add up.

So, are their claims real?

Members may use different numbers when sharing the opportunity, but the presentations I watched used a specific rate of return compounded using

They used an average of 3% weekly return, compounded weekly for 5 years (I also watched a presentation where they used 3 years, but the outcome is the same).

Punching those numbers into transforms a relatively small $1000 investment, with no additional contributions, into $2,176,097.87 within 5 years.

Here are the calculations…

While a slight return of 3% on the surface seems reasonable, things get a little out of hand when you compound it weekly. 

You'll notice that I also highlighted the effective annual rate, which is 365.089%.

How many investments have you heard of that pay an effective annual interest rate of 365 percent?

Most online compounding calculators won't even let you calculate it.

For example, I tried to confirm that this annual rate and investment value was correct using's compound interest calculator, and I got this error…


It says the interest rate must be below 100%, and of course it does… because investments over 100% are not normal.

I tried a few more calculators but had to go back to to confirm that this effective annual rate produced the same earnings as Novatech's suggested weekly rate …

Here's what I got…

As you can see, it's accurate within about ten bucks.

So, Novatech is indeed quoting an effective annual rate of 365+ percent. Let's give that some perspective.

Let's compare it with the average annual rates of accomplished investors to better understand what that means. 

How does Novatech stack up against two of the most highly respected and successful investors of all time… Warren Buffet and Peter Lynch? 

Warren Buffet's holding company, Berkshire Hathaway, has averaged a 20.3% annual return, with some years peaking in the 30s. 

That's significantly less than Novatech FX.

Likewise, between 1977 and 1990, Peter Lynch achieved a 29% per year average… which is also far lower than Novatech FX. 

It's not even close, which begs the question, why is Novatech relatively unknown? 

After all, Warren Buffet and Peter Lynch are not only famous for their investment success but legendary in some circles. 

And yet, their success pales in comparison to Novatech FX. 

To be fair, Warren Buffet and Peter Lynch have been investing in more conventional securities, not Forex and Crypto. 

Also, they are both investors, not traders. Trader's make money through market volatility while investors build wealth with compound interest, dividends, and the growth of a company over time.

Although Novatech's P.A.M.M account is treated as an investment for you, under the hood are supposed to be expert traders.

And trading Forex and Crypto is different than investing in securities and commodities.

It's more more volatile and therefore more risky. That can lead to some extraordinary gains on par with Novatech's claims. But these are very rare cases that do not represent a consistent and repeatable investment strategy. 

Therefore, a better picture comes into view when you average out the highs and lows of Forex returns. 

There is no consensus on the average Forex return rate, but here's what some reputable sources say. 

  • Forex Training GroupAggressive traders can target 3 – 4 percent monthly returns (estimated 40 – 60 percent effective annual return)
  • Forex Broker ReportConsistently profitable traders average 2 – 3 percent per month (estimated 25 – 40 percent effective annual return) 

So, according to some experts (perhaps, not all), the average Forex returns are anywhere from 25 – 60 percent annually. 

For fun, let's see what a 4 percent “monthly” return (as quoted by the above sources) will do to your $1,000 after 5 years…

Based on these numbers (shown above), an aggressive Forex trader earning 4% monthly will turn $1,000 into $10,519.63 after 5 years.

As you can see, the effective annual rate is 60.103% and when you compare that future investment value with Novatech's projections… it's less than one-half of one percent.

Of course, this is not proof of anything but if aggressive traders are earning 60% on the high end, is 300% plus believable?

This is not a small difference. When comparing actual account value after 5 years, Novatech is outperforming them by 200X ($10,519.63 vs. $2,176,097.87).

Sure, a trader or broker can have a good week or a good year, but not every year.

In my opinion, suggesting your $1000 investment might turn into $2.1 million in five years with no additional contributions is, at the very least, disingenuous. This is just not something I believe.

Achieving an effective annual rate of 365% in a single year would be extraordinary. I don't know if a word exists to describe that achievement year after year.

But again, these comparisons don't necessarily prove anything. Let's go one step further.

To better demonstrate just how extraordinary this opportunity is (if true) and what 365% annually really means, let's do some math…

During their presentation, I was curious why they only used a 5-year projection because…

… it would be irresponsible to cash out after five years if you were getting a 365% return, and here's why.

If you stick with this investment for only four more years (9 years total), you will become a billionaire

Let that sink in. 

All you need is $1000 and nine years to reach billionaire status.

But why stop at nine years? 

Let's keep going…

If you hold onto your investment for one more year (10 years in total), you will have amassed $4.7 billion as shown in the image above. 

Keep going…

By year 13, you will have just shy of $500 billion, making you the richest person on Earth (based on the current list of wealthiest people). 

And you achieved it in a fraction of any current multi-billionaire's time, investment, and effort.

But you're only getting started.

Hold on to your investment for just one more year (year 14), and your original $1,000 will have grown to more than $2 trillion. 

That's a trillion with a “T.” 

It's an unfathomable amount of money under any circumstances, let alone for an individual investor starting with a thousand bucks.

To put $2 trillion into perspective, it's more than the annual GDP of some of the world's wealthiest countries, including Canada, Italy, South Korea, Australia, and dozens of others.

