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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.
Autor de 4XP: Ubicel | Data de  2019-11-12
I did not see anything strange about 4XP when I opened an account and even as I was trading with them. I lasted eleven months without withdrawing anything and in those months, I had a pleasant experience. But when I made my first withdrawal request, everything started to change. The support was no longer responsive and my requests were rejected multiple times. Until it reached the time when my account was suspended and I no longer had access to my account nor my fund.
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Autor de 4XP: Kayle | Data de  2019-10-29
I was a former trader at 4XP and I traded binary options. During the first month, I was consistently assisted. Even when I don't contact them to ask questions, my account manager check up on me. My trading activities were also doing well during that time. However on the following months, I noticed that the platform started to be shaky and executions were delayed. This time also, my account manager became unresponsive even when I tell him that I have concerns. Then a little later, I suddenly couldn't access my account anymore. Until I just found out that the company closed down.
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Autor de 4XP: Polinne | Data de  2019-10-22
Before 4XP disappeared, I was trading Binary Options with them and had around $12,000 in my account. Half of it was my capital and the rest were results of years of working diligently. I never once tried to withdraw my fund because I wanted it to grow even more and I was told by the representative that keeping the funds in my account would do just that. I believed and never attempted to take anything. Until issues poured down and some of my fellow traders have started to complaint. Then one day, the website is no longer accessible and the company couldn't be contacted anywhere.
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Autor de 4XP: Gene | Data de  2019-11-04
They said the same thing to me and I am so mad at myself for believing them. All I wanted was to invest my money on something productive and when they told me that keeping the funds in my account would increase the profit rate, I easily believed. I trust them because my account manager was very accommodating to me. I felt that I was well taken care of and she never failed to check up on me. Now, I realize that none of her gestures were sincere and she only did it to earn my trust.
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Autor de 4XP: Romer | Data de  2019-10-14
Trading at 4XP was not that great in the first place. They had a faulty platform which often crashes or has glitches. This was so far from the platform in their demo account. After switching to a real account and depositing $3000, services have become terrible. The support team took a long time before answering my messages. Slippages were frequent as well. Since I have seen how the real trading system of 4XP is, I decided to close my account and take my fund. However, the broker did not allow me. They tried to convince me to stay with them for a few times and when I firmly said that my decision was final, they suspended my account. Right now, I have no access to my account nor my fund.
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Autor de 4XP: Dylan | Data de  2019-10-11
I am more relieved now that the broker has stopped operating as there would be no future victims. However, I am worried because the people behind this fraudulence is still not punished. It is possible that they would make another way to scam people and take their money. I traded Binary options at this broker for almost a year. I made a few deposits but in the end, I never got to withdraw even a single cent from my account. All I want is justice. I hate that they seem to have gotten away with what they did.
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Autor de 4XP: Alfie | Data de  2019-09-27
4XP never processed any of my withdrawal requests. I have been with them for almost two years and all of my three requests were denied. They kept making excuses to disapprove my withdrawal and I couldn't do anything because I can only take my money if they would let me. Later on, I read a report about multiple complaints on this broker. We shared the same sentiments. In the end, I still didn't get my money and the broker just disappeared.
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Autor de 4XP: Senaya | Data de  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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Autor de 4XP: Shira | Data de  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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Autor de 4XP: Wayne | Data de  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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Autor de 4XP: Ukelai | Data de  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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Autor de 4XP: Ash | Data de  2019-09-30
You will know the honesty of a broker once you try to withdraw your funds. If the broker rejects your request multiple times, then it should be a red flag. 4XP did this. What's worse is they give questionable reasons for the denial of the request. For instance, they will insist that your account is still not verifies even when you have already submitted all of the necessary documents. They also say that the issue comes from the intermediary but when it is time to deposit, they receive your fund without a problem.
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