Is Football Index a Scam?
Or a Ponzi Scheme?
Table of Contents
This article was made in February 2018 and remains for archive purposes.
Football Index have entered administration.
Is Football Index Legit?
I’ve recently created an in-depth review of Football Index, which you can read to learn about Football Index & what my final thoughts were.
Let me start by stating that Football Index is a completely legitimate website.
If you aren’t completely sure what Football Index is, it’s a platform where you can buy and sell virtual shares in footballers.
Football Index is still maturing as a product, but it’s currently 4 years old as of December 2019.
As the platform is still so young, there are many people who are speculative about it being ‘another online scam’, I can assure you that it isn’t.
There are already over 500,000 members registered to trade, with some traders holding portfolios worth in excess of £100,000.
I know of two accounts that are 7 figures, which is mind-blowing.
If that’s not enough to put your mind at ease, Football Index is licenced and regulated by the Gambling Commission & IBAS.
These regulatory companies don’t let any website get a licence, companies such as Football Index have to jump through various ‘hoops’, if members raised complaints about them, they would be closed down and fined heavily.
There is nothing more satisfying than seeing a company being officially licenced, as it means they are definitely a secure website.
Ready to Start Trading?
When you register at Football Index, you can claim a special offer. This will enable you to trade risk free, where any losses up to £500 are refunded, as cash. Remember to use code FIA when you sign up.
How can I tell it’s not a scam?
There are many ways that you can assess if a website is a scam or not. Let’s go through them.
Let’s start from the very start. Just like any company now, it has to start with an idea.
Adam Cole, the founder of Football Index first sought investment in his company just over three years ago.
He had a dream and made it happen. He required just over £1m to get his platform developed so it’s ready for the general public to trade.
The value of this company stood at just over £6 million.
In 2019, I would be thinking of closer to £500 million.
Although Football Index have grown during the last 4 years, they aren’t anywhere near their end goal yet.
The aim for Football Index?
To deter people from gambling away their money on Fixed Odds Betting Terminals & Accumulator bets that aren’t profitable.
This is a much more ethical way to make use of your football knowledge.
Yes, you may lose money on bad investments, but never your full stake. When you are betting, if you lose, the money that you staked is now gone.
Are Football Index Regulated by the Gambling Commission?
As Football Index is in the same category as Sportsbook Betting Sites, it has to be monitored quite heavily.
This is to ensure that the company is sticking to the rules in their licence, ensuring they are doing what they can to treat members fairly & ensure they aren’t gambling too much.
This is the Gamble Aware scheme. It doesn’t apply to Football Index as much, as it’s a trading platform as opposed to betting.
However, to know they are regulated by the ‘big boys’ must be quite reassuring to new members.
When you log in to Football Index, you will see their operators licence number, this can be clicked and will take you directly to the gambling commission account details page for Football Index.
I have attached the screenshot.
Football Index has 0 sanctions to it’s name, meaning that they have followed processes in line with their responsibilities.
There are websites such as 888sport which have received an £8m fine for allowing players with gambling addictions to continue playing on their slot machines.
This should fill new members with confidence, as although Football Index want to make money, they don’t need to use underhand tactics to lure us in, or keep us playing.
Football Index simply just provides the platform for us to trade with.
Is Football Index a Ponzi Scheme?
Social Media is a key factor in telling whether a website is a scam or not.
Football Index is a verified Twitter account with almost 10,000 followers. This is quite strong showing, considering that only a small percentage of members will follow companies they use on Twitter.
I always buy NIKE trainers, but I don’t have anything to do with them on Twitter or Facebook!
EDIT: December 2019. Football Index now have almost 50,000 followers.
Although any website can now ‘buy’ followers and make an account look as if it’s legitimate, if you browse through their page you will see plenty of positive comments from traders, aswell as the fact they love to run a competition.
They have a monthly competition to win £500, A Daily £5 ‘Guess The Graph’, Guess the best player in a certain football match and win a Football Jersey… and so on.
The users that do follow Football Index help add to the proof that Football Index isn’t a scam.
Why do people say it’s a Scam?
The main reason that you will hear that Football Index is a scam is very simple.
They will have had a bad experience on the Football Index. What they don’t tell you? It may have been their error.
Think about it. If a user has deposited money on Football Index, lost 10% of the money he has deposited and now decides to withdraw, he’s going to be pretty angry!
Instead of looking at the reasons why he may have lost money, Investing in Bad Players, Buying Players at their peak, only for them to lose value etc.
It’s far easier for a user to take to Twitter or a Forum and declare that the website is at fault, there’s a pyramid scheme starting or that the Football Index is just STEALING MEMBERS MONEY.
Look at this Milner Trade, this twitter member got it absolutely spot on!
The reality of the situation is probably the fact that you have invested poorly, but we all do it! It’s all about how you overcome mistakes.
However, when you are angry, it makes you feel better to rant & try to put others off.
Without going too much Off Topic, I will admit I have done this myself in the past.
I received an email from BWIN stating if I deposit and bet £10, I will receive a £10 bet.
Sounds good. I deposited and bet, but didn’t receive a Free Bet.
Doh. I didn’t hit CLAIM NOW.
I then proceeded onto live chat, explained that I didn’t see it but have bet. The lady politely refused & said she couldn’t do a thing to help me.
I saw red, logged into twitter and slated every single post that BWIN would post.
Did this affect BWIN? Very unlikely as I had 0 followers. Did they credit me the £10 free bet to shut me up? Nope. But, it sure made me feel better!
This is the reason you may see negative comments, in my scenario it was my fault, much like most negative stories I read!
How do Football Index make money?
Football Index apply a charge to completed trades on Football Index, this is their way of making money.
If you buy a footballer, there are no charges.
The charges are incurred when you decide to sell a player.
If you sell 100 shares in Arturo Vidal at £100 total price, you will pay 2% commission. This equates to 2%, so take note that it won’t be £2 every time!
2% obviously works out a lot more expensive on a player such as Lionel Messi, who trades at £9.
But, the Football index system is completely free to use, so being charged a small premium like this ensures that Football Index can keep the site running well.
After all, they’re a business too & need to make some money!
What Makes Football Index look like a scam?
My only issue with Football Index is the incentive scheme it offers.
If you refer a friend to Football Index, you can each earn a £10 cash bonus into your accounts.
The problem with this?
It seems that every trader wants to open up a Football Index page, pushing their players & advising you to SIGN UP TO THIS LINK FOR £10 PROFIT.
I have no issue with the refer a friend reward, but traders will want to maximise their referrals.
To see accounts pushing tweets consistently, telling members to sign up, does make it seem like a bit of a dodgy scheme, it has to be said!
If you can see past this, there is plenty of fun & money to be made.
For me, Football Index is a change from betting… which I was terrible at!
Is Football Index Gambling?
Yes, Football Index is a gambling product. It’s fully licensed and operational.
However, it’s not gambling like placing a spin on the roulette wheel, or even like placing an accumulator bet.
Football Index really is like no other, if you are on a losing trade, remember it’s a 3 year bet. Although you may not be in profit after one day, your trade can turn itself around.