The NexTradeBox Investment Plans.

In our recent “First Thoughts” article about NexTradeBox, we introduced their investment plans in the following way:

For the investor, NexTradeBox offers six investment plans.  All of them pay a daily interest and return your investment as part of these earnings.  An unusual thing about the investment plans is that they are very long term.  All of them are 720 days long — TWO years!  This is unusually long for the HYIP industry where it is extremely unusual for an investment program to survive for even ONE year.  Also unusual is the fact that the daily interests that the plans pay are very low (by HYIP standards), ranging from 0.35% to 0.50% per day.  All of this isn’t necessarily bad.  It is simply unusual.  Maybe NexTradeBox is going to start a trend of successful long-term online investment programs!  That would be nice…

Here are the specifics about the six investment plans as given in the NexTradeBox website:

  • ST Plan
  • 0.35% daily
  • $25 – $250
  • AD Plan
  • 0.38% daily
  • $251 – $1,000
  • PR Plan
  • 0.41% daily
  • $1,001 – $5,000
  • MS Plan
  • 0.44% daily
  • $5,001 – $20,000
  • EX Plan
  • 0.47% daily
  • $20,001 – $35,000
  • LG Plan
  • 0.50% daily
  • $35,001 and up

Analysis of the NexTradeBox Investment Plans.

Before we begin our analysis, it might be appropriate to state our usual warning, which is to NOT invest large sums of money in ANY online investment program unless you are firmly convinced that it is as reliable as your neighborhood bank or a corporation that you might wish to buy stock shares from.  Sadly, few, if any, online HYIPs meet this requirement.  With this in mind, in what follows, I will limit our discussion to the first three NexTradeBox investment plans that have reasonable minimum investment requirements.  For the online investor with a large amount of funds to work with, it is probably wisest to diversify — to invest in a number of different investment programs.  As the saying goes, “don’t put all your eggs in one basket.”

Let’s begin by focusing on the ST Plan.  To determine how long it will take an investment plan of this type will take to break even, you simply divide 100% by the gross daily return.  So, dividing 100% by 0.35%, you come up with 286 days, well over nine months.  The total GROSS interest that you will receive from this investment plan will be the daily gross interest of 0.35% times the 720-day length of the plan, or 252%.  Since this includes your investment, you must subtract 100% from it to get the total NET interest that you will receive, or 152%.  Finally, averaging this out over the 720-day length of the plan by dividing by 720, you get an average daily net interest (DNI) of 0.21%. 

If you do these calculations for the other two investment plans that we are considering, you will get the following results:

  • Plan                 DNI                  Days to Break Even
  • ST                    0.21%              286 days
  • AD                   0.24%              264 days
  • PR                    0.27%              244 days

Discussion.

As we noted in the First Thoughts article, the most glaring things about the NexTradeBox investment plans are their long terms and the low interest rates that they pay.  In a general sense, and as we also suggested in the First Thoughts article, it looks as though these investment plans are designed as a long-term source of passive income.  This is actually a nice idea, IF the program can do business in such a way that it will survive for the 720 days it advertises.  If they can make this happen, it might even be a “first” in the HYIP business. 

The low interest rates lead to extremely long breakeven times.  For the ST Plan, it is well over nine months and for the PR Plan, the highest interest plan that we are considering, it is around eight months.  So, it takes eight or nine months just to get your money back.  After that, what you earn will be “pure profit,” but you will be earning it at a very low rate (for the HYIP industry). 

We usually determine the average weekly profit you will earn from an investment plan by multiplying the DNI by seven (the number of days in a week).  However, the results that you get are only valid if an investment plan survives for its entire term.  Let’s make this calculation, but you should keep this fact in mind.  Here are the results:

  • Plan                 Average Weekly Profit
  • ST                    1.47%
  • AD                   1.68%
  • PR                    1.89%

Needless to say, even if the program DOES survive for the full 720 days to make these numbers valid, this level of net profit for an HYIP is rather low.

The flip side of all this is that the low returns give the program a very serious chance of being a long-term survivor.  In HYIP Insights #12, we published an article which suggested that programs offering investment plans having DNIs less than 1% would have a very good chance of long-term survival.  Well, the NexTradeBox plans are ONE FOURTH of this!  This is the lowest yield HYIP that I can recall seeing.  So, if any program can become a long-term survivor, this should be the one.  Everything will depend on how well the program administrators operate the program. 

Earnings Example. 

I’m going to use an example from the lowest interest investment plan, the ST Plan, to emphasize how small the returns of this plan are.  Specifically, we’ll assume an investment of $100.  With a daily interest rate of 0.35% daily, your daily return will be $.35 (35 cents).  After 286 days, you will have received a total of $100.10 (286 x .35).  So, you will have broken even.  Finally, after 720 days, you will have received a total of $252 (720 x .35), for a net profit of $152.  If a bank offered this type of return, the investor would be overjoyed.  In the HYIP business, many people would say that it’s too low — given the risk that is involved with such a long-term investment.  You will have to be the judge on that…

Conclusions.

NexTradeBox offers six long-term low-interest investment plans.  If this program is managed such that it can survive for its advertised two-year term, it will be an excellent source of passive income for the conservative investor.  This program will not appeal to the investor seeking short-term high-profit investment opportunities. 

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