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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: Anna | Date 2020-11-24
I have invested on this broker for almost two years and all that time, I thought that I was with the right broker. I was doing well in my trades and when I decided to withdraw the profits, they suddenly suspended my account. Then I never got it back again. Well, what's important now is that their operations have been stopped. But I still hope they would pay for what they did.
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Author of 4XP: Kenan | Date 2020-11-16
Back when I was trading at 4XP, I made three deposits. I did it because my account manager told me that I will have higher profit rate if I have higher capital. At first it seemed like it was working. My profit rate really increased. That is why I made the third deposit. Sadly, after that, my account started to go downhill. For some reason, all of my trades never won again. Apparently, all of my trading activities and results were manipulated by the broker and they did it to embezzle money from their clients.
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Author of 4XP: Leif | Date 2020-11-13
I traded with 4XP for almost a year. When I made a huge profit, I tried to withdraw it but the broker did not allow it. They said that my account needs verification even though I already completed it right after opening an account. I still obliged and submitted the documents again but they kept rejecting them. I kept asking for more documents until there was nothing left to show. They still did not allow the withdrawal of my profit and when I demanded, they terminated my account.
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Author of 4XP: Chanchal | Date 2020-11-03
When I was still trading at Forex Place, the experience was quite decent. I was earning and the platform was working well. However, when I earned enough and decided to withdraw my profits, that is when the problem started. I made a withdrawal request and it was approved in a short time. However, even though they approved it, it was never transferred in my bank account. I waited for weeks and still nothing. Until one day, the transaction was labeled completed. I checked my bank account but nothing was credited. I asked the broker about it but no one answered to me.
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Author of 4XP: Rima | Date 2020-10-30
I was new to trading and 4XP was my choice of broker. They appeared to be reputable so I chose them. In my trading activities, I had experienced a few technical issues but they were tolerable so it did not really bother me. However, when I already wanted to withdraw my funds, no one from the company even answered me. The request was never processed and my account was closed.
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Author of 4XP: Joao | Date 2020-10-19
All of my withdrawal attempts at 4XP were unsuccessful. They gave me various reasons from account verification to technical issues. I invested a total of $550 on this broker and none of it ever returned to me. I really wish I never made contact with this broker. I only ended up losing a huge sum of money instead of profiting.
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Author of 4XP: Oskar | Date 2020-10-13
Many years have passed already but I still want to share my experience with Forex Place. This broker was one of the most popular brokers back then and it was probably because of their promotional materials. Basically, I opened an account with this broker thinking that I was taking a great opportunity to earn. My trading activities lasted for a little more than a year. When I tried to withdraw my profit, this is when the problem started. The company made various excuses to delay the release of my money. Until in the end, they just closed my account completely.
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Author of 4XP: Romeo | Date 2020-10-06
I had an account at 4XP for almost a year. I invested $10,000 on this broker because their offers seemed promising. I also spoke with a representative and he easily earned my trust. The way he spoke was professional and reliable. Unfortunately, it was simply a tactic to attract more clients. My mistake was that I invested all that I have at once. Now, my money is gone and I don't even know if the owners will be arrested.
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Author of 4XP: Owenz | Date 2020-09-21
Forex Place was an absolute horrible broker. I invested a hundred dollars with them which is a huge amount for me already. Yet my account manager was still persuading me to deposit more. Almost everyday, he is asking me to top up my account. After a few weeks when I still refused to oblige to his recommendation, my account was suspended. Then I got my access back after a few days but my balance was down by half already.
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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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