The Apex Traders Investment Plans.
Apex Traders offers three investment plans. The first one returns your investment at the end of the plan while the second two return it as part of your earnings. The terms of the plans are short to medium, ranging for 15 to 40 days long. A quick look tells me that the interest rates are quite profitable for the investor but are not so high that they would be completely unsustainable in the long term. But, this is only based on a quick look. In fact, there appears to be something unusual going on with the interest rates that are offered. With that as a “teaser,” I’ll stop for now. When we review the program, we will take a very in-depth look at the pros and cons of the Apex Traders investment plans. Please stand by…
The website gives the following information about the three Apex Traders investment plans:
2% daily for 15 days
$20 – $5,000
Deposit return – Yes
4% daily for 40 days
$300 – $10,000
Deposit returned – No
6% daily for 30 days
$3,100 – $1,000,000
Deposit returned – No
Analysis of the Apex Traders Investment Plans.
Taking a very quick look at the investment limits of the three investment plans, you can see that the first two will probably be affordable to most online investors whereas the third probably will not. I also note the EXTREMELY high maximum investment limit for the third plan. We always discourage folks from investing more than a few thousand dollars in an online investment program — unless, of course, there is verifiable information available about the activities of a company and its performance as an investment vehicle. A million dollars is off-the-chart. It would seem that a wiser course of action would be for the company to simply to state that the upper limit for investment is “unlimited.” This would attract a lot less negative attention. At least it wouldn’t bother ME so much! The bottom line is that the first two investment plans will probably be the most popular because of their affordable lower investment limits (the high upper investment limit will probably have nothing to do with this!).
OK, but how profitable are these investment programs? They are lined up on the website page in order of the daily interest that is paid. The implication is that the plans are listed in order of profitability. Unfortunately, this is NOT true. Profitability depends on BOTH the interest paid AND the length of the investment plan term.
The best way to compare the profitability of different investment plans is to first determine the total net interest and then divide this by the number of days in the plan to give you an average daily net interest. You may not actually receive this cash amount every day; but, on the average, this is the daily profit that the plan will pay you. We call this “daily net interest” or DNI. In this manner, you are comparing “apples to apples” and there can be no confusion about the profit you are earning because one plan is longer or shorter than the other.
The website correctly gives the total GROSS interest for each of the programs. For example, for the 2% program, it is 130%. In order to get the total NET interest, you have to subtract 100% because the gross includes your investment. In this case, the total net interest is 30%. Finally, to get the DAILY NET INTEREST (DNI), the quantity we are looking for, you divide this by 15, the number of days in the investment plan. The result is a DNI of 2% (30/15). Of course, in this plan, since your investment is returned to you at the end of it, you would have realized from the start that the 2% daily interest that you are paid is pure profit (assuming that the program survives until the end of the investment plan). If you do the same arithmetic for the other two investment plans, you get the following surprising results:
Total gross interest = 130%
Total net interest = 30%
Length of plan = 15 days
DNI = 2%
Total gross interest = 160%
Total net interest = 60%
Length of plan = 40 days
DNI = 1.5%
Total gross interest = 180%
Total net interest = 80%
Length of plan = 30 days
DNI = 2.67%
To repeat what I’ve already said above, when you look at the daily interest paid, the total gross interest, and the total net interest for the three Apex Traders investment plans, you are led to believe that the 2% plan is the least profitable, the 4% is in the middle, and that the 6% is the most profitable. I’m sorry to say, but this is NOT true. The 4% plan is the least profitable, the 2% plan is in the middle, and, as before, the 6% plan is the most profitable. It all comes down to the DNI for each investment plan. Apex Traders didn’t explicitly state which investment plan is the least or most profitable. So, we can’t accuse them of lying. However, I DO think that the way the investment plans are listed is misleading. Certainly, Apex Traders is aware of the daily net profit they are paying their investors.
So, the 2% plan is more profitable than the 4% plan. There is another reason that the 2% plan is superior. This is because the investment term is shorter; you can almost go through three cycles of the 2% plan in the time it takes you to cycle through the 4% plan once. The conservative investor might simply choose to invest once in the 2% plan and then to be done with the program. Putting your funds at risk for 15 days in order to earn 30% profit isn’t a bad deal at all.
There is one more factor that we should take a look at. This is the time for each of the investment plans to break even. This is extremely easy to determine. You simply divide 100% by the daily interest that you receive. In the case of the 2% plan, dividing 100% by 2%, you get 50 days. Since this plan is only 15 days long, you won’t break even until the plan ends. This IS a disadvantage of this program. Doing the same arithmetic for the other two plans, you get the following results:
2% Plan. Break even in 15 days (at end of plan)
4% Plan. Break even in 25 days (plan is 40 days long)
6% Plan. Break even in 17 days (plan is 30 days long)
Even considering breakeven point, I would still say that the 2% plan is better than the 4% plan because the short term permits you to recover your entire investment much more quickly. Concerning the 6% plan, if you happen to have the $3,100 to invest in it, it does have a short breakeven time — roughly the same as the 2% plan — which is our favorite at this point.
In HYIP Insights #12, we suggested that programs offering investment plans with DNIs higher than 2% might have a poor chance of survival while programs offering plans with DNIs less than 1% might have a good chance. Between 1% and 2% could be anyone’s guess depending on a number of factors. From the point of view of survivability, if Apex Traders is successful in luring investors into the 4% plan with the lower DNI, this will, of course, be good for the survivability of the program. High DNIs put more money in your pocket. But, they are dangerous to the survival of the program. The 6% plan has a high DNI which would not be good for the survival of the program. However, this plan will probably not be used too much. So, that shouldn’t be a concern.
Apex Traders offers three investment plans. Their terms last from 15 to 40 days. It turns out that the 2% plan is more profitable than the 4% plan and, primarily for this reason, the 4% plan should be ignored. The 2% plan is also the plan with the shortest term — which is an advantage. The 6% plan pays the highest interest but has a minimum investment that will be beyond the reach of most online investors. For this reason, the 4% plan is apt to be the most popular. The daily net interests paid by the Apex Traders appear to be in the range where, with careful administrative practices, the program might be able to survive in the long term.
I hope this information is helpful. Good Luck!
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