In one of their presentations, someone said, “people lie, but numbers don't.” 

That's exactly right. They don't lie. 

So, if Novatech's numbers are true, you might be a trillionaire by watching T.V. and playing video games for the next 14 years. 

Apologies if that sounds sarcastic, but I can't wrap my head around it. Nor can I trust it.

Red Flag #2 – Unrealistic Earnings Claims

So we've talked about Novatech's future projections. But what about their current and past claims?

I can't say those are false any more than I can say their projections are false. But based on the math we've just done, they are difficult to believe. 

This is critical because IF they are not real, there's a severe problem…

Where is the money coming from to pay investors?

I know what my thoughts are, but what are yours?

Let's recap…

Starting with $1000, the math says their projected return rate will give you $2 trillion within 14 years? 

Please share in the comments section below if my calculations are incorrect or if I'm misquoting something. 

However, if those calculations are correct, and Novatech's claims are true, this is the greatest investment opportunity of a lifetime. 

Actually… it may be the greatest investment opportunity in human history. 

And yet, it's strangely absent from the media. 

For reference, these are their current published earnings…

  • January – 11.56%
  • February – 11.20%
  • March – 12.91%
  • April – 15.37%
  • May – 7.9%
  • June – 13.01%
  • July – 17.12%
  • August – 12.6%
  • September – 15.56%
Novatech FX Earnings Claims
Source: YouTube

Based on these numbers, which seem reasonable at first glance, Novatech's average monthly return is roughly 13%.

That means their effective annual rate is 333.452% (shown below)…

Again, for perspective, this is an effective annual rate that's 16 times higher than the average annual return rate of Berkshire Hathaway (owned by Warren Buffet, who is regarded by many as the world's most successful investor).  

To add further clarity to this point, let's look at what a real return would be if you had invested your money with one of the most prestigious holding companies of all time. 

Let's say you had $1000 in Warren Buffet's portfolio way back in November 1992… 30 years ago. Your investment today would have grown to…

… $14,575.23. 

And that's considered a good investment. 

Novatech, on the other hand, suggests that the same $1,000 you invest with them will exceed $2,000,000 in just five years.  

That's a total account value 144 times better than Warren Buffet.

As I've said before, this is not an accusation. But if you're just looking at the numbers, it's hard to believe.

If this is not fraud, then investing with Novatech is as good as buying the winning lottery ticket. And what are the chances of that?

Red Flag #3 – Quoted Numbers Do Not Include Fees

There's also something else unclear. 

When they present their opportunity, it's presented as a 3% return compounded weekly as we've already discussed.

Simple enough…

On, you put your money in, the number of years you plan to invest, and you get your total balance out. 

That's what they show you. 

But even if their numbers are real, you still won't get anywhere near the millions they are showing you. That's because there are significant fees on your investment. 

They take 30% of your profits earned inside their fund. 

Of course, you'll learn this soon after you join, but it should be factored into the projections they use when selling the opportunity. 

It may also be why the monthly numbers they show in their presentation slides are described as “earnings” and not investment returns.

And your earnings are also described as a percentage of the company's profits.

It's also unclear how these profits are derived, whether it's strictly from your investment returns or if they include the sale of services. 

And what exactly are the company's profits, and as a pseudo-shareholder, are you privy to that information?

Are they calculating from the entire fund, or, as they should be… only counting the 30% fee (and other fees)? 

I'm sure you will get these answers, which may even be published somewhere, but these are essential questions to ask before investing.   

Maybe, if Novatech was accredited, you could do some of this research after the fact. But if it were me, I'd want these details first.

They are allegedly paying a considerable amount of money, and you should know exactly where that money is coming from, which brings us to the next red flag.

Red Flag #4 – Novatech FX Does Not Report Their Trades

If the earnings claims above are not suspicious enough, the fact that they don't report them only makes it worse. 

Some comments about this say they must keep their secrets, but reporting trades is common practice. 

Sure, most people invested in mutual funds, ETF's, etc. don't pay attention to the individual holdings and trades within those funds. At least not regularly. 

But that doesn't mean disclosure is not required. 

The S.E.C. requires most brokers (as defined in the next section of this review) to not only register with the S.E.C., but to join a “self-regulatory organization such as the National Futures Association (NFA).

And what do these organizations say about disclosure?

The NFA lays out specific regulations for Forex transactions.  

One of those requirements involves reporting. Forex Dealer Members (FDM) have strict reporting requirements. 

In addition to monthly operational and risk management reports, they must also file daily electronic reports that show liabilities to customers. 

And, of course, they must file a quarterly report similar to the quarterly portfolio disclosures required of registered management investment companies. 

In the next section, we'll discuss whether Novatech is required to be registered with the S.E.C. 

Required or not, Novatech's lack of reporting could be viewed as suspicious. 

I suppose you could argue there are operational reasons to not report them. For example, it's potentially costly to answer every inevitable question and concern about those trades.  

Maybe, since Novatech's members/investors share in the company's profits, these extra costs may concern you too.

If it were me, I'd prefer having those reports at a marginal cost than not having them. 

