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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: Nabilah | Date 2021-07-21
Why do companies like Forex Place still exist? These fraudster deceive thousands of clients and by the time they are exposed, it is already too late. Putting trust on brokerage firms just becomes very difficult.
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Author of 4XP: Kirti | Date 2021-07-16
Forex Place took away my $1000 investment. I was talked into depositing this much by one of their employees. Because I trust them, I did not think twice about following their advice. I never imagined that I was dealing with a fraud broker and that they have been tricking me since day 1.
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Author of 4XP: Ravik | Date 2021-07-06
I made a withdrawal request from 4XP but all they did was make me wait. They kept making excuses as to why the transfer is still not being processed until one day, I just couldn't access my account anymore. I tried contacting the company but they never responded to me as well.
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Author of 4XP: Carmen | Date 2021-06-28
I don't know what to do anymore. I lost my money to 4XP and there is just no way I could ever get it back again. 4XP was my first broker and to be deceived like this, I don't think I will have the courage again to enter Forex trading. I lost so much to this broker and I'm afraid I am gonna lose more money again if I try to invest again.
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Author of 4XP: Syamil | Date 2021-06-23
4XP should have been gone a long time ago already. Why was this broker allowed to operate for years before being seized by the authorities? They just had the opportunity to deceive many clients for a long period of time. What's even worse is that it seems like that owners got away with what they did.
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Author of 4XP: Macav | Date 2021-06-10
Forex Place should have been suspended right from the start so they wouldn't have been able to deceive more people. My brother got involved in the fraudulence of this broker and he ended up losing a thousand dollars on this company. He regrets it so much but there was nothing we could do anymore.
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Author of 4XP: Michal | Date 2021-06-15
Unfortunately, these brokers are usually undetected until they have already deceived thousands of clients. Sometimes, no matter how careful we are, there would still be some people who would do anything just to lure in their victims. In this case, 4XP appeared to be highly reputable and we all got fooled.
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Author of 4XP: Jovan | Date 2021-06-04
Forex Place really played with my mind. I was starting to think that I am not suitable for trading and that I will never develop skills no matter how hard I try because that was what my account manager made me feel. He always said that all the losses were because of carelessnes. But in reality, they were manipulating the whole platform.
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Author of 4XP: Kristen | Date 2021-05-17
Before opening an account at Forex Place, I had high hopes. This was my first investment and with all the great offers that Forex Place said, it was very exciting for me. However, after weeks of trading with the broker, the services started downgrading. For some reason, the platform started to frequently lag and their customer support team has evidently become unresponsive. In the end, I was not able to retrieve the remaining balance I had at the broker.
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Author of 4XP: Timmy | Date 2021-05-14
My account at Forex Place was only available for a few days. I haven't even enjoyed making trading activities. The company just wiped out my account and never communicated with me again. I lost $100 on this broker without even gaining anything. Not even experience.
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Author of 4XP: Charel | Date 2021-04-29
My experience at Forex Place was traumatizing. I invested so much on this broker; not just money but time and energy as well. Back then, I was so hopeful about my journey. I took my trading activities seriously to earn huge profits. Finding out that the broker has been manipulating our platforms and lying to us made me question my abilities and skills.
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