Forex Broker

Broker ceased to exist


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 dari 4XP: Mie | Tanggal 2020-03-30
Somehow, learning that Forex Place has finally shut down gives me relief. I have been their client before and all of their services are terrible. When using a demo account, the experience would be great. But once you switch to a live account and have already deposited money, that is when they would give you their real platform. It is shaky and won't execute orders properly. I have lost a huge amount because of this broker.
Author dari 4XP: Kellan | Tanggal 2020-03-20
My trading experience at Forex Place is probably the worst I've had in my life. Not only have I become a victim to their fraudulent scheme, I also had the most terrible trading experience at this broker. Their platforms are not working properly causing huge losses. Their customer support is unresponsive hence problems are not resolved. And they have a relatively high minimum initial deposit. I regret opening an account at this broker. I hope they get punished as they should be.
Author dari 4XP: Rydley | Tanggal 2020-03-12
I was so happy when I found 4XP because it is very rare to find a broker that offers Binary Options. That is why when I found about 4XP and saw that they had reasonable trading conditions, I opened an account right away. I invested quite a huge amount and was able to trade for a few months. But then the news about the investigations of the Israeli police broke out. I immediately asked for the withdrawal of my fund when I learned that 4XP is one of the brokers to be investigated but then the broker did not release my money.
Author dari 4XP: Joxan | Tanggal 2020-03-02
I was looking for a broker that allows Binary Options and found Forex Place. Brokers in my country do not offer Binary trading so I opted for a broker outside the country. The first few months of my trading activities went well. I was earning in a beginner's rate but I was satisfied as I was only starting. Besides, I had no problem with their trading platform. However, after a year of trading. Things have changed. The platform had glitches frequently and often displayed the wrong account balance. Until the broker said that my account balance went down to zero. This was impossible and I told them that it must only be a mistake but they insisted that I lost everything. After that, my account was closed.
Author dari 4XP: Adonis | Tanggal 2020-02-26
A few years ago I lost my account at 4XP. I traded at this broker for more than a year and I though that I was dealing with a good broker. My account manager would always remind me to keep myself from withdrawing my fund because having a larger account balance attracts higher profit rate. But as it turns out, my manager told me that because they did not want me to find out that they have no intention of releasing funds at all. After a year, I decided to take half of my profit. When I did, the broker suddenly closed my account and I never had access again.
Author dari 4XP: Jayar | Tanggal 2020-02-13
Every fraud broker appears reliable at first. That is how they are able to attract their clients. They pretend to have their licenses. They mostly provide a good trading platform to keep the trust of their clients. That is what 4XP did. When I opened an account at this broker, I used a smooth-running platform. I was very happy back then because most of the issues with other brokers that I've read is that they have a faulty platform. But this was just for act. When the moment comes that you want to withdraw your profit already, that is when their true color would come out. They did not release my fund despite my multiple requests.
Author dari 4XP: Kate | Tanggal 2020-02-05
I am now trading with a reliable and honest broker. But I still couldn't forget what 4XP did to me. This was my first broker and I still did not know enough about the legal matters of Forex trading. I deposited a total of $700 on this broker and was able to trade for about eight months. However, when I asked for my first withdrawal request, the broker suspended my account. It was back after two weeks but my fund was lessened by more than a hundred dollars. I asked them what happened to my balance and they said that I was charged for violating their rules which I still don't get until now.
Author dari 4XP: Khristine | Tanggal 2020-02-18
They target novice traders. Once they get an idea that you are inexperienced, they will take this opportunity and will try to recruit you to trade at their company. I am honestly just glad now that they have stopped their business. I know exactly how it feels to be made a fool and be robbed of my money and I wouldn't want this to happen to anyone else. 4XP is horrible and the people behind this broker must be penalized.
Author dari 4XP: Gamze | Tanggal 2020-01-27
What I feel now is relief that Forex Place has already stopped their business. I am done with my anger and I have already accepted that I will never be able to retrieve my fund. I just want to make sure now that no one else will fall victim to this fraud broker. I lost more than $2000 on this broker who promised that they will guide me throughout my trading journey. In the end, they only wanted to take my money.
Author dari 4XP: Elliot | Tanggal 2020-01-22
Maybe it is for the best that 4XP has disappeared. At least they won't be able to deceive any people anymore. What happened to our funds is irreversible. I have come to accept this truth already and that there is nothing I could do about it anymore. I've lost more than $500 and this is not a small amount for me. I am simply a regular trader who wished to at least grow some of my savings. But I was very unfortunate to end up with a fraud.
Author dari 4XP: Pammy | Tanggal 2020-01-14
It is certain, 4XP is a scam. It is good that they have already stopped their operations so as to not involve any innocent people anymore and become further victims. I opened an account at this broker back in 2014 and traded for more than a year, In terms of trading experience, there was not much of a problem. It was an average experience. I only stopped trading when the broker declined all of my withdrawal requests without any concrete reason. They refused to release my fund and ended up terminating my account.
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