Red Flag #5 – Novatech FX is Not Registered With The S.E.C.

Many comments and reviews have correctly stated that Novatech FX is not registered with the S.E.C. So the question is whether they need to be. 

According to the S.E.C., a broker is defined as “any person engaged in the business of effecting transactions in securities for the account of others.”

With few exceptions, it is unlawful for a broker to use mail, phone, fax, or the internet to “effect any transaction in, or to induce or attempt to induce the purchase or sale of, any security” unless the broker is registered with the Securities and Exchange Commission in accordance with Section 15(b) of the Securities Exchange Act. 

One exception to this rule is that an individual stock broker or individual does not necessarily have to register. However, the act requires them to be supervised by a registered broker. 

Another exception is a broker who conducts all of their business within one state and cannot participate in national securities exchange transactions. 

There are some deviations to this rule as long as the broker takes reasonable measures to ensure their business remains intrastate. 

Brokers who only transact in commercial paper, banker's acceptances, and commercial bills are not required to register with the S.E.C. 

Additional exemptions apply to foreign brokers and issuers of securities, but these don't apply to Novatech, from what I can tell. 

So, based on this information, it might appear that Novatech is operating illegally. 

However, if you dig a little further, you'll find the following statement on the website…

“You should also be aware that, for brokers and dealers, many of the rules and regulations that apply to securities transactions may not apply to forex transactions.” 

There are still rules and regulations that apply to forex transactions, but it gets murky when considering the different types of exchanges. For example, there are exchanges regulated by the Commodity Futures Trading Commission (C.F.T.C.), the S.E.C., and off-exchange markets. 

The rules regarding cryptocurrencies are also unclear.  

While S.E.C. Chair Gary Gensler says, most cryptocurrencies are “securities (which would imply they fall under the same rules as all securities), the inclusion of the word “most” allows for some interpretation. 

And maybe some bending of the rules. At least for now. 

So it's unclear if Novatech FX is required to be registered with the S.E.C., and that's partly because Novatech does not report their trades.  

More important here is that unlike regulated brokers such as T.D. Ameritrade or Robinhood, for example, Novatech is not audited or third-party verified. 

Red Flag #6 – Novatech's Address

Novatech's address has an interesting history. The company is apparently located at:

Suite 305, Griffith Corporate Center
P.O. Box 1510
Beachmont Kingstown, GE VC0120
Saint Vincent and the Grenadines

Novatech FX Address
Source: Novatech

There's a problem here.

According to the the Griffith Corporate Center claims they do not rent office space to Novatech (shown below)

Novatech FX Located at Griffith Corporate Center
Source: Google

It's would be better if they did not publish this address, because it raises more questions.

Let's give them the benefit of the doubt and assume the owner of the Griffith Center got it wrong. Why would they be located on a small island in the Caribbean Sea?

The obvious reason is that it's an offshore tax haven. 

When registering your St Vincent and The Grenadines, founders have no citizenship requirements, and the company receives tax-exempt status. 

In fact, three companies with this same address were part of the tax evasion document leak, the Paradise Papers

Companies With Same Address as Novatech FX

To be fair, according to Wikipedia, companies such as Apple and Nike have also been associated with the Paradise Papers. 

But for what it's worth, they were not located in suite 305 of the Griffith Corporate Center.

Now, avoiding taxes through financial hideaways doesn't necessarily mean you're running a scam. But it suggests you may be hiding money. And in this case, it could be your money. 

What's also interesting is that this same address has been used by dozens of similar trading companies. 

One such company (CCXMarkets) has multiple complaints from people claiming to have lost money. 

CCXMarkets is no longer in business. 

Another trading company is also registered at this address, Smart Trade Solutions (c/o Wilfred Services Ltd.)

The list goes on. Some (but not all) of the other investment companies associated with this controversial address include…

  • 500 Investments/Cabsy Holdings
  • Absolute Global Markets
  • Brokerz
  • Coinbrokerz
  • Dartalon Ltd.
  • Enigma GRC
  • FTEFX Pro
  • FXclearning
  • F.X.G. Trade
  • FXLeader
  • Global Next Trade (G.N.T. Capital)
  • GoldenCapitalFX
  • Interactive Trade
  • New Rich Markets
  • O.P.T. Finance
  • Platinum Global Group
  • Pro Capital Markets
  • Profitx
  • SimpleFX
  • Standard Bit Options
  • Trademote
  • Traderking
  • Tradewell
  • Tradixa
  • True Capital Pro
  • TurnFX
  • Unmarketspro

Again, this is just a partial list. 

How these companies are related to each other, I'm not sure. But for most, you can find scam warnings and government advisories stating they are unregistered and potential frauds. 

Why is Novatech FX also located here?

Red Flag #7 – Novatech FX Fraud Warning from BC, Canada

The British Columbia Securities Commission recently added Novatech FX to its Investment Caution List

The warning states that, 

“NovaTech Ltd. claims to be located in Florida and it also claims to offer trading services by an experienced team of traders.

We are aware that NovaTech Ltd. has accepted funds from British Columbia (B.C.) residents.

NovaTech Ltd. is not registered to trade in, or advise on, securities or derivatives in B.C.”

