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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.
লেখক 4XP: Senaya | তারিখ  2019-09-16
It is because of the companies like 4XP that do illegal activities that makes the image of Forex market unpleasant. There are a lot of reliable brokers out there but even they are being doubted by other traders. I just hope that whenever a company is proven to be a fraud, they should be punished accordingly.
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লেখক 4XP: Shira | তারিখ  2019-09-09
I am currently trading at a reliable and honest broker. It has been three years since I started here. I recommended it to a friend from overseas and she liked her experience. Sadly, all Israeli brokers had to stop allowing binary options trading to foreigners all because of what these broker did. There are still a few decent brokers but they are dragged into this bad reputation because of the dishonest ones.
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লেখক 4XP: Wayne | তারিখ  2019-09-05
4XP should have never existed in the first place to save all the victims from being scammed. I wonder how anyone could stand deceiving other people to serve their own interests. Do they not have a heart at all? My friend was one of their clients and she worked really hard to make profitable trades and saved up from her salary to fund her account. But all she got was deception and theft. She was never able to make a single withdrawal thus all of the effort and time she spent on trading with this broker were put to waste.
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লেখক 4XP: Ukelai | তারিখ  2019-08-27
Trading binary options at 4XP was exemplary, to be honest. The platform was always at its best condition and I was winning an incredible amount. However, the issue surfaced when I tried to withdraw some of my funds. At first, the rejection of my request was reasonable and understandable. But I have been sending requests for two months already yet I still kept being declined. This time, they weren't giving any valid reasons anymore. Out of frustration, I told them that I will just be closing my account and taking all my balance. What they did is close my account without paying me. They also don't respond to my messages.
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লেখক 4XP: Groveni | তারিখ  2019-08-19
Even before 4XP stopped their operations, there were already a lot of problems with the trading experience. For one, their platform is probably the worst. It will hang and will be back after a few minutes. Especially with binary trading, it usually glitches when nearing the expiration so I end up losing the bet all the time. Then the customer support doesn't help as well. They never seemed to be willing to give aid in my concerns.
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লেখক 4XP: Laina | তারিখ  2019-08-07
The trading platform for binary options at 4XP was already faulty to begin with. I used to think that it was a problem in my internet connection because that is what this broker told me all the time. I only realized that there was nothing wrong with my internet speed when I tried to run other programs (needing online connection) and they ran smoothly. Due to their faulty platform, I lost more than half of my capital. And when I wanted to withdraw what's left, they closed my account.
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লেখক 4XP: Ben | তারিখ  2019-08-16
That is what they do. They put all the blame to the traders. They told me that my internet connection is probably terrible. They also told me that I still need to work on my trading skills to avoid mistakes. Then they made me agree that an account manager could access my account. They told me that the manager will help me recover my losses. But in the end, he just wiped my account clear. I lost everything and the broker terminated my account.
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লেখক 4XP: Mesami | তারিখ  2019-07-23
I've heard a lot of fraud incidents on Binary trading. Surely, 4XP offers other forms of trading but it definitely did not escape the list of Binary brokers that deceive clients. Because of brokers like these, some countries already forbid online financial activities such as Forex trading. In line with these, the citizens of those countries are also robbed of their choice to do Forex trading. These fraudsters dirtied the image of the Forex market in general and it's enraging.
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লেখক 4XP: Elius | তারিখ  2019-07-17
I traded Binary options at 4XP and it was great at first. I will be honest, I was productive on the first few months. The promise of returns that they talked about? It was true, I had a good profit rate. But I was made to believe a beautiful lie. As it turned out, the platform is only manipulated and the results that were displayed were all fabricated. So the truth was, I wasn't really earning. At the same time, they also didn't process any withdrawal request. To you who are reading this, make sure that your broker is regulated.
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লেখক 4XP: Yelliah | তারিখ  2019-07-09
I tried to get just half of my total funds back in 2014. The representatives were not professional at all. They don't answer completely, sometimes just saying yes or no to my questions without further explanation. Since the withdrawal request has been left to pending for a couple of weeks already, I tried to follow up but they simply ignored me. Long story short, I was not able to take anything and they suspended my account accusing me of malicious actions. Now the broker is gone, together with the hope of retrieving my fund.
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লেখক 4XP: Ilijiana | তারিখ  2019-07-03
It was my fault for believing that regulation is not that essential in the operations of a Forex broker. I didn't research enough and impulsively decided to open an account at 4XP. In the end, I suffered the consequences and landed on a fraud broker who never thought about the satisfaction of their clients. I regret my decision and I will be keeping myself away from Forex trading for the time being.
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লেখক 4XP: Inanda | তারিখ  2019-07-31
Hey, don't put all the blame on yourself. Remember that you are the victim here. You didn't know enough but the one at fault really is 4XP broker. It is inevitable to believe a professional-looking company with convincing representatives. Many of us have become victim. But at least now we know better. We will be more cautious and won't easily give away our trust.
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