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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: Losar | Date 2019-06-10
I stopped trading binary options at Forex Place because they are very unprofessional. I had been having troubles in my platform. There were a lot of glitches and malfunctions that occurred. I reported it to them but they passed the blame on me. The representative that handled my complaint was very unprofessional so I just decided to close my account. But then I wasn't able to take the full amount of my account balance. I tried to contact them over and over again but I couldn't reach them.
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Author of 4XP: Mori | Date 2019-06-06
Aside from the issue of the non-release of our funds, my whole trading experience at Forex Place is not at all pleasant as well. Their platform is already faulty to begin with. I don't know if there is a manipulation going on but I've already lost so much simply because the orders won't close. Since I was having a terrible experience, I just wanted to take what's left of my account and stop trading. But then this broker didn't release any of my money.
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Author of 4XP: Eksan | Date 2019-05-27
It was a terrible and unfortunate journey with 4XP broker. They are all heartless fraudsters who only look at what would benefit themselves. I had one and half years wasted on this broker. If I didn't decide to withdraw a part of my fund, I wouldn't know that this broker is a fraud. I asked for a withdrawal of $500 and it was delayed and delayed with various excuses until it was never released and the broker closed down. By the way, I still had around $4000 in my account.
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Author of 4XP: Raquel | Date 2019-05-14
I had approximately $3500 on my account before the issue on the release of funds broke out. When people first complained about this issue, I decided to withdraw $300 from my account just to see if the complaints were true. I received the money after three days so I ignored what the other traders were saying and continued on my activities. But now I realize that the payout they gave was just to cover the fact that they don't release the funds. I guess I withdrew a little amount so they let it pass. Because when I decided to withdraw $1000, that is when I saw the problem. They kept making excuses for the delay until they just completely closed down.
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Author of 4XP: Marlina | Date 2019-05-08
I guess I have gone past my fury against 4XP. I just lost hope that I will ever be able to redeem all the money I invested on this broker. But that doesn't change my desire for them to be legally punished. Whoever is behind this fraudulence must pay for what he did to thousands of investors. They have done so much damage to be able to run away.
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Author of 4XP: Maya | Date 2019-04-29
Because of what 4XP together with other brokers did, we, foreigners lost the opportunity to trade binary options from some reputable Israeli brokers. My Israeli friend is a trader and she convinced me to open an account with her broker. We have been friends since childhood and I trust her a lot so I know that her broker is really good. However, this incident happened and I am no longer able to trade with them. 4XP deserves to end their operations because of all the wrongdoings they made and the trouble they caused many people.
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Author of 4XP: Sado | Date 2019-04-23
I think it was for the best that they just stop operating completely so they won't be able to embezzle any more funds. But I also hope they pay their clients even just a percentage of what we have in our accounts. Definitely, they would never be forgiven and they should have never taken our funds before disappearing. But since they did that, I am no longer expecting my whole fund to be returned but I do hope by the slightest bit that any amount would be given. But well, thieves take everything, don't they? It's really just so upsetting.
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Author of 4XP: Hyne | Date 2019-04-17
Trading at 4XP is by far my most regrettable decision. I did it on impulse because their representative was very persuasive. The way he explained their offers and the benefits, it was very enticing. Of course, who wouldn't want some extra income, right? I went ahead and opened an account, traded, and earned. However, when I tried to withdraw, they kept making excuses to delay the transfer. The excuses went on for months until they stopped operating. Needless to ask, I didn't get my funds.
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Author of 4XP: Abraham | Date 2019-04-11
I am unquestionably glad that their operations have been halted. But a part of me is still feeling unsettled. I have this fear that if I try Forex trading again, I might encounter another fraudulent broker just like 4XP. I've invested my money, time and effort, like other traders did and I feel down that all of my hardworks resulted to nothing. I remember the anxiety I felt while waiting for my fund to be sent to me then ending with not being sent at all. It has become hard for me to trust again because of what I've experienced with this fraud.
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Author of 4XP: Pong | Date 2019-04-03
It has been more than a year since I last made contact with 4XP. But after bumping into this article and remembering what 4XP did to me, I can't help but be furious again. I have lost more than $5000 on this broker. That excludes the losses from my trades (which were probably manipulated as well). Anyway, it was as how the other brokers said. Multiple rejections or delaying of withdrawal requests. Then once you sense that something is wrong, they go ahead and terminate your account. I had that exact experience. I don't know what is happening to them now but they should be punished.
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