To be clear, this is only a warning/caution. 

The BC Securities Commission is not accusing them of fraud, but it urges B.C. residents to be cautious when investing with firms not registered to trade or advise in B.C. 

Red Flag #8 – Novatech FX Fraud Warning from Russia

Take it for what it's worth, but Novatech has also been flagged by the Bank of Russia as showing signs of being an illegal professional participant in the securities market. 

Novatech Fraud Warning B of RU
Source: Bank of Russia

Red Flag #9 – Novatech FX Investigation

This one is strange. 

The F.B.I. did a 700-page audit on Novatech FX, and according to Novatech's C.E.O., Cynthia Petion, she burned it. 

Not figuratively.

She literally burned it (her words in the following video).  

The bottom line of the report (according to the above video) is that the F.B.I. concluded that Novatech is a good company to go forward with. 

This is all very weird. 

I can't imagine the F.B.I. was impressed with a company recruiting investors based on a return rate that doubles your money every six months. 

Furthermore, with the barrage of negative reviews and accusations…

… why would you burn a report from the F.B.I. that validates your company?

It doesn't make sense.  

Red Flag #10 – Novatech FX Owners and AWS Mining

Aws Mining was a crypto mining service that offered investment opportunities. They are currently the subject of over 2000 signatures on, petitioning Interpol and the Texas State House to launch an investigation. 

The main reason for that investigation?

Members who lost their money. 

AWS Mining was also issued a Cease and Desist Order by Texas State Securities Board. 

The order accuses AWS Mining of guaranteeing a 200% passive return on every investment, and then later disclaiming that guarantee.

It also states that respondents engaged in other illegal, fraudulent, deceptive, and/or misleading practices in connection with the off of crypto-mining contracts.

Why is AWS relevant?  

It's relevant because Eddy Petion was AWS Mining's President, and Cynthia Petion was their Vice President. 

Here are two videos that verify this…

To be very clear, Eddy and Cynthia Petion were NOT specifically mentioned in the Cease and Desist Order. 

Also, whatever happened with AWS Mining during and after its operation, does not mean the same thing is happening at Novatech FX. 

It also does not mean that Eddy and Cynthia Petion are guilty of wrongdoing, or that they had any harmful intent. 

Red Flag #11 – Novatech FX and The Metatrader 5 Trading Platform

Novatech provides access to a legitimate trading platform. 

This could be considered a curiosity rather than a “red flag,” but what seemed to be validation of Novatech's legitimacy may be just the opposite. 

That's because Novatech implies that they operate their own trading platform called Metatrader 5, but there may be some confusion here. 

At least, that's how I read it. 

Novatech does not own or operate Metatrader 5. They may be a registered Metatrader 5 broker, but they have no other association with it.  

To be fair, they don't actually state that they own Metatrader 5, but the wording on their site is suggestive. 

Novatech FX Metatrader 5
Source: Novatech FX

Metatrader 5 is instead owned and operated by Metaquotes Software Corp. It was founded in 2000, long before Novatech FX existed.

It's a third-party trading platform brokers like Novatech can connect to for Forex trading. 

Again, I thought this was a point of validation for Novatech, but it's actually not. 

That's because it sort of pits Novatech against other brokers directly.

Among Metatrader's top brokers, Novatech FX is not listed. For example, according to, the best Metatrader brokers are:

  • I.C. Markets
  • Admiral Markets
  • F.P. Markets
  • FxPro
  • Pepperstone
  • C.M.C. Markets
  • Vantage 

Novatech FX does not make the list.

Of course, this list is subjective. It's based on's criteria, but I could not find Novatech FX on any list, including's list, which includes their top 36 Metatrader 5 FOREX Brokers

Another list from 55Brokers shows 82 of their verified traders on the Metatrader platform, and Novatech is not also mentioned. 

From Benzinga and TradersUnion to BrokerChooser and FXScouts, NovatechFX does not appear on any list. Therefore, I could not find a single recommendation or mention of them on any reputable trading site. 

If you know of any mentions or Novatech recommendations from an authentic source, please let me know so I can include them here.

Red Flag #12 Metatrader Profits Can Be Faked

According to professional Forex and Futures trader Nick Syiek (known as TraderNick on YouTube), shady brokers can fake live accounts and profits using the Metatrader software. 

This is not good.

In the video below, he is referring specifically to Metatrader 4, but I could not find any information that says Metatrader 5 is different.  

That's not to say Novatech or its senior members are faking accounts or profits. But knowing that it's possible adds an additional layer of uncertainty as to what's going on here. Especially since they are unregulated. 

In the following video, Nick goes into further detail and also explains the dangers. 

Below are some more questions about Novatech FX that people have…

Red Flag #13 – The Collapse of FTX

I mentioned this briefly above, but the recent collapse of FTX Trading and FTX Group is a cautionary tale. And it's bringing the entire crypto market down with it.

Before its collapse, FTX was considered by experts to be one of the most reputable and secure exchanges. Investors thought their investments were safe.

FTX's Terms of Service state that:

  • Your Digital Assets shall at all times remain with your and shall not transfer to FTX Trading.
  • None of the Digital Assets in your Account are the property of, or shall or may be loaned to FTX Trading.
  • You control the digital assets held in your account.

