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Broker ceased to exist

4XP


Forex Place Ltd, delivering its brokerage services under the 4XP brand, has terminated its operation due to the revocation of a conformity certificate issued by the Financial Market Relations Regulation Center (FMRRC).

According to the statement posted by the Financial Market Relations Regulation Center in October 2013, the regulatory authority ruled that Forex Place Ltd had been deprived of a license on account of unsatisfactory provision of trading services and improper execution of its commitments.

The ruling was adopted by the executive board at a FMRRC session.

Police raid offices of 5 forex brokers in Israel

In 2016, the Israeli police closed offices of 5 forex brokers that were implicated in a large-scale fraud scheme. Every client suffered an average loss of 210,000 euros. These brokers are: Forex Place (4XP), BForex, Sisma Capital, Tradaxa, and Aston Forex (Aston Invest Ltd.).

The stock market regulator Autorité des Marchés Financiers (AMF) and the Israeli police together started investigating fraudulent activities in the forex and binary options markets in Israel. The investigation was aimed at five companies that are suspected of fraud in the amount of around 105 million euros. Fifty lawsuits with at least 500 victims of the dubious brokers were brought in court.

According to the Israeli mass media at that time, alleged fraudsters included Forex Place (4XP), Sisma Capital (Tradaxa), Bforex, and Aston Forex that are closed now.

What is known about these brokers?

4XP headquartered in Ramat Gan was managed by Benny Abramov, Yair Abramov, and Shimon Choen. They did not give any comments about the investigation. Bforex was based in Mitzpe Ramon and had call centers in Herzliya, while a namesake company was registered in the UK. Its director Tzachi Rosenbaum also made no comments.

According to the French regulator, the brokers were operating without the permit of any legal regulation authority, tricked clients into giving money through online chats and phone, while promising them annual profits of 20%, 30%, and even 88% from derivative trading.

The investigation showed that the brokers’ employees introduced themselves as office managers of companies in London or Paris winning clients over. The brokers’ representatives promised that clients’ funds will be stored in the European banks, such as ING, RBS, or HSBC. Instead of it, the money was instantly moved outside the EU: mainly to Israel, Georgia, or Singapore and to offshore accounts on the Seychelles, the British Virgin Island, and in Belize.

The French media reported that two employees of 4XP had been featured earlier in similar cases. One of them was involved in a hate crime against a Palestinian taxi driver in 2007. Another was arrested in a hotel in Paris in November 2015. The police found 6,000 euros in 50-euro bills. The man claimed he won the money in poker. To secure his release, he had to pay 80,000 euros.

Bforex ran into problems in 2016. According to clients, the broker was not withdrawing money, and the client support was not responding. In April 2017, an announcement appeared on the company’s website about a transfer of Bforex business activities and traders’ accounts to Financika (Sharp trading Ltd.).

Sisma Capital Ltd. stopped operating on May 6, 2014. Later the FSMA regulator warned investors that the company continued working under the names of Broker & Co and Tradaxa. This way, fraudsters concealed themselves as other companies and continued with illegal activities until 2016.

End to binary options in Israel

The Israeli authorities received a lot of complaints and lawsuits from duped foreigners. As a result, the country’s reputation in the global community was harmed.

After multiple investigations, the Israeli bill on securities was amended in order to ban binary options trading for foreigners. The Israel Securities Authority can punish the Israeli brokers that sell binary options to foreign traders. Now such an activity is considered the violation of the money laundering law.

The opinion of the review`s author is private and not obligated to reflect the position of the resource. If you have any remarks and suggestions on new articles please contact us via this form.
Author of 4XP: Hajar | Date 2020-09-14
Forex Place was the only broker I know back then that offers Binary Options trading. I really wanted this kind of trading so I opened an account with them. However, I regret it so much because I only ended up losing everything I saved up for. 4XP is a fraud and they were able to easily deceive their clients because their website seemed reputable and their representative were convincing.
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Author of 4XP: Kai | Date 2020-09-07
I invested a huge amount at Forex Place. I believed that they would provide me with outstanding services on Binary Options but as it turned out, this broker was only a fraud. It was very hard back then to identify a fraud broker because there were not much reviews available unlike these days. Also, I was not aware that there were fraud companies in this market. I regretted opening an account with them but I started to get over this horrible experience.
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Author of 4XP: Rose | Date 2020-08-31
I don't think the owners of Forex Place felt a little bit of guilt. I was with them for almost a year and they made me believe that I was doing great in my trading activities. I was trading binary options and I keep profiting even when I had little experience in trading. Every time I deposit more, the profits also becomes larger so it made me want to keep depositing. In total, I deposited $2600. But then all of it was gone because 4XP was a fraud and they never released our money.
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Author of 4XP: Areli | Date 2020-08-25
My experience at Forex Place was lesson for me. It taught me not to easily trust any company especially when it involves money. It opened my eye to the sad reality that there are many fraud brokers in the market and that I should be wary of them. I have already lost $300 on 4XP. I won't let another company manipulate and deceive me again.
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Author of 4XP: Evi | Date 2020-08-18
It has been a couple of years already since I traded and lost my money at Forex Place. I believed that I was with a trustworthy broker back then. I thought that it was finally the time for me to make something productive. I put in a huge investment at this broker and my experience did not even last a year. I was having a great time at first but then the platform started to malfunction frequently. I end up losing many trades and when I decided to just take my remaining balance, the broker terminated my account.
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Author of 4XP: Andika | Date 2020-08-10
My trading experience at 4XP was brief but it was probably the most terrible experience I had. When I started my trading activities, none of them went according to what I desired. None of my trades went well because the broker's platform was unstable. It often lags or freezes. It was very hard to earn with that kind of platform. I complained but the support team did not do anything about it. In the end, I just lost everything.
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Author of 4XP: Annave | Date 2020-08-04
Forex Place betrayed me. For more than a year, I traded with them and I made more than one deposit. I trusted my account manager and she told me that I would be well taken care of. So I followed whatever they wanted me to do such as the multiple deposits. But in the end, they turned out to be a fraud and they never released my money. They wasted the trust that their clients gave them.
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Author of 4XP: Zayne | Date 2020-07-27
Now that Forex Place is really out of business, I feel a little relieved. At least now, there would be no more victims of this broker's fraudulence. I am glad that after being exposed, they were shut down. But of course, I felt frustrated because I was betrayed and I lost the money I worked hard for. I invested a thousand dollars on this broker and it was put to nothing.
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Author of 4XP: Mincho | Date 2020-07-20
The money that I spent to start an account at ForexPlace will never be returned again. I wish I never knew about the broker. My money would probably have just been sitting on my savings account instead of being deposited to a company that only wanted to take their clients' money. My trading experience at this broker did not even last for a year because they treated me terribly after not agreeing to deposit more fund.
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Author of 4XP: Aziz | Date 2020-07-16
Now I get why people are so critical when it comes to trading Binary Options. Fraud brokers are really rampant and it is very hard to identify a fraud at first glance. You would only know that you have been dealing with the wrong broker when you have already deposited your money and realized that the company never really intended to release their clients' money.
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