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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: Amelita | Date 2019-02-27
2015 was my worst year because this is the year that I became a victim of a fraudulent broker and that is 4XP. Years have already passed but I still feel the rage from being betrayed and deceived. It was my first broker and I entrusted my investment to them. The money I put in there was a fruit of my hardwork. The platform wasn't excellent to begin with but it was tolerable and hardly affects my regular tradings. I profited little by little. I didn't withdraw for a year because I want my investment to keep growing. But then even before I was able to request for a withdrawal, my account became inaccessible. Even their customer support couldn't be reached. Then the news about the scam broke out and we traders were left in the air.
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Author of 4XP: Mervi | Date 2019-02-21
On top of not paying us traders our funds, 4XP also have a very poor customer support team. First of all, they are unresponsive. They are not prompt in replying in the live chat and when they do, they are very unprofessional. Especially when I'm reporting about the issues in the platform (which they obviously manipulated), they twist it and make it look like my fault (outdated device, slow internet connection). I only realized that this was a red flag when I closed my account and they didn't give me my fund.
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Author of 4XP: Meltaz | Date 2019-02-13
I started trading at 4XP with only basic knowledge. Of course I used a demo account first before going to live to prepare myself at least. Incredibly, trading with a live account went very smoothly. Almost too good to be true. But since I've been receiving assistance from their experts and I've read positive feedback about them, I just continued. I am almost doubling my capital so I decided to withdraw half of the profit. The representative told me that it is on queue and will be transferred in 3 days but a week has passed and I received nothing. I contacted them and they said it was cancelled due to an error. So I requested again. But this time, I did not receive any response. I followed it up and still nothing. A month after that, I suddenly lost access to my account.
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Author of 4XP: Kahlila | Date 2019-02-04
4XP promised me a good trading experience. They promised the best trading conditions which I never had. My capital was $8000. Initially, it was only $2000 but they asked me to add more a few times which I end up agreeing to. But only because they promised good returns and better trading experience. Frustratingly, it had no effect at all in my trades. I kept losing my trades and the customer support doesn't offer any relevant help. All they say is I should replenish my account and try again. Even their lesson materials are not helpful at all. I gave up and decided to withdraw my fund and this time, they never answered to me. Never got my money and never heard from them again.
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Author of 4XP: Maksim | Date 2019-01-30
I had more than $10,000 in my account when 4XP showed their true intention. I asked for a withdrawal of $3000 to which they promptly responded and said that it is on queue for processing. A week has passed and I still received nothing. They said that it was already being processed. Another week has passed and still nothing. They started making excuses like and error occurred and they had to re-process, and a problem with my bank. Later on, they no longer respond to me. When I asked for the withdrawal of all my remaining balance, they immediately closed my account. I never heard from them after that.
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Author of 4XP: Kimjar | Date 2019-01-21
If there is beginner's luck then I guess there is also a beginner's misfortune. 4XP was my first ever broker. I am not very familiar with Forex trading but I've been hearing about it. Then I was contacted by their employee through phone and told me that she got my details from a newsletter I subscribed to. She told me she was from London and it was very convincing with the way she speaks. Then she asked me to invest in their brokerage and that it's okay if I have no background because she would guide me. I was convinced in the end and I deposited $500. But after that, she did not help me at all. She did not respond to any of my inquiries. I can't even reach her through call anymore. Then after a few days, my account was suspended.
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Author of 4XP: Niklas | Date 2019-01-16
The last time I had access to my account at 4XP was in 2015. That was also the year I lost my hard-earned money to them. I started trading here in early 2014 and decided to withdraw my funds in June 2015. That's more than a year of no withdrawal and only when I requested did I know their true colors. My experience had been going well with them because I wasn't withdrawing anything yet. But when I requested, I waited months for the approval that never came. They became unresponsive. It's 2019 now, and I still didn't get my funds.
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Author of 4XP: Mehanzha | Date 2019-01-07
I traded binary at 4XP where I invested more than a thousand dollars. This was my 3rd broker. I wasn't satisfied with the platform of the first two as they were very unstable so I ended up opening an account at 4XP. At first it was good. I was profiting and the platform was a lot better than my previous brokers. Time went by and I decided to withdraw $500. It was denied due to verification reasons. That was understandable but the problem is that after they my first request, there have been multiple malfunctions in the platform (or should I say manipulation). I suddenly had open trades which I didn't do and with large bets. In the end, I lost everything and the company was gone.
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Author of 4XP: Amber | Date 2019-01-03
4XP is not satisfied with just manipulating their platforms. They also want to manipulate the traders. Let's dwell first on the manipulation of the platform. I have a friend who trades at another broker and when I'm at their place, I notice the big difference in our charts. Mine is far different from the real market price. There are also times when I see a lost trade in my history that I didn't even trade. Now I have been continuously complaining and they are trying to hit my weak spots and trying to manipulate me by telling me that everything is my fault. I swear, the way they talk is so believable that I sometimes doubt myself. But this came out and now I'm certain that they are just a group of bad people who took advantage of us.
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Author of 4XP: Chad | Date 2018-12-26
I had 2 accounts at 4XP. Of course, I use both accounts. But only one receives bonuses which I understand because it's part of the agreement and I'm fine with it. What I didn't like is that they accused me of cheating in my trades. Both accounts had at least $10,000 each. They first accosted my having two accounts when it was totally allowed and not cheating at all. Then when I was able to win my argument, they told me that I used a cheating strategy which they cannot disclose. And right after that, one of my accounts was closed without them giving me back my money. Weeks later, since I've been bombarding them with complaints, they also closed my remaining account. Now I have no access to any account and my money is gone with them.
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