I haven't found it in writing, but in various presentations and videos, similar claims about Novatech FX have been made.

In FTX's case, despite these promises, they reportedly used up to $10 billion in customer funds to prop the owner's (Sam Bankman-Fried) trading firm.

This is, of course, one of the biggest stories in business right now and a warning to the investors.

The point is that it doesn't matter what promises Novatech FX or any other trading platform, exchange, brokerages, etc. makes. Your funds can disappear. In some cases they can be recovered, but those protections don't exist with Novatech FX.

Is Novatech FX Registered With The Better Business Bureau?

No, Novatech FX is not currently registered with the Better Business Bureau. This is not uncommon for Forex brokers. Most of the top-rated brokers are also absent.  

If you're searching the Better Business Bureau though, be aware that they do list a few companies with the same name. 

They show a Novatech from Memphis that sells Panasonic office products. Their file was opened in 1971, long before online trading platforms and crypto were a thing. They have multiple Better Business Bureau listings for various branches. 

There is also a Novatech business from Quebec, Canada, with one employee listed.

Finally, a Novatech from Anaheim, CA that does security systems and telecommunications, has a Better Business Bureau file. 

Unfortunately, Novatech FX is not recognized, registered, or accredited by the Better Business Bureau, but again, this is not uncommon for Forex Brokers. 

Is Novatech FX a Pyramid Scheme?

According to the NY AG website, a pyramid scheme is defined as

 “a fraudulent system of making money based on recruiting an ever-increasing number of “investors.” The initial promoters recruit investors, who in turn recruit more investors, and so on.”

It goes on to say…

“The scheme is called a “pyramid” because at each level, the number of investors increases. The small group of initial promoters at the top require a large base of later investors to support the scheme by providing profits to the earlier investors.”

This does not exactly describe Novatech FX because new investors can just as easily get paid as initial investors.

Having said that, it doesn't disqualify Novatech from being a pyramid scheme.

That's because there are clear signals that suggest it could be a pyramid scheme or at best, a multi-level-marketing company (MLM). 

Here's why…

According to, some characteristics of a pyramid scheme include the following…

No Genuine Product or Service is Sold

It's difficult to determine what Novatech's product is. They sell an investment opportunity. There are some additional products and services mentioned, but I haven't found much evidence that current members are purchasing or using them.

Some members may be paying a commission to Novatech to trade on the MT5 platform, but if I had to guess, it's not many. 

Of course I don't know that, but I do know that the current number of views on their “How to Download Novatech MT5 Terminal” is only 323 in the last 11 months. There are only 4 comments. 

Novatech MT5 Users
Source: YouTube

In fact, there are very few videos that have anything to do with Novatech's trading software. 

Contrast that with another Forex trading MLM., Auvoria Prime, which has over a thousand videos just about Forex trading and the technical aspects of their platform. 

Novatech doesn't have that same commitment to actual traders who would be trading on their own.  

There is another video about downloading the MT5 terminal on their official channel with 6.2K views, but it's from two years ago. 

Just going from their channel, there doesn't seem to be significant interest in trading. 

However, there is an interest in making money.  

Compare those 323 views to another video from a similar time frame (11 months vs. 1 year) about enrolling in and funding your Novatech Trading P.A.M.M. Account. It has 39,000 views. 

Novatech PAMM Account Users
Source: YouTube

Of course, this is not definitive proof that the vast majority of members are joining Novatech to invest in their P.A.M.M. account rather than use the software… but 39,000 views vs. 323 views provide some important insight. 

Additionally, most of Novatech's member videos and presentations found on YouTube also focus on the P.A.M.M. account and recruiting… not using Novatech FX as a personal trading platform. 

This makes sense. 

If I could tap into a team of expert traders who could double my money every six months, I'd put my money there too. 

Under these circumstances, doing your own trading doesn't make any sense.

And that presents a problem because it suggests that most of their money comes from somewhere other than retail sales (commission from customers using their software).

So, where does the money come from?

In part, it comes from a $25 monthly service fee for the opportunity to invest.

If no additional levels and bonuses were being paid out to their members, that $25 could be considered the cost of their investment “service.” However, that fee does not cover the various referral bonuses and commissions that Novatech pays out.  

In some cases, they pay out hundreds, even thousands of dollars, with residual bonuses going nine layers deep into your downline. And the highest-paying bonuses are from the highest-level trading packages that don't have a monthly service fee at all.

So it must come from your investment. 

When you invest in their P.A.M.M. account, the Performance Fee is 30% of your profits. 

Novatech FX Account Fees
Source: Novatech FX

All brokers charge a fee, and these fees can be deceptive.

In this example by Vanguard, a 2% fee on a $100,000 investment over 25 years wipes out nearly 40% of your account value. 

So 30% of your profits is a lot, but not unheard of. 

It does, however, make it hard to grow your account the way they suggest in their presentation.

But the bigger point is that a significant portion of your profits are going to your upline. 

That's the crux of a pyramid scheme. That the money paid to existing members comes from new members. What happens when the market inevitably saturates, and there are no new members? 

The money dries up, and the pyramid collapses.

That's why pyramid schemes are illegal. 

It's a significant problem when commissions and bonuses primarily come from new recruits rather than the sale of products and services.  

Let's look at another characteristic of a pyramid scheme, according to 

No Demonstrated Revenue from Retail Sales

When you join an MLM like Rodan + Fields or Isagenix, there is a clear retail business model and a requirement to sell products and services.  

In other words, members cannot ONLY sell products to their downline.

Instead, they must sell products and services to customers who are not involved with the company or the business opportunity. Money and company profit must be generated from somewhere other than new members only. 

If (and that's not say Novatech is) the entire organization is propped up by new members only, it will inevitably collapse.

Again, this is not clear with Novatech FX. 

The case to be made here is that Novatech's profits are generated from legitimate Crypto and Forex returns, but the quoted rate (more than 300 percent annually) throws this into question.

They also provide some services such as crypto and debit card transactions… but it doesn't appear that these are services each member can sell.

So, is there a retail business model here?

Is it sustainable if no new members or investors join?

You could say that P.A.M.M. “investment opportunity” is a retail service they sell, and if that's all it was, this might not be an issue.

In that case, members who “recruit” new investors would get paid a commission, and it would end there. Novatech could accurately call this an affiliate marketing program. 

But that's not where it ends. 

Some of these bonuses go nine levels deep (depending on the type of bonus). 

So each referral is more than just a retail customer. They automatically become part of someone's “downline” and commission structure. 

They are part of the pyramid, whether they want to be or not. 

So although recruiting is not a requirement, each new member is still part of the pyramid. 

They are not independent customers buying retail products and services. Which means sales are not coming from retail sales. 

Some other characteristics of a pyramid scheme include:

  • Promises of high returns in a short time-period
  • Easy money or passive income
  • Complex commission structure
  • Emphasis on recruiting

In my opinion, Novatech FX checks most, if not all, of those boxes. 

What about emphasis on recruiting?

I know they clearly state that recruiting is not required but is it fair to say there is no emphasis on recruiting? 

If Novatech is growing quickly and the only way new members join is through recruitment, there must be some emphasis on recruiting. 

If there wasn't, they wouldn't be growing. 

Nor would they offer such a lucrative recruitment commission program. Clearly, they want you to recruit.

Also, a significant portion of the presentations I've watched is about building and earning money from your downline through various bonuses, check matching programs, etc.  

They even offer a fast-track bonus to encourage you to bring in at least three new recruits within your first 45 days. 

So although it's not stated explicitly, there is an implied emphasis on recruitment. 

At the very least, Novatech FX being a pyramid scheme, is an open question. 

It meets most, if not all, of the criteria set out by 

Also, its growth, from the beginning, has been a growing pyramid of investors who have, in turn, sponsored new investors. 

Each one gets paid through a complex commission structure. 

In addition, evidence suggests comparatively few “retail” customers strictly trading on their own. 

Therefore, just about every new investor, if not every investor, is part of someone's downline.  

Remember, the number of views for videos showing members how to install the MT5 trading software is only 323 (posted 11 months ago) and 6.2K (posted 2 years ago).

Compare that to their video about building downlines that has 41,000 views.

Novatech Building Downlines Video Views
Source: YouTube

Recruiting and building downlines appear to be far more popular than self-trading on Novatech's software or selling retail products.

It's also unclear if there are any members operating a retail business selling Novatech's products. It's not likely because bonuses are primarily based on referrals investing, not trading.

Whether Novatech is a pyramid scheme or an MLM, you can decide. But it's certainly more than a simple affiliate program.

Affiliate programs pay single-level commissions for actual sales or leads, and they don't involve building downlines. 

From what I can see (and correct me if I'm wrong), that's not what's going on here. 

If that's not enough, Novatech's mutual fund (P.A.M.M. Account) is presented as its primary wealth vehicle. That poses another question…

Does it resemble a Ponzi scheme? 

Is Novatech FX a Ponzi Scheme?

Let me open this section by repeating my disclaimer. The scenario I'm about to describe is strictly hypothetical, and there is no hard evidence to suggest otherwise. 

The circumstantial evidence and advisories reported by some countries suggest, at the very least, caution. 

So, what is a Ponzi scheme?

The S.E.C. defines a ponzi scheme as “an investment scam that involves the payment of purported returns to existing investors from funds contributed by new investors.”

With that in mind, let's consider a hypothetical scenario; a scenario described in some online comments and reviews, partly because of the extraordinary claims of 365 percent-plus annual rates of return.

If you're just skimming quickly and have jumped to this section, this is why Novatech's returns are difficult to believe, whether true or not. According to their projections, a $1,000 investment over 10 – 15 years (based on their current earnings) surpasses most countries' GDP, including Canada, Australia, Italy, and South Korea.

In fact, if you hang onto your Novatech investment for just 16 years, it becomes twice as big as the world's biggest economy's GDP, the United States.

So, in this hypothetical scenario, it's not unreasonable to pretend that their numbers are false.  

And if they are false, then money from new investors is likely being used to pay existing investors, which is a problem.

Each new investor increases the fund's size, and invites more investors. And, operating on the premise that their investment doubles in size every six months, few investors withdraw their money. 

Why would they?

So on paper, it appears that their investment is growing, but it's not. The fund has enough money to cover the relatively small percentage of investors taking their money out. 

But it doesn't have enough to cover everyone's investment. If every investor were to withdraw their funds, the scheme would collapse.

This is the same scheme that well-known crook, Bernie Madoff, was arrested for on December 10th, 2008. 

And although the dust has yet to settle, we may find out this is similar to what happened with FTX Trading.

These schemes can survive for many years before falling apart. It's even possible to profit if you exit the fund early (and at the expense of incoming investors)

But, when they inevitably collapse, many investors lose their entire investments. 

This is why the financial industry and investment brokerages are highly regulated.  

Again, as it relates to Novatech, this is a hypothetical scenario, but it's one you should be aware of. Especially when investing in unregulated funds that promise unrealistic returns.  

I'll also say this (and again, at this time, it's only an opinion)…

The possibility of Novatech being a Ponzi scheme increases when you also consider that its management was previously associated with an alleged Ponzi scheme (AWS Mining). 

That doesn't mean Novatech is a Ponzi Scheme. It's just a reason for caution. 

Finally, as an argument against Novatech being a Ponzi Scheme, it does not guarantee your return and your investment can go negative.

If the company does not make a profit, you don't make a profit. But as far as I can see, they have never not made a profit.

Also, everyone's referral bonuses are tied to their downlines profits, so those are not guaranteed either.

Here's the problem I see…

They don't report their trades so how can you verify a profit or a loss?

At the moment, no one is asking that question because their accounts keep growing. But what happens if your account starts bleeding money?

Of course, you are aware of that risk. All investors are.

But when (or if) it happens, you'll want to know why and it's not clear that Novatech is prepared to show you.

Without a third-party verified report that shows holdings and trades, it's hypothetically possible for them plunder your account and claim it as a normal loss. How would you know?

I'm not saying they will, but unless I'm missing something (tell me if I am), the door is open to that possibility.

How Does Novatech FX Work?

The previous section of this review covers a variety of clues as to how Novatech FX “could be” working behind the curtain and not in a good way.

In this section, I'll go over how it's supposed to work out in plain view.  

The P.A.M.M Account

Novatech offers a few different products and services, but its centerpiece product is its P.A.M.M. Account.

P.A.M.M. stands for Percentage Allocation Management Module. It's a pool of funds traded by experts on your behalf in the crypto and foreign currency exchange markets. 

They apparently hire expert traders as employees and pay them a salary.

On a side note, it's strange that expert traders who generate returns 5 – 8 times greater than the world's best investors would be salaried employees for a relatively unknown company.  

I think this is a question worth asking. 

With that said, it's easy to see why it's their centerpiece product because it's the fund that allegedly earns 365 plus percent annually. 

Progress reports are printed out weekly and can be found in the back office of your Novatech Account. However, they don't report their trades or name the experts who are trading your money. 

More Novatech Services and Products

  • Bitcoin and crypto A.T.M.'s
  • Crypto and debit card transactions
  • Metatrader 5 trading platform

Novatech FX Pros (According to Novatech)

No Expiration Dates

  • Trade as long as you want
  • No repurchase necessary
  • Cancel anytime

100% Access To Your Capital

  • Withdraw from your balance at any time
  • Option to Redeposit Your Profits
  • No Withdrawal limits

No Earning Caps

  • 100% of your investment traded
  • Weekly profits paid on Friday
  • No trading skills required

Novatech Cost

Novatech offers a variety of trading packages determined by your initial investment and monthly balance. 

  • Builder – $99 – $499
  • Bronze – $500 – $2,400
  • Silver – $2,500 – $4,999
  • Gold – $5,000 – $9,999
  • Platinum – $10,000 – $24,999 
  • VIP – $25,000 – $99,999 (1% Monthly Cash Back Rewards, No Monthly Fees)
  • President's Club – $100,000 + (2.5% Monthly Cash Back Rewards on Your Earnings, $1,000 Cash Bonus, No Monthly Fees)

Before investing, you'll be asked to add funds and agree to the terms and conditions when purchasing inside your account. You can cancel your order within 14 days for a full refund by emailing or contacting customer service. 

An additional $25 monthly service fee comes out of your profits. 

They also charge a 30% Performance fee if you invest in their P.A.M.M. Account. 

More details can be found on their account comparison document

Who Can't Join Novatech FX?

Novatech FX is unavailable in Texas, South Carolina, Montana, Alaska, and Hawaii. 

Novatech Compensation Plan

Bonus 1: Direct Referral Bonus

You are paid a bonus for sponsoring new members and an additional level-up bonus when they upgrade.  

Bonuses range from $10 – $5000 depending on the trading package they purchase. 

Novatech FX Direct Referral Bonus
Source: Novatech FX

Bonus 2: Indirect Referral Bonus (Seven Levels Deep)

You also earn bonuses from indirect referrals (your downline) ranging from $0.25 to $250.00. The amount depends on the trading package they buy and where they fall into your downline. 

Novatech FX Indirect Referral Bonus
Source: Novatech FX

Bonus 3: Fast Track Bonus

The fast track bonus pays $100 or $500 as a Bonus for personally enrolling new members within 45 days of your enrollment. 

Bonus 4: Check Matching (Nine Levels Deep)

This bonus pays you a percentage of your referral's profits.  

Bonus 5: Residual Bonus (Nine Levels Deep)

I mentioned this bonus earlier in the review. This is a residual bonus financed from the $25 monthly service fee. 

Bonus 6: Rank Achievements

Rank achievements reward you in cash and prize bonuses up to $100,000 in value as your team grows.

Bonus 7: Profit Sharing

Higher-ranked members share in NovaTech Ltd's net profits every quarter. 

As you can see, there are many ways to make money with Novatech FX, but where this money comes from matters.

These recruitment bonuses add up to thousands of dollars in income (in some cases, six-figures). 

If most (or all) of that money comes from retail sales of products and services, Novatech FX could potentially be a legitimate multi-level-marketing company. 

However, it seems that most of it comes from the accounts of new members and not retail sales. That would put it closer to a pyramid scheme according to the criteria presented at 

As mentioned earlier, the criteria includes:

  • Emphasis on recruiting
  • No genuine product or service is sold
  • Promises of high returns in a short period of time
  • Easy money or passive income
  • No demonstrated revenue from retail sales
  • Complex commission structure

How To Withdraw Money from Novatech?

Profits are paid weekly on Fridays. Your money can be withdrawn into your E-Wallet or CoinPayments account, found in your Novatech back office.  

You can also redeposit your earnings.

How Long Does it Take to Withdraw From Novatech?

According to Novatech, you can withdraw from your balance at any time, and most investor reviews validate this claim. 

I've read a handful of reviews from people who have had difficulty getting their money, but they sound more like technical glitches rather than something sinister. 

Novatech Reviews and Complaints

Having listened to many testimonials and read what seem to be hundreds of member reviews, Novatech FX appears to be life-changing in a good way. 

That brings us back to the point I've made several times in this review. More than a few indicators suggest it's a growing pyramid that will inevitably collapse. BUT… currently, members seem to be happy and have nothing but praise for Novatech.

So it's a matter of faith. 

I've seen this many times before, and it has always turned out the same. 

The concern here is that there are no checks and balances. At least none that I can see here (please correct me if I'm wrong)

There are also no third-party audits and no accountability. 

So, if the rug gets pulled out, there's not much you can do about it. 

Novatech may keep this going for years, but the math is hard to argue with. 

In every instance where a “pyramid-shaped” organization of people making money from new people coming in, the glowing reviews turn into angry complaints. Sooner or later, it runs out of steam. 

I'm curious to see how this one plays out. Who knows, maybe I'm missing the investment of a lifetime. 

What I Like About Novatech FX?

This is tough to answer. 

I could say I like the…

  • Good instructional videos 
  • Strong member support and community 
  • Website user interface… 

… and for the most part, that's true. But here's the thing…

I'm no different than anyone else, I want to believe in miracles. And turning one thousand dollars into millions of dollars effortlessly within a handful of years is a miracle.

There's no other way to describe it. 

I want to believe it, but I don't. The numbers don't add up. 

So what I like about Novatech is irrelevant because… if what I suspect will happen happens, there won't be much to like about it at all.  

What I Don't Like?

  • Extraordinary claims that seem too good to be true. The numbers don't seem to add up.
  • Members report website outages due to server overload on payday (Fridays)
  • Owner's previous association with AWS Mining.
  • Not registered with the S.E.C. or any financial authority. Trades are not reported, and there are no third-party audits. 
  • High risk investment.  

Where Do You Go From Here?

Passive income and freedom sound great, especially if you're stuck in a job or career you hate. I get it. 

You want a better life, and you're not alone. Countless people like you are also searching for the perfect opportunity? 

Is Novatech that opportunity? 

If you've read this far, you know what I think. I'm not confident that Novatech FX is a safe investment. 

That's not an accusation, just an observation. I could be wrong. 

There may be a short-term opportunity here for those who jump in and out, but it's hard to say if it'll last. 

And your profit may be at the expense of new investors.  

My instinct is to say, stay away, but it's not my place to say. I know what Novatech FX looks like, but I'm also not qualified to give investment advice. Only you can make that decision. 

I hope my Novatech FX review has been helpful. If you have any comments, questions, or experience with Novatech, please share in the comments section below. 

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2 thoughts on “Novatech FX Review – Pyramid Scheme or Legit Opportunity?”

  1. I don’t understand why all the hoopla! If Novatech is doing something illegal, then the people responsible should be arrested. If Novatech has done something illegal, then the people responsible should be arrested. If Novatech is not legit, how are they still operating? How do you operate an illegitimate company for nearly four years and nobody has been arrested?

    Novatech is not the only company out there that does what it is doing. Some companies pays more. There are hundreds of companies doing the same thing but, it cost more to get in.

    Unless you can answer these questions, why would you deter people from joining?
    Your conclusion analysis is inconclusive. It is opinionated. What is your